retail news in context, analysis with attitude

The Associated Presshas a story about Kroger’s use of dunnhumby USA’s data mining technology, and how it uses targeted promotions to drive sales and profits. “Kroger uses dunnhumby's consumer analyses, which the data firm augments with customer interviews, to guide strategies for promotions, pricing, placement and even stocking variations from store to store,” the story says, noting that Kroger is getting up to 50 percent redemption rates on its targeted promotions, versus one-to-three percent redemption of traditional paper coupons.

In a growing economy, you might get lucky because there is more money around," says Simon Hay, CEO of dunnhumby USA. "But if there is less money around, the question is how can you be absolutely certain that you've got the right offers in the right places?"

KC's View:
Just on the face of it, I cannot imagine why any retailer or manufacturer would not prefer targeted promotions as opposed to the broader efforts that seem so unfocused.