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Digital

Digital


The Digital pillar is defined as: easy ways to shop online or with an app, and usefulness of information provided. During 2020, Digital increased in importance to drive short-term financial performance. Walmart Chief Financial Officer Brett Biggs said the shift in customer buying behavior at the start of the pandemic amounted to "three to five years of acceleration in eCommerce, really in a period of weeks and months."

As Covid accelerated a dramatic lift in web search, website traffic, and conversion. According to Microsoft Advertising, food, grocery, and cooking content searches jumped 53.8% YOY. And traffic to grocery websites increased 34.8% from January to October 2020. According to Edge Ascential, overall grocery eCommerce was projected to grow 50% in 2020.

Digital is ubiquitous today with every retailer offering some form of delivery. However, we found Digital became less important in driving long-term emotional connection with customers, indicating they likely shopped online out of necessity, rather than preference - driven by out of stocks or to avoid the risk of Covid. Poor experience with online shopping might also explain why Digital can negatively impact emotional bonds, as consumers mentioned being frustrated by the lack of Quality produce, wrong substitutions, and difficulty finding pickup slots. If customers maintain their Covid Era online shopping habits, only retailers capable of delivering a positive Digital experience will retain them post-Covid. Brookshire's Grocery and BJ's Wholesale made a leap in Digital customer perception compared to last year. Brookshire's Grocery had the biggest jump in position than any other retailer in any other pillar, going from 33rd on Digital to 9th and sitting comfortably in the First Covid Quartile. BJ's Wholesale paired strong performance in Digital and Operations to have one of the highest Covid Momentum Scores, and making one of the biggest moves in the RPI study this year.

Digital and Covid: Voice of the customer

"Out of stock items are especially challenging when ordering online, because you don't find out until the order is packed that the items aren't available, so you can't add new items or adapt your menu plan for the week as well as if you are in store."

FOR RETAILERS

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In the first episode of Customer First Radio, Dave Clements, Global Head of Retail for dunnhumby and David Ciancio, Global Head of Grocery for dunnhumby kick off the series by discussing what it means to be a truly Customer First business, share which retailers and brands today embody a Customer First mindset, and examine how Customer First materialized during the pandemic with retailers.

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Photo by Will Francis on Unsplash

The 2021 Retailer Preference Index: Who's winning and why. David Ciancio, Global Head of Grocery discusses the 2021 U.S Retailer Preference Index (RPI): Grocery Edition with the lead author of the RPI, Erich Kahner. They unveil key insights and discuss who is winning and who is best positioned for the future.

dunnhumby’s Prophets of Aisle Six, Episode 2: Heinen's Fine Foods

The Prophets of Aisle Six is the first online reality series focusing on innovation in the food retail industry. In this episode, Jose Gomes, dunnhumby's North America Managing Director, travels to the downtown Cleveland store of Heinen's Fine Foods. Jose meets with Tom and Jeff Heinen, co-owners and brothers, and learns how they are evolving their grandfather's mission of delivering excellent customer service. With 23 stores in Northeast Ohio and the greater Chicago area, and a 90-year legacy, Heinen's is proving that being a small retailer can be an advantage when it comes to data.

In this series, dunnhumby tours the globe and speaks with some of the world's greatest brands, exploring their biggest challenges and how they are using customer data science to meet those challenges.


In my last post, I posed five questions to retailers to help them determine whether they're ready for a customer-first mindset. Now, I'd like to challenge the retail basics that seasoned retailers were trained on, and suggest instead a new customer data science approach.

"Retail is detail" is common industry wisdom, and it means that achieving success is subtle and difficult. Success in any field demands practice and experience, and so it is little wonder that many senior retail and brand leaders and managers have vast years of involvement, and that most have grown up through the business in progressive steps.

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