Pinterest is a social network characterised by image sharing. It accounts for 250 million users, it has an estimated value of $12 billion USD and it will be soon present on the Wall Street Stock Exchange.
Kroger is the largest supermarket chain in the United States. It has 3000 selling point, revenues around $120 billion USD and around 450,000 employees. It is now a local in Wall Street.
Photographs on one side and trolleys on the other, amalgamating the two naturally is no easy feat. Yet, last Friday Pinterest and Kroger announced an agreement which marks a decisive change in the relationship between the two giants.
2018 was an important year because the two agencies worked together on various successful initiatives. Among these, a campaign on Greek yoghurt promotion, which gave Kroger a 53% traffic increase and a 15% decrease in customer engagement costs, compared to more traditional methods.
Hence, the decision to join forces did not surprise anyone.
THE REASONS FOR THE AGREEMENT
84.51° is the company of customer intelligence for Kroger: 3 billion shopping basket analysis, with hundreds of companies CPG among its clients. Cara Pratt, VP of the company, has been very clear on the partnership’s objectives:
“Our intentions are simple: we want to allow brands to create efficient customer engagement moments. We are enthusiastic to fuse the inspiration provided by Pinterest with our rich customer intelligence, creating significant value for advertisers.”
The partnership will allow brands to use Kroger’s first party data for targeting on Pinterest. The data accumulated on the internet regarding customer behaviour are the most important resource, for quality and precision, which can be used for our goals. The origin of 96% of transactions is, in fact, the loyalty card.
Arthur Sevilla, responsible for CPG strategy on Pinterest, has shown equal enthusiasm. “We are enthusiastic to combine the resources of the largest grocery reseller of the country with our visual discovery engine to offer a personalised and relevant experience to Kroger’s clients.
Korger wants to allow brands to follow their clients effectively throughout the whole process: from the first online “discovery” of a product to its purchase. The CPG agencies will use complex measuring systems for customer purchasing power, made available from Kroger Precision Marketing. The final result will be a greater influence capability on the customer’s decision journey.