Northern Kentucky University
Kroger Post-Pandemic Customer Segmentation
Grade Level at Time of Presentation
Sophomore
Major
Physics
Minor
Mathematics
Institution 24-25
Northern Kentucky University
KY House District #
67
KY Senate District #
24
Faculty Advisor/ Mentor
Dhanuja Kasturiratna; Lisa Holden
Department
Department of Mathematics and Statistics
Abstract
The grocery retail industry landscape has changed greatly in the wake of the pandemic. Specifically, delivery and pickup services have become more popular and customer buying habits have evolved. At the same time, improvements in data collection and analysis have allowed grocery marketing strategies to become highly individualized.
We worked with 84.51, an analytics firm, to identify customer segments for the Kroger Company based on data from 2023. Using clustering techniques, we organized customers into groups, or segments, based on similar characteristics. We identified and profiled four distinct groups of customers. Three segments were characterized by high frequency and spending in their mode of shopping (delivery, pick-up, or in-store), while the fourth group used multiple modes of shopping, and exhibited lower spending and fewer loyal customers. These results can be used to inform Kroger’s efforts to create effective marketing strategies, develop product offerings, and enhance the customer experience.
Kroger Post-Pandemic Customer Segmentation
The grocery retail industry landscape has changed greatly in the wake of the pandemic. Specifically, delivery and pickup services have become more popular and customer buying habits have evolved. At the same time, improvements in data collection and analysis have allowed grocery marketing strategies to become highly individualized.
We worked with 84.51, an analytics firm, to identify customer segments for the Kroger Company based on data from 2023. Using clustering techniques, we organized customers into groups, or segments, based on similar characteristics. We identified and profiled four distinct groups of customers. Three segments were characterized by high frequency and spending in their mode of shopping (delivery, pick-up, or in-store), while the fourth group used multiple modes of shopping, and exhibited lower spending and fewer loyal customers. These results can be used to inform Kroger’s efforts to create effective marketing strategies, develop product offerings, and enhance the customer experience.