How Kroger Uses Our Sales Data to be Successful
Many people have never given much thought about how grocery stores like Kroger stay successful and how they use our sales data as customers to keep items in stock and make sure there are enough employees to maintain the stock on the shelves and attend to customers' needs without factoring in the various ways they obtain such data. But we must also know the good and bad sides to using these types of systems to use customer and employee data to stay a successful business.
In what ways does Kroger collect data from its customers and in what ways do they use this information to stay successful?
One thing that we can all agree on is that grocery stores are essential businesses and without them
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They use advertising through running ads on the radio and TV in hopes it will attract customers and keep their regular customers coming back. They have even put in place a system where you can order groceries online and have them delivered to your house or pick them up at the store where employees will bring your order directly to your car and load your order into the trunk of your car. This makes things very convenient for people who don’t have the time or the physical capability to go to the grocery store and buy groceries themselves. They have a rewards card program where with every $1 purchase made in store on groceries or general merchandise you earn 1 fuel point, which could save you up to $1 per gallon based on reward points. They also send you coupons in the mail based on items that you frequently buy in the store and these can help you save money. According to Michelle in the Harvard article she mentions that Kroger uses “heat maps and eye-tracking maps to optimize the location of aisles, food categories, and even specific products within its stores. This results in inventory being organized slightly differently from store to store, each location tailoring its placement to the unique preferences and psychology of its customer base.” (Michelle, 2022). Using this method “not only improves customer experience and increases customer sales, this also allows Kroger to charge suppliers more in slotting fees for prime in-store or on-shelf real estate.” (Michelle, 2022). Kroger also utilizes customer purchases to predict what items will sell the most during specific seasons and