How Are Independent Operators Communicating with Shoppers?

By Kelli Windsor, Director, Digital Communications, Food Marketing Institute

Have you ever thought about how many communications you receive in just one day? You’d have to count-up all the emails you get, the Facebook messages you see, the text messages, Instagram posts, and even the good, old-fashioned mail. It’s a lot, and you’re just one person.

Independent grocery store operators need their customer communications to be effective and support their bottom line, but with so many different digital and traditional communications channels, it’s hard to know where to invest time and resources. Annually, the Food Marketing Institute survey’s the food retail industry about their overall business practices. In our 2018 The Food Retailing Industry Speaks report, we look at how grocery stores are communicating with customers. When you narrow the survey respondents to operators of one to 10 stores you can see an interesting picture. 

A Mix of Traditional and Digital Vehicles

Ninety-five percent of independent operators (IOs) are invested in Facebook, followed by 88 percent utilizing in email, 73 percent in-store only promotions, 71 percent printed circulars, and 66 percent Instagram. This mix of traditional and digital communications vehicles shows IOs are using more digital channels, but are still tied to some tried and true traditional communications tactics.

It’s also telling what communications paths IOs are not invested in—only two percent are creating podcasts, seven percent are invested in Snapchat and 12 percent have a YouTube presence. Podcasts and YouTube can both be high-ticket communications channels to invest in, but they also represent a great storytelling and brand-building opportunity.  

Future Investments by IOs

When we asked IOs to look at their customer outreach vehicles and consider their resource allocation in the next two years, respondents gave us a mixed response. Sixty-three percent plan to invest more in email, 54 percent plan more in Facebook, Instagram and in-store promotion respectively, and 51 percent plan to invest in text promotion/outreach. On the flip side, only three percent plan to invest more in TV ads, eight percent plan to allocate more in radio ads, and nine percent plan to utilize  podcasts, Snapchat or location-based promotion technology more. While it seems IOs are slightly interested in increasing digital communications for shopper outreach, many are hesitant to make big investments.

Social Media is a Mixed Bag

Overall, independent operators have strongly invested in social media programs to communicate with shoppers with 71 percent of survey respondents reporting using this tactic to differentiate themselves and build competitive advantages. However, only 33 percent of IOs report social media programs are a successful differentiation tactic. Why is that?

The issue might not be the actual grocer’s social media program and may have more to do with shopper’s change in social media usage. With privacy concerns and other issues being raised this year about several social media platforms, more and more consumers are changing their social media habits and seeking to connect in a variety of ways. It’s important to have a healthy mix of social media channels you engage shoppers through, so you can meet them where they are.

Overall, IOs have begun to develop a stronger mix of digital and traditional communications outreach to shoppers with a heavy investment in Facebook and plans to strengthen their email communications in the future. However, it’s clear IOs are slow to invest in possible in-depth storytelling platforms like podcasts and YouTube. And when it comes to the printed circular, 71 percent of IOs are currently using it to communicate with shoppers and 19 percent plan to invest more in the circular in the next two years.

Download The Food Retailing Industry Speaks 2018 report