In
today’s fragmented food marketplace, the cost of acquiring customers is rising
while loyalty remains elusive. From grocery stores to restaurants to
convenience stores, all foodservice channels are spending more to win customers
who may never return. According to the latest Upside report, 72% of grocery
revenue comes from uncommitted customers, yet half of new shoppers
disappear after just one month. The reality: a visit does not equal loyalty.
Drawing
from the Grocerant
Guru’s® Price Value Service® Equilibrium,
retailers must create a holistic brand experience that aligns price
(affordability), value (perceived quality and relevance), and service
(speed, convenience, digital accessibility) in order to reduce churn and
elevate the return on every customer acquisition investment.
Grocery Channel: Churn Challenges in the Land of Choice
The
Upside report, “Winning the Uncommitted Customer,” analyzed 75 million grocery
transactions and found:
·
50% of new grocery shoppers do not
return after 30 days.
·
Just 7% of grocery customers are
fully loyal, contrary to grocers’ belief that 53% are committed.
·
Securing one extra trip per month
from an uncommitted shopper can increase revenue by 84%.
·
Loyalty program users churn at 14%,
compared to 31% for non-participants.
Grocerant Guru®
Insight: Grocery retailers often focus too
heavily on price. But without balancing that with relevant value (meal
solutions, time savings) and service (personalized offers, fast
checkout), they fall short of the Price Value Service® Equilibrium—leading to
high CAC and low return.
Restaurant Channel: Digital Dollars vs. Loyalty Realities
Restaurants,
especially QSRs and fast casuals, are funneling increasing resources into
customer acquisition:
·
CAC ranges from $5–$40,
depending on format and media strategy.
·
Only 20–30% of first-time diners
return, underscoring the retention issue.
·
Loyalty members visit twice as
often, yet adoption remains under 40%.
·
App fatigue and platform overload are
eroding digital loyalty gains.
Grocerant
Guru® Insight: Restaurants that skew too heavily
toward service (speed, digital delivery) without anchoring value
(food quality, uniqueness) or price (perceived affordability) often see
fleeting gains. Only equilibrium across all three pillars fosters sustainable
loyalty and lowers CAC long-term.
C-store Channel: Impulse Without Insight?
Convenience
stores enjoy high traffic, but the race to win repeat trips is increasingly
complex:
·
CAC is low ($1–$5 per new customer),
but basket sizes are smaller, and margins are tighter.
·
Fewer than 20% of visits are linked
to loyalty programs, but users spend 33% more per visit.
·
The opportunity lies in pairing
fuel rewards with fresh food solutions, a growing trend among c-store
leaders.
Grocerant Guru® Insight: C-stores
thrive when they integrate price-sensitive promotions (fuel discounts), value-driven
food offerings (ready-to-eat, fresh bundled meals), and service
enhancements (mobile pay, pre-order). Aligning these delivers equilibrium
that enhances profitability per visit and lifetime customer value.
Five Strategic Takeaways from the Grocerant Guru®
1. Price
Value Service Equilibrium Is Not Optional: Today’s customer
isn’t choosing based on one factor—they are judging the complete value chain.
Balance is mandatory to earn repeat business and reduce churn across all
channels.
2. Win
the Second Visit, Not Just the First: Acquisition should be measured not
by foot traffic alone, but by conversion to habitual usage. Each
successive transaction builds toward brand embedment.
3. Dynamic
Personalization Is Loyalty 2.0: One-size-fits-all rewards don’t
drive behavior. Brands need real-time personalization, powered by data, to
maintain relevance and close the CAC-revenue gap.
4. Channel
Blending Boosts Retention: Grocery stores offering
restaurant-quality prepared meals and c-stores offering family dinner bundles
are living examples of the Grocerant trend—meeting customers where they are
in their daypart decision journey.
5. Remove
Friction Everywhere: The best loyalty loop is the one
that’s invisible. Frictionless technology, instant savings, and clear benefits
create habitual return behavior—even for formerly uncommitted customers.
Think About This
As food inflation flattens and consumer mobility increases, retailers can no longer afford to overspend acquiring customers who vanish. The solution lies in executing the Grocerant Guru’s® Price Value Service Equilibrium—delivering the right product, at the right price, with seamless service at every turn. Whether you're a grocer, restaurateur, or c-store operator, sustainable success will go not to the biggest advertiser, but to the operator who wins the second, third, and fifteenth transaction.
Quote
from the Grocerant Guru® Steven Johnson:
"The consumer today is dynamic, not static. Food retailers must stop
measuring success by transaction counts and start focusing on transaction
continuity. The Price Value Service® Equilibrium isn't a theory—it's the
roadmap to sustainable brand growth in a world of uncommitted consumers."
Drive Sales. Boost Profits. Stay a Step Ahead.
The
Foodservice Solutions® team is dedicated to helping you grow your
top-line sales and bottom-line profits.
Are
you looking a customer ahead? We have the strategies to get you there.
🌎
Visit GrocerantGuru.com
📩 Contact us: Steve@FoodserviceSolutions.us
