Grocery brands lead in personalisation amid rising consumer demand

New research from Epsilon indicates that grocery brands have seen the most significant improvement in personalising customer experiences over the past two years. This places the grocery sector ahead of other categories such as technology, fashion and apparel, beauty, and homeware.

The study, which surveyed over 2,000 UK consumers, found that 20% of respondents have noticed an overall enhancement in brand efforts to personalise messages and interactions. Furthermore, the same percentage specifically observed these improvements in the grocery sector. Brands such as Morrisons, Sainsbury's, and Waitrose were highlighted as notable examples within this category.

One persistent issue in digital advertising has been the recurrence of advertisements for products that consumers have already purchased. The new data suggests progress in this area, with 85% of consumers reporting they no longer see repeat ads for items they have already bought.

The study also compares the grocery sector's performance in personalisation to other categories. Following groceries, the technology sector — including brands like Apple and Samsung — saw improvements noted by 14% of respondents. The fashion and apparel sector was recognised by 13% of those surveyed, while travel (12%) and food and beverage (11%) rounded out the top five.

Elliott Clayton, Managing Director UK at Epsilon, commented on the importance of a data-driven approach: "These improvements illustrate the contribution of first-party data-led strategy to a more positive consumer perception of advertising. Grocery has long been the poster child of retail media, with the frequency of purchases and vast customer bases foundational to a channel focused on smarter use of transactional data."

Clayton also provided examples of how supermarkets are leveraging personalisation to improve customer satisfaction. "Supermarkets are increasingly focused on making every shopper feel recognised and valued. Morrisons' 'My Points Boosters' scheme is a perfect example, offering customers the chance to select their favourite brands from a personalised list. Similarly, Waitrose impresses with personalised vouchers that reflect individual shopping habits. These tailored approaches show a strong commitment to customer satisfaction."

However, challenges remain in the realm of personalisation. One specific issue is proving the incrementality of retail media campaigns. According to the data, while many adverts do reach the right shoppers, 17% of respondents reported seeing ads for products they were already planning to purchase. This challenge is not unique to grocery but spans across various sectors.

Additionally, consumers continue to face issues with irrelevant advertisements. The study revealed that 56% of consumers still encounter ads that do not align with their interests, leading them to scroll past. Another concern is ad frequency, with 47% of respondents noting they see the same ad too many times. Disruption caused by advertising was also a significant issue for 34% of those surveyed, who reported that ads often appear at inconvenient times.

Overall, the data from Epsilon suggest substantial progress in personalisation efforts within the grocery sector, though significant challenges still exist in providing relevant and timely advertising experiences to consumers.