RETHINK Retail’s Solution Spotlight shines a light on industry vendors and what makes them distinct.
This vendor spotlight is on 84.51˚, a retail data science, insights and media company that helps the Kroger company, CPG companies, agencies, publishers and affiliated partners create more personalized and valuable experiences for shoppers across the path to purchase.
Powered by cutting edge science, it leverages 1st party retail data from nearly 1 of 2 US households and 2BN+ transactions to fuel a more customer-centric journey utilizing 84.51° Insights, 84.51° Loyalty Marketing and its retail advertising solution, Kroger Precision Marketing.
To learn more about 84.51˚, visit: www.8451.com
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TRANSCRIPTION:
Barbara Connors:
CPGs today are facing many challenges and it is driven by the fact that customer behavior is shifting faster than it ever has before and we are being influenced by multiple socioeconomic factors all happening at once. The challenge really for the industry is to be able to leverage customer data effectively, to quickly be nimble from a business perspective and make those changes fast enough to meet customers where they’re at.
So while there are many challenges facing the industry today, there are also a lot of opportunities for CPGs. One key trend that has emerged over the last 18 months is that customers are cooking more at home. And this was accelerated by the pandemic because we were forced to go at home. We were in quarantine and restaurants were closed down, but what we found is a lot of people have come to enjoy it. And there are sustained behavior shifts now where we expect that consumers are going to be cooking at home at a greater rate than they were pre-pandemic.
Even as the economy opens back up and people return to restaurants, it won’t be at the rate that it was before. And this is really driven by two key factors. One is that those customers that have found that they enjoy cooking are now going to build this into their new routines. The other is that customers are choosing to make healthier lifestyle changes, also influenced by the pandemic and they find that they have more control over what they eat if you cook at home versus eating out.
So for CPGs and the grocery retail industry at large, this is a great opportunity because this means elevated sales that we have all experienced over the last year and a half will continue. The challenge for CPGs is, you know that some of those sales are going to go back to the restaurant industry and you want to ensure that the meals that customers are making at home, include the brands that you are selling and that you are relevant to those customers and become part of those routines, even as we change our lifestyle and behaviors over the next year.
We provide an ecosystem of insights back to our CPG partners and it leverages attitudinal data and known purchase data based on our subset of 60 million households and knowing exactly what they buy week in and week out. And by mirroring attitudinal data and purchase data, it provides us the opportunity to understand what customers are thinking, what their aspirations are for the future, but also what their anxieties are and marry that with what they’re actually buying. At what rate? How they’re buying it? Is it in-store? Is it online? Why are you using each channel? What are you using it for?
And because we have the ability to provide that on a weekly basis, you’re able to both identify and monitor trends that are changing and pick up on those changes very quickly, but also use all that information to build predictive analytics that help you anticipate how can you capitalize on that for the future and get ahead of it. So not only can you identify the trend and activate on it quickly, but then you can also anticipate, well, what is this going to look like in the future? And how can I actually get ahead of that?