How Can You Keep Customers Loyal and Retain the Penetration Achieved During the Pandemic?

The COVID-19 pandemic has had a massive impact on the shopping and spending habits of the general public.

As lockdowns dragged on and on, ecommerce brands both within and without the food and beverage industry saw massive boosts to revenue. During 2020, Amazon saw its sales rocket by more than 50% over the same period in 2019 and food ordering platforms such as Just Eat witnessed similar boosts to their sales.

We also saw a transformation in what people were ordering from ecommerce brands such as Amazon. Far from seeking luxury goods, the top three Amazon searches for one week in 2020 were, toilet paper, hand sanitizer, and Clorox wipes. In fact, the entire top ten for that week was taken up by hygiene products.

However, the story of lockdown food and grocery shopping wasn't all about massive ecommerce brands, it was also about small local businesses.

Shopping Local

A recent survey of UK shoppers by credit card brand Barclaycard discovered that nearly two thirds of customers had chosen to buy locally during the pandemic and over 90% stated they would continue to do so even after the world opened up again.

Specifically for our interests, spending at specialist food and drink stores such as butchers, bakeries, and greengrocers had risen by 63% in a single month. Responding to questions regarding the reason for this boost, retailers said they believed the fact more people had been working from and staying at home meant it was simpler and safer to visit small local stores rather than visit larger supermarkets where the chances for viral transmission were much higher.

There has also been a strong sense of camaraderie with local businesses. People know that everyone has been struggling and, while massive brands such as Amazon have the economic resilience to weather the storm, smaller local businesses may not have the capital to survive prolonged periods of business stagnation. This is another factor which has been driving the public to support their local stores, and that's before you even consider the fact they are often owned and staffed by friends and family of the surrounding community.

"Small local grocery stores and online retailers are likely to benefit from permanent changes in shopping habits after a year of COVID-19 restrictions, according to a report one year on from the first lockdown," writes Retail Correspondent Sarah Butler for The Guardian. "Neighborhood stores have been boosted by the shift to working from home and strengthened interest in supporting businesses that have kept communities going through hard times."

Post-Pandemic Loyalty

Our attention must now shift to how we keep this momentum going and retain the support smaller businesses have seen during the pandemic. Will people act as they have said in the survey referenced above or will they drift back to supermarkets and other big brands for their food and beverage essentials?

Well, that is [mostly] up to you as a small business owner. You need to come up with ways to communicate to your customers that you still need them, even once the lockdowns have ended and the worst of the danger has passed.

Social media is a great way to reach a local audience - especially with hashtag heavy platforms such as Instagram. Leverage your strengths as a local business - namely your ties to the community - and use it them as a marketing tool. Tools such as Instagram Stories can help you tell your story as a business with pictures and videos. Lean on the family element and share information about where your business has come from, who are the people behind it, and even introduce the next generation who will step up and keep the wheels turning once you have gone.

Nostalgia and family values are powerful tools which almost everyone can relate to in one way or another and by leveraging them you can create a brand story which will help create loyalty and a genuine connection in the hearts and minds of your customers. Keeping a record of things such as the birthdays and special anniversaries of your customers and creating special offers and messages for them will create a far more sincere connection than the automated ones you get from bigger brands.

Final Thoughts

Creating an emotional connection is the secret to customer loyalty and the pandemic has created an opportunity for smaller local businesses to build on the increases they've seen over the last 18+ months and foster loyalty which can last for generations.

"It is great news for independent retailers who thrive on meeting the needs of local customers and communities," said CEO of BIRA, Andrew Goodacre. "Covid-19 restrictions have given us all the opportunity to really appreciate our local communities and shops, and I am sure that the loyalty will continue."

Customer loyalty post-pandemic is set to be a hot topic at Digital Food and Beverage 2021, taking place in November, at the JW Marriott Austin, TX.

Download the agenda today for more information and insights.