Introducing CREST

This update, guided by our ongoing commitment to deeply understanding customer needs, will bring a greater level of detail to insights and more effective strategies for our suppliers, so together we can better deliver on what customers want. CREST segments are built on a robust behavioural model, grouping customers based on their product choices. These segments are further enhanced through detailed studies that uncover key customer needs, attitudes, and spending preferences. Internally, we monitor and track these behaviours over time to activate and refine our strategies continuously.

Our customer segments are integral to our operations and strategy, providing invaluable insights that drive our business forward. They form the basis for decision making for processes such as Range Curation, product development, and marketing and activations. So, to dive deeper into how these changes will make an impact, we sat down with Owen Lim, Head of Customer Insights at WooliesX, and Chloe Toro, Category Development Lead – Impulse, Health & Wellness, and Fruit, to learn more about CREST.

Q: Hi Owen, can you tell us more about the key drivers behind the refresh?

Owen: Essentially, a lot has changed since we first built these segments in 2020. We’ve experienced a turbulent macro environment (moving out from COVID-19 and now into cost of living, experiencing extreme weather events, etc.), and new trends and behaviours are emerging (continued rise of eCommerce, consumer trend towards health and high protein products, rise of convenience). Our world has changed a lot in the last 3 or 4 years, so we have refreshed our segments to capture the latest behaviours of our customers, which ultimately helps us to understand our customers better.

Q. That makes sense! How do you anticipate these updated segments will enhance our understanding of customer behaviour?

Owen: One of the unique attributes of CREST is that it is underpinned by a series of detailed attitudinal studies that identify each segment’s key needs and preferences. This provides an advantage over typical demographic and lifestage segmentation, as we can identify what each segment cares most about. When we combine this with their product and shopping preferences, we begin to build a deep understanding of our customers, which ultimately helps us to serve them better and provide the best experiences possible.

Q. And how can suppliers leverage the new CREST profiles in their planning and product development?

Owen: Trade Partners can access CREST through Q.Checkout add-ins. If you have a subscription to a subcategory, you will be able to view CREST material including segment profiles, which contains details on each segment’s attitudes and preferences in the Q.Portal. Category-specific insights are also shared through our Category Updates twice a year.

Q. Could you give examples of how profiling customer segments can uncover growth opportunities?

Owen: There are many great examples of how CREST can uncover growth opportunities, however a great way to begin using CREST is by simply profiling your category or brand using the segments. You will quickly identify which segment are your “main” shoppers, and which segments are “trialists”. From there you can use the attitudinal and behavioural knowledge of each segment to identify ways to convert trialists to main shoppers (think new product lines, price points, or marketing campaigns) or ways to extend your category or brand’s relationship with main shoppers (How can we get an extra item in their basket? Could we extend into a new category?).

Q. Now let’s talk numbers… How will the CREST segments help in setting and tracking performance targets for suppliers?

Owen: CREST enables Trade Partners to set differentiated growth strategies at a customer level, based on their key needs, attitudes, and preferences. This knowledge helps Trade Partners shape their growth plans by identifying potential new audiences, or ways to increase engagement with existing customers. Utilising the tools available in Q.Checkout add-ins, Trade Partners can view the size and engagement of each CREST segment, which can help set growth or penetration targets. 

Q. Thanks Owen! Over to you Chloe. As the Category Development Lead – Impulse, Health & Wellness, and Fruit, how have you utilised the CREST segments in your role?

Chloe: Through our partnership with the supermarkets buying team, category development focuses on driving a localised customer offer through customer first strategies and tailored ranges, all of which is underpinned by a data led approach. CREST forms a key part of this analysis process in unlocking a foundational understanding of our customers and their unique behaviours within any given category. 

Q. Can you share an example of how these segments have informed your category development strategies?

Chloe: When setting out the strategic direction for a category, the new CREST segments enable us to better understand a customer’s life stage and affluence, particular subcategories and segments they over and under index in by type, general profiling elements, and what they are telling us about our supermarket through VOC. This then allows our team to then track their growth, spend, product, and brand preferences, in order to develop targeted strategies by CREST group at a category level. These strategies touch everything from store clusters, product ranging, targeted POS, to planogram layout
and flow, and are able to be implemented through the Range Review process.  

Q. That sounds versatile, to say the least. In what ways do the updated segments assist in identifying new product development opportunities?

Chloe: Through our work on a recent Range Curation, we identified a strong Conscious over index, and with the newly defined Fast Fuelers within this customer group, we were able to establish a need to bring in healthy, convenient, and high protein meals and functional snacks to target this key customer, with a plan to drive future incremental category growth.

Q. Awesome! And finally, what advice would you give to Trade Partners on using CREST to better align their offerings with customer expectations?

Chloe: When CREST data is unpacked at a category level, it allows you to truly understand who your brands’ most engaged and less engaged customers are and why. You can often have multiple profiles that over index with your category, and it’s about understanding who best aligns with your brand, and the opportunity presented to meet their needs. Once you analyse their profiling and shopping behaviours within the focus universe, you can then identify product opportunities to fill any need gaps that may exist, enhance your current offering to cater to their unique requirements, tailor marketing campaigns, and provide an overall optimised shopping experience. Based on the customer analysis and prioritisation, partner with your Category Manager to align on the final strategy and best customer plan to take forward.

More information about CREST will be available on Partner Hub in July.