Kroger 2008 Annual Report Download - page 35

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The Kroger Co. Page 34
LOYALTY DATA & CUSTOMER INSIGHT
Kroger’s growth strategy is squarely focused on consistently meeting the
needs of our customers. Our successful customer loyalty programs are
one mechanism we are using to deliver value. Over several years, we
have accumulated a substantial volume of consumer data through our
loyalty cards. Approximately 40% of all U.S. households hold one of our
shopper cards. As a result, Kroger has one of the largest retail customer
databases in America. This data provides us with valuable insight into our
customers’ shopping behaviors.
The key to unlocking that insight and creating value for our customers and
our Company has been a partnership we formed in May 2003 with a firm
called “dunnhumby”. London-based dunnhumby is a global leader in the
fields of data management, customer analysis, and insight-led planning.
This partnership (“dunnhumbyUSA”) is a unique competitive advantage for
Kroger. It allows us to segment our customer base and design customized
offerings for the individual needs of each segment. It also gives us the
tools to target our promotional dollars and pricing investments toward our
most profitable customers.
dunnhumbyUSA continues to grow and evolve. Each year this partnership
helps us analyze our business in ways we may not have considered before.
In addition to helping Kroger build customer loyalty and brand value,
dunnhumbyUSA serves other manufacturing and non-grocery retail clients
through offices in Atlanta, Chicago, and Cincinnati.