Retail marketing may be changing over to a bright new digital future, but a recent study of the grocery industry suggests that old-fashioned print circulars are still delivering the best results for chains and independents.
A Valassis poll of 60 decision makers representing 50 companies found that 90 percent use weekly circulars as their primary promotional vehicle. Fifty percent said circulars helped to increase sales while 25 percent said the communications helped increase customer retention.
While printed circulars distributed via newspapers were ranked highest in terms of helping grocers to meet weekly sales objectives, many find themselves having to adapt the strategy as a result of declining circulation numbers. Twenty-six percent reported increased use of direct mail circulars and online promotions in the past year.
While print circulars are the key communication piece for grocers today, that will not last for long based on the research findings. Sixty-five percent expect that social media/internet will become the medium of choice for grocery store operators to meet sales goals over the next five years.
"The consumer decision-making journey is more involved than ever," said Therese Mulvey, vice president, marketing intelligence for Valassis, in a statement. "Media preferences are changing, due in great part to consumers' desire to be connected. It is no longer a 'how we use print versus digital' question. It is a 'how do we best optimize our marketing dollars to maximize the ROI on both.'"