Using Data to Uncover Specific Customer Needs
Kroger carried 4-pack avocados in a couple of its divisions, but carried bulk avocados in the majority of its divisions. There was a common perception that customers were just trading dollars between the bulk and 4-pack, and that the 4-pack should be discontinued.
84.51° leveraged our customer data to understand the source of dollars going to the 4-packs since their introduction. We found that 4-packs actually bring in new and different households beyond what bulk avocados bring. Specifically, the 4-pack met the needs of ClickList shoppers and Millennials.
Avocado 4-packs were expanded everywhere to increase our reach of customers, and about 20% of the 4-pack sales have been incremental to the category. Data can be used to uncover a very specific customer need, even when you believe you are already meeting that need.