Published on: January 22, 2016by Kevin Coupe
Two interesting points from an article this week from The Street.
First, it was the statement by Kroger at a National Retail Federation (NRF) session that "50% of its customers are still using paper circulars to make shopping lists and clip coupons" ... a number that was high enough to surprise me, especially since paper coupon redemption rates are a lot lower than that.
On the other hand, I'm guessing that this may have a lot to do with the fact that Kroger, which is expert at actually acting on actionable data, delivers highly customized mailers to its shoppers. It doesn't seem so crazy that the more targeted retailers are, the more successful they'll be with promotions.
My traditional measuring stick: if you send me cat food coupons, you're not paying attention.
Second ... and this doesn't surprise me ... it is the statement that because of technology, Kroger figures that "the days of mailing out paper circulars and coupons - long a staple in the grocery business - may be nearing an end."
I suspect that as Kroger continues to ramp up its online business, integrating it with its bricks-and-mortar business, this will because both easier and more prevalent.
It just seems so important ... and the philosophy is even more important than the technology.
Inevitably - and this in part is because of the influence of companies like Amazon that are relentlessly targeted in their focus on customers - that is where all marketing has to do.
Targeted marketing is relevant marketing. Irrelevant marketing is a waste of time and money.
It is an equation, I think, that ought to be an Eye-Opener.
- KC's View: