The document discusses microtargeting in marketing and retail. It defines microtargeting as using consumer data to identify interests of individuals or small groups and influence them. Research shows personalized marketing can increase sales and ROI. The document outlines how retailers currently use traditional segmentation and digital channels for microtargeting. It envisions future opportunities for microtargeting using emerging technologies like in-home devices, sensors, and recognition tools that can provide more consumer context and new experiences across in-home, in-store, and on-the-go channels. The goal is to better understand consumers and engage them through their preferred channels.

1. THE BUSINESS CASE FOR
MICROTARGETING
KANTAR RETAIL OMNISHOPPER FORUM
March, 2016

2. • Microtargeting Defined
• Microtargeting Justified
• Shopper Microtargeting Today
• Shopper Microtargeting Tomorrow
• Putting It All Together
AGENDA
2

3. MICROTARGETING DEFINED

4. Microtargeting Defined
Microtargeting is a marketing strategy that uses
consumer data and demographics to identify the
interests of specific individuals or very small
groups of like-minded individuals and influence
their thoughts or actions. An important goal of a
microtargeting initiative is to know the target
audience so well that messages get delivered
through the target's preferred communication
channel.

5. MICROTARGETING JUSTIFIED

6. Microtargeting Justified
• “Fully 85% of respondents ages 18 to 34
and 35 and older say they would be more
likely to make a purchase if they saw
something personalized to their interests.
Across age groups, males were more
interested in this technology than
females.” - eMarketer
• “Personalization can deliver five to eight
times the ROI on marketing spend, and
can lift sales by 10% or more” - McKinsey
• Caveat: don’t be creepy. Disclose what
and how to your audience

7. SHOPPER MICROTARGETING TODAY

8. Traditional Segmentation

9. Maturing sources of channels and
data

10. Maturing sources of channels and
data (continued)

11. TURNKEY RETAIL MEDIA
11

12. SHOPPER MICROTARGETING
TOMORROW

13. Emerging Shopper Segments

14. Emerging In-Home experiences
and data

15. Emerging In-Home experiences
and data (continued)

16. Emerging On-The-Go experiences
and data

17. Emerging In-Store experiences and
data

18. New Sources of Context

19. SENSORS AND RECOGNITION
19
Geo-location Ambient LightTemperature Humidity Barometric Pressure Blood Contents
Aura
Sweat Contents
Skin Conditions Movement WeightHeart Rate Breathing Rate
Image Recognition Facial Recognition Bacteria/Virus
Detection
Character
Recognition
Ocular Recognition
Chemicals in Air

20. PUTTING IT ALL TOGETHER

21. PUTTING IT ALL TOGETHER
21
New Context
• Personality
• Current Emotion
• Physical state / health
• Recently New Habits /
Behaviors
Emerging Channels – In-Home
• In-home devices / IoT: Echo/Dash/New Sensors
(Light, Temperature, Chemicals, Movement)
• Delivery / retail commerce
• Subscriptions / Auto-replenishment
• Top Home Web Properties (Search / Weather /
Entertainment / Utilities)
Maturing Digital Shopper Channels
• Email
• Social placements and platforms
• Influencer campaigns
• Display
• Paid search
• Promotional microsites and brand pages
• Third-party deal and coupon sites
• Retail media networks
Emerging Channels – In-Store
• IR / smart cameras
• Kiosk
• Smart shelves
• Self check-out / smart POS
• Click-and-collect
• In-store Mode
Emerging Channels – On-the-Go
• Shopping List
• Application In-store mode
• M-wallet / M-payments
• M-loyalty
• Scanning / Identity Recognition
• Micro-Geolocation
• Product/Category Mobile Search
• App Category Navigation
• Wearables
Emerging Shopper Segments
• Hyper-Local
• Shoppertainment
• Ultra Cost-Conscious
• In-store/Pickup Hybrid
• Gen Z
Traditional Segments
• Shopper Category
• Lifestyle
• Lifestage
• Occupation
• Affinity

22. HOW SHOULD WE CREATE NEW EXPERIENCES?
22
New Context
• Detail-Oriented
• Stressed Out
• Physical state / health
• Trying to Stop Smoking
Emerging Channels – In-Home
• In-home devices / IoT: Echo/Dash/New Sensors
(Light, Temperature, Chemicals, Movement)
• Delivery / retail commerce
• BirchBox Subscriber
• Top Home Web Properties (Search / Weather /
Entertainment / Utilities)
Maturing Digital Shopper Channels
• Email
• Social placements and platforms
• Influencer campaigns
• Display
• Paid search
• Promotional microsites and brand pages
• Third-party deal and coupon sites
• Kroger Plus Loyalty Member
Emerging Channels – In-Store
• IR / smart cameras
• Kiosk
• Smart shelves
• Self check-out / smart POS
• Click-and-collect customer
• In-store Mode
Emerging Channels – On-the-Go
• Uses Kroger App Mobile List
• Application In-store mode
• Loves Apple Wallet and Apple Pay
• M-loyalty
• Scanning / Identity Recognition
• Micro-Geolocation
• Product/Category Mobile Search
• App Category Navigation
• Apple Health: Recently Increased Exercise and
Healthy Eating
Emerging Shopper Segments
• Hyper-Local
• Shoppertainment
• Ultra Cost-Conscious
• In-store/Pickup Hybrid
• Gen Z
Traditional Segments
• Shopper Category
• Lifestyle
• Gen X
• Photographer
• Loves Fine Cheese

23. Q&A

24. THANK YOU!