The document discusses building a seamless user experience for shoppers through understanding consumer behaviors and trends. It presents insights into food and cooking habits, budgets and deals, health concerns, and trends in mobile technology and retail. Some key insights include: 20% of Australian kids think pasta comes from animals; 50% of meals are now eaten out of home compared to 2% in 1900; location-based services will expand to 1.4 billion users by 2014; and mobile payment technology is evolving. The goal is to deliver meaningful content to consumers on the right device and moment to improve the shopping experience.

1. BUILDING A SEAMLESS USER EXPERIENCE FOR SHOPPERS
October 20, 2013
PRESENTED BY
MATT THOMPSON – KROGER | MICHELLE BERRYMAN – THINK INTERACTIVE

2. ABOUT KROGER

3. ABOUT THINK INTERACTIVE
Since 1994, we‘ve focused on helping
brands create business value through digital
channels.

4. OUR TALK
Today, will discuss how we are using insights and trends in mobile adoption and
emerging consumer behaviors, as well as, contextual consumer research to build
a seamless user experience for shoppers, whether in-store or online.
We will describe techniques for understanding consumer habits, needs and
challenges across a full customer journey and the ways in which we are
delivering meaningful content to consumers on the right device, in the right
moment, with the right services.

5. INSIGHTS & TRENDS

6. CUSTOMER & INDUSTRY INSIGHTS
20% of kids in
Australia think pasta
comes from animals
81% of Americans
―cook what they
know‖
53% of Americans
say they know less
about cooking
than their parents
The most popular recipe on Pinterest (Easy Garlic
Chicken) has been pinned more than 1.6M times.
The top 25 recipes on Pinterest have been pinned
more than 6.6M times
In 1900, 2% of meals were
eaten outside the home. In
2010, it was 50%
28% of Americans don‘t
know how to cook
Food and
cooking
81% of low income
respondents rate fresh
produce as ―extremely
healthy.‖ That number
drops to 32% for frozen
produce and 12% for
canned produce.
49% of surveyed
consumers learn
about food from social
networks
7% of Americans
don‘t cook
1 in 2 low income families
are interested in learning
about cooking healthy meals
30% of Americans
say they love to cook
47% of women and
33% of men say they
use social media as
their primary source
for coupons
25% of socially
shared food
photography is
simply to show
off ―what I ate
today‖
The most
photographed foods
are desserts,
vegetables and poultry
dishes
Budgets,
coupons and
deals
41% of Americans
attempt to diet in a
given year
Digital coupon users
spend 49% more per
year than the average
shopper
28% of coupons are used for
food products
2 in 3 low income
families are interested in
learning how to better
budget their money for
meals
More than half of women
say the high cost of healthy
food is a major driver of
obesity, compared with just
37 percent of men.
Location based
services will expand
to 1.4B users by
2014
Trends in
mobile and
apps
Geo-targeted offers and
push-notifications will
expand in 2013
12% of Wal-Mart‘s online
sales are made through
their smart phone app while
customers are in the store
85% of families skip healthy
purchases at the grocery
store because of price
Health and
diet
concerns
Going forward, most smart
phone buyers will be older
and poorer
Tablets are now
driving all growth in
the PC market
57% of Pinterest
users interact with
food-related content
25% of the US
population is now using
digital coupons
Digital coupon savings rose
41% from 2009 to 2010
305B coupons were
distributed in the US in 2012
giving consumers access to
$405B in savings
Influence of
social
channels and
social sharing
Food is the #1
content category
on Pinterest
67M digital coupons are likely to
be redeemed in the US in 2013
22% of socially shared food
photography documents
something the user has
cooked and/or the cooking
process they went through
37% of smart phone owners used a
mobile price search app while in a
store (a quarter have left to buy the
cheaper option).
Trends in
retail and ecommerce
71% of shoppers
want access to
digital content in the
store
85% of low income parents say
eating healthy meals is
important to their families
Context-aware
services are on the
rise
67% of people start shopping on
one device and continue to
another device (61% laptop, 4%
tablet)
65% of shoppers
research online and
purchase in-store
53% of shoppers
expect greater price
visibility via digital
channels

7. CUSTOMER & INDUSTRY INSIGHTS
20% of kids in
Australia think pasta
comes from animals
81% of Americans
―cook what they
know‖
53% of Americans
say they know less
about cooking
than their parents
The most popular recipe on Pinterest (Easy Garlic
Chicken) has been pinned more than 1.6M times.
The top 25 recipes on Pinterest have been pinned
more than 6.6M times
In 1900, 2% of meals were
eaten outside the home. In
2010, it was 50%
28% of Americans don‘t
know how to cook
Food and
cooking
81% of low income
respondents rate fresh
produce as ―extremely
healthy.‖ That number
drops to 32% for frozen
produce and 12% for
canned produce.
7% of Americans
don‘t cook
1 in 2 low income families
are interested in learning
about cooking healthy meals
30% of Americans
say they love to cook
47% of women and
33% of men say they
use social media as
their primary source
for coupons
Influence of
social
channels and
social sharing
25% of socially
shared food
photography is
simply to show
off ―what I ate
today‖
Food is the #1
content category
on Pinterest
The most
photographed foods
are desserts,
vegetables and poultry
dishes
25% of the US
population is now using
digital coupons
Digital coupon savings rose
41% from 2009 to 2010
Budgets,
coupons and
deals
41% of Americans
attempt to diet in a
given year
Digital coupon users
spend 49% more per
year than the average
shopper
28% of coupons are used for
food products
2 in 3 low income
families are interested in
learning how to better
budget their money for
meals
More than half of women
say the high cost of healthy
food is a major driver of
obesity, compared with just
37 percent of men.
Location based
services will expand
to 1.4B users by
2014
Trends in
mobile and
apps
Geo-targeted offers and
push-notifications will
expand in 2013
12% of Wal-Mart‘s online
sales are made through
their smart phone app while
customers are in the store
85% of families skip healthy
purchases at the grocery
store because of price
Health and
diet
concerns
Going forward, most smart
phone buyers will be older
and poorer
Tablets are now
driving all growth in
the PC market
57% of Pinterest
users interact with
food-related content
28% of Americans say they
don‘t know how to cook.
67M digital coupons are likely to
be redeemed in the US in 2013
305B coupons were
distributed in the US in 2012
giving consumers access to
$405B in savings
49% of surveyed
consumers learn
about food from social
networks
22% of socially shared food
photography documents
something the user has
cooked and/or the cooking
process they went through
37% of smart phone owners used a
mobile price search app while in a
store (a quarter have left to buy the
cheaper option).
Trends in
retail and ecommerce
71% of shoppers
want access to
digital content in the
store
85% of low income parents say
eating healthy meals is
important to their families
Context-aware
services are on the
rise
67% of people start shopping on
one device and continue to
another device (61% laptop, 4%
tablet)
65% of shoppers
research online and
purchase in-store
53% of shoppers
expect greater price
visibility via digital
channels

8. CUSTOMER & INDUSTRY INSIGHTS
20% of kids in
Australia think pasta
comes from animals
81% of Americans
―cook what they
know‖
53% of Americans
say they know less
about cooking
than their parents
The most popular recipe on Pinterest (Easy Garlic
Chicken) has been pinned more than 1.6M times.
The top 25 recipes on Pinterest have been pinned
more than 6.6M times
In 1900, 2% of meals were
eaten outside the home. In
2010, it was 50%
28% of Americans don‘t
know how to cook
Food and
cooking
81% of low income
respondents rate fresh
produce as ―extremely
healthy.‖ That number
drops to 32% for frozen
produce and 12% for
canned produce.
7% of Americans
don‘t cook
1 in 2 low income families
are interested in learning
about cooking healthy meals
30% of Americans
say they love to cook
67M digital coupons are likely to
be redeemed in the US in 2013
47% of women and
33% of men say they
use social media as
their primary source
for coupons
Influence of
social
channels and
social sharing
25% of socially
shared food
photography is
simply to show
off ―what I ate
today‖
Budgets,
coupons and
deals
Location based
services will expand
to 1.4B users by
2014
The most
photographed foods
are desserts,
vegetables and poultry
dishes
41% of Americans
attempt to diet in a
given year
Digital coupon users
spend 49% more per
year than the average
shopper
28% of coupons are used for
food products
2 in 3 low income
families are interested in
learning how to better
budget their money for
meals
More than half of women
say the high cost of healthy
food is a major driver of
obesity, compared with just
37 percent of men.
12% of Wal-Mart‘s online
sales are made through
their smart phone app while
customers are in the store
85% of families skip healthy
purchases at the grocery
store because of price
Health and
diet
concerns
Trends in
mobile and
apps
Geo-targeted offers and
push-notifications will
expand in 2013
50% of meals are now eaten out of
the home (2010). In 1900 it was 2%.
Food is the #1
content category
on Pinterest
Going forward, most smart
phone buyers will be older
and poorer
Tablets are now
driving all growth in
the PC market
57% of Pinterest
users interact with
food-related content
25% of the US
population is now using
digital coupons
Digital coupon savings rose
41% from 2009 to 2010
305B coupons were
distributed in the US in 2012
giving consumers access to
$405B in savings
49% of surveyed
consumers learn
about food from social
networks
22% of socially shared food
photography documents
something the user has
cooked and/or the cooking
process they went through
37% of smart phone owners used a
mobile price search app while in a
store (a quarter have left to buy the
cheaper option).
Trends in
retail and ecommerce
71% of shoppers
want access to
digital content in the
store
85% of low income parents say
eating healthy meals is
important to their families
Context-aware
services are on the
rise
67% of people start shopping on
one device and continue to
another device (61% laptop, 4%
tablet)
65% of shoppers
research online and
purchase in-store
53% of shoppers
expect greater price
visibility via digital
channels

9. CUSTOMER & INDUSTRY INSIGHTS
20% of kids in
Australia think pasta
comes from animals
81% of Americans
―cook what they
know‖
53% of Americans
say they know less
about cooking
than their parents
The most popular recipe on Pinterest (Easy Garlic
Chicken) has been pinned more than 1.6M times.
The top 25 recipes on Pinterest have been pinned
more than 6.6M times
In 1900, 2% of meals were
eaten outside the home. In
2010, it was 50%
28% of Americans don‘t
know how to cook
Food and
cooking
81% of low income
respondents rate fresh
produce as ―extremely
healthy.‖ That number
drops to 32% for frozen
produce and 12% for
canned produce.
7% of Americans
don‘t cook
1 in 2 low income families
are interested in learning
about cooking healthy meals
30% of Americans
say they love to cook
47% of women and
33% of men say they
use social media as
their primary source
for coupons
Influence of
social
channels and
social sharing
25% of socially
shared food
photography is
simply to show
off ―what I ate
today‖
Food is the #1
content category
on Pinterest
25% of the US
population is now using
digital coupons
Digital coupon savings rose
41% from 2009 to 2010
Budgets,
coupons and
deals
Location based
services will expand
to 1.4B users by
2014
41% of Americans
attempt to diet in a
given year
Digital coupon users
spend 49% more per
year than the average
shopper
28% of coupons are used for
food products
2 in 3 low income
families are interested in
learning how to better
budget their money for
meals
More than half of women
say the high cost of healthy
food is a major driver of
obesity, compared with just
37 percent of men.
12% of Wal-Mart‘s online
sales are made through
their smart phone app while
customers are in the store
85% of families skip healthy
purchases at the grocery
store because of price
Health and
diet
concerns
Trends in
mobile and
apps
Geo-targeted offers and
push-notifications will
expand in 2013
57% of Pinterest
users interact with
food-related content
The most
photographed foods
are desserts,
vegetables and poultry
dishes
Going forward, most smart
phone buyers will be older
and poorer
Tablets are now
driving all growth in
the PC market
20% of kids in Australia think
pasta comes from animals.
67M digital coupons are likely to
be redeemed in the US in 2013
305B coupons were
distributed in the US in 2012
giving consumers access to
$405B in savings
49% of surveyed
consumers learn
about food from social
networks
22% of socially shared food
photography documents
something the user has
cooked and/or the cooking
process they went through
37% of smart phone owners used a
mobile price search app while in a
store (a quarter have left to buy the
cheaper option).
Trends in
retail and ecommerce
71% of shoppers
want access to
digital content in the
store
85% of low income parents say
eating healthy meals is
important to their families
Context-aware
services are on the
rise
67% of people start shopping on
one device and continue to
another device (61% laptop, 4%
tablet)
65% of shoppers
research online and
purchase in-store
53% of shoppers
expect greater price
visibility via digital
channels

10. INFLUENCING TRENDS
The web is disappearing.
―As the web is increasingly integrated into our devices, we‘re less aware of ―going onto the internet‖ to access sites like Facebook. We‘re just using
Facebook.‖
The physical and digital worlds are fusing.
Increasingly with the proliferation of NFC and RFID technologies, embedded sensors, smart devices, geofencing and location-based services, the
physical world is becoming a digital information system ripe for interaction with people, devices and other systems.
Every moment is a shopping moment.
―In 2013 we‘ll see significant growth in moments to shop fueled by technology — from the rise of ‗television commerce‘ to ‗social media commerce‘
and the maturation of ‗mobile commerce.‘‖
Enhanced transparency is critical.
―[Brands need] to pick the right ways to interact with online consumers, manage these conversations appropriately, and make the best use of digital
consumer data. Moreover, successful companies will need to enhance transparency and become more collaborative in their interactions with
shoppers.‖
Mobile payment technology is evolving.
In 2013, 15% of all e-commerce purchases are projected to be made via mobile platforms.
Social commerce is just emerging as the newest e-commerce vector.
According to Gartner, the mobile payments market has the potential to reach $617 billion by 2016.

11. INFLUENCING TRENDS
Authenticity and imperfection matter.
Consumers seek authentic products and services, complete with natural patina. Heirloom tomatoes, purple potatoes, lumpy carrots and other natural
looking foods have increasing appeal.
Real food, farm-to-fork and urban gardening are on the rise.
•
•
•
Consumption of ancient grains like quinoa, amaranth, teff and chia continues to increase.
Hooftymatch, FoodHub, Market Mobile, Farmigo, Farm Fresh to You and other online marketplaces are emerging to connect consumers with
locally grown, locally sourced fresh foods and vegetable box delivery. These marketplaces are connected to the growing ―locavore movement.‖
Cities like Chicago, Portland and New York are embracing community gardens.
Wellness is increasingly important.
•
•
57% of people want support in their healthy living goals.
Baby Boomers will control just over half the dollars spent on grocery by 2015. Research shows this group deliberately thinks about how they eat
with 70% of Boomers seeking more fiber in their diet, 60% trying to consume less fat and cholesterol and 40% trying to eat less fried food.
Mindful living transforms the way people navigate eating, shopping and wellness.
•
•
•
•
Consumers are becoming more concerned about the humane treatment (care, feeding, end-of-life practices) of the animals they eat.
―MovNat‖ is an exodus from gyms and a return to natural forms of exercise outdoor such as running, walking, climbing trees, balancing on rocks,
etc. It‘s a direct affront to the sedentary lifestyle of many urbanites.
People are seeking coaching in all aspects of life: general wellness, life, finance, meditation, fitness — even breathing, sitting, communicating and
colon health.
Purposeful pleasure is deemed as more meaningful than instant gratification.

12. THE CUSTOMER CONTEXT

13. CENTER OF THE CUSTOMER RELATIONSHIP
Today, one touch point lies at the
heart of Kroger‘s customer trust
and loyalty — the store.
Digital offers an increasing number
of touch points — each of which is
an opportunity to amplify
relationships and reach customers
where they live, work and play.
Tomorrow
Today
Tomorrow

14. THE STORE EXPERIENCE IS COMPLICATED
For many, grocery shopping is an exercise in
logistics and scheduling.
Today, it requires a trip to the store — along with
planning ahead, thinking about what‘s needed
and juggling time and money. And it‘s not always
pleasant or enjoyable.
When shopping looks like this, who wouldn‗t
want a little help?
List & pen in hand
Groceries piled high
Sleeping baby taking up most of
the shopping cart

15. THE CUSTOMER JOURNEY IS...

16. THE CUSTOMER JOURNEY IS...
66%
of Americans rank grocery
shopping as their most timeconsuming chore...

17. THE CUSTOMER JOURNEY IS PHYSICAL

18. BEHAVIORAL INFLUENCES
Brick & Mortar Shopping
Behaviors
Conflict between online &
offline spending patterns
Interaction differences
between physical and
digital
Digital Shopping
Behaviors
Digital Engagement
Blur between shopping
specific behaviors & other
digital behaviors

19. THE CUSTOMER JOURNEY IS AN OPPORTUNITY
Depth of journey
Breadth of journey
Every phase of the journey is a chance for Kroger to amplify customer
relationships.

20. CUSTOMERS NOW EXPECT OMNI-CHANNEL EXPERIENCES
Digital Shopper Relevancy Report — Capgemini
―
―
Shoppers are no longer loyal to
an individual channel but
rather to experience across
channels . . . they expect the
seamless integration of the
online, physical and mobile
shopping experience by 2014.

21. THE ROLES OF KROGER‘S DIGITAL CHANNELS
An omni-channel approach to digital throughout the customer journey
will...
Drive
Awareness
Create
Engagement
For customers, this results
in saving time, saving
money and achieving
success with personal goals.
Amplify
Relationship
Deepen
Loyalty
Improve
Customer
Understanding
For Kroger, this
results in increased
spend, share of
wallet and loyalty.

22. THE DIGITAL RELATIONSHIP LOOP
Moments
of Truth
―When‖
Deepening digital
relationships with
customers is first about
the exchange of value,
ultimately leading to
greater market share and
the exchange
of money.
VALUE
Dialogue
Location
―How‖
―Where‖
Insights
―What‖
RELATIONSHIP LOOP
―Why‖
Deepening digital
relationships with Kroger
is more about the
exchange of value,
leading to the savings of
time and money.

23. THANK YOU