Using Data Science, Raley's Gains Competitive Advantage Through Transparency
The stakes for transparency as they relate to food and beverage products are higher today than ever. According to Nielsen, 59% shoppers find it difficult to understand nutrition facts on food packaging , and the ability to recognize ingredients is the most influential factor for them to sway a purchase decision on these types of products . Take these consumer demands for transparency and combine them with the ultra-competitive grocery retail industry that continues to consolidate, most recently with the AMZN-WFM deal, and it becomes more apparent that traditional grocery needs to provide a reason beyond price to gain and maintain shopper loyalty.
Raley’s understands that investing in data and transparency will pay dividends, and last week launched Raley’s Shelf Guide, a new program that will make it easy for shoppers to find products that meet their dietary needs.
By partnering with Label Insight, and employing experts in Nutritional Sciences to establish dietary criteria, Raley’s has provided a compelling reason for guests to stay loyal to their local Raley’s while improving the customer experience.
(Photo: Business Wire)
The nutrition experts at Raley’s believe there are other ways help their shoppers to eat healthier – ways like eating more protein or fiber, or less sugar or sodium, and avoiding certain ingredients. Unfortunately it’s not always easy for shoppers to navigate this world of product labels; Raley’s is working to make it much easier for shoppers to make the right choice for their lifestyle. By using shelf tags and e-commerce labels for all food and beverage products in their stores, and giving special prominence to their proprietary designations of “Minimally Processed” or “Nutrient Dense”, Raley’s has elevated the importance of products that are made from clean ingredients or products with elevated nutrient contents, respectively – without the high sodium content or added sugars.
Developed independently – and not driven by any brands or products – Raley’s unique Shelf Guide descriptions include:
- Minimally Processed: Simply prepared with only clean ingredients, and limits on added sugar and sodium
- Nutrient Dense: Contains vitamins, minerals, dietary fiber, and other beneficial substances that may have positive health effects
- No Added Sugar: No added sugar or artificial sweeteners
This is a registered dietitian’s dream, but is incredibly complicated to do at scale and maintain vs. an ever-changing product landscape of reformulations and new product introductions. By leveraging Label Insight’s technology and data, Raley’s has been able to make custom rules around sodium, sugar and other nutrients – at the category level – and then execute with excellence in stores and online.
Raley’s has very quickly become an industry leader in nutrition and transparency, and by embracing data science, has made it easier than ever for their shoppers to find products that meet their dietary needs.
Hear from Raley's CEO on how they use transparency to ease consumer confusion at TransparencyIQ this October! Register now:
1 2012 Nielsen study; https://www.sciencedaily.com/releases/2016/02/160202185452.htm