Foodland customers are the most satisfied supermarket shoppers, Roy Morgan Research

Posted by Andrea Hogan on 2nd October 2017

Foodland customers are the most satisfied Australian supermarket shoppers says Roy Morgan Research.

After conducting a study, Roy Morgan Research found in August 2017 customer satisfaction with Foodland was 94.4 per cent, the highest score among Australia’s main supermarkets.

Over the last 12 months, Foodland and Aldi are the only two main supermarkets to increase their customer satisfaction score as measured by Roy Morgan Research.

As of August 2017, Aldi’s customer satisfaction rate was 92.3 per cent, Woolworths 90 per cent, Coles 88.4 per cent and IGA 84.7 per cent.

Satisfaction with Main Supermarket 

Source: Roy Morgan Single Source (Australia). 6 months ended August 2016, n= 6,076; 6 months ended August 2017, n= 6,363. Base: Australians 14+ main grocery buyer.

Supermarket loyalty rates

Those who primarily shop with Woolworths typically spend 70.9 per cent of their grocery budget at the supermarket. Australians who mainly shop at Coles spend 67.4 per cent of their budget at Coles. Foodland shoppers remain loyal, spending 71 per cent of their budget at Foodland, whilst Aldi shoppers only spend only 55.5 per cent at Aldi.

Supermarket Customer Loyalty (based on proportion of spend at main supermarket)

Source: Roy Morgan Single Source (Australia). 6 months ended August 2016, n= 6,076; 6 months ended August 2017, n= 6,363. Base: Australians 14+ main grocery buyer.

Satisfaction varies across product categories

Roy Morgan Research found that shoppers have different levels of satisfaction with different supermarket product categories.

Aldi lead in the satisfaction stakes in regards to packaged groceries while Coles and Woolworths were the leaders in customer satisfaction when it comes to bread.

Foodland is the leader in customer satisfaction when it comes to dairy, deli goods, fresh fruit and vegetables and fresh seafood.

Roy Morgan Research Industry Communications Director, Norman Morris, said with increasingly tough competition among supermarkets, it is important to keep track of what customers think in terms of relative satisfaction between the major brands.

“This research has shown that not only is overall satisfaction important but it is necessary to understand how the different sections or departments are performing due to their potential impact on overall satisfaction and customer loyalty,” Morris said.

“There appears to be plenty of scope to increase supermarket sales if customer loyalty can be improved. Currently the best performers in the market are only achieving around 70% of their main customers total supermarket spend, with the lowest achieving just over half. Increasing the share of customer spend for the major supermarkets has remained a considerable challenge for some time. This is evident by the fact that over the last five years, all of the top five supermarkets have seen a decline in the share of their customers spend, despite various attempts at loyalty programs.”

 

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