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19 told dunnhumby that its stores were doing a great job, but that Kroger needed more customers. After analysing the available data, it didn't take long for dunnhumby to realise that the opposite was in fact true. The stores were missing an opportunity. Kroger didn't need more customers, it just needed to pay more attention to the customers it already had. The lightbulb moment came when we told Kroger management that even their best customers were only spending half their shopping budget in their stores. Indeed, if Kroger could persuade its existing customers to spend their full share of wallet, they would be able to triple sales. In June 2003, Kroger and dunnhumby formed a joint venture called dunnhumbyUSA to provide shoppers with a more customised shopping experience. The quiet American So what does Kroger look like? It is America's largest traditional supermarket and third- largest retailer overall, with over $ 70bn ( around £ 50bn) in sales across 2,500 supermarkets and 65m shoppers. In 2003, it didn't have a clear customer strategy, but Dave Dillon, then Kroger Chief Operating Officer, now Chief Executive, wanted to create a new loyalty card programme that wasn't merely a promotional tool. Loyalty programmes work a little differently in the US. At Kroger, yellow tickets are placed on products signalling that Kroger Plus cardholders will get immediate discounts at the till. dunnhumby has since helped Kroger launch a targeted quarterly mailing programme sending customers relevant coupons and discounts. Over the last four years, Kroger has rolled out its Customer 1st programme, a strategic initiative that has overhauled the retailer's range, pricing, store layout, promotions, store experience and trained 320,000 staff to ensure that it offers what its customers want. Today, dunnhumby sifts through 40bn purchases made on 4bn shopping trips by 42m card- carrying Kroger shoppers across the US. It has discovered seven different shopper segments such as ' budget shoppers', ' watching the waistline' and ' family- focused.' the dunnhumby journey

20 Le supermarché In 2006, dunnhumby formed a joint venture with Casino, the French supermarket chain following a secret seven- month trial. Since then, dunnhumby has been working hard to increase the size of Casino customers' shopping baskets by carefully cutting prices, listening to what customers want, launching a new premium gourmet range called Casino Délices, making promotions relevant, sending personalised statements and saying thank you to loyal shoppers. Casino has nearly 4m loyalty cardholders who have been segmented into 15 categories of consumer. It shows that only 17% of Casino customers are mainly sensitive to price, while 30% are sensitive to quality, and 53% are averagely sensitive to price. Crucially, dunnhumby is helping to change the way Casino does business. Its staff are now incentivised and rewarded with bonuses based on the increase in numbers of loyal customers. And in 2008, Jean- Charles Naouri, the head of Casino, was named Retailer of the Year by trade magazine LSA. Moreover, Casino's 2008 full year financial results show that a new personalised approach to retail is working. Its consolidated net sales were up 14.9% to ? 28,704m ( around £ 26.6m), and trading profit was up 7.3% to ? 1,283m ( around £ 1.2m) from 2007. A clear illustration that making your offering more relevant to customers is a valid strategy, even in a tough economic climate. In the next chapter, we'll be telling the story behind Casino Délices and many other major retail innovations, which have all been driven by customer insight. Drawing insights from customer data drives personalised, relevant innovation for retailers with great success. any colour you like as long as it's any colour you like