Why Grocery Chains are Doubling Down on Geofencing with Shoppers

307%. That’s the total percentage U.S. online grocery sales increased in 2020 over 2019, according to a Mercator Advisory Group report. This spike, totaling $106 Billion at the virtual checkout register, was unprecedented exponential growth. Undoubtedly, the online food spending increase in 2020 was fueled by heightened consumer health safety concerns brought on by COVID-19. Even though grocers implemented stringent cleaning protocols, safe distancing measures, and protective gear for employees, many opted for online and curbside pickup. Now, as more consumers are returning to in-person shopping, grocers are looking to retain their increased digital sales revenues, and they are turning to geofencing as the solution.

Geofencing for Grocery

Retailers have leveraged geofencing technology to generate accurate data analysis on customer behavior for many years. It allows brick-and-mortar stores to gain deeper insights into how customers interact with their retail space. It also lets them know which areas get the most traffic, and how it all compares to their competitors. However, increasingly, grocery chains are using geofencing to improve customer order accuracy, communication, and streamline the curbside pickup process.

Location-based data for Grocery Pickup

According to a new report by market research firm Ipsos, Publix, Aldi, and H-E-B are now leading the way among grocery brands when it comes to customer experience with fulfilling online orders for curbside pickup. Using geofencing technology allows grocery chains to track a shopper’s journey from purchase to pick up, streamline contactless handoffs, and drastically increase efficiency. Because stores know exactly when a customer has arrived and is ready to pick up their order, they can reduce wait times and fulfil orders more quickly. 

Geofencing for Real-Time Grocery Marketing

Hear BDEX Co-Founder and CEO, David Finkelstein talk about Geofencing with BDEX Head of Marketing, Jessie Lizak.

Coupled with other data analytics, geofencing also enables grocers to gain deeper insights. Insights many things including their customers’ spending habits and shopping behaviors,. This can then be leveraged for more targeted offers and promotions to steer them back online. This recurring cycle enables grocers like Publix, Aldi, and H-E-B to deliver the ideal omnichannel customer experience. By seamlessly integrating online and offline shopping options, geofenced-empowered marketing helps increase traffic between a retailer’s physical and online storefronts. This omnichannel route of engagement gives grocers the ability to create more online sales, online conversions, and store visits.

Experts believe that online grocery shopping will continue to remain strong in the coming year. Even as more people get COVID-19 vaccines, consumers have grown used to the ease and convenience of ordering online. This is good news and provides a growing opportunity for personalized, revenue-growing interaction between the grocer and post-pandemic shopper.

BDEX has provided geofenced consumer data to ecommerce and brick-and-mortar retailers for many years. BDEX has a proven model for helping brands reach the right customers at exactly the right time. So, if upping your curbside pickup game is part of your plan, drop us a line so we can help your brand swing for the geofences now.

To learn more about how BDEX can help you reach the right customers and retain their business, contact us today.