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Progressive Grocer: How Data Helps Inform Kroger’s Promotion Strategy

When The Kroger Co. ran its “Save $10 when you spend $75 or more on your trip” digital coupon, the food retailer was hoping it would bring in new customers and increase sales. While this ultimately wasn’t the case, findings from its retail data science arm, 84.51°, helped Kroger carefully plan out its next steps regarding the promotion.

In order to find out how effective the digital coupon was, 84.51°’s Enterprise Price & Promotion team conducted controlled store testing and customized research to analyze its impact and identify actionable insights. According to 84.51°’s findings, the promotion did not bring in a significant number of new customers as hoped, but it did attract previously lapsed customers that hadn’t shopped at Kroger over the previous four weeks.

Further, the team found a positive sales-to-cost ratio, and testing also indicated that total customer spend was higher at stores that offered the digital promotion. As a result, Kroger was urged to run the promotion again, since scaling the effort would be worth $36 million in incremental revenue.

Click here to read the full Progressive Grocer article.

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