Sorry for the mixed metaphor but whenever my friends used to complain about the grocery collecting their personal information, I always laughed and said the store would never figure out how to use the overwhelming amount of data they collected. Well, apparently Kroger finally found someone who can. Dunhumby got the start in the U.K. working for Tesco, as I noted earlier.
Cincinnati Business Courier: Kroger's card sharks by Laura Baverman
Dunnhumby's U.S. headquarters was established in Cincinnati after it won the Kroger contract in 2002. The joint venture agreement started in 2003, and the company began to occupy and fill a floor in Al Neyer Inc.'s renovated building downtown.
"Most businesses have grown by acquiring companies or cutting costs. When you've exhausted those, then you have to look at how to serve your existing customers better. That's what we do," said Hay. Dunnhumby has three goals for its clients: improve the shopping experience, use consumer understanding to shape communication opportunities and engage employees.
"We're a learning organization. As we learn about our customers and their organizations, we develop what we do and how we do it," Hay said. The company maintains a database of every Kroger Plus card transaction. It evaluates the price and assortment of products and the promotional strategies such as direct mail and the company Web site. A team creates the marketing and advertising materials.
Dunnhumby also helps enhance the effectiveness of Kroger employees and upper management and oversees the development of employee rewards strategy.