Let me start by saying that I’m a Zealot for Publix, so posting on Kroger is certainly not something I’ll plan to do often. However, this article on loyalty got my attention.
They say the cost to acquire a new customer is five to ten times more than keeping a current customer. Kroger has done the math and dedicated themselves to creating loyal customers by creating more than people just looking for a discount.
Read the below excerpt from Tim Manner’s “reveries” blog. What do you think? Is Kroger creating loyal customers? Are they building Zealots for their brand?
“We don’t need to draw in others who don’t shop with us because the biggest opportunity is with our loyal customers,” says Kroger chief David Dillon in a Cincinnati Enquirer article by Laura Braverman (10/8/09). David says Kroger realized this almost ten years ago, and has been on a path ever since “to put the customer first, and permanently.” Most famously, Kroger engaged with London-based dunnhumby to build a database of 45 million shoppers, using the data to “create advertising campaigns and provide targeted coupons to its most loyal customers.”
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