Kroger Strategy All About Customer Engagement

Kroger Customer EngagementKroger holds a significant foothold in the grocery retail market, and a large part of that success revolves around its customer engagement strategy.

Billed as its Customer 1st strategy, Kroger CEO Rodney McMullen believes this business model has guided the company, and continues to, on a road paved with promise.

“Our team of associates continues to derive our Customer 1st strategy by taking care of our customers in big and small ways, offering fresh foods and keeping costs down so that we can reinvest those savings in our associates, store experience, products, and prices,” McMullen said during the company’s Sept. 11 second-quarter earnings conference call, according to Seeking Alpha. “As a result, we continue to earn customer loyalty and gain market share. We are investing to grow our business for the future while delivering on our promises today. Our stores are hiring to fill 20,000 new permanent jobs. We are expanding our digital and ecommerce offerings. Our confidence in Kroger has never been stronger.”

McMullen noted that Kroger always gains key insights from listening to customers.

“While customers continue to feel optimistic about the economy throughout the second quarter, they also continue to tell us they want to spend less,” he explained. “More and more, they want retailers to help them save money with sales and coupons. We are well positioned with our everyday low prices and our weekly sales and digital offers to solve this for our customers.”

Part of what makes Kroger’s Customer 1st strategy so powerful, McMullen said, is because it provides a firm foundation from which to approach new opportunities benefit its customers, associates, and shareholders.

What’s more, Kroger is actively expanding its use of technology.

“This summer we expanded our online ordering pilot in Cincinnati to three additional divisions,” McMullen explained. “We are now offering our order online, pickup at the store solution in select Kroger stores in Louisville and Indianapolis and Fred Meyer stores in the Portland area. When you think about digital opportunities, we do not limit our focus to ecommerce. Digital for Kroger includes a broad range of efforts to interact with customers in increasingly relevant and meaningful ways whether online or through our mobile app. A key metric is our measure of digital and household engagement. And during the second quarter, we continued to gain household engagement at record numbers.”

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