Grocery Industry 2021 - Digital Maturity Benchmark - IN PARTNERSHIP WITH - Winsight
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IN PARTNERSHIP WITH
Digital Maturity Benchmark
Grocery Industry 2021
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Market Trends Consumer Behavior & Outlook
As COVID restrictions Adoption of online grocery shopping (Percentage of Shoppers Shopping Online)
subside, online habits
formed during the
pandemic will 81.7%*
continue to advance. 47.3%*
38.7%
Convenience and habit has helped sustain 21.5%
the growth of online shopping beyond
the regulations of the pandemic.
2018 2020 2022 2025*
~ 75% 30%
of shoppers would have purchased of shoppers have purchased more
grocery online by 2025. categories online in 2020 vs 2018.
Incisiv’s 2021 Digital Maturity Benchmark Note: * Incisiv projection
As shoppers look to Shopper preferences for ful lment of online orders
get back to their
normal lives, stores 3% 6%
will return to the 22%
primary shopping
31% 22% 20%
channel, especially as
24%
delivery fees rise. The 33%
34%
trend will persist for 41%
next 3-5 years.
54%
Pandemic-driven Online grocery sales outlook growth to continue digital acceleration in Grocery. Digital sales will reach 20.5% by 2026. As shoppers begin to return to normal life after a year+ of restrictions, most will increase in-store purchases. However, this will not cause digital sales to go down as habits formed with online shipping will remain. In addition, retailers have added digital capabilities that appeal to shoppers, young and older alike. With these factors, we see the share of the market for online shopping to reach close to 21% in the next ve years. Incisiv’s 2021 Digital Maturity Benchmark
While grocers have matured greatly in the areas of fulfillment and ordering,
they are still lagging in research & discovery and customer service.
Overall
Customer Research &
Engagement Discovery
Online
Fulfillment
Ordering
Retail Average Maturity Grocery Maturity
Incisiv’s 2021 Digital Maturity Benchmark
While some digital capabilities have evolved, grocers still have
considerable progress to make to fully meet shopper expectations.
Research & Discovery Online Ordering Fulfillment Customer Service
61% 82% 54% 64%
o er lters for dietary of grocers have private allow shoppers to choose a delivery allow shoppers to register and
restrictions label brands slot before building the cart manage their loyalty membership
17% 11% 11% 27%
o er advanced search capabilities allow shoppers to view in-store allow shoppers to share "on the way" or have a live chat option
such as search within a wishlist inventory online "at the store" status for pick-up
Incisiv’s 2021 Digital Maturity Benchmark
Digital Benchmarking Framework Methodology & Approach
Incisiv's 2021 Digital Online Ordering Frictionless Fulfillment
Maturity Benchmark Order personalization, inventory Availability, speed and
visibility & payment options convenience of ful llment
assesses top grocery 55 attributes 32 attributes
retailers' digital channel 57 attributes 35 attributes
experience and capabilities
Research & Discovery 360-Degree Service
across four key areas.
Availability of information at Resolution, returns and
the crucial decision points customer assistance
The benchmark is comprised of the top grocery
61 attributes 42 attributes
retailers(by annual revenue) across 4 di erent
59 attributes 44 attributes
industry sub-segments. Each retailer's digital
maturity capabilities and experience were
assessed using an observational methodology. Incisiv's Digital
Maturity Benchmark
117 190 4
retailers benchmarked digital capabilities assessed segments covered
90 retailers benchmarked in 2020 195 capabilities assessed in 2020 Discount Stores, Hypermarkets,
Supermarket, Warehouse Clubs
Unless stated otherwise, all data in this report is from Incisiv's 2021 Digital Maturity Benchmark.
Text in green indicates 2020 data
Incisiv’s 2021 Digital Maturity BenchmarkEach assessment area includes Illustrative examples of table-stakes and di erentiating experiences
table-stakes and di erentiating
experiences designations. These
are de ned based on their overall Research & Online
Discovery Ordering
level of adoption, perceived value
by shoppers, and impact on key
• Promotion call-outs on the homepage and • Capability to book ful llment slot on home-
performance indicators (KPIs) such
search listing page page
as average order value (AOV),
• Filter by dietary restrictions • Product substitution
conversion and tra c.
• Availability of nutritional and content details • Availability of brand's private label products
for ready-to-eat food items • Expedited and guest check-out options
TABLE-STAKES • Advanced product lters: stock availability, • Expanded payment means: Apple Pay, PayPal,
Foundational capabilities required mode of ful llment, delivery time SNAP, EBT
to address key shopper • Inventory status call-outs
expectations today. The absence of
these capabilities has a negative
impact on digital performance Frictionless 360-Degree
KPIs. Fulfillment Service
DIFFERENTIATING EXPERIENCES • Ful llment options: BOPIS, Home Delivery • Helpdesk: FAQ's, telephonic support
Advanced capabilities that address • Capability to receive order pickup alerts • Store locations and details
important emerging shopper • Availability of order status • Account settings: Save dietary pro le and
expectations. The presence of these • Expedited ful llment (2-hours, same day), deals and coupons
and contactless delivery • Product recommendations on home page
capabilities has a positive impact
• Option to pay in-store • Subscription to promotions via text alerts
on digital performance KPIs.
• Membership program for delivery • Availability of live chat option
• Prompt for free shipping
Incisiv’s 2021 Digital Maturity BenchmarkDigital maturity benchmark: Rating categories.
Laggards o er a severely Followers o er a basic digital Challengers o er a Leaders o er the richest
lacking digital maturity, maturity, addressing most seamless digital maturity maturity within and across
missing even some basic table-stake capabilities. Their built on a solid foundation retail segments. They lead
table-stakes functionality. experiences lack depth, and of capabilities. They o er in adoption of
are light on adoption of some di erentiated di erentiated experiences,
di erentiated capabilities. experiences, but lack the and are functionally
depth and coverage of mature across most
leaders. assessment areas.
Adoption of table-stakes capabilities: Adoption of table-stakes capabilities: Adoption of table-stake capabilities: Adoption of table-stakes capabilities:
Medium Medium-High High High
Adoption of di erentiators: Low Adoption of di erentiators: Low Adoption of di erentiators: Medium Adoption of di erentiators: High
Incisiv’s 2021 Digital Maturity BenchmarkDigital maturity is Annual revenue growth 2020
highly correlated
with revenue growth.
Leaders are 11%
experiencing more
than 5x higher
growth compared to 7%
laggards.
5%
2%
Incisiv’s 2021 Digital Maturity BenchmarkRetailers rated as leaders in digital shopping experience, in alphabetical order. Global Leaders in Overall. Incisiv recognizes these 13 brands as leaders in the overall grocery shopping experience. They have a strong foundation of table-stakes capabilities along with leadership in the adoption of di erentiating capabilities. The entire leaderboard is available at the end of the report. Incisiv’s 2021 Digital Maturity Benchmark
01 | Research & Discovery Ease of Search & Navigation
RESEARCH & DISCOVERY: OVERVIEW WHY IT MATTERS WHAT WE ASSESS
Search, inventory With ~90% of shoppers checking the This section evaluates the extensiveness of
website before even planning store visits, the search function, ease of navigation and
visibility and availability of information at important
the research & discovery process of
promotions are critical digital channels becomes the most crucial customer decision points in the shopping
yet very element for success. journey. The attributes assessed, if present,
underwhelming would greatly improve customer
aspects of most engagement and conversion.
grocery websites.
75% of shoppers 61 total attributes assessed,
Shoppers look at online shopping actively seek promotions while shopping including:
as a substitute for in-store for groceries online.
shopping. However, the experience • Ease of onsite search through a
of searching for products online functional search bar
can be frustrating. The grocery 80% of shoppers • Availability of nuanced lters around
segment lags other industries as will leave a website if it fails to o ers product availability, ful llment options
they fail to provide visibility into convenient navigation with relevant and dietary restrictions
detailed product information for results. • Ease of nding products: relevant
substitutes that are available. In product tags, new launches highlights
addition, they lag in maturity • Inventory status callouts on product
around their online promotional 71% of retailers search listings
o ers. have cited real-time inventory call-outs • Availability of product content:
as a major hurdle in onsite inventory recommendations, ratings and reviews
management. on important product pages
Incisiv’s 2021 Digital Maturity BenchmarkRetailers rated as leaders in Research & Discovery, in alphabetical order. Global Leaders in Research & Discovery Incisiv recognizes these 17 brands as leaders in research and discovery. They have a strong foundation of table-stakes capabilities along with leadership in the adoption of di erentiating capabilities for research and discovery. The entire leaderboard is available at the end of the report. Incisiv’s 2021 Digital Maturity Benchmark
Areas of high growth: Transparency of Areas of low growth: Nuanced and extensive
ingredients and nutritional information. filtering options.
2020 2021 2020 2021
Separate category for
Availability of more than 4
specialty diets(e.g. 25% 34% 46% 46%
lters
vegan)
Availability of Filter for dietary
ingredients for ready- 70% 77% restrictions(e.g. gluten 54% 58%
to-eat food free)
Availability of nutrition
Filter for ful lment option
& allergen information 62% 70% 7% 8%
(e.g. in-store pickup)
for ready-to-eat food
Incisiv’s 2021 Digital Maturity BenchmarkRESEARCH & DISCOVERY: SPOTLIGHT
Ability to filter products by fulfilment
channel.
With ~75% of online orders set to be ful lled from stores via in-
store pick-up or curbside pick-up, easy navigation of ful llment
options is a requisite for smooth shopping. Currently, only 8% of
retailers o er this capability to lter out products basis
ful llment options.
RESEARCH & DISCOVERY: SPOTLIGHT
Target o ers shoppers an entire section of ful llment lter
options, with the ability to get expedited same-day delivery. The Informative stock inventory callouts.
variety of options re ect the level of choice and convenience
available to the shopper. ~60% of shoppers drop o from a website without looking at a
product detail page. Retailers need to go beyond availability and
provide shoppers with reasons to complete purchases. Inventory
status callouts attract shoppers to products and assure an instant
conversion into the purchase. However, just 6% of grocery retailers
currently display low inventory callouts to push shoppers to
purchase.
Walmart uses prominent and simple callouts to draw the attention
of shoppers to speci c products.
Incisiv’s 2021 Digital Maturity Benchmark02 | Online Ordering
Seamless Ordering &
CheckoutONLINE ORDERING: OVERVIEW WHY IT MATTERS WHAT WE ASSESS
From a personalized Loyalty in online shopping is low; 50% of This section evaluates the in-house and
online shoppers defect for better deals.
experience to high third-party platforms for online
Retailers have to make the value tangible ordering, provides insights into real-time
degree of inventory for the shopper beyond the product and inventory visibility, personalization of
visibility. make checkout an easy and frictionless orders as well as payment options o ered
process. by retailers.
Shoppers are increasingly
seeking personalization and
recommendations in their
1 out of 5 shoppers 55 total attributes assessed,
shopper journey. Helping this
acceleration is the surge in the would abandon a cart if the checkout including:
adoption of digital wallets, e- process is long/complicated.
• Platform for product purchase: Brand
gift cards, and QR codes that is
website or Third-party
simplifying the online ordering
• Inventory visibility: In-store inventory
shopper experience. 56% of retailers status and precise location, in cart
cited inventory accuracy as a problem • Product/order personalization and
A major investment area for for their omni-channel program. recommendations
retailers should be to maximize
• Analyzes of the steps involved in the
real-time inventory visibility.
checkout process, guest checkout
Shoppers want to know both
the availability of in-store 36% of shoppers availability
• Di erent payment options o ered to
inventory as well as the exact are interested in or currently use a
shoppers
location of the product in- "buy now, pay later" payment option.
store.
Incisiv’s 2021 Digital Maturity BenchmarkRetailers rated as leaders in Online Ordering, in alphabetical order. Global Leaders in Online Ordering. Incisiv recognizes these 20 brands as leaders in online ordering. They have a strong foundation of table-stakes capabilities along with leadership in the adoption of di erentiating capabilities for online ordering. The entire leaderboard is available at the end of the report. Incisiv’s 2021 Digital Maturity Benchmark
Areas of high growth: Speed of checkout. Areas of low growth: Ease of applying
discounts & promotions.
2020 2021 2020 2021
Available promotions
One screen checkout 25% 42% 36% 36%
displayed in cart view
Option to add-to-cart
Available coupons
directly from product 29% 42% 15% 17%
recommended in cart
recommendation
Selecting desired store
Time bound promotions
at the beginning of the 69% 85% 10% 15%
emphasized in search
shopping journey
Incisiv’s 2021 Digital Maturity BenchmarkONLINE ORDERING: SPOTLIGHT
Expedited one-screen checkout.
For over 70% of shoppers, the checkout experience is their
biggest pain point. On average, 69% of the shoppers abandon
the cart due to a poor checkout experience. Boosting conversion
rates by optimizing the checkout process is on the high priority
list for retailers, with 38% of retailers assessed o ering one
screen checkout from the cart page.
ONLINE ORDERING: SPOTLIGHT
Albertsons o ers an e cient one-screen checkout option with
pre-arranged settings for location and slot. Digital payment methods on the rise.
Secure, fast, and convenient checkout are preeminent payment
preferences for shoppers. 54% of shoppers will spend more at
retailers where they can conveniently use digital payments. With
the rise in digital payments, 25% of retailers have evolved to adopt
SNAP EBT, 19% have adopted PayPal and 5% have adopted Apple
Pay.
Rewe o ers multiple digital payment options including cards,
Paypal, Rechnung, and SEPA.
Incisiv’s 2021 Digital Maturity Benchmark03 | Frictionless Ful llment Convenience of Placing & Receiving Orders
FRICTIONLESS FULFILLMENT: OVERVIEW WHY IT MATTERS WHAT WE ASSESS
Reimagining the Availability of omnichannel ful llment This section assesses the experience of
options has become widespread with
fulfillment experience. placing and receiving an order through the
86% of retailers now o ering BOPIS and di erent ful llment methods o ered. The
Retailers such as Target and 71% o ering curbside pick-up. However, ease of ordering is directly correlated to
Walmart, which had mature it is the ease and experience of ordering conversion and retention.
omnichannel ful llment and receiving the products that will
capabilities pre-pandemic, saw determine winners and losers.
200%+ growth in digital sales.
Retailers who lagged were forced 32 total attributes assessed,
into action and introduced new
85% shoppers
experiences such as BOPIS and prefer to receive their grocery orders in 2 including:
curbside pick-up in record time. hours or less.
• Adoption of di erent ful llment options
and speed of ful llment
O ering a complete ywheel of
• Customer experience: home delivery-
online and store-based ful llment 65% shoppers timelines, order tracking, etc.
is now table-stakes. What was use BOPIS to avoid paying shipping fees. • Customer experience: pick-up counters,
visionary a year ago, is ordinary
wait times, etc.
today. Going forward, operational
• Handling customization requests: Driver
execution (speed, ability to
notes, opt for contactless delivery
customize, and real-time order 35% shoppers
• Returns and exchanges for product
visibility) will drive di erentiation say contact less services will be important
purchased
and provide a competitive edge. to them even post the pandemic.
Incisiv’s 2021 Digital Maturity BenchmarkRetailers rated as leaders in Frictionless Ful llment, in alphabetical order. Global leaders in Fulfillment. Incisiv recognizes these 18 brands as leaders in Ful llment. They have a strong foundation of table-stakes capabilities along with leadership in the adoption of di erentiating capabilities for ful llment. The entire leaderboard is available at the end of the report. Incisiv’s 2021 Digital Maturity Benchmark
Areas of high growth: Experience of Areas of moderate growth: Adoption of new
delivery and tracking. fulfillment methods.
2020 2021 2020 2021
Option to track order 41% 58% Delivery via third-party 45% 45%
Membership program
33% 41% Curbside pickup 42% 49%
for delivery
Reserve-Online-Pick-
14% 30% Two-hour pickup 19% 22%
In-Store
Incisiv’s 2021 Digital Maturity BenchmarkFULFILLMENT: SPOTLIGHT
Ability to share location updates with store.
88% of the shoppers have said that speed is the #1 reason for using
click and collect. However, long wait times are a challenge.
Conditioned by the speed of QSR drive-thru, grocery wait times are
an average of 3x higher, hampering shopper experience. In 2020,
grocers started experimenting with integrating with GOS services
for live location tracking and immediate pickup. Currently, only 6%
of grocers o er this capability.
FULFILLMENT: SPOTLIGHT
Walmart enables shoppers to coordinate the pick up via the Delivery membership programs.
Walmart app or by calling up the store to inform on the status, this
ensures immense e ciency for the entire process. 74% of shoppers will abandon their cart due to high delivery costs.
Paid memberships help increase shopper engagement as well as
o set costs to last-mile delivery. Shoppers are 3x more likely to
shop with retailers where they have a paid membership program,
yet currently, only 40% of grocers o er delivery membership
programs.
Sainsbury provides its shoppers with a delivery pass, using which
they can avail of free delivery after making a payment of GBP20 for
a 3-month subscription.
Incisiv’s 2021 Digital Maturity Benchmark04 | Customer Engagement & Service
Customer Satisfaction & Issue
ResolutionCUSTOMER ENGAGEMENT & SERVICE:
OVERVIEW WHY IT MATTERS WHAT WE ASSESS
360-degree service for In the absence of physical interactions, This section assesses all aspects of post-
customer satisfaction has to evolve from
customer satisfaction. sales service, including the ease of
a call-center resolution function to a shoppers to contact customer service or
With the pandemic massively pro-active customer engagement and get their queries resolved, return policies
disrupting supply chains and satisfaction engine that will directly and engagement practices.
product availability, customer contribute to shopper loyalty.
service evolved beyond complaint
resolution to a medium of trust-
89% of shoppers 42 total attributes assessed,
building.
are more likely to make another purchase
including:
after a positive customer service experience.
In an increasingly digital world,
• Option to create a personal pro le and
transparency, convenience, and
save payment preferences and multiple
personalized communications are
60% of shoppers addresses
pillars of trust and satisfaction.
subscribed to the loyalty programs • Availability of self-help tools including
highlighted that they end up spending more live chat options and FAQs
Do you provide authentic sales and
with the brand due to the program incentives • Terms of the return policy and modes of
service, including instant refunds
incurred. return
for returns? Can shoppers view
• Store locations provided with contact
their purchase history and
number and hours of operation
receipts)? 79% of shoppers • Availability of a loyalty program with the
say they prefer live chat as a mode of option to redeem rewards online
communication because of the promptness • Availability of customer engagement and
of service. shopping assistance options
Incisiv’s 2021 Digital Maturity BenchmarkRetailers rated as leaders in Customer Engagement & Service, in alphabetical order. Global leaders in Customer Engagement & Service. Incisiv recognizes these 20 brands as leaders in Customer support. They have a strong foundation of table-stakes capabilities along with leadership in the adoption of di erentiating capabilities for customer engagement. The entire leaderboard is available at the end of the report. Incisiv’s 2021 Digital Maturity Benchmark
Areas of high growth: Personalization and Areas of moderate growth: Adoption of
engagement. customer account and loyalty program.
2020 2021 2020 2021
Virtual assistant Option to register and
15% 25% 59% 64%
integration manage loyalty membership
Recommendations for Option to earn reward
5% 15% 39% 43%
users on home page points for every purchase
Brand's mobile-app Option to save o ers and
64% 71% 18% 22%
advertisement deals in user pro le
Incisiv’s 2021 Digital Maturity BenchmarkCUSTOMER ENGAGEMENT: SPOTLIGHT
Option of adding dietary preferences for
personalization.
Health/Wellness has become an important factor impacting
grocery purchase decisions. More than 50% of purchase decisions
are impacted by dietary restrictions. Dietary pro les help grocery
brands to make personalized recommendations to the shoppers
based on their preferences. Currently, only 13% of grocers o er
this capability. CUSTOMER ENGAGEMENT: SPOTLIGHT
Tesco has a host of options mentioned in the account section that Live chat onsite.
a customer can easily update to get a personalized experience as
Shoppers expect prompt and quick customer service. O ering
per their diet/health preferences.
them a live chat option ensures their questions are answered
instantly, without any wait time. 73% of shoppers believe that a
brand valuing their time is the most crucial part of good
customer service. Currently, only 27% of grocery brands o er
live chat as a part of their contact preferences.
Hy-vee has a live chat option available on its website that helps
shoppers to get their queries resolved in real-time.
Incisiv’s 2021 Digital Maturity BenchmarkLeaderboard
2021 Digital Maturity Benchmark
Laggards Followers Challengers Leaders
(25) (36) (43) (13)
Incisiv’s 2021 Digital Maturity BenchmarkIN PARTNERSHIP WITH
Incisiv's 2021 Digital
Maturity Benchmark is
based on insights from its
ABOUT INCISIV ABOUT WINSIGHT GROCERY BUSINESS
proprietary digital
maturity benchmarking Incisiv is a peer-to-peer executive Winsight Grocery Business provides
methodology. network and industry insights rm for insightful business intelligence for grocery
consumer industry executives executives and industry decision-makers. In
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