Kroger Precision Marketing, a unit of The Kroger Co., has entered into an alliance with Pinterest that will enable consumer packaged goods (CPG) brands to market more effectively to the supermarket giant’s millions of customers through the social platform.
Under the expanded relationship, advertisers will be able to leverage Kroger's first-party data to target customers on Pinterest and track engagement — from digital inspiration to purchase — via closed-loop measurement, Kroger said.
Brands will be able to target one in three Kroger shoppers through buying capabilities with Kroger Precision Marketing, the Cincinnati-based company said. That would provide access to a huge audience, given Kroger’s standing as the nation’s second-largest grocery retailer, with nearly 2,800 stores, vast digital properties and millions of daily transactions in stores and online.
"Our intentions are simple: We want to enable brands to create engaging moments with consumers in an effective and efficient manner,” said Cara Pratt, vice president of customer communications product strategy and innovation at 84.51°, Kroger’s customer data and analytics arm, which also provides services to more than 300 U.S. CPG companies. “We are excited to blend the inspiration delivered on Pinterest with our rich customer intelligence and connection to commerce, driving meaningful value for advertisers."
Kroger noted that it captures 96% of all transactions through its loyalty card, which offers a more relevant context for CPG brands using the Kroger Precision Marketing solution. The company said brands can influence shopper decision-making, deliver against their advertising strategy and measure the sales impact, exposing current customers to new products and gaining new customers through inspiration.
Several successful campaigns last year led Kroger and Pinterest to step up their relationship, according to Kroger. For example, a campaign to spur shoppers to try Greek yogurt was one of the first to leverage first-party data for targeting, the retailer said. Results showed a 53% rise in traffic and a 15% lower cost per engagement.
"We are excited to combine the scale of Kroger, the largest domestic grocery retailer, and Pinterest, a visual discovery engine, to deliver a personalized, contextually relevant and inspired experience for Kroger shoppers," said Arthur Sevilla, CPG strategy lead at Pinterest.