Loyalty isn’t what it used to be. Today’s busy, price-sensitive consumers shop around and put household interests over brand commitment.

Upside research shows that 81% of consumers cross-check prices across grocery brands, and the average grocery shopper is active in two or three loyalty programs. For these customers, no one banner has undivided attention, and even the best-designed loyalty programs struggle to shift this behavior. 

But loyalty does have a place in today’s landscape — and “super-users” are proof. 

Super-users who do most, if not all, of their business at a single brand. Though they account for only 22% of loyalty members, they make up nearly half a brand’s total transactions and revenue — an outsized impact on the bottom line. 

Together with PERKS programming, Upside’s offer engine can optimize user lifetime value and create more super-users. When we do this, you win more wallet share from cross-shopping members and get a better return on one of your most crucial investments.

Explore real Upside customer journeys

It’s easier to understand when we illustrate real-world examples; here are two real customer stories that showcase how we drive more trips and amplify loyalty programming.

Because of Upside, Justin bypasses larger competitors

Justin is a real Upside user who historically spread his grocery purchases across a few national brands: Aldi, Trader Joe’s, and Costco. When a regional grocer in his city listed its stores in the Upside marketplace, Justin started claiming offers at that grocer.

Over the next two months, Justin made 13 trips to the grocer, eventually becoming a loyalty member with the brand. He now spends about $75 per month at this grocer, with ongoing activity after the first Upside transaction. These transactions are incremental to the grocer, verified by measuring his purchases against 200 matched control cards. 

Justin’s own words reinforce convenience as a driver. He explicitly told us that he shifted spend from his prior favorites — Aldi, Trader Joe’s, and Costco. Whereas he used to go to those other stores to buy items like his produce, meat, and dairy, he was now buying all of those foods at this regional grocer.

Upside surfaces, converts, and warms shoppers like Justin so loyalty can deepen engagement and retention.

Already a frequent shopper, Emily becomes brand champion

Now, meet Emily, another customer at this same regional grocer. Unlike Justin, Emily was already frequently shopping with this brand; she also already enrolled in its loyalty program.

Prior to Upside, Emily visited this grocery chain 175 times in the previous 12 months — an average of roughly 14 trips per month. On average, she spent $580 each month. That’s a considerable amount, but what happened after the grocer partnered with Upside indicated that there was more wallet share to be won. After this grocer launched on Upside, Emily increased her average monthly spend by 4X — from $580 to $2,300. It wasn’t a one-time spike; Emily maintained that elevated behavior for many months afterward. 

Emily says Upside was “very influential” in making this grocer her primary store. She told us that if the grocer wasn’t on Upside, she would have gone to Walmart instead. But since the grocer joined Upside, she’s stopped making additional grocery trips and does more of her shopping there.

Expanding loyalty reach for more trips and profit

Together with leading grocers, we’ve used multi-touch attribution to confirm that combining Upside with loyalty programs improves retention and lifts customer lifetime value.

Upside recently analyzed the impact that its marketplace and loyalty programming can have on retention rates. When customers transacted with neither loyalty nor Upside, 31% of them churned after the first month of our analysis. Retention improved a bit if the customer used Upside, and even more so if they belonged to the loyalty program. 

But the most effective programming for retention was a combination of loyalty and Upside. Of those who used both programs, only 7% churned after our first month — a 24-point improvement. 

Together, loyalty and Upside are greater than the sum of their parts.

A formula for success

While loyalty programs are essential for keeping engaged customers happy, they can be hard pressed to bring in new shoppers, convert uncommitted ones, and increase store visits all on their own. 

That’s where Upside comes in. It’s the missing part of the equation that helps expand your base and ensure your most valuable customers keep choosing you.

To learn more, get in touch with our team of grocery experts. 

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