Over the past few years, retailers have been seeing more government-funded programs and insurance benefits that help consumers purchase healthy foods. These programs are very worthwhile as they encourage buying fresh produce, giving healthier food options to families while helping support local farmers. Unfortunately, many independent retailers have largely been left in the dark about what programs they can accept, as well as how to implement a solution to accept these nutritionally beneficial incentives at their POS.
Some government programs, such as SNAP, operate at the federal level, but many others vary state by state, which only makes matters more confusing for retailers. With so many different healthy nutrition programs and incentives, retailers will need to do their own research to see what programs are available for them to accept in their community. For now, let’s outline three major healthy nutrition programs that are at the forefront of many grocers’ minds today, how they work, and why it is important for retailers to invest in accepting them.
1. Healthy Benefit Cards (HBC)
Many insurance plans, especially Medicare Advantage (MA) plans are now providing healthy benefit cards as an extra benefit to their customers. These cards essentially provide participants with “free money” that they can use to purchase healthy foods. Unfortunately, many small and independent grocery stores have not been informed of the steps they need to take to accept HBCs. While most grocers already have a POS system compatible with an HBC processor, they will also need to have a contract with the HBC processor to share their data for adjudication to get started accepting healthy benefit cards. By accepting HBCs, grocery retailers can improve customer retention and loyalty.
2. Healthy Fluid Milk Incentives (HFMI)
Healthy Fluid Milk Incentives projects was first included in the 2018 Farm Bill as a part of SNAP to help participants purchase more milk to promote a healthy, balanced diet consistent with the Dietary Guidelines for Americans. The HFMI projects help develop and test various methods to sell more low-fat and fat-free milk to SNAP shoppers, with the latest method utilizing an automatic discount model. Since its inception in 2018, the program has slowly been adopted by an increasing number of retailers each year, meaning that grocers need to be prepared in not only understanding the program, but learning what steps they need to take to implement a solution to provide SNAP participants discounted milk. By doing so, grocers gain a competitive advantage and are positioned to better serve their communities.
3. Double Up Food Bucks
Double Up Food Bucks is a government-funded program currently available in 30 US states that helps SNAP shoppers purchase more fresh fruits and vegetables. The program works by giving shoppers a coupon for up to $20 for every dollar they spend on fresh produce. Many smaller and independent retailers have been confused about how to get started issuing Double Up coupons to customers as there are numerous methods to distribute the coupons that can vary by state and even by retailers. TRUNO’s Double Up Bucks enhancement for ACE and ENCOR point-of-sale users captures the total earnings from the transaction and adds a barcode to the end of the customer’s receipt. This barcode acts as a coupon for their next visit, encouraging shoppers to return and building customer loyalty.
How Can Retailers Stay Ahead?
With so many different programs and incentives offered across different states, retailers should stay informed about what programs are offered, as well as research which ones would be best to serve their local community’s demographic. Once a program is chosen to implement at the POS, retailers must then have a reliable technology partner capable of building enhancements to their existing systems. While adapting to accept HBCs or Double Up Bucks may be the latest obstacle grocery retailers are facing, customer needs are constantly evolving, meaning grocery retailers must stay ahead of the curve by partnering with a technology provider that provides secure, stable, and integrated technology solutions.
