Podcast Summary: The CPG Guys – Retail Media Leadership in Canada with Loblaw's Lauren Steinberg

Episode Overview In this enlightening episode of The CPG Guys, hosts Peter V.S. Bond and Sri Rajagopalan engage in a deep dive with Lauren Steinberg, the Senior Vice President of Media Loyalty and Loblaw Digital at Loblaw Companies Ltd., Canada's foremost national grocery and pharmacy retailer. Released on November 16, 2024, the conversation centers on Loblaw’s innovative approaches to retail media, digital loyalty programs, and the integration of AI to enhance consumer engagement and brand partnerships.

1. Introduction and Setting the Stage (00:00 - 06:12)

The episode begins with Peter and Sri sharing updates about their upcoming appearances at the 2025 CES conference in Las Vegas. They discuss their personal celebrations of Diwali and Halloween, setting a friendly and engaging tone for the conversation.

2. Guest Introduction: Lauren Steinberg (06:12 - 08:22)

Lauren Steinberg is warmly welcomed to the podcast. She introduces herself and provides a brief overview of Loblaw Companies Ltd., highlighting its vast footprint in Canada with over 2,400 retail locations and annual sales of approximately $60 billion. Lauren emphasizes Loblaw’s leadership in grocery, pharmacy, beauty, apparel through Joe Fresh, and their award-winning loyalty program, PC Optimum.

3. Loblaw’s Retail Media Ecosystem (08:22 - 24:09)

Lauren delves into Loblaw’s comprehensive retail media network, Loblaw Advance. She explains how Loblaw combines its strong loyalty programs and extensive first-party data to create a robust media ecosystem. Key points include:

• Data-Driven Insights: Loblaw’s PC Optimum program boasts 18 million members, with 10 million app downloads and 6 million active monthly users. This extensive data allows for precise targeting and personalization.

• Omnichannel Platform: Loblaw Advance offers an omnichannel advertising platform that integrates online and in-store media. Lauren highlights features such as AI-driven recommendations for budget optimization and diverse media channels including screens and audio within stores.

• Performance Measurement: Emphasizing the importance of measurable ROI, Lauren states, “We are trying to make sure that every dollar being spent… can be measured and tracked back to a conversion. [16:57]”

Notable Quote:

"Retail media is about helping our partners find the right customers and providing closed-loop measurement to assess if it worked." – Lauren Steinberg [13:26]

4. Personalization and AI Integration (24:09 - 32:35)

The conversation shifts to the role of personalization and AI in enhancing customer experience:

• Personalization Engine (P13N): Lauren introduces P13N, Loblaw’s proprietary personalization engine, designed to tailor marketing messages and offers to individual shopper behaviors and preferences.

• Lifetime Value Focus: Instead of solely focusing on immediate basket incrementality, Loblaw aims to deepen customer relationships to increase lifetime value (LTV). “Personalization has the power to get every customer to add one additional product to their basket,” Lauren explains, adding that the true goal is to deepen the relationship with the customer.

Notable Quote:

“Personalization is about showing customers what they want to see, but just as importantly about not showing them the things that they could care less about.” – Lauren Steinberg [28:02]

5. Performance Measurement and Metrics (32:35 - 43:03)

Lauren discusses how Loblaw ensures effective performance measurement for retail media campaigns:

• Deterministic Sales Data: Utilizing first-party data, Loblaw provides 100% deterministic sales attribution, allowing brands to accurately track the impact of their campaigns.

• Competitive Conquesting: By creating audiences based on competitors' customers, Loblaw enables brands to efficiently target and convert these segments.

• Flexible Metrics: Recognizing that different brands have varying objectives, Loblaw offers customizable dashboards and measurement tools to align with specific brand goals.

Notable Quote:

“The retail media network exclusively leverages first-party data for reporting rather than like modeled or extrapolated data.” – Lauren Steinberg [33:44]

6. Collaborative Partnerships with Brands (43:03 - 44:46)

Lauren elaborates on how Loblaw collaborates with brand advertisers to optimize retail media strategies:

• Joint Business Planning: Emphasizing open communication and joint business planning, Loblaw ensures that brand objectives are seamlessly integrated into media strategies.

• Tailored Solutions: Depending on a brand’s stage and budget, Loblaw offers both self-serve platforms and managed services to meet diverse needs.

Notable Quote:

“We don't want to look like we're selling, we want to look like we're solving.” – Lauren Steinberg [40:38]

7. Privacy and Consumer Trust (44:46 - 46:59)

Addressing the critical issue of consumer privacy, Lauren assures listeners that Loblaw prioritizes data protection:

• Privacy-First Approach: Loblaw avoids targeting sensitive categories such as alcohol and pharmaceuticals. Data is handled with utmost care, focusing on cohort behaviors rather than individual identities.

• Transparency and Ethics: Lauren emphasizes that Loblaw’s strategies are designed to add value for consumers without making them feel like "pawns."

Notable Quote:

“We want to be known as a partner, not as a place where your money goes, but you don't really know what it delivers.” – Lauren Steinberg [44:46]

8. Future Trends and Closing Remarks (46:59 - 58:17)

Looking ahead, Lauren highlights key trends shaping Loblaw’s retail media strategies:

• In-Store Engagement: Despite digital advancements, in-store interactions remain crucial. Loblaw focuses on enhancing in-store media like screens and sampling to influence purchase decisions at the point of sale.

• Scalability and Transparency: Maintaining scalability while offering both managed and self-serve options ensures that all brands, regardless of size, can effectively utilize Loblaw’s media platforms. Transparency remains a foundational principle to build and maintain trust.

The hosts conclude by encouraging listeners to engage with The CPG Guys community, leave reviews, and follow their content for ongoing insights into the CPG and retail media landscape.

Final Notable Quote:

“Transparency is like, it's the thing.” – Lauren Steinberg [50:18]

Key Takeaways:

1. Comprehensive Media Ecosystem: Loblaw leverages its extensive first-party data and loyalty programs to offer a multifaceted retail media platform that integrates online and in-store advertising.

2. Personalization and AI: Utilizing AI-driven personalization ensures that marketing efforts are both effective and efficient, enhancing customer experience and increasing lifetime value.

3. Robust Measurement Tools: Loblaw provides deterministic sales data and customizable metrics, enabling brands to accurately measure the ROI of their media investments.

4. Privacy and Trust: A strong commitment to consumer privacy and ethical data handling practices builds trust and ensures that personalization strategies are respectful and non-intrusive.

5. Adaptability and Collaboration: Loblaw’s flexible approach to media solutions and collaborative partnerships with brands support diverse marketing objectives and foster mutual growth.

This episode offers valuable insights into how a leading retailer like Loblaw is pioneering retail media strategies in Canada, setting benchmarks for data-driven, personalized, and ethical marketing practices in the CPG industry.