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26 individual stores themselves - which ones have a Starbucks, which locations should have a fresh fish counter, a cheese counter and so on? To help make it simple, Kroger's 2,500 stores have been divided into five different segments - value, upmarket, Hispanic, mainstream and family. Analysis of the Kroger Plus card data revealed that Hispanics in the Southwest and Texas wanted orange mango-flavoured Lipton iced tea, a flavour that was not available in their local Kroger store. Prompted by dunnhumby, Unilever quickly got the product into those stores. Similarly, in a different field of American retailing at The Home Depot, a home improvement store, a closer analysis of data revealed opportunities among the Hispanic population, where 20% home ownership growth is expected over the next 15 years. Today, The Home Depot has a high share of wallet with the Hispanic community and is working to recruit bilingual staff and develop bilingual signage to serve this market like " Puedes Hacerlo. Podemos Ayudarte." (" You can do it. We can help.") Tesco's innovations Tesco's Finest brand was launched using the insight drawn from Clubcard. It told them that there was a sizeable and significant group of customers who would be prepared to pay a little more for premium products. It was another example of Tesco wanting to grow the share of existing customer spend rather than hunt out new ones. These Tesco customers did most of their shopping at the store but visited Waitrose or M& S for special treats or at Christmas. Today, the Tesco Finest brand is bigger than Coca- Cola in the UK in sales value. Interestingly, Tesco data shows how eclectic shoppers can be. Premium customers might buy the best muesli and ' value' toilet roll. Only shopping data is going to give you real insights. Tesco's ethnic range, World Foods was launched following the analysis of customer data in a British town with a large proportion of ethnic minorities. In this particular store the Tesco shoppers were not buying full meals, preferring to buy staples like huge sacks of rice, canisters of oil and loose bunches of herbs from local markets. any colour you like as long as it's any colour you like

27 Tesco decided to build a superstore to appeal to the ethnic groups in the area. When the new store opened in 2005 it offered 800 different foreign products, up from 150 in the previous store. It also has a halal butcher, newspapers in Arabic, Urdu, Punjabi and Bengali as well as a jewellery counter. The World Food range has since been extended to many more stores, as dunnhumby's analysis revealed that upscale white shoppers accounted for one quarter of World Food sales in this store. Today, Bar Hill, an affluent village near Cambridge, is one of the top sellers of the World Food range. Other innovations driven by Clubcard's insights include 24- hour opening, the Healthy Living range, Organics, Free- From, a range which is free from allergens like gluten and wheat and SoGood, a private label soya milk brand. Then there's Tesco's dramatic success in non- food items from clothing to electronics and homeware. Similarly, Tesco's ability to extend its brand into entirely new sectors like mobile or financial services are all driven by its ability to really understand customers. The Shop Working with dunnhumby, retailers are encouraged to share customer data with their suppliers. The ambition is to ensure its insights improve the entire shopping experience for customers. The collaboration between retailers and suppliers to improve customer experience is crucial and signals a radical new approach for the industry. Traditionally, the relationship between retailers and suppliers has been purely based on trading terms, with the customer getting lost in the ongoing commercial battle. Working with its retailers, dunnhumby is starting to bring a customer element to the conversation. This customer dimension doesn't supplant the commercial imperatives of the relationship between suppliers and retailers, but it does ultimately create better value growth rather than short- term promotional boosts. For example, dunnhumbyUSA's data helped one of Kroger's clients launch a new product - one- calorie- per- spray salad dressing. The product was initially launched using a diet message, when customer data revealed that a quality or taste message would have been more appropriate. The marketing was tweaked and the launch became a success. the power of personalisation