Trader Joe’s is the leader for delivering on experience… getting customers coming back for more. A study of more than 6,200 consumers by Market Force Information, a worldwide leader in customer intelligence solutions, found that Trader Joe’s is North America’s favorite grocery retailer based on satisfaction.
The study was designed to uncover the grocers that shoppers frequent most often, which chains excel in customer satisfaction, and why they prefer one to another.
Trader Joe’s a Two-Time Favorite
Trader Joe’s took the No. 1 spot out of the 12 grocery chains studied. This is the second year in a row that Trader Joe’s ranked first and they are doing something right!
What is Trader Joes?
TJ as it is referred to in the business, is a chain of small format, 10,000 sq ft. grocery stores, with branding of unique private-label products such as Trader José's Guacamame Spicy Edamame Dip and Steak and Ale Pies. They are constantly bringing in new products and this is the technique called “the treasure hunt experience. Trader Joe’s has major league brand fans who shy away from the boring grocery shopping your are familiar with practically all supermarkets… and they do it with a neighborhood feel. The national chain is regularly recognized for delivering a level of service and customer satisfaction that exceeds expectations.
Trader Joe’s dominated in categories related to healthy food and nutrition… i scored an 83% for its natural and organic food choice. It also led by a wide margin in providing nutrition and health information and instituting sustainable policies. The honors for best private-label brand products also went to Trader Joe’s.
Satisfaction Not Guaranteed
Consumers were also asked to rate their customer experience during their most recent grocery shopping trip and while 50% said they were delighted, the remainder rated their experience as “satisfactory”.
Satisfaction is neutral and satisfied customers are likely to jump ship to other retailers since there is nothing compelling to keep them where they are. You want your customers to be delighted!
Janet Eden-Harris, chief marketing officer for Market Force. “We’ve found that delighted customers are three times more likely to recommend a grocery store than those who had just an OK experience.” That’s called Word of Mouth Marketing.
So all of you foodpreneurs, do you delight your customers?
What’s Hot - Buying Local, Non-GMO, Prepared Meals
If you are a small food business, know that local foods are garnering importance to food shoppers. Approximately 60% prefer local meats, produce and dairy products and are most likely to buy when they see “Local”.
I tell all of my Foodpreneur clients to start small at farmers markets. Many say that is too much work. Well, over 1/3 of survey respondents said they buy at least a 25% of their produce from farmer’s markets. So it may be more work but you gain brand awareness by having these highly motivated potential customers in one spot.
Organic foods continue to gain in traction and the main reasons given for purchasing organic were better nutritional value, better quality and absence of genetically modified organisms (GMOs).
Although GMOs have been prominent in the news, half of those surveyed have little-to-no familiarity with this breed of food – 38% indicated they’re unfamiliar with them, compared with 13% who said they’re very familiar with them. (See Graph 5.) Of those who indicated they’re very familiar with GMOs, 69% expressed a concern about their use.
Looking for product ideas? Approximate 1/3 of consumer are buying prepared meals for all meal occasions. Needless to say convenience was largest driver but they are also gaining popularity as an alternative to dining out.
There is lots of hype on online ordering. Online 12% have tried it and 2/3 of consumers have no interest at all.