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

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.

This document is currently not available here.

Share

COinS
 

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.