The digital grocery space is growing faster than in-store grocery, with digital grocery sales expected to make up almost 14% of all US grocery sales. That number is expected to grow another 17.4% in 2024, reaching over $219 billion. The accelerated growth of digital sales alongside the emergence of in-store retail media such as Smart Carts and Digital Smart Screens is providing brands with expanded opportunities to engage target audiences, strengthen customer relations, and drive sales.
Kroger is empowering brands to deliver the right message to consumers by prioritizing customer loyalty through membership programs, offering personalized recommendations, and leveraging first-party customer data. This helps brands meet the growing expectations for convenience and ensures their message connects with the right audience at the right time.
In this Marketplace piece, we’ll dive into Kroger’s advancements in measuring incremental sales and examine how they are expanding the in-store retail media push with digital smart screens.
Measuring Incremental Sales
As brands continue to navigate the complex landscape of data privacy and attribution, measuring the impact of incremental sales remains a challenge. Despite having access to more data than ever, brands still face roadblocks when tracking the customer journey due to shifts in consumer privacy preferences, making attribution even more difficult. Kroger Precision Marketing (KPM) aims to remove some of these obstacles by introducing new reporting tools geared towards incremental return-on-ad-spend (iROAS) for targeted onsite ad groups spending $50,000 or more. The expansion of KPM’s measurement portfolio intends to provide brands with a better understanding of the impact of online advertising with Kroger.
What does this mean?
Leveraging first-party data from Kroger’s web property, loyalty accounts, and in-store and online sales, KPM provides a comprehensive report that brands can use to measure the impact of their campaigns. The detailed report provides visibility into metrics such as household count, total ad group spend, total uplift, and iROAS. This data analysis gives brands the power to track the customer journey more effectively, see which campaigns are driving incremental sales and engagement, and make more informed decisions based on actionable data. While there is no defined industry standard to measure incrementality, KPM’s latest update equips brands with a stronger tool to measure, monitor, and understand the impact of their advertising campaigns.
Smart Screens
Following a multi-year pilot program, Kroger is expanding its use of Cooler Screens to enhance the in-store shopping experience for consumers. These innovative smart screens replace traditional freezer doors and will place a digital overlay in front of physical products, showcasing product details, nutritional information, pricing, and availability. These screens also feature full-screen ads, providing brands with an opportunity to engage with consumers directly in the store.
Courtesy: Cooler Screens
What does this mean?
CPG brands can now interact with customers in-store in a personalized manner, showcasing ads based on the cooler doors they open. The shopper is shown ads for new products, brands, deals, and seasonal promotions based on the section they are in. For instance, a customer might open a smart screen door that has ice cream and is shown an ad for chocolate syrup or ice cream cones.
Incorporating impulse-driven ads throughout the shopping journey is a game-changer for brands. These smart screens open new opportunities to engage consumers with deals on relevant products while they are browsing the aisles with these smart screens. This strategy effectively recreates the point-of-sale experience in traditional brick-and-mortar stores, introducing innovative methods to engage with shoppers and drive sales.
Conclusion
Kroger Precision Marketing’s advanced incrementality reporting tools offer brands a deeper understanding of campaign impact, leveraging first-party data to track the customer journey more effectively and make informed decisions. Additionally, the expansion of the in-store retail media via smart screens presents exciting opportunities for CPG brands to engage with consumers in-store through impulse-driven ads, ultimately enhancing the shopping journey and driving sales. By leveraging these tools and strategies, brands can effectively navigate the evolving landscape of the digital grocery space, drive incremental sales, and foster stronger connections with consumers in the competitive retail environment.
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Contact us today to unlock the potential of the Pacvue Platform and leverage our expertise to expand your brand across multiple retailers. With exclusive features and integrations with platforms like Kroger, we’re poised to elevate your success in today’s competitive market.
