The Kroger Co.’s 84.51° data intelligence subsidiary has rolled out an analytics solution to give consumer brands an omnichannel snapshot of customer behavior.
Called Stratum, the tool leverages data captured from brick-and-mortar and digital transactions, enabling brands to better position their products with consumers both in-store and online, Kroger and 84.51° said Thursday.
Kroger noted that Stratum provides insights gleaned from transactions made by one out of every two households. As the nation’s largest supermarket company, the Cincinnati-based retailer has amassed huge, rich stores of data from its approximately 2,800 stores, vast digital properties, millions of daily transactions and broad analytics capabilities.
According to Mike Donnelly, chief operating officer and executive vice president at Kroger, Stratum can help drive growth for consumer packaged goods (CPG) brands and the retailer’s exclusive brands, which are a linchpin of its Restock Kroger plan to redefine the customer experience.
“As we continue to accelerate our Restock Kroger strategy, we’re all very excited about the next iteration of our customer insights. Stratum is a science-powered insight tool that is designed with the end-user in mind,” Donnelly said in a statement. “Stratum will be an accelerator for Our Brands and CPG partners alike.”
With broad data sets that provide access to in-store and online purchases in one view, Stratum can be used to draw conclusions representative of consumer behavior nationally, according to 84.51° and Kroger. Brands also will have greater latitude in customizing their experience, collecting data on sales performance, inventory and out-of-stocks, assortment, promotions, customer segmentation and behavioral insights, new item performance and in-store space management. Multiple subscription packages for Stratum are available to meet brands’ various needs and budgets, they said.
“Kroger and 84.51° put data and customer insights at the forefront of our decision making. This science-backed approach allows for greater collaboration and a more comprehensive planning methodology for our brand partners. Simply put, data is our most valuable asset,” explained Stuart Aitken, 84.51° CEO.
“With Stratum, we have created a groundbreaking product, which will dramatically change the way our brand partners plan and execute their marketing and merchandising budgets,” added Aitken, who in February also was named Kroger's senior vice president of alternative business, a newly created position.
Under the Restock Kroger initiative, The Kroger Co. has been looking to alternative profit streams to help reach its goal of $400 million in operating profit by 2020. To that end, the company has worked to grow its business through partnerships, media, consumer packaged goods (CPG) insights and its Kroger Personal Finance arm.
On the analytics side, for example, in June 2018, the company launched a self-service marketing platform called Boosted Products in Search, designed to help CPG brands reach digitally savvy shoppers with “hyper-relevant” products in search results across Kroger digital properties, as well as view performance in real time. The service allows brands to promote their online assortment with Product Listing Ads (PLAs) via the Kroger Precision Marketing Powered by 84.51° platform.
This year, in March, Kroger Precision Marketing entered into an alliance with Pinterest that enables advertisers to leverage Kroger's first-party data to target customers on the social platform and track engagement — from digital inspiration to purchase — via closed-loop measurement.
And this past May, Kroger partnered with private investment firm Lindsay Goldberg to form an incubator for next-generation consumer product brands. Called PearlRock Partners, the platform will identify, invest in and help grow emerging products, and the companies said it be one of the largest data-driven investment vehicles focused on consumer brands.