The Current Podcast Episode Summary: "Meijer’s Derek Steele on Building a Midwest Retail Media Powerhouse"
Release Date: February 26, 2025
Introduction
In this engaging episode of The Current Podcast, hosts Damian Fowler and Ilyse Liffreing delve into the transformative journey of Derek Steele, the Group Vice President for Marketing and Customer Strategy at Meijer. Celebrating its 90th anniversary, Meijer has evolved from a single grocery store in Michigan to a formidable supermarket chain with over 500 locations across six states and a workforce exceeding 70,000 employees. Steele, with over sixteen years at Meijer, shares pivotal insights on the company's strategic shifts into e-commerce, customer loyalty programs, and the launch of its retail media network.
Derek Steele’s Journey at Meijer
Derek Steele's career trajectory at Meijer is a testament to his deep-rooted commitment and versatility within the organization. Beginning his tenure in the merchandising division, Steele honed his skills in vendor relationship management, customer trend analysis, and category strategy development. He progressed through various roles, including leading the fresh produce and dairy departments, which provided him with comprehensive insights into the supply chain and product management.
"Engineering is just structured problem solving. You break down a problem into its components, you solve the components, you solve the problem." – Derek Steele [17:36]
Transition into E-Commerce
Steele spearheaded Meijer’s strategic pivot into e-commerce, a move that became critically significant during the onset of the COVID-19 pandemic. Initially launched in the fall of 2019 with plans for steady growth, the e-commerce platform had to scale rapidly in March 2020 to meet the urgent demands of customers amidst unprecedented circumstances.
"It went from this interesting business idea to absolutely critical in the lives of our customers in the Midwest." – Derek Steele [02:55]
The swift expansion showcased the entire organization’s ability to rally and adapt, ensuring that Meijer could effectively serve its Midwest customer base during a time of need.
Launch of the Retail Media Network
Building upon the established e-commerce and loyalty programs, Steele introduced Meijer’s retail media network. This initiative was driven by supplier demands for deeper customer insights and performance metrics beyond traditional shopper marketing.
"Our decision to enter it was, hey, we need to be right for our brand partners, and we need to be right for our customers." – Derek Steele [03:17]
The retail media network enables Meijer to offer tailored marketing solutions, leveraging comprehensive data to meet both brand partners' and customers' needs effectively.
Retail Media vs. Shopper Marketing
Steele differentiates between traditional shopper marketing and modern retail media by emphasizing measurability and targeted audience engagement.
"When we think about retail media, we really think about the ability to define an audience, target content to that audience, and then measure the performance all the way through the point of sale." – Derek Steele [06:01]
While shopper marketing focuses on in-store activations and branding at the point of purchase, retail media encompasses broader digital interactions with measurable outcomes, allowing for a more integrated marketing approach.
Omnichannel Strategies and Closed Loop Measurement
Meijer adopts an omnichannel approach, utilizing various platforms such as display ads, closed-loop TV, YouTube, Meta, Pinterest, and other social media channels to reach customers wherever they are. A significant advancement discussed by Steele is the implementation of a closed-loop measurement capability, enabling Meijer to track customer interactions and transactions across all channels seamlessly.
"No matter how they choose to transact, we're going to be able to measure that and provide that reporting and insights back to our brand partners." – Derek Steele [07:33]
This capability addresses the challenges of integrating disparate data streams, ensuring that Meijer can deliver comprehensive performance insights to its brand partners.
Personalization and Enhancing Customer Experience
Personalization remains at the forefront of Meijer's strategy. Steele highlights initiatives like the "Buy Again" feature, which allows customers to quickly repurchase frequently bought items. By integrating sponsored products into this feature, Meijer enables brands to boost their visibility within a personalized shopping experience.
"We're trying to find ways to enable them to be able to do that." – Derek Steele [12:37]
These efforts ensure that marketing strategies are aligned with individual customer preferences, enhancing both satisfaction and engagement.
Derek’s Transition from Engineering to Marketing
An intriguing aspect of Steele’s background is his initial career as a flight controls engineer for the space shuttle program. This unique transition underscores the versatility of engineering skills in the marketing realm.
"At the end of the day, engineering is just structured problem solving." – Derek Steele [13:22]
Steele’s engineering mindset facilitates a data-driven and analytical approach to marketing, enabling him to navigate complex challenges and innovate effectively within the dynamic retail industry.
Future Innovations in Ad Tech
Looking ahead, Steele is keen on reducing friction in brand partnerships and enhancing the user experience through self-serve platforms. By prioritizing what brands and agencies seek, Meijer aims to streamline collaboration and foster a more intuitive advertising environment.
"We're really focused on how do we take the friction out of that opportunity, that experience of working with Meijer." – Derek Steele [17:02]
Conclusion
Derek Steele’s insights reveal a strategic blend of data-driven marketing, customer-centric approaches, and technological innovation that positions Meijer as a leading retail media powerhouse in the Midwest. His journey from engineering to marketing exemplifies the interdisciplinary skills necessary to thrive in today’s evolving retail landscape.
"The best insight or the best story that you can tell from that data wins." – Derek Steele [17:58]
Steele's emphasis on storytelling based on factual data highlights the core philosophy driving Meijer’s marketing strategies, ensuring they remain relevant and compelling to their diverse customer base.
Notable Quotes
- "Engineering is just structured problem solving." – Derek Steele [17:36]
- "It went from this interesting business idea to absolutely critical in the lives of our customers in the Midwest." – Derek Steele [02:55]
- "When we think about retail media, we really think about the ability to define an audience, target content to that audience, and then measure the performance all the way through the point of sale." – Derek Steele [06:01]
- "We're trying to find ways to enable them to be able to do that." – Derek Steele [12:37]
- "The best insight or the best story that you can tell from that data wins." – Derek Steele [17:58]
Final Thoughts
Derek Steele’s episode on The Current Podcast offers a comprehensive look into the strategic initiatives driving Meijer’s success in the retail media space. From his foundational experiences within the company to his role in pioneering innovative marketing solutions, Steele exemplifies leadership that bridges traditional retail with modern digital strategies. Listeners gain valuable perspectives on the importance of adaptability, data integration, and personalized customer engagement in building a robust retail media network.