From Hype to Predictive Insights
Kellanova, known for brands like Kellogg’s, Special K, Eggo, Cheez-It, and Pop-Tarts, has shifted its approach to consumer insights by employing artificial intelligence (AI) to anticipate future behaviors rather than simply analyzing past data. This transformation rests on a solid technology foundation, including the use of first-party data and data clean rooms. For instance, AI-driven insights combined with clean room data helped Special K achieve a sales lift of 36% in premium segments and 9% among price-sensitive shoppers.
Redefining the Customer Through Behavior
AI enables Kellanova to move beyond static demographics and uncover dynamic, behavior-based consumer segments. An example is recognizing the evolving role of grandparents in household food choices, a nuance that traditional marketing often overlooks. This behavioral focus allows for more precise targeting and messaging that reflects real consumer decision-making patterns.
Strategic AI Implementation: Beyond Technology
The adoption of AI at Kellanova demands more than cutting-edge tools; it requires an organizational shift in leadership and mindset. Leaders must be open to acting on data insights rather than treating data as mere decoration. Clear problem definition and governance structures are fundamental to avoid unintended bias and ensure that AI applications serve strategic goals effectively.
Integrating AI with Retail Media Networks
Retail media networks play a significant role in Kellanova’s strategy, yet AI integration calls for combining these networks with other data sources, including their own clean rooms, to build a comprehensive consumer view. Selecting the appropriate tools tailored to specific marketing objectives ensures optimal use of data and technology within retail environments.
Practical Advice for Brands Starting with AI
For brands beginning AI initiatives, Kellanova advises clearly defining business problems upfront to focus efforts effectively. Understanding the commercial model is vital, as ROI from AI-driven strategies may require patience before realization. Additionally, brands with limited internal resources might consider managed services to accelerate their AI capabilities without overextending their teams.
Kellanova’s experience highlights that successful AI application in retail media stems from combining advanced technology with thoughtful leadership and practical governance. This integrated approach positions brands to improve consumer understanding, optimize marketing performance, and navigate the evolving retail landscape with data-driven confidence.
