How AI-driven Data Can Help Stave Off The Worst Impacts Of Food InflationDana Leighon January 17, 2022 at 09:00 TechRound

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As grocery inflation reaches 3.5%, personalised offers are a window to how consumers can minimise growing costs of monthly food bills

Will Broome, CEO of Ubamarket, discusses how AI can save even the most savvy of shoppers more precious pounds.

 
 
Last month, grocery inflation reached 3.5%, adding £15 onto an average monthly bill. While stock shortages and supply chain deadlock is dominating daily news agendas, supermarkets are being judged for what they can’t do, rather than what they can. For this reason, long-term transformative processes and innovations within the retail sector are being overlooked for short-term misgivings.

However, with the turn of the year and unabating worries over inflation in the coming months, trends that have been in their infancy over the past couple of years could lend a helping hand to such issues, through proponents such as white-label retail technology solutions like Ubamarket.

The Future of Offers and Discovery
 
While traditional price slashing is currently working for supermarkets, consumer habits are set to radicalise the ways in which they receive such offers. In today’s data-driven culture, investing in technology, particularly mobile apps which hyper-personalise the shopping experience for each consumer base, can help retailers to better target each individual customer. They can then better observe the shopping trends and continue to successfully make the in-store experience more appealing.

Signalling the desire for greater autonomy over the offers that they are provided, consumers have voiced their enthusiasm for data to have more influence on determining the offers they receive, uncovered in national research commissioned by Ubamarket – a white label retail tech pioneer that designs the Scan, Pay, Go app for Central England Co-op, EuroSPAR and Budgens, providing AI-driven personalised offers for users of the app.

52% of people in Britain (almost 24 million people) are happy for retailers to collect and use their consumer data if it means there are money saving opportunities attached to it (this figure increases to 60% for millennials)
24% of people in Britain (10 million people) say that UK food retail is one of the only sectors that they don’t mind receiving personalised offers from
23% of shoppers (over 9 million people) feel they have lost up to hundreds of pounds worth of savings and offers due to not always using their loyalty card

The data suggests that a considerable number of people would be likely to shop in-store if they were well-informed of discounts, for example, through an app or alerts. This would also suggest why continental discounters have become so competitive.

 

 

Furthermore, Ubamarket’s data indicates that the mountain of loyalty cards racked up by shoppers is no longer effective. Introducing mobile technology which helps shoppers to track and earn points across multiple stores and retailers, can help customers to unlock the deals and money-saving opportunities and encourage them to frequent the physical stores. 

Will Broome, CEO of Ubamarket, discusses how AI-driven offers are set to become far more prevalent in grocery retail.

“Serving as the sole point of contact for millions through lockdown, supermarkets have proven to be vastly popular over the last year. The strength of supermarket Christmas sales has demonstrated how reliant we are on the grocery sector.

“However, as the dust settles after Christmas, and looking ahead to a time beyond the pandemic, retailers will have to address the issues they faced pre-Covid, in conjunction with continual concerns over inflation. Even before the pandemic, 2019 was an unbelievably tough year for the retail industry, with widely reported store closures across the country and constant announcements of falling sales figures, and retailers will have to ensure their purple patch of the last 21 months isn’t forgotten about.

“This means addressing the question of whether the physical store offers an attractive experience and compelling money-saving opportunities or not.

“Our research clearly shows that a huge portion of consumers see personalised shopping and easy access to offers and loyalty benefits as key elements of their shopping experience. Incorporating technology, such as in-app payments and personalised offers, can make the high street offering as convenient as possible and encourage more footfall into stores. Technology gives shoppers a reason to get up off the couch and feel excited to shop in-person again, and at Ubamarket, we are committed to providing this technology to help traditional retailers not only survive but thrive.”

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