Podcast Summary: Leadership with Sam's Club's EVP & CXO Diana Marshall

Podcast Information:

• Title: The CPG Guys
• Hosts: Peter V.S. Bond & Sri Rajagopalan
• Episode: Leadership with Sam's Club's EVP & CXO Diana Marshall
• Release Date: March 1, 2025
• Description: CPG & FMCG eCommerce industry icon Sri Rajagopalan & consumer loyalty guru Peter V.S. Bond explore how brands and retailers understand and engage with consumers in-store, online, and everywhere in between.

1. Introduction

In this episode of The CPG Guys, hosts Peter V.S. Bond and Sri Rajagopalan engage in a comprehensive conversation with Diana Marshall, the Executive Vice President and Chief Experience Officer (CXO) of Sam's Club. Recorded during the kickoff to CES 2025 in Las Vegas, the discussion delves into Diana's extensive career, Sam's Club's innovative retail media strategies, data-driven decision-making, loyalty programs, leadership, and the integration of artificial intelligence (AI) in enhancing customer experiences.

2. Diana Marshall's Career and Insights

[04:35] Diana Marshall:
"If I was going to give advice, there's probably a few things that certainly come to mind. One, I think being really curious and learning how to collaborate is certainly the first one..."

Diana Marshall shares her career trajectory, highlighting her two-decade experience at Walmart US, where she managed various merchandising categories. Transitioning to Sam's Club, she now oversees membership marketing, financial services, data and insights, eCommerce, and advertising teams. Diana emphasizes the importance of collaboration, curiosity, and a customer-centric mindset in her leadership approach.

Key Takeaways:

• Collaboration and Curiosity: Fundamental for career growth and effective leadership.
• Customer Obsession: Understanding and anticipating member needs drive strategic decisions.
• Enjoying the Journey: Embracing opportunities and continuous learning are crucial for long-term success.

3. Retail Media at Sam's Club

[08:30] Diana Marshall:
"I am so excited about MAP, which is our member access platform or ads business at Sam's Club. And it is really a key enabler of our growth."

Diana introduces Sam's Club's Retail Media Strategy, emphasizing the importance of leveraging member-identifiable data to create targeted advertising solutions. The MAP (Member Access Platform) offers comprehensive ad solutions across various channels—on-site, off-site, app-based, and in-club. Notable achievements include the successful launch of Scan and Go display ads, which demonstrated a 71% incremental reach and a 10x click-through rate.

Highlights:

• Member Access Platform (MAP): Integrates data to provide personalized advertising experiences.
• Scan and Go Ads: Enhances engagement at the point of purchase, driving significant performance improvements.
• Performance Metrics: Strong focus on measurable outcomes like incremental reach and sales lift.

4. Data Sharing and Partnerships

[14:05] Diana Marshall:
"Data sharing is critical to having a great partnership and to driving growth together."

Diana underscores the pivotal role of data in Sam's Club's operations. The company employs a comprehensive data platform, "Madrid," which provides real-time insights and analytics to inform business decisions across departments. MAP utilizes this data to build audiences, measure campaign performance, and enable advertisers to achieve their KPIs.

Key Points:

• Comprehensive Data Utilization: Regular analysis of member feedback and operational data to drive improvements.
• Collaborative Partnerships: Transparent data sharing fosters trust and mutual growth with vendors and suppliers.
• Innovative Measurement Models: Exploring customer lifetime value (LTV) to provide deeper insights for advertisers.

5. Loyalty and Membership Growth

[16:04] Sri Rajagopalan:
"What is the secret sauce to getting new members into your club stores?"

Diana attributes Sam's Club's membership growth to a strong value proposition centered around value, quality, experience, and trust. By actively listening to member feedback, Sam's Club continuously refines its offerings, such as introducing free club fulfillment for orders over $50 and launching Express orders for speedy delivery.

Strategies for Membership Growth:

• Value Proposition: Ensuring every product offers compelling value compared to broader retail.
• Quality Assurance: Maintaining high standards with a minimum four-star rating for products.
• Inventory Management: Guaranteeing in-stock items across all channels to meet member expectations.
• Content Excellence: Providing robust and clear product information online to drive both in-club and online sales.

6. Leadership and Mentorship

[28:19] Diana Marshall:
"I have been really privileged to have early mentors in my career that made a huge difference."

Diana discusses the profound impact of mentorship on her career development. She emphasizes the importance of having mentors, coaches, and peer support in navigating the complexities of the retail industry. Diana also highlights her commitment to paying it forward by mentoring over 20 officers through her personalized mentoring program, fostering a diverse and supportive leadership pipeline.

Leadership Insights:

• Mentorship Importance: Early guidance and continuous support are vital for professional growth.
• Diverse Mentoring Groups: Encouraging a broad and inclusive mentoring environment.
• Structured Programs: Assigning follow-up tasks and facilitating access to industry leaders to maximize learning and networking opportunities.

7. AI and Technology in Sam's Club

[34:20] Diana Marshall:
"We have launched autonomous floor scrubbers... and our technology which uses computer vision and AI to allow for our members to simply walk out."

Diana elaborates on the integration of AI and advanced technologies at Sam's Club to enhance operational efficiency and the member experience. Innovations include autonomous floor scrubbers that double as inventory management tools and a fully rolled-out walk-out technology to streamline the checkout process. Additionally, AI has been leveraged to eliminate over 100 million mundane tasks, allowing associates to focus more on customer service.

Technological Advancements:

• Autonomous Tools: Enhancing cleanliness and inventory accuracy simultaneously.
• Walk-Out Technology: Reducing wait times and improving the shopping experience.
• Task Automation: Using AI to free up associates for more meaningful interactions with members.
• Personal Growth with AI: Diana's personal journey in mastering AI tools to enhance both professional and personal lives.

8. Future Trends and Closing Thoughts

[37:38] Sri Rajagopalan:
"You made a big one, this earlier morning in terms of measurement and metrics, LTV very important..."

In the concluding segments, Diana discusses emerging trends and future strategies for Sam's Club, particularly focusing on AI advancements and enhanced measurement models like customer lifetime value (LTV). She envisions AI as a critical component in driving human benefits and operational success, while also exploring innovative ways to utilize data for personalized member experiences.

Looking Ahead:

• Enhanced AI Integration: Continued adoption of AI to streamline operations and enhance member interactions.
• Advanced Measurement Models: Implementing LTV to provide deeper insights and drive strategic advertising decisions.
• Scalable Personalization: Expanding personalized experiences from Sam's Club to the wider Walmart ecosystem.
• Collaborative Growth: Strengthening partnerships with brands through data-driven strategies and mutual growth initiatives.

Notable Quotes with Timestamps

• Diana Marshall on Collaboration and Curiosity:
  "Being really curious and learning how to collaborate is certainly the first one..."
  [04:35]

• Diana Marshall on Retail Media Strategy:
  "I am so excited about MAP... It's focused not just on growing our ads business, but really having it add value both to our members as well as our advertisers."
  [08:30]

• Diana Marshall on Data Sharing:
  "Data sharing is critical to having a great partnership and to driving growth together."
  [14:05]

• Diana Marshall on Membership Growth:
  "Our members look for value number one and they want it to be a clear... It's a membership model."
  [18:18]

• Diana Marshall on AI Integration:
  "AI is becoming more and more important and a currency to really protect and be aware of, partner together on."
  [25:12]

Conclusion

This episode of The CPG Guys provides an in-depth look into Diana Marshall's strategic vision for Sam's Club, highlighting how data-driven retail media, member-centric strategies, and technological innovations are propelling the company forward. Diana's insights on collaboration, leadership, and embracing emerging trends such as AI offer valuable lessons for brands and retailers aiming to thrive in an increasingly competitive and digital marketplace.

For more insightful discussions and expert interviews, visit cpgguys.com.