Stop & Shop's 'scan It!' App

Stop & Shop's 'Scan It!' App

What is the benefit of the Scan It! data to Stop & Shop? What are some of the questions the company could answer about its customers?

The Scan It! App collected valuable customer data for Stop & Shop. Analytic software that is built into the scanner collected and stored purchasing habits of customers. Stop & Shop then used this data to individualize coupons for customers and offer deals on items based on the colocation of the customer and the scanner in the store aisle. Genius idea! They tracked customer’s past and present purchases and used that data when offering individualize coupons in real time. For example, if the customer was purchasing tomato sauce, Stop & Shop might offer a coupon such as buy three boxes on pasta at a discounted price. The Scan It! also resulted in an increased customer base for the grocery chain and improved customer satisfaction.

Most importantly, customers were spending more money when individualized and timely coupons persuaded them to buy more items (Pearlson, Saunders & Galletta, 2016). In addition to understanding their customers better, Scan It! tracked customer movements as they shopped in Stop and Shop stores. Their analytics then helped them stock items on shelves in a way that would maximize product sales and improve customer satisfaction and loyalty.

How would you assess the level of capabilities of Stop & Shop’s use of analytics? What might the company do differently with the data to gain more value?

The analytical capabilities of Stop & Shop enabled the development and growth of a strong customer base. They were able to forecast future demands based upon the previous customer product purchases and organize the placement of groceries in ways to increase sales. Most importantly, their analytics of customer behavior forecasted and offered real-time coupon offerings as customers moved throughout the store. Stop & Shop invested in its Information Technology, collected the data, and most importantly analyzed the data to benefit from both increases in profit and market share. As Gandomi and Haider (2015) explain, big data is valueless