Co-ops have collected invaluable feedback from 69,220 customers at 119 unique co-op locations in the past twelve months through NCG’s Customer Experience (CX) Program. Most customer comments (77%) radiate positivity, underscoring the myriad of reasons why the co-op experience is so uniquely delightful. On the flip side, 22% of comments offer constructive feedback. That’s a wealth of 15,302 suggestions on how we can improve the customer experience, all with the goal of making the co-op a place customers love to return to and enthusiastically recommend to others. Figure 1 illustrates this constructive feedback grouped, in order, into the five most common categories.

Theme One: Too Far Out of Step with the Competition

“$11.99 for a container of strawberries seemed outrageous, even though they were big and organic. I didn’t buy it. I was right, I got the same exact package for $6.99 elsewhere. I regularly shop at three different stores, and I find myself buying less and less produce at the co-op.”

“I get some of the same items for a fraction of the price elsewhere. I don’t mind paying a little more to support the co-op, but I can’t justify 25% more.”

It’s essential to conduct routine price comparisons with key competitors in your market. Check out NCG’s Price Comparison Survey Toolbox for guidance and a plug-and-play template. At smaller co-ops, department managers should be responsible for conducting price comparisons. This may also be within the role of buyers, pricing, or purchasing managers.

If price comparisons show that you’re out of step on key items or categories, like the strawberry comment above, lean on NCG resources for guidance. NCG’s Produce Playbook for Berries recommends a general price ceiling of $8.99 for organic strawberries (16oz). Berries significantly influence overall produce price perception, and it is far better to take a lower margin for a short amount of time on key berries, recouping those margin dollars elsewhere. Better to be somewhat higher on onions, for example, than to be much higher on berries.

That’s worth repeating. Somewhat higher may be okay, but much higher is definitely not okay. That’s exactly what the data shows. When prices are much higher than other stores, 8.4% of customers report that they purchased less than they intended to. In contrast, when prices are only somewhat higher than other stores, that figure cuts dramatically in half, to 4%. See Figure 2 below.

Co-ops have made remarkable strides toward affordability and accessibility in recent years. Hear it from two customers directly:

“The staff are incredible and unique. There is an obvious effort to supply more affordable organic products, like the Field Day brand beans…”

“Today there was a display of store brand basics — exactly the things I’d come in for! The cashier is always very efficient and friendly.”

Co+op Basics, our private-label equivalent program, provides everyday low prices on popular grocery and household staples. Field Day products save the customer an impressive 25% when compared to the average subcategory price — and the best part is, customers are starting to notice — in a big way! In 2023, Co+op Basics sales grew a remarkable 25% year over year nationally. More high-quality, affordable groceries, for more people, and more dollars circulating in the cooperative economy. If that’s not worth celebrating, I don’t know what is.

Theme Two: Pricing Errors, Inaccuracies and Mistakes

“More than once I have been charged the wrong amount for items such as lemons. Luckily, I have kept receipts and been reimbursed. I was recently charged the wrong amount for two boxes of Back to Nature crackers. This seemed particularly unfortunate, as I only bought two boxes because of the advertised price (2 for $6). It’s not that big a deal, but it’s happened often enough, that I am starting to wonder what’s going on. I wouldn’t mind being reimbursed for the time I spend returning to the store.”

“Nearly every time I get a receipt there is a mistake. The sale prices advertised are always the problem. It is almost like they are trying to cheat you out of the sale prices.”

Inaccurate shelf tags, out-of-date signage, promotions not ringing up correctly at the register… think that these things aren’t significantly impacting price perception at your co-op? Think again.

Customers aren’t shy about sharing how pricing errors and inaccuracies are annoying, time-consuming and can even come across as dishonest or deceptive.

Closely examine your co-op’s practices for updating shelf tags and sale signs — and for ensuring accuracy and alignment within your point-of-sale system. Strive for perfection here. When rare mistakes do happen, front-end staff need to be trained to put themselves in the shoes of the customer, resolving issues efficiently and discreetly. It’s embarrassing and time-consuming for customers to hold up the line or wait around while pricing errors are resolved — and no one wants to have to return to a store to ask for a refund.

Theme Three: Price Does Not Match Expectations for Quality, Service or Both

“The salad bar price went up; it now costs more than Whole Foods. I still prefer to come to the co-op but the quality today was bad. The lettuce was picked through, most of the toppings were low, and there was no tofu out. My lunch break is too short to wait around for them to put out fresh food…”

“Prices are a bit high — much of the produce is very ripe and doesn’t last very long once you take it home. Staff seemed to be too busy to help.”

It’s rare that comments mentioning high prices only mention high prices. Typically, price-focused comments also mention issues with quality, service, or both. The Value Equation explains that value is a factor of quality, service and price. By providing outstanding quality and stellar service, we can mitigate some of the impact that prices have on overall value perception. Ensure that all staff are aware of the vital role they play in influencing the top half of the value equation (quality and service), to help outweigh the impact of the bottom half of the equation (price).

The voices of thousands of co-op customers ring clear: we can improve price perception by working to never be significantly out of step with the competition, executing on accuracy at the register and leveraging the value equation. Maximize the potential of NCG’s Promotions Programs to address these themes strategically. Celebrate the major strides we have made already — 25% growth in Co+op Basics sales year-over-year is nothing short of remarkable — but remain steadfast in our commitment to continuous improvement.

Together, with a keen ear to customer feedback, we can forge ahead toward a future where affordability, accessibility, and value define our cooperative identity.