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Tuesday, February 26, 2013

How a mobile app gained a customer

For the past five years my wife has shopped at Albertsons, Trader Joes, Win Co, and Costco because Safeway was too expensive. Her complaint could be summarized in one sentence when she would lament, "I spent $25 and only got two bags!" So, for the past two months, I have been surprised to shop with her at Safeway, and the only thing I can attribute the change to is the Safeway mobile app, "Just 4 U".

I downloaded this app originally because I was a skeptic and did not believe that I would save "20% more on my weekly groceries" as their advertisement claimed. I would use the app sporadically, when ice cream was on sale, donuts, candy, the basic staples. Every now and then, I would have a coupon for something on our shopping list and would boast to my wife that I had saved $1.00 on eggs or cheese or ground beef. My favorite times would be as we were in Costco and I could show a coupon on my phone showing a gallon of milk was 10% less at Safeway.

The transition from shopping at other stores to doing weekly grocery shopping at Safeway was a slow process. Similiar to a person swimming that begins by dipping your toe into the pool, then your entire leg, until you slip off the side and plunge your whole body underneath the water.

It began with checking the app when we had run to Safeway to pick up a few things for dinner. We were in the store already, and if we checked the app and bananas or French bread or some other thing we normally purchased was. On sale, we would pick that up, too. 

Next, of we were shopping in Albertsons or Codtco or a different store we could compare prices instantly. In the same way that customers stand in Best Buy or Toys 'R Us and look for a cheaper price somewhere else. My wife and I would compare prices with Safeway. If it was a significant savings, we would make a trip to Safeway to buy something. 

The final step was when Dana discovered that there was an iPad app. Now, she sits with the Sunday paper, her coupons, and plans a menu for the week based on what is on sale. Safeway had a customer. Now granted, we do not shop exclusively at Safeway, but in terms of dollars and cents. Before the app, we spent an average of $60 per month at Safeway. Now, with app on our iPhone, we spend more than $170 per month at Safeway. More of our monthly grocery money is now going to Safeway. We are one family, one customer, but if each of your customers tripled the amount they spent in your business each month, your revenues would increase and the cost to develop a mobile app would pay for itself. 

There are also other features that my wife appreciates such as the grocery list. She can touch items on her iPad and in a number of simple touches, she has created a shopping list and put it in my iPhone, too. Now, she doesn't have to worry about me remembering most of the things on the grocery list, but forgetting two or three things that she really needs to make dinner. I guess I appreciate that feature too, because it reduces the number of times I have to drive to Safeway for forgotten items. 

Yes, Safeway, the reason we shop at your store again is your mobile app. 

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