target audience: TECH BUYER Publication date: Dec 2022 - Document type: IDC Perspective - Doc Document number: # EUR149970522
Kroger's Customer-First Strategy: Rewarding Loyal Customers With Personalized Communication to Enhance Contextual CX
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Abstract
This IDC Perspective presents the case study of U.S. food and grocery retailer Kroger and how its loyalty program strategy brought back more personalized communications and offerings through coupons. With the support of its subsidiary 84.51°, Kroger uses customer data from its Kroger Plus loyalty card as well as its solid and large CPG and supplier ecosystem to personalize offerings and rewards as well as measure ROI and customer engagement.
"A customer-first approach needs to be based on a solid customer first-, second-, and third-party data hub, constantly fueled by collaborators and customers and used by AI and ML analytics, for a mixed loyalty strategy helps retailers to engage and retain customers now and engender mutual trust and customer advocacy in the future," said Ornella Urso, research manager, IDC Retail Insights. "The example of Kroger's loyalty strategies mix shows how data sharing and collaboration with customers, brands, and technology vendors can improve retail omni-channel customer experience."