Daily Dispatch

Consumers preference­s show significan­t change

- TED KEENAN

Twenty years ago, a plastic shopping bag had snob value. A Woolies bag was tops, Raymond Ackerman’s Pick n Pay second, Spar and Checkers fought for third place and Shoprite scored big by coming in last, because consumers perceived it to be cheap.

The South African Customer Satisfacti­on Index (SA-csi) for Supermarke­ts (2018) conducted by Consulta shows that consumers have largely ditched the differenti­ating snob appeal, reducing brands to much of a muchness. All five brands were meeting customer satisfacti­on, which means price being king.

Checkers is head of the queue regarding perceived value, the price paid against the quality of the experience. Woolworths struggled with this aspect of their value propositio­n and had the reputation of being the most expensive supermarke­t brand.

With 27% of South Africans unemployed and the rest of the country heading into an era of extreme economic pressure, retailers are investing into understand­ing how to lure customers with nearly empty wallets.

However, in tough economic times the price of goods is likely to influence consumer loyalty even though they are satisfied customers, said Professor Adré Schreuder, SA-csi founder and chairperso­n.

“It is important to note that price-motivated ‘loyalty’ is not permanent, so while customers may display less brand loyalty now, supermarke­ts cannot afford to stop investing in positive shopping experience­s.”

Woolworths maintained the best overall customer shopping experience in 2018, but it was with a decreased overall score from 2016. Its lead had eroded to where it was too small to give Woolworths the outright bestin-category advantage.

With Woolworths treading water, and fighting a slumping share price, Spar spent the past five years focusing on accessible locations, freshly prepared foods and customer engagement. The results were a consistent year-on-year improvemen­t in almost all measures of customer satisfacti­on.

Pick n Pay recorded the most customer complaints, specifical­ly about expired food, incorrect shelf prices and its Smart Shopper loyalty card. All brands experience­d an increase in complaints.

“While there were top performers in each of the measures of customer satisfacti­on, there were no outright winners who performed best across all categories and who are successful­ly managing all facets of customer satisfacti­on,” said Schreuder.

“Retail has evolved rapidly to extend across bricks and mortar experience to online and digital presence, while consumer drivers such as value, time, experience, healthy eating and ethical living are all culminatin­g in a continuum of disconnect between shopper expectatio­ns and the retailer’s ability to satisfy them.”

 ?? Picture: LISA VAN LEEUWEN ?? TOP OF THE CROP: Checkers is best value for money, according to a supermarke­t index.
Picture: LISA VAN LEEUWEN TOP OF THE CROP: Checkers is best value for money, according to a supermarke­t index.

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