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Kroger's 84.51 Launches Customer Data Platform for Brands

Stratum could be additional alternative revenue stream for retailer
Photograph courtesy of 84.51

As The Kroger Co. continues to seek alternative revenue streams on the back end, its customer data, analytics and personalized marketing subsidiary 84.51 has launched a new paid analytics solution to help brands position their products both in-store and online. 

Dubbed Stratum, the new platform utilizes data from both brick-and-mortar and e-commerce transactions and aims to "draw conclusions that are representative of consumer behavior nationally," according to company officials. 

Mike Donnelly, Kroger's EVP and chief operating officer, said the retailer is excited about this next iteration of customer insights, calling Stratum a "science-powered insight tool that is designed with the end user in mind. Stratum will be an accelerator for our brands and CPG partners alike." 

In a call with analysts in March, Gary Millerchip, CEO of personal finance for Kroger, said the retailer’s alternative profit stream had seen a “very strong year,” with 20% growth in 2018 and high expectations for 2019. 

At the time, Millerchip pointed to the importance of a “symbiotic” relationship between Kroger’s alternative revenue and its core business, because “the data that we're generating to drive those alternative business are coming from that core business." He added that it is also important that Kroger does not damage its relationship with customers through its use of shopper data.

The program includes broad data assets, including access to in-store and online purchases in a single view. Brands will also have the opportunity to customize their experience and gather data on factors such as sales performance, out-of-stocks, new item performance and customer behavioral insights. 

According to Stuart Aitken, CEO of 84.51, the new approach will allow for "greater collaboration and a more comprehensive planning methodology for our brand partners" that will "dramatically change the way our brand partners plan and execute their marketing and merchandising budgets."

Stratum will offer multiple subscription packages to fit varying budgets.

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