Kroger's Direct Mail Marketing Shows Retailer Knows About Customers' Buying Behavior Better Than They Do

Grocery store chain Kroger partnered with customer data specialist dunnhumby to develop direct mail marketing materials that are tailor-fit to each of its customers based on their personal preferences. Kroger said the mailed coupons have a redemption rate of over 70 percent within six weeks after mailing. Also, its direct mail marketing has generated $10 billion in revenue for Kroger, the company said. Its quarterly direct mail marketing materials contain 12 coupons specifically designed for each household. According to the companies, 80 percent of dunnhumby’s efforts are focused on what they know about a customer, with the remaining 20 percent focused on finding out more information about the customer.