Kroger's second quarter results beat industry analysts estimated earnings. Kroger attributes this success to its loyal customers. Kroger focused on service to keep its existing customers as opposed to slashing prices to attract new customers. Cherry pickers, as they are known, shop various different stores looking solely for the lowest price. Kroger calculates "loyal households" based on the total purchase size and how often they shop at its stores. According to Kroger, the number of loyal households rose during the second quarter. As a way to increase service to these customers Kroger targeted coupons to frequent customers and made efforts to increase its customer service. I can attest to the increased distribution of the coupons. I received in the mail last month a coupon book from Kroger. These coupons targeted the items that I frequently purchase. In addition to the normal $.50 to $2.00 off coupons this booklet also included coupons for free products such as free pizza, free sandwich meat, free cookies, and free potato chips. When I went grocery shopping this week the free coupons added up to almost $10.00 worth of items. That was reason enough for me to make a trip to the store before the coupons expired. Of course I bought more than just the free items but that strategy was a way to get previous customers back in the store.
http://www.reuters.com/article/idUSTRE68D2OA20100914
I have received these coupon books and they are great - most of the coupons which come in flyers are for products I do not use. These are targeted - finally a payback for all the info they get with my loyalty card. They also promote their house brands - for example Prime Selection instead of Sara Lee -- but it is for a product type I have purchased and I do purchase the store brand.
ReplyDeleteIn order to receive greater gas benefits, my mother and I share a Kroger card because their Kroger does not offer gas. When we receive the coupon booklet it is amazing how targeted the coupons are for us to use. And the free ones are always really nice.
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