Kroger is Cashing in on Lazy Deal Seekers

Everyone would like a deal.

And if getting the best deal required no extra effort, well, we would all go for best deal.  However, retail deal seeking requires effort.  There is a spectrum behind deal seeking spanning from lazy deal seekers into expert deal seekers.

Lazy deal seeking requires minimal effort.  I would categorize myself as a lazy deal seeker.  I am willing to spend an extra 30 minutes or so in Kroger to get a better deal.  I’ll seek out products to maximize  Kroger’s 5 for $5 deal,look for digital coupons for products in my cart., or do impromptu meal planning based on a weekly meat deal .  I feel this in-store effort makes a difference in my grocery bill.  In the past I have saved over $50 on our weekly $200 grocery haul.  If I do save a substantial amount, I  feel a deal rush when the cashier tells me my savings, and all for relatively minimal effort.

Now, if I was a true deal seeker I would expend a lot more effort prior to my grocery trip surveying the retail deal landscape and cherry picking deals from multiple locations.  A true deal seeker would research deals at nearby stores and find the best deals  Look no further than the Krazy Coupon Lady for what a little effort would get you.  For example,

 

A far better deal than any deal I get at Kroger.  However, Kroger is onto something.  Kroger had a good year in 2018, in particular, they experienced a 66% increase in digital sales.  Kroger may not get you 13 products for $1.68, however, shoppers still feel that deal rush at check out.  They feel their deal seeking efforts (albeit minimal) have been rewarded.  Kroger has created an Omni-Deal system – a deal ecosystem surrounding the shopper requiring only minimal effort to be rewarded.

Kroger’s Omni-Deal approach begins prior to the store trip, extends into the store environment, and also pays off multiple trips in a month.

Prior to the store trip, Kroger leverages shopper purchase history through personalized coupons to feed the deal seeker DNA.  As a Kroger shopper,  I receive a regular direct mail piece with coupons based on my past purchases.  Additionally there are hundreds of coupons available through the Kroger app. This couponing approach is an example of how Kroger engages the lazy deal seekers –  they don’t have to search for deals, deals are presented seamlessly into Kroger’s grocery shopping experience.

Kroger (like their competitors) also understands many shoppers hate grocery shopping.  Enter ClickList, which is Kroger’s curbside pick-up service.  Sure many grocery stores offer pick-up and delivery services, but Kroger entices shoppers by adding  digital coupons exclusively for ClickList shoppers.  These shoppers save two ways: time and money.

In the store Kroger is training shoppers to double down on savings.  Kroger will tag sale items like every other grocery store.  However, Kroger will also extend some sales tag with a call to action to go online to download a coupon to save even more.  From my perspective they are training shoppers to use coupons as a part of their Kroger experience.  The end goal is to make their digital couponing a part of their shopper experience.

There is a subtle but effective tactic Kroger uses at checkout too.  The cashier will always tell the customer how much they saved on their trip (and sometimes circle the number to emphasize it to the shopper).  Sometimes it is a nominal amount, other times it is substantial. The more substantial the greater the deal seeking rush.

All these savings add up, but there is one more deal a shopper can get every month  Think of it as the icing on the deal seeking cake:  Kroger’s FuelPerks.  The more a shopper spends at Kroger in a given month, the more they save at the pump.  And as gas prices rise, the benefit of FuelPerks will rise too.

Kroger OmniDeal approach is designed to keep shoppers focused on Kroger.  It is built for the lazy deal seeker.  The shoppers who want a deal on their groceries and prefer to not expend the effort of going to multiple stores.

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