How will COVID-19 affect growth of online grocery? What retailers can do to improve the experience

The SARS epidemic created a big and lasting increase in eGrocery in China. Today the US system is so different that it’s impossible to make a direct comparison, but the corona virus will almost certainly cause many consumers to try online grocery in the coming months. Having tracked its growth since 2011, we’re thinking about the long-term impact on adoption, the operational difficulties caused by the recent surge in online orders, and what retailers can do in the near-term to support first-time users of the service, especially older shoppers.

Many online shoppers first try online grocery when they experience a life-changing event like the birth of a baby or an injury that kept them house-bound. COVID-19 is this kind of event. At this point, it’s hard to tell how many of the crisis-motivated new users will stick with the service, but Brick Meets Click will be tracking COVID-19’s long-term impact on adoption.

New & returning online grocery shoppers

Given the COVID-19 crisis, retailers are already taking steps to reassure customers that they can safely shop – from shortening hours of operation to allow for deep cleaning to setting aside specific hours for at-risk shoppers only.

Encouraging online orders is another way that food retailers can support shoppers who want to protect themselves,their families, and their communities.

So, what should grocers think about as they strive to help customers make the shift to online ordering services? Here are two things for them to consider.

1. Factors impacting online grocery adoption

We know several important things about online grocery trial and adoption from our research and long-time observation.

• What drives trial: Today, Brick Meets Click estimates that around 95% of US households have the ability to use at least one grocery delivery or pickup service, however, only around 13% used such a service in 2019. Trial occurs when the service offers an attractive alternative for special or routine shopping occasions, and current conditions are making it a more attractive alternative to in-store shopping for many.

• Not always love at first use: Shoppers experience a steep learning curve when trying out an online grocery service. According to our research, 93% of users who complete three orders with a service provider are likely to use the same service again, compared to 57% who complete fewer.  Most grocers understand that users lack familiarity with the process and are not able to leverage time-saving tools based on past purchases and list-building until they have completed a few orders.

2. Learning from a first-time user

There is a lot to learn from new users. To better understand the experience a shopper might have, we asked an older user to let usobserve her first-time experience and we captured it in the video at the bottom of this post.

Here is a summary of the challenges (and related questions) our shopper ran into when she placed her online shopping order.

> Landed first on a page presenting alcohol (Is that all they deliver?)

> Wasn’t sure how to confirm that an item was added to her cart

> Wasn’t sure how to indicate quantity of produce (How do they know how much I want?)

> Was confronted with a substitution screen (Why do they keep asking me this?)

> Wanted to get rid of a pop-up screen (How do I make this go away?)

> Searched for V-8 juice but couldn’t find the low-sodium variety

> Didn’t have a mobile number to give when finishing the order

The key takeaway: It’s the little stuff that digital natives take for granted that can become big “speed bumps” for new users.

Improving the experience: What grocers can do now

Here are four things that a retailer could do now to help all of their new online customers (but especially those that are older).

First, create and offer a "welcome guide" available on the website, via email, social media channels – especially Facebook – and via pdf which explains the following:

• Where the menus are and what they do (like the diagram of dashboard controls for a new car)
• Where the search function is located and how to use the filters
• Different ways to look for products: by department, by category, by item
• What happens if the product is not available and how substitutions work
• How you get rid of pop-up windows
• How you add items to your cart
• How you set the quantity wanted
• Where you can get additional help if stuck/overwhelmed

Second, it’s worth noting that some older shoppers will likely use a desktop, laptop or tablet rather than downloading a mobile app to their phones. And older users might not have – or regularly use – a mobile phone, so adding a land-line option for contact would help.

Third, have an associate follow up on abandoned carts and don’t simply rely on automated CRM tools for this action.

• This means calling people if there is a phone number associated with the order.
• While more time consuming, this could prove more effective in onboarding a potential lost customer as well as show that you care about them during this crisis.

Fourth, proactively encourage existing online customers/users to help others, e.g., loved ones, neighbors, etc., set up and complete the ordering process.

• While incentives are nice, in the short term it’s more about helping others stay safe and healthy.
• Focusing on community and coming together in a time of need is what people do so let’s promote doing it.

Now (and post-crisis too)

These are ideas that any grocer can use to make it easier for their new online grocery shoppers to climb the learning curve.  The better the experience, the more likely the customer will return.

Check out our first time user's experience here

Please note: This video opens with several background slides that are not narrated currently.  We are working on a new & improved version and will update this video when possible.