CONSUMERS CAN DOWNLOAD SMARTPHONE APPS developed by grocery retailers for two basic reasons: savings and convenience. But to maintain high digital customer retention rates, grocery apps must keep customers engaged, as well as earn their trust.
These are among the findings from a year-three Peck Fellowship research report carried out by Nancy M. Childs, Gerald E. Peck Fellow and professor of food marketing at Saint Joseph’s University in Philadelphia, Pennsylvania, and the Food Marketing Institute, the association that represents grocery stores in the U.S. “Consumer Perspectives on Grocery Apps and Digital Trust: Retailer Opportunities for Maximizing Differentiation and Success” focused on how grocery retailers can build digital trust with consumers.
Childs found that active grocery app users are not overly concerned about privacy; because of “ubiquitous sharing of personal data on social media, they accept that digital sharing is a common practice.” They’re also more willing to share data with retailers if they think they will gain something in return—such as shopping convenience or savings—and they appreciate when retailers are transparent about how their data is used.
“Digital trust is key,” says Childs. “The more consumers feel they are in control of their data, the more generous they are with information, and the more they are locked into an app for sales. The level of digital trust consumers have with apps will be a meaningful differentiation when they’re choosing grocery apps.”