This Week's Herman Trend Alert

Tackling Depression
with Digital Therapeutics


  The Herman Trend Alert

June 13, 2018

Misperceptions of Loyalty

A new study from precima and FMI titled "Next Generation Loyalty Get It Right in Food Retail". Part 1: The State of Shopper Loyalty tells a fascinating and surprising story about people's misperceptions regarding their own loyalty.

Loyalty defined
This study defines Loyalty as "when shoppers choose to allocate a majority of their budget and shopping time to a retailer because they trust that retailer to consistently meet their needs".

Shoppers believe themselves to be loyal
We were astonished that 80 percent of the shoppers surveyed believe they are loyal to their primary grocery store. In addition, if one store could meet all of their perceived needs, 58 percent responding would prefer to shop at only one store.

Their loyalty is not what they thought it to be
However, reality is quite different from their perceptions. Only "19 percent of shoppers shop at only one store and only 7 percent of shoppers spend more than 90 percent of their budget at their primary grocery store". Interesting!

What these insights mean
The interpretation of these insights is that though shoppers have a desire to be loyal and believe they are, all of their needs are not satisfied by their primary grocery store and therefore, they do not behave loyally. So, loyalty is earned not by cards or games, but by consistently satisfying the needs of shoppers better than the competition. For food retailers to take advantage of this finding, they must understand the needs of their shoppers and consistently take actions to satisfy those needs across multiple aspects of their business. The reward is obvious: a higher percentage of the family food budget spent in their stores.

The role of employees in customer loyalty
Well-trained employees also play a huge role in the shopper experience. With the thousands of SKUs (Stock Keeping Units) retailers put on their shelves, finding just what consumers are looking for can sometimes be a daunting task. The chain H-E-B in Texas and Oklahoma does an extraordinary job of training their employees so that they know exactly where items are in their store; they are also trained to stop their other work and personally lead customers to the products they are looking for. Consumers in Texas have shared that shopping at other stores takes longer and is less satisfying.

Marketing to Millennials
The study also found that while all shoppers were looking for some "core shopper experience elements": clean stores, good customer service, short checkout lines, Millennials have higher expectations; they want "personalized offers [and] ecommerce and digital engagement", as well as "prepared meals, meal kits, and in-store dining".

Food for Thought
Wise food retailers will take this information to heart and all retailers would do well to read this study for any implications the findings might have for their businesses. Do you think your customers think they are being loyal to you, but, in reality, are not?

To read the entire Part 1 of this study, visit download here.

© Copyright 1998- by The Herman Group, Inc. -- reproduction for publication is encouraged, with the following attribution: From "The Herman Trend Alert," by Joyce Gioia, Strategic Business Futurist. 336-210-3548 or To sign up, visit The Herman Trend Alert is a trademark of The Herman Group, Inc."

Versatile translator provides services from English, French, or German into Spanish. Especially well-versed in medicine/pharma and automobile industries. Also editing and proofreading of all kinds of Spanish language documents. 5-year Bachelor Degree in Translation. Flexible rates, depending on number of words, degree of difficulty/technicality, and turnaround. For an instant quote email Mariana Campora Lesti at or contact her on SKYPE at marianacampora.

If so, The Innovation Global Network ( is your go-to spot for best practices and experts you need to help you with any aspects of creating innovation, entrepreneurship, or change. IGN is a global ecosystem that welcomes anyone who want to find or offer innovation help, expertise, tools and resources. When you visit their website, you'll find all kinds of information and resources, including networking events and webinars. Basic membership is free, so sign up today!

We've seen a strong resurgence in interest by employers in being recognized as an Employer of Choice®. Celebrate your employee-centered corporate culture! This coveted award is well worth the effort, yet is not easy to achieve. Download the extensive application at; or for a Word® version, drop a note to or call Joyce at 336.210.3548.

To read this Herman Trend Alert on the web:

Herman Trend Alerts are produced by the Herman Group, strategic business futurists, Certified Management Consultants, authors, and professional speakers.

New subscribers are always welcome. There is no charge for this public service. The Herman Trend Alert is read by over 30,000 people in 90 countries, including other websites and printed periodicals. Click here to sign up for the Herman Trend Alert.

Do you enjoy receiving this weekly e-mail update? Contact us about our co-branded Herman Trend Alert service.

Subscribe or Unsubscribe to weekly Herman Trend Alert
View this week's Herman Trend Alert
Archived Weekly Herman Trend Alerts


[ Home About Products Resources Media ]


7112 Viridian Lane
Austin, TX 78739
Voice: 336-210-3548
Toll Free in US & Canada: 800-227-3566

  © The Herman Group. All rights reserved.

Web site design by WebEditor Design Services, Inc.