MarTech Podcast ™ – Episode Summary

Title: How Local Grocers & Convenience Stores Can Modernize Their Marketing
Host: Benjamin Shapiro
Guest: Jared Luskin, Head of Partnerships at Bridge
Release Date: November 12, 2024

Introduction

Benjamin Shapiro opens the episode by introducing Jared Luskin from Bridge, an identity resolution-based platform focusing on point-of-sale transactions for brick-and-mortar retailers and their Consumer Packaged Goods (CPG) partners. The topic centers on modernizing marketing strategies for local grocers and convenience stores through the effective use of technology and data.

Double Down or Diversify: Loyalty Programs in Retail

Timestamp: 02:17 – 06:11

Discussion Points:

• Effectiveness of Loyalty Programs: Jared advocates for doubling down on loyalty programs, emphasizing their role in understanding and marketing to customers. He highlights the importance of accurate data collection, noting challenges like fake entries which can lead to "garbage in, garbage out" scenarios ([04:36] Benjamin Shapiro).

  Notable Quote:

  “Garbage in, garbage out. It can be challenging to have really accurate data in a loyalty program.”
  — Jared Luskin [03:34]

• Strategic Implementation: Benjamin underscores the necessity of analytics and attribution in loyalty programs to discern customer behavior and purchasing patterns. The conversation delves into how retailers can structure loyalty programs to maximize data accuracy and actionable insights.

Key Insights:

• Data Accuracy is Crucial: Ensuring that loyalty program data is reliable is foundational for deriving meaningful marketing insights.
• Actionable Data: Retailers must have the organizational capability to act on the collected data, whether it's for merchandising decisions or targeted marketing strategies.

Role Play: Improving Margins for a Struggling Grocery Chain

Timestamp: 06:11 – 10:29

Discussion Points:

• Enhancing Customer Experience: Jared suggests investing in customer experience and strategic merchandising to drive shoppers toward higher-margin products. He mentions the growing interest in private label brands as a means to improve margins ([06:26]).

• Retail Media Networks as a Tool: Discussion on how retail media networks can act as a digital extension of traditional shelf space, allowing CPG partners to advertise within the store's digital channels. Jared clarifies that larger retailers use these networks to manage product placements without manipulating organic search results ([08:22]).

  Notable Quote:

  “Retail media networks are a really important opportunity to be thinking about in terms of improving margins.”
  — Jared Luskin [06:26]

• Ethical Considerations: Benjamin raises concerns about potential conflicts of interest if retailers influenced product rankings based on media spend. Jared counters by emphasizing that organic and paid listings are distinctly managed, maintaining fairness in product visibility.

Key Insights:

• Private Labels: Investing in private label brands can significantly enhance profit margins.
• Digital Shelf Management: Retail media networks offer a modern approach to product placement, akin to digital shelf space, without compromising the integrity of organic listings.

Crystal Ball: Future Opportunities for CPG Companies

Timestamp: 10:29 – 15:48

Discussion Points:

• Opportunity in Convenience Stores: Jared identifies the fragmented landscape of convenience stores in the U.S. as a significant opportunity for CPG companies. With approximately 150,000 true convenience stores and high purchase frequency, there's immense potential for targeted marketing despite the current lack of consolidated data ([11:01]).

  Notable Quote:

  “The frequency of convenience store purchases is kind of off the charts.”
  — Jared Luskin [11:01]

• Data Aggregation Solutions: Highlighting Bridge's partnerships with POS hardware and software providers, Jared explains how aggregating data from independent convenience stores can unlock new marketing opportunities and insights.

• Targeting Precision: The shift from traditional persona-based marketing to data-driven targeting based on actual purchase behavior. Jared emphasizes that transaction data provides a more precise and actionable understanding of target audiences.

Key Insights:

• High-Frequency Purchases: Convenience stores have a higher purchase frequency, offering more touchpoints for CPG marketing.
• Data Integration: Solutions that aggregate data from fragmented markets can provide valuable insights and drive incremental sales.

Takeaways for Non-CPG Marketers

Timestamp: 15:48 – 18:27

Discussion Points:

• Leveraging Purchase Data: Non-CPG marketers can utilize purchase behavior data to identify potential customers. For instance, targeting professionals who purchase specific snack brands can indicate preferences and lifestyle choices relevant to other products or services.

  Notable Quote:

  “You can start to hone in on more specificity... around who you are trying to market to.”
  — Jared Luskin [14:27]

• Enhanced Targeting and Measurement: The availability of detailed transaction data allows for more precise targeting and effective measurement of marketing campaigns, moving beyond broad demographic personas to actual consumer behavior.

Key Insights:

• Behavioral Signals: Purchase behavior serves as a robust signal for identifying target audiences, surpassing traditional digital footprint-based targeting.
• Cross-Industry Applications: Insights from CPG marketing can be applied across various industries to enhance targeting strategies and campaign effectiveness.

Conclusion

Benjamin Shapiro wraps up the episode by highlighting the key insights from the conversation with Jared Luskin. He emphasizes the importance of data accuracy in loyalty programs, the potential of retail media networks to enhance margins, and the untapped opportunities within the convenience store sector for CPG marketers. Additionally, he points out the valuable takeaways for marketers outside the CPG space, particularly the benefit of leveraging purchase behavior data for more precise targeting.

For more information or to connect with Jared Luskin, listeners are directed to Bridge’s website (bridge.com) and the show notes for LinkedIn profiles and additional resources.

Key Quotes

1. Jared Luskin on Data Accuracy:

   “Garbage in, garbage out. It can be challenging to have really accurate data in a loyalty program.”
   — [03:34]

2. Jared Luskin on Retail Media Networks:

   “Retail media networks are a really important opportunity to be thinking about in terms of improving margins.”
   — [06:26]

3. Jared Luskin on Purchase Frequency:

   “The frequency of convenience store purchases is kind of off the charts.”
   — [11:01]

4. Jared Luskin on Targeting Specificity:

   “You can start to hone in on more specificity... around who you are trying to market to.”
   — [14:27]

Final Thoughts

This episode of the MarTech Podcast ™ provides valuable insights into how local grocers and convenience stores can harness technology and data-driven strategies to modernize their marketing efforts. By focusing on accurate loyalty programs, leveraging retail media networks, and tapping into the high-frequency purchase behavior of convenience store shoppers, retailers can drive significant business growth and enhance their competitive edge in the market.

For those interested in advancing their marketing strategies, the discussions offer actionable tips and highlight emerging opportunities in the evolving landscape of retail marketing technology.