Dive Brief:
- Raley's has launched a new multimedia campaign that highlights its personalized shopping service through its click-and-collect program, which it has provided for more than 15 years. The online video will focus on a personal shopper who handpicks the customer's groceries based on his personal preferences.
- The Sacramento-based retailer conducted a series of focus groups and surveys to get a clear understanding of what consumers want from online grocery shopping.
- The grocer currently offers click-and-collect and recently started offering same-day delivery. Curbside pickup is available at 110 Raley's, Bel Air Market and Nob Hill Foods stores. The delivery service was launched in Alameda, California late last year but has expanded to many Sacramento zip codes since.
Dive Insight:
Raley's new video campaign could be the bridge between the in-store experience and grocery e-commerce.
Since click-and-collect programs have begun to boom, shoppers' preference to pick their own products — especially fresh items — has been an obstacle for grocers. Research shows 86% of people don't buy grocery products online because they don't trust a stranger to pick fresh produce for them. But this doesn't mean shoppers who use third-party picking services avoid fruits and vegetables. In fact, Instacart's head of brand partnerships Dan Bourgualt said at a conference that fresh produce is the company's top-selling category.
Raley's said it customizes its eCart service based on the customer’s preference and what she would choose if she were in the store.
The service has a comment section that allows consumers to put a preference on the ripeness or type of product they want. For example, if a customer writes “I need ripe avocados. I’m making guacamole tonight,” then runners will know how to best serve that shopper.
By giving shoppers this extra degree of control, Raley's could ease shopper concerns and differentiate from competing click-and-collect programs. This value-add is key, as Raley's click-and-collect offering puts it in direct competition with big-name, large-scale grocers.
Raley’s is known to use video as its outlet for marketing campaigns. Previously, the grocer introduced an advertising campaign that uses video ads to highlight personal experience. The ad spot showed people shopping with different scenarios in mind, such as buying for a vegan family member or a book club meeting. This method of marketing highlights the human element of grocery shopping and makes the experience seem more personable. Other grocers like Shop n’ Save and Lidl have also introduced multimedia ads to cut through the noise of the crowded space. Just like other grocers, Raley’s goal with this digital campaign is to stir up consumer buzz from social media likes and shares.
This new campaign makes sense for Raley's, as more retailers are shifting from print to digital. But whether the campaign can convince consumers to trust Raley’s personal shoppers is a concern, especially since running and creating these multimedia ads is expensive. E-commerce may not be new to consumers, but it's still taking time for shoppers to feel comfortable handing over control of their grocery shopping to a stranger. Still, consumer behavior is changing — new data from Rakuten Intelligence found that in the 12 months ending March 2018, 46% of grocery orders were made through click-and-collect services, a jump from 18% in 2016.