the business case for microtargeting

THE BUSINESS CASE FOR MICROTARGETING

KANTAR RETAIL OMNISHOPPER FORUMMarch, 2016

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• Microtargeting Defined• Microtargeting Justified• Shopper Microtargeting Today • Shopper Microtargeting Tomorrow • Putting It All Together

AGENDA

MICROTARGETING DEFINED

Microtargeting DefinedMicrotargeting is a marketing strategy that uses consumer data and demographics to identify the interests of specific individuals or very small groups of like-minded individuals and influence their thoughts or actions. An important goal of a microtargeting initiative is to know the target audience so well that messages get delivered through the target's preferred communication channel.

MICROTARGETING JUSTIFIED

Microtargeting Justified

• “Fully 85% of respondents ages 18 to 34 and 35 and older say they would be more likely to make a purchase if they saw something personalized to their interests. Across age groups, males were more interested in this technology than females.” - eMarketer

• “Personalization can deliver five to eight times the ROI on marketing spend, and can lift sales by 10% or more” - McKinsey

• Caveat: don’t be creepy. Disclose what and how to your audience

SHOPPER MICROTARGETING TODAY

Traditional Segmentation

Maturing sources of channels and data

Maturing sources of channels and data (continued)

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TURNKEY RETAIL MEDIA

SHOPPER MICROTARGETING TOMORROW

Emerging Shopper Segments

Emerging In-Home experiences and data

Emerging In-Home experiences and data (continued)

Emerging On-The-Go experiences and data

Emerging In-Store experiences and data

New Sources of Context

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SENSORS AND RECOGNITION

Geo-location Ambient LightTemperature Humidity Barometric Pressure Blood Contents

Aura

Sweat Contents

Skin Conditions Movement WeightHeart Rate Breathing Rate

Image Recognition Facial Recognition Bacteria/VirusDetection

CharacterRecognition

Ocular Recognition

Chemicals in Air

PUTTING IT ALL TOGETHER

PUTTING IT ALL TOGETHER

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New Context• Personality• Current Emotion• Physical state / health• Recently New Habits /

Behaviors

Emerging Channels – In-Home• In-home devices / IoT: Echo/Dash/New Sensors

(Light, Temperature, Chemicals, Movement)• Delivery / retail commerce• Subscriptions / Auto-replenishment• Top Home Web Properties (Search / Weather /

Entertainment / Utilities)

Maturing Digital Shopper Channels• Email• Social placements and platforms• Influencer campaigns• Display• Paid search• Promotional microsites and brand pages• Third-party deal and coupon sites• Retail media networks

Emerging Channels – In-Store• IR / smart cameras• Kiosk• Smart shelves• Self check-out / smart POS• Click-and-collect• In-store Mode

Emerging Channels – On-the-Go• Shopping List • Application In-store mode• M-wallet / M-payments• M-loyalty• Scanning / Identity Recognition• Micro-Geolocation• Product/Category Mobile Search• App Category Navigation• Wearables


• Hyper-Local• Shoppertainment• Ultra Cost-Conscious• In-store/Pickup Hybrid• Gen Z

Traditional Segments• Shopper Category• Lifestyle• Lifestage• Occupation• Affinity

HOW SHOULD WE CREATE NEW EXPERIENCES?

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New Context• Detail-Oriented• Stressed Out• Physical state / health• Trying to Stop

Smoking

Emerging Channels – In-Home• In-home devices / IoT: Echo/Dash/New Sensors

(Light, Temperature, Chemicals, Movement)• Delivery / retail commerce• BirchBox Subscriber• Top Home Web Properties (Search / Weather /

Entertainment / Utilities)

Maturing Digital Shopper Channels• Email• Social placements and platforms• Influencer campaigns• Display• Paid search• Promotional microsites and brand pages• Third-party deal and coupon sites• Kroger Plus Loyalty Member

Emerging Channels – In-Store• IR / smart cameras• Kiosk• Smart shelves• Self check-out / smart POS• Click-and-collect customer• In-store Mode

Emerging Channels – On-the-Go• Uses Kroger App Mobile List• Application In-store mode• Loves Apple Wallet and Apple Pay• M-loyalty• Scanning / Identity Recognition• Micro-Geolocation• Product/Category Mobile Search• App Category Navigation• Apple Health: Recently Increased Exercise

and Healthy Eating


• Hyper-Local• Shoppertainment• Ultra Cost-Conscious• In-store/Pickup

Hybrid• Gen Z

Traditional Segments• Shopper Category • Lifestyle• Gen X• Photographer• Loves Fine Cheese

THANK YOU!