Thursday, May 2, 2013

Is this strategy?

http://finance.yahoo.com/news/krogers-weapon-infrared-cameras-011800830.html So Kroger has installed new infrared cameras that reduce the average customer wait time in line to 26 seconds. Cool. But the real question is, is this strategy? Is this enough of a differentiator to pull customers away from other stores, increase loyalty, increase the frequency with which its existing customers shop or the amount of money they spend? I'm wondering if how long you have to wait in line has an effect on your choice of grocery store. The traditional rule of thumb is driving distance; people pretty much go to the closest grocery store there is. Is this kind of technology something that could change that? If you were to survey customers, how many of them would be willing to drive an extra half mile or so to go to a grocery store where they would, on average, only have to wait in line for 26 seconds? I think this would be a great study to conduct, simply to see if the investment is worth it as a long term strategy, or if Kroger is just spending money on making its existing customers happier and not seeing any kind of market share growth.

No comments:

Post a Comment