Personalized Customer Engagement Continues to Lift Kroger

Kroger has enjoyed a long tenure of excellence when it comes to customer loyalty, customer experience, and customer engagement.

Solid fiscal performance and stellar accolades seem to shadow Kroger.

During its recent second-quarter results conference call, Kroger CEO Rodney McMullen cited loyal customer growth as a key attribute for the company, which now offers ClickList and ExpressLane online ordering services in almost 400 locations.

What’s more, Kroger’s technology business unit was named one of the Top 100 places to work by Computerworld magazine.

Kroger officials have found that ClickList also serves as a great tool to both hire and retain great people.

“Kroger is a terrific place for tech talent to build careers because the technology they create can improve the lives of millions of customers each and every day,” McMullen said. “Kroger’s core business is solid. We are providing exceptional customer service and the highest quality, freshest products. Customers are giving us higher marks for better product selection and store layout, as well as friendlier service. We remain focused on customer loyalty that grows tonnage and both our top and bottom lines, which then creates value for shareholders.”

Total second-quarter increased 4.0%, $26.6 billion, up from $25.5 billion for the same period last year.

“I’m very proud of our associates for their determined focus on always making a difference for our customers,” McMullen said. “Their execution of our Customer 1st Strategy in a deflationary environment helped deliver growth in identical store sales, units, and market share. We are focused on long-term performance over a three-to-five-year horizon. We have the right strategy, the right people, and the financial flexibility to execute our strategy, which allows us to continue investing in our associates and our business and growing market share. By staying on our strategy, we create long-term value for our shareholders.”

So how does Kroger stay on top in a very challenging environment?

Stellar Loyalty CEO and co-founder Kevin Nix offered his thoughts to Loyalty360.

“Kroger’s quarterly success reinforces the fact that personalized customer engagement contributes to a strong financial return,” Nix said. “Kroger continues to lead the industry in smart communication with its shoppers. Their communication is always targeted, relevant, and useful.”

Brad Marg, COO at Clutch, shared his thoughts on Kroger with Loyalty360.

“Kroger seems to have cracked the nut in terms of not only a solid plan, but the ability to execute all the way through the operations team,” Marg explained. “For a large organization to be able to do that, in their space, seems to be the key in not only customer retention, but customer acquisition and growth within the base. Kroger seems to be living on its core values that customers are its No. 1 priority and the market is reacting to commitment. Others can learn from how Kroger saw an opportunity, strategized, and delivered a plan that consumers actually want.”

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