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24 In today's world of globalisation, efficiency and standardisation, it's difficult to imagine how a giant retailer might be able to begin to offer the kind of personalised customer service that we get from our local corner shop. Yet this is one of the most significant benefits for customers who belong to the loyalty schemes of Tesco, Kroger and Casino. dunnhumby's ability to draw meaning from over 200m different households shopping baskets across the world to create patterns, links and potent insights ensures its partners can offer customers relevant choices. As Casino's Chief Executive, Jean- Charles Naouri says: " The partnership with dunnhumby allowed us to develop our commercial appeal as well as strengthen customer loyalty by not only improving our knowledge of their spending habits but of their expectations as well." Crucially, understanding customer data also enables retail partners to launch new ranges with confidence like Tesco's Healthy Living, Kroger's Hispanic range and Casino Délices, products for the ' gourmet' shopper, because the data tells them there is a customer need. Casino's gourmet In March 2008, Casino launched a ' gourmet' private label range called Casino Délices, designed to appeal to a customer segment discovered by dunnhumby after analysing the data of its 3.7m loyalty card members. ' Gourmets' are not interested in ready meals, but they want premium ingredients and knowledgeable staff at the deli counters. From 2004 to 2007, Casino's private label range increased by seven percentage points to 43% of sales in volume, and Casino wanted to build on this success. Unlike the British or Americans, French food shoppers are most likely to shop at a variety of different retailers from their local butcher to the weekly market, as well as a supermarket like Casino. French customers are also less likely to find food shopping a chore and enjoy taking the time to select the right ingredients, often shopping more frequently. The Casino Délices range was developed with the help of a Michelin star chef. The products include cocktail party nibbles, ready- to- cook meals, which unlike ready meals involve preparation any colour you like as long as it's any colour you like The ambition is to ensure its insights improve the entire shopping experience for customers

25 the power of personalisation by the shopper. The range also includes premium ingredients like smoked salmon and a vinaigrette dressing, which have both been best sellers since its launch. The highest repeat purchase comes from 100g of Emince Saumon - one in four shoppers bought again in the nine months of 2008. This is an increase of over 10% compared to the same time the previous year. Crucially, Casino Délices repeat purchase is performing as well as the direct brand leaders in their market. For example, in the smoothies market, Casino Délices Fraise Framboise Myrtille has a repeat purchase rate of over 20% compared to key competitors who managed only 16%. Other Casino innovations driven by the analysis of customer data include making the halal range more competitively priced, rolling out fresh fruit and vegetables to stores across the country and ensuring customers' most- wanted products are never out of stock by overlaying the core range list with the supply chain list. Kroger's innovations Kroger is an altogether different operation. It carries on average 60,000 products, compared to 40,000 in Wal- Mart. One of the first tasks for dunnhumby was to help Kroger streamline its ranges to ensure customers weren't confused by so much choice. During a regional test, dunnhumby identified products from 10 different categories that could be removed from the shelves without upsetting customers. The analysis led to 8- 45% of the products from each of the 10 categories in the total range being removed. The delisted products were carefully selected according to rules dunnhumby had developed to ensure no essential items were removed. Results spoke for themselves, sales increased in nine out of the 10 categories because shoppers were finding it easier to shop from the edited ranges. Other Kroger innovations driven by analysis of the customer data included the development of a Hispanic food range, which has led to some stores running demonstrations on how to make tortilla bread. Then there's the different layout of