Why Grocery Retailers Should Embrace Competitive Price Transparency
Why Grocery Retailers Should Embrace Competitive Price Transparency
Many grocery retailers are terrified of having their prices compared directly to their competitors. But here’s the harsh reality: consumers are already comparison shopping, whether retailers like it or not.
We’ve spoken directly with grocery shoppers who visit four to five stores just to manually jot down and compare prices. Others open tabs for five or six different grocery websites to compare shopping carts side by side. In fact, comparison shopping online has been around since the dawn of the internet in 1995, pioneered by early innovators like Bargain Finder and NexTag. It’s part of human nature to ask, “Could I have gotten that cheaper somewhere else?”
Why Transparency Is the Future
Here’s why: just because a competitor has lower prices doesn’t mean your customers will abandon you. Shoppers choose stores for a variety of reasons, including convenience, service, product quality, rewards programs, and yes—price. Additionally, a recent survey we conducted revealed that most consumers would only switch stores for a significant savings of $40 to $60 per trip.
The Benefits of Embracing Transparency
1. Building Trust:
Embracing competitive price transparency helps rebuild trust with consumers, which has been eroded by rising grocery bills and perceived corporate profit-taking. Transparency sends a powerful message: “We have nothing to hide.”
2. Staying Competitive:
By openly sharing competitor pricing, retailers gain insight into areas where they’re losing on price and promotions. This allows them to adjust category pricing strategically to remain competitive without necessarily slashing prices across the board.
3. Learning from Other Industries:
Other industries, such as online travel, credit cards, and mortgages, have already embraced Price Comparison Engines (PCEs) and reaped the benefits. These tools have provided transparency, empowered consumer choice, and built deeper brand trust and loyalty. They’ve even helped companies attract new customers they might not have reached otherwise.
Don’t Let Customers Slip Away
Here’s a critical point: once a consumer leaves your website or mobile app to compare prices elsewhere, your chances of winning them back drop dramatically. By incorporating competitive price transparency directly into your digital platforms, you can keep consumers engaged, foster loyalty, and demonstrate your commitment to their best interests.
Embrace The Opportunity
Price transparency isn’t a threat; it’s an opportunity. By embracing competitive price sharing, grocery retailers can build trust, stay competitive, and even attract new customers. The question is not if this shift will happen, but when. Forward-thinking retailers who take action now will be best positioned to thrive in this new era of grocery shopping.
