Tuesday, July 19, 2022

Kroger is Capitalizing on Technology Savvy Customer too Drive Loyalty


The future of most food retailer’s success will be found in those that utilize technology to save time and money and that future can be found in both Gen Z and Millennial consumers according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

Recently Kroger's new loyalty membership program Boost launched nationwide, representing the latest expansion of its loyalty program. This program cost, but the time saving just might be worth more than the coast according to Johnson.

So, the annual membership provides customers unlimited free grocery delivery on orders of $35 or more, fuel discounts of up to $1 per gallon and additional savings on the grocer's Our Brands products, the Cincinnati-based grocer said. Kroger estimates that the membership can save customers more than $1,000 per year on fuel and grocery delivery. The tiered program gives customers the choice of two annual membership levels at $59 or $99. 

Yael Cosset, SVP and chief information officer for Kroger, stated, "As customers continue to evolve how they shop and eat, this expansion of our loyalty program offers more personalized value in groceries and fuel, alongside easier access to convenient shopping solutions, such as Delivery," …. "We are committed to consistently delivering a best-in-class seamless experience with zero compromise—the fresh and quality products our customers want, how they want it and when they want it. We recognize this is especially important as our customers are facing an inflationary environment and rising fuel prices."

Kroger Chairman and CEO Rodney McMullen revealed, they were encouraged by the number of new members in the four pilot divisions as delivery sales increased significantly compared to non-Boost divisions, McMullen said in a statement. 

"Kroger achieved strong first-quarter results as we successfully executed on our strategy of Leading With Fresh and Accelerating With Digital,” he said.

“Boost contributes to our rapidly expanding seamless ecosystem, bringing value and convenience to many more families across America as we roll-out new delivery fulfillment centers," said Bill Bennett, Kroger VP and head of e-commerce. Bennett also added that that through Boost, Kroger is confident it has built a differentiated membership program that its customers will love.

Digital natives like convenience more than shopping. Time starved and inflation just might drive incremental customers into this new program according to Johnson.

Foodservice Solutions® specializes in outsourced business development. We can help you identify, quantify and qualify additional food retail segment opportunities or a new menu product segment and brand and menu integration strategy.  Foodservice Solutions® of Tacoma WA is the global leader in the Grocerant niche visit us on our social media sites by clicking one of the following links: Facebook,  LinkedIn, or Twitter

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