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Brand loyalty is something that every company wants but few actually attain. To build a loyal customer base, you need to provide the best experiences possible, offer unique products or services, and deliver on quality and in a timely fashion. It’s a tough ask, and for those in the grocery industry, it’s even more difficult since differentiation between product selection is not as easy as it might be in other verticals.
But when it comes to customer loyalty, there are ways to separate yourself from the pack.
And that’s where Rachel Stephens comes in. As the Vice President of Marketing, Digital and Loyalty for Stop & Shop, a major grocery chain with more than 400 stores, she thinks about this every day. Thanks to a new online platform and through a loyalty program that customers actually want to engage in, Rachel explains that Stop & Shop is finally gaining access to some of the dark data it couldn’t access in the past.
On this episode of Up Next in Commerce, Rachel explains why that kind of data is a true game-changer for any brand. Plus she reveals some of the consumer psychology that she looks at when building loyalty programs, and she peers into the future at how the use of A.I., machine learning and natural language processing will further advance not just Stop & Shop’s ecommerce experience, but the entire ecommerce industry.
Main Takeaways:
- Is it Actually on the Grocery List?: When building or improving loyalty programs, having an understanding of data is critical. Everyone has to take on the role of data scientist and look at the data analytically, especially as it relates to consumer behavior. Just because a customer says they want something or they intend to make a purchase, does not mean the data will always show that. Word for advice: trust the data and build a program around what is actually happening instead of what customers are saying.
- Accessing Dark Data: For too long, grocery stores have asked only for customer phone numbers in order for them to have access to loyalty cards. But if that phone number isn’t linked to a real name or address, and is changing hands faster than an email address would, there is a huge amount of data left in the dark, which makes it impossible to build a meaningful database of customer information. To access that critical data, companies need to build programs that are truly enticing that customers want to share their data with that helps not only the brand but also the consumer.
- The Psychology of a Discount: Tune in to hear what Rachel saw in the data when reviewing their sales and discounts. Hint: higher is not always better.
For an in-depth look at this episode, check out the full transcript below. Quotes have been edited for clarity and length.
Key Quotes:
“Understanding what customers say and what customers actually do is vital to the success of an organization because customers can say, ‘Yes, I have intent to purchase X, Y, Z.’ But when you look at the actual data, the data doesn’t lie. So, loyalty programs give you a vital tool for success within your organization [by letting you] take a look at consumer data and then apply your marketing tactics really that are from acquisition, retention or reactivation perspective based on what that consumer is doing in a particular moment.”
“What I’m most excited about is omnichannel data access….If I’m going to do a marketing campaign using digital tactics or any sort of in-store tactics I really need to know what you do as a customer. You could channel switch, you could go from pick-up to in-store to delivery all within a very short period of time. And so I think the efficiency in marketing, by having that data is really what’s most exciting. And being able to actually accurately talk to our customers is something that really interests me.”
“Omnichannel has to be that seamless experience in-store and online. And you have to be able to look at it from a customer lens and understand that you may channel-switch, but your experience or the offers that you’re given, or the customer service shouldn’t change. There shouldn’t ever be anything remarkably different about whatever channel you’re in.”
“If your local grocery store only requires a phone number…that doesn’t do anything for a company. Then you don’t have a way to really round out that customer experience and understand. You got to be able to tap into that customer and ask them what they want. It is really important that you’re coming up with a program, or, if you have a program, that it’s enticing enough that customers want to give their data, they want to give you the right email address or they want to give you the right mailing address so that they do participate in the program but they also are willing to give your opinion when you ask it.”
“Most companies will look at sales as a huge metric within their loyalty program because it’s an investment for the organizations, so ROI is going to be important. But the ROI actually comes from retention and in some cases reactivation. A lot of times it’s true, the cost of getting a customer is equivalent to retaining eight. So most organizations look at sales from the program and incremental sales from the program. I think that that is the real true metric.”
“A.I. and machine learning is something that everybody is going to have to be prepared to work on in the near future… I see a big trend in experimentation and learning done with artificial intelligence and natural language processing, which is the first step into conversational commerce and customer service. I think individually each of those is interesting, but when you string it together it becomes really compelling and A.I. is now being given enough transactional information that when combined with data science can match and predict customer behavior at a level not previously possible.”
Mentions:
Bio:
Rachel Stephens is the Vice President of Marketing, Digital and Loyalty at Stop & Shop, a $15B supermarket retail company, where she leads the Digital, Loyalty, CRM, and eCommerce Marketing teams. Prior to joining Stop & Shop in 2018, Rachel worked with the TJX Companies for more than nine years, serving as the Assistant Vice President of Marketing, Loyalty and CRM for more than seven years. She also oversaw the PetPerks loyalty program within a $5B pet specialty retailer at PetSmart.
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Transcript:
Stephanie:
Welcome back to Up Next in Commerce, I’m your host Stephanie Postals, co-founder of Mission.org. Today we have Rachel Stevens on the show, vice president of marketing, digital and loyalty at Stop & Shop. Rachel, welcome.
Rachel:
Thank you very much for having me.
Stephanie:
Yeah, I’m really excited to have you on. I saw a little bit of your background before hopping on here and I got very excited when I saw that you have worked at the TJX companies, which I was hoping we could start there with your background.
Rachel:
Are you a brand fan?
Stephanie:
Oh, yes. I mean, I love TJ Maxx and when I saw that I’m like, “Ooh, this is my interview. This is the one.”
Rachel:
Yeah, I was actually the assistant vice president of CRM Loyalty [inaudible] within TJX. And that really matched the TJX rewards program … was a program that fell under my group and my responsibilities included the day to days and ensuring that our customers really wanted to participate in our program, our loyalty program so that we had clean data at the end of the day. And we were able to provide additional value in savings on top of what customers were already saving with the strong value that TJX stores provide.
Stephanie:
Very cool. How did you first get interested in the world of loyalty marketing, what lead you there?
Rachel:
I started actually in loyalty marketing at Pet Smart in their corporate headquarters in Phoenix and I think the thing that really appealed to me was marriage of data and customer communications, so understanding what customers say and what customers actually do is vital, I think, to the success of an organization because customers can say, “Yes, I have intent to purchase X,Y,Z.” But when you look at the actual data, the data doesn’t lie.
Rachel:
So, loyalty programs give you a vital tool for success within your organization to take a look at consumer data and then apply your marketing tactics really that are from acquisition, retention or reactivation perspective based on what that consumer is doing in a particular moment. So it’s really, to me, such a great marriage of a lot of different areas within marketing and it just was something that I developed an immediate passion for. When I started there on the Pet Perks Program and then went to TJX to work on the loyalty program for TJ Maxx, Marshalls, Home Goods, [inaudible] Trading Post, and HomeSense, I feel like when I was there honed in on my skills within the loyalty space, so the position at Stop & Shop to really develop the role and develop what the new program was going to look like was incredibly appealing just because of my passion for this space and for retail.
Stephanie:
That’s so much good experience to be able to bring to Stop & Shop. How have you seen consumer behaviors or loyalty programs having to change since you started?
Rachel:
Since I started in loyalty or since I started at Stop & Shop?
Stephanie:
I’d say in loyalty program, in loyalty overall. Since you started back in the pets days.
Rachel:
Yeah, I think there was a transactional nature to loyalty programs in the past. I think it was you give and get and that was usually based in points programs whereas today obviously I think more experiential programs have come about and providing more omni-channel experience, which wasn’t really the case back when I first started within the loyalty space. I’d say that there’s a number of people that really do a great job at this. I think Sephora’s loyalty program is top notch. They do an excellent job at marrying the in-store and the online experience, really making it truly omni-channel tied in with their loyalty program.
Rachel:
I think that a lot of retailers have caught up and are doing a good job and I still think there’s a lot of room to grow. And I think grocery retail was stuck in the loyalty stage of two tier pricing and I think we have a to model grocery loyalty programs more after what a lot of other retailers are doing in the loyalty space and even hotels. Airlines, I think that soft benefits and providing experiential benefits are really critical to the success of a program.
Stephanie:
Yep, yeah completely agree. Now that we’re touching on grocery a bit I would love for you to explain what Stop & Shop is for anyone who doesn’t know.
Rachel:
Sure, Stop & Shop is actually a grocery retailer with over 100 years in the industry. It started out as a very small grocery in the east coast and now we have over 400 stores and of course our online experience at Stop&Shop.com and the Stop & Shop app.
Stephanie:
That’s great. And Stop & Shop, you guys just started moving into e-commerce, right? I think I saw that you launched a new platform just in a couple months ago, am I right?
Rachel:
We did actually, on July 28th in fact. We launched … we had Peapod with a partner company. Peapod actually was owned by Ahold Delhaize, which is the parent company that owns Stop & Shop and we have integrated Peapod into Stop & Shop now. So, within Stop & Shop’s footprint to order grocery delivery or to get pickup you actually now go to the Stop & Shop website or the Stop & Shop app versus Peapod. That integration occurred again at the end of July, and it’s been going incredibly well so far.
Stephanie:
What was that transition … what did that look like behind the scenes of not only integrating a current path that people are using but also I’m sure adding on additional functionalities that maybe weren’t already there. What was the process behind the scenes or any maybe hiccups that you guys experienced when you were going through all this because it sounds like a big project.
Rachel:
Yes, yes. In fact, huge project. And all of our sister brands went through the same scope of work at the same time. We work with an internal agency who actually is responsible for all of that development work. And the agency actually had to develop the platform for all the brands. There was Giant Martin’s out of Carlisle, Pennsylvania and Giant Foods in Maryland, also went through the same transition.
Rachel:
And there was obviously … it requires a lot of work to marry the database, really marry those platforms. There was a Stop & Shop website, a Peapod website and H Brands app, so marrying those together was a huge, enormous undertaking that has taken approximately two years. And when I first started two and a half years ago actually that was really when we had worked on all the business requirements for this project. And it just takes a significant amount of time to match up all the data on our customers and combine those platforms and ensure that everything is running smoothly because if you think about the number of transactions that the Peapod site had going through it before and the number of customers that were going to the Stop & Shop site, you can imagine that there’s just a tremendous amount of customers that we wanted to ensure were not left behind in this transition.
Rachel:
So, there’s definitely a lot of work that went into this project and in terms of hiccups, of course there was a lot of those. But I think you try and block out all of the things that went wrong during the launch and you just only remember the good, right?
Stephanie:
Yep, that’s great. And I’m also very familiar with Giant. I’m from Maryland. I’m sure everyone else is like, “What’s that?” I know very well what that is.
Rachel:
Oh, great. That’s great.
Stephanie:
Yeah, so when you guys are thinking about launching this new e-commerce platform, what kind of opportunities were you excited that it would open up? I’m sure you get access to new kind of data and you can have new offerings and you can send that data maybe to your other partners and maybe they can give you deals. What things were you most excited about that you didn’t have access to before?
Rachel:
I think that what I’m most excited about is omni-channel data access. We did not, again, have that before because it was Peapod who really had all of the data for delivery and pickup and Stop & Shop who had all the brick & mortar data. The combination and looking at a consumer from an omni-channel, to me, is what’s most exciting.
Rachel:
If I’m going to do a marketing campaign using digital tactics or any sort of in-store tactics I really need to know what you do as a customer. You could channel switch, you could go from pick-up to in-store to delivery all within a very short period of time. And so, I think the efficiency in marketing, by having that data to me is really what’s most exciting. And being able to actually accurately talk to our customers is something that really interests me because how many time have you received communications from a company where you’re like, “Wait, I was just in there. I just bought X, Y, Z and now they’re sending me an offer for something,” or the communication just seems out of left field.
Rachel:
And I think of years past when Starbucks didn’t have a fully integrated data solution. If I was a coffee drinker and I always drank coffee once in a while I’d get tea offers and it just didn’t make any sense to me. I think it was just bad use of data.
Stephanie:
Yeah, I still get that right now. I’ll get things marketed to me around pregnancy. I’m like, “I am not pregnant and haven’t been for a while.”
Rachel:
You’re not pregnant.
Stephanie:
In a while. Come on, about six months ago, stop that.
Rachel:
Right, exactly.
Stephanie:
That’s smart. So, what are you excited for omni-channel in general outside of Stop & Shop. What do you think that landscape’s going to look like in the next couple of years?
Rachel:
I think that COVID has certainly advanced a lot of, specifically in retail, advanced a lot of retailers. I think their technology and their offerings, I think omni-channel, to me, has to be that seamless experience in-store, online. And it has to be being able to look at you from a customer lens and understanding that you may channel switch and your experience or the offers that you’re given or you’re customer service shouldn’t change. There shouldn’t everybody anything remarkably different about whatever channel you’re in.
Rachel:
So, for me I think that the omni-channel landscape is going to continue improving and COVID has definitely advanced that.
Stephanie:
To dive back into the loyalty program conversation, because I’m very interested in that, we haven’t had a ton of people on the show who’ve talked about that, so I’ll probably keep circling around that for a little bit.
Rachel:
Sure.
Stephanie:
I want to hear how you think about developing a successful loyalty program now. How do you get people to engage? How do you get them to be excited about it?
Rachel:
The most important thing is research. You have to understand what customers want first and foremost of course. That’s the first step in any real loyalty program whether you’re launching a loyalty program or enhancing a loyalty program or just completely transforming a loyalty program. You have to understand what research, what customers want. You have to look at the data and understand what they actually do.
Rachel:
So, it’s the this is what I say I want and then this is what I actually do. And you rally have to be a data scientist and understand what it is that is bubbling to the top. If I know my to customers are coming in and I’m looking at the data that tells me they come in X amount of times per week and they shop for key products, then I can understand and I can translate that back into transactional offers. I can say, “Okay, these are the top products that I need to make sure are relevant to that consumer base on a regular basis.”
Rachel:
But it doesn’t get at really what drives them and motivates them to be loyal to the brand. So, I think that that research is such a critical step in really understanding how consumers really feel about your brand. You don’t want to be the brand that customers just feel like you’re on the corner and you’re convenient so they have to shop you. You want to be the brand that they want to shop at. Loyalty isn’t just about the program, it has to be about the total solution that retailer provides and your feelings about that retailer.
Stephanie:
It seems like there would be a lot dark data out there, especially for maybe grocery stores because I’m thinking, would my local grocery store even know that I go in and out because I don’t interact with them online right now. I sometimes put my phone number in, sometimes don’t. How would you make sure you have a good sample size of people to use for your research when building that out if maybe you still have quite a few of your customers that you don’t even know yet.
Rachel:
No, I think that’s a great question. I think you have to … There are panels that you can go, usually your consumer insights team has access to panels of customers who volunteer to participate in research studies, so that’s typically the first place that I go if we don’t have enough data within the database. If there’s enough data in the database to start with, usually that does require an e-mail address or a physical mailing address and not just phone number.
Rachel:
So, if your local grocery store only requires phone number and … I’ll say actually that was the case for Stop & Shop prior to the transformation of our new loyalty program where we really just ask for phone number point of sale. And that gave customers access to that two tier pricing. That doesn’t do anything for a company, just having phone numbers and actually going to build off your database of course. Then you don’t have a way to really round out that customer experience and understand. You got to be able to tap into that customer and ask them what they want.
Rachel:
It is really important that you’re coming up with a program or if you have a program that it’s enticing enough that customers want to give their data, they want to give you the right e-mail address or they want to give you the right mailing address so that they do participate in the program but they also are willing to give your opinion when you ask it.
Stephanie:
Yep. It also seems like making sure you have a seamless experience when asking for that data is really important because I can think of a number of times different stores have been like, “Oh, can you type in your e-mail?” Or just, “Read it off to me and I’ll type it in very slowly.” I’m like, “Ugh, just don’t worry about it,” or “I don’t want to use your old type pad that’s not really working and I’m going to have to delete it 10 times to get it right.”
Rachel:
Right, exactly. Yeah, you’re absolutely right it has to be simple, seamless. I think digital cards is a great way to make it simple and seamless. It’s easy enough for a POS to scan a digital barcode that ties back to your loyalty card or phone number, provided the fact that the number actually is tied to a valid e-mail address or valid mailing address. Any way that you can provide convenience for consumers to access their program seamlessly, quickly is really important.
Stephanie:
Yeah, I completely agree. When you’re setting this up, even If you don’t have access to maybe huge amounts of data, are there any unifying themes that people just generally when it comes to loyalty or rewards programs where you’re like, no matter where I’ve been it seems to always get someone to sign up if we have this or this offering.
Rachel:
Well, I think a based program, it has to be about savings, right? Every program is at it’s core about saving, so hotel, airline, you’re earning points to get free something or to save on something. And so, at it’s core you have to have a savings in the value proposition. And then I think everything else that goes on top of that whether you have a tiered program where you’re providing your top tier customers with more of those experiential benefits or more of those softer benefits is really, it’s dependent on the industry and your ability to provide different levels of benefits to customers.
Rachel:
I think in the supermarket industry you don’t see a lot of tiered programs. I think that that’s mostly because there’s not a lot of experiential benefits that you can provide that consumers really are interested in. I think a lot of customers look at grocery shopping as a chore. There are, there’s certainly a core of customers who really enjoy it but for the most part a lot busy consumers today do look at it as a chore and I think that lingering in a store is not something that a lot of people are really interested in.
Stephanie:
Yep, yeah I completely agree. Is there any research that y’all have done when to what really matters from a savings perspective? What percent actually drives someone to purchase something they maybe wouldn’t have purchased prior to seeing that savings? Maybe 5% eh, maybe not, 20% probably so. Anything that you’ve seen around that?
Rachel:
It’s funny that the higher up you go in savings, a lot of times customers say they don’t believe that. When you say save 20% or 25% or whatever, it seems somewhat unbelievable and I think a lot of customers question it. With our go rewards program we actually know that customers saved 15% or more. We did a lot of research because the and more was actually the savings is more like an average of 20% but customers really felt like, “That seems high, that seems really unbelievable.” So, 15% we’re like okay, let’s just actually take that down because that seemed to be more palatable percent for customers for some reason.
Stephanie:
That’s really interesting.
Rachel:
Isn’t it?
Stephanie:
I know. I mean, when you see these shopping sites when it’s like 75% off it actually makes you just one be like, “Well, was it ever worth the price that you listed it at?” And then are you going to get a 90% off. So I do question brands that have huge sales like that more than I do with someone who’s consistently like, “You get 15 or 20% off no matter what promo code or coupon or anything that you get, it’s never going to be higher than that.
Rachel:
Right, yeah. You start to question the quality and you say, “Oh, geez.” I mean I’m sure the average consumer doesn’t think in terms of margin but I start thinking about margin.
Stephanie:
I do too. Like minds, very like minds. [crosstalk 00:22:05]. “How much were you making before this?” Okay.
Rachel:
Exactly.
Stephanie:
That’s great. How do you think about metrics when it comes to these loyalty programs. Are they unique and very different than maybe metrics for other e-commerce business or other programs that you might set up?
Rachel:
Well, I think first and foremost most companies will look at sales as a huge metric within their loyalty program because it’s an investment for the organizations, so ROI is going to be important. But the ROI actually comes from retention and in some cases reactivation. You know that a lot of times it’s true, the cost of getting a customer is equivalent to retaining eight.
Rachel:
So, I think if you can look at … most organizations look at sales from the program and incremental sales from the program. I think that that is the real true metric. Engagement of course is also important. And customer satisfaction is vital.
Stephanie:
Yep, that makes sense. Are there any memorable campaigns that come to mind. You’re like, this one was my favorite marketing or any other kind of campaign hat I’ve done that you want to share? I’m always interested in stories around that.
Rachel:
Yeah, no I think that I worked on so many great campaigns but the ones that are truly, fully integrated across every channel is that’s what’s really exciting. When you see a campaign, for example right now this might sound silly or small but we have this pizza campaign. We’ve got a commercial on air about the best pizza is your own pizza and we’ve got that campaign in every other channel, so digital, e-mail, social media, through my go rewards program, we throw in extra points when you buy certain products within the category. That’s really what excites me is I think when you see it come to life and you see really the full ecosystem within marketing utilized to support something. That’s when you really see the power of marketing come to life and you see how it actually makes sense obviously to have one point of view and to be more customer centric in your campaigns.
Stephanie:
Mm-hmm (affirmative). And it’s like a better way to measure things as well if there’s this one initiative going across many channels and you can look at it without having a bunch of other players messing the data up.
Rachel:
Right, right, exactly, exactly. I see some marketing campaigns right now and [inaudible] there’s some big players out there that did all of these back to school campaigns and it drove me nuts because it’s like we are not back in and it showed all the kids walking down the hall and of course I know that they had all these commercials shot in the can well before a lot of this happened but I feel like you’re talking to a consumer base that is in a very different place right now. I think that obviously understanding what consumers are looking for and really being relevant like that pizza campaign. There’s so many people who are at home cooking together right now. I feel like that’s really where I get most excited is when I see obviously that relevance and then more of that omni-channel and cross channel campaign. I think that that’s really where you see some good results from marketing.
Stephanie:
Yeah, that’s as good point about people still running their commercials that they maybe shot a long time ago. The only one that I think has done really well in my mind that I’ve seen recently is either Trader Joe’s or Target that had grab your back to school supplies and it was at a line rack. I’m like, “That’s good, that’s relevant and I’m going to get some [inaudible] now.”
Rachel:
That’s perfect.
Stephanie:
Yeah, really good. We had someone on this show who was also mentioning you should have different scenarios, especially at a time right now where you don’t really know what’s going to happen and you should be ready to pull your campaigns and slot something in really quickly. And it seems like a lot of larger brands or especially older brands just didn’t think that way or maybe just thought, “Okay, let’s just release this and see how it goes anyways.” Why do you think that’s the case? Why do they still put this out into the world when many of them probably knew it was not a good fit?
Rachel:
No, and I think it does more harm to your brand than anything to be honest because obviously if you’re not relevant and you’re not listening to what’s going on in the world then I think that it does more home. At the beginning of COVID we did a lot of work around providing at-home solutions. We had a chef who actually did a cooking show within social media. I worked with this chef to come up with a series of cooking shows within Facebook and we did a number of other just activities to do with the kids at home and there was more relevance to our campaigns and it really resonated. Customers really appreciated the fact that we were giving them content that actually was valuable, interesting and just relevant to what was going on in the world.
Rachel:
You can’t be deaf to what’s happening and you have to really just make sure you’re always paying attention and listening to what customers are saying.
Stephanie:
Yeah, completely agree. Earlier you were talking about the pizza campaign and how you put on many, many channels. Which channels are you finding are most successful or are there any new ones that you’re experimenting with that you’re finding some early success in.
Rachel:
I think that we do a lot within social media and I think that the channels in social media that we’re finding some early success in would be Next Door and TikTok to some degree. I think with TikTok, youth are still clear we haven’t done a whole lot there but I think that the brands that have been on TikTok and have done some really good work and have seen some great results. And I think the social media channels are probably the ones that give me the most excitement because I think there’s such a great way.
Rachel:
We’re working towards integrating commerce into social media. That’s a big project that my team is working on right now and it’s such a great way to capture an audience when they’re just in their downtime. They’re in a different kind of mindset and they’re more open to maybe looking at inspirational content, recipes, things like that within Pinterest or within Facebook or Instagram. And they may want to buy it right then and there and they may want to say, “I want this recipe, I want it delivered to my house. This is great.” So, I think that any of the campaigns that we’ve done in social have really been my favorites.
Stephanie:
You mentioned integrating commerce into social media. Are you all taking that initiative on yourself or are you more relying on the platforms to develop the solutions to tap into? What does that look like?
Rachel:
Yeah, we are relying on platforms. Obviously we have to, there’s a lot of work that needs to be done still in this area. And I think that’s a little trickier just for a supermarket because you’re not going to buy just a tomato.
Stephanie:
[crosstalk] tomato from Stop & Shop.Rachel:
Right, it’s not like when you see a pair of shoes on Instagram and you have to have them. You don’t really have to have that tomato on Instagram but you may want that full recipe so making sure that there’s enough content that is actually worthwhile to the customer I think is the challenge and that’s what my team is trying to figure out right now.
Stephanie:
Got it. When I’m thinking about commerce or social media, has Stop & Shop explored … or maybe you guys already have this like your own products where it’s like you can only get it from here. It’s not a generic brand it’s actually like … I mean, that reminds me a lot of what Trader Joe’s does. It’s like if I want this one, well they discontinued this prune juice I really loved. [inaudible 00:32:00], yep. I love their prune juice, they discontinued it. Anyways, I knew that they were the only ones that I liked it, that’s the only one I wanted to have. And so, have you explored something like that of creating certain things that will be top of mind where it’s like Stop & Shop is the only one that actually has this kind of recipe of whatever it may be, prune juice.
Rachel:
Yes, actually in fact we have our own line, Nature’s Promise is a proprietary line across the Ahold Delhaize brand. And we have our private label brand of course and then we have Taste of Inspirations which is a really nice higher end private label brand for us. And we are definitely doing more within that space, integrating with go rewards with our new program. When you buy a recipe that is all Nature’s Promise ingredients you earn extra go points.
Rachel:
We have these recipes called take five that were featured within social media and we’ve got them in our circular and in other areas. And if it’s all our Taste of Inspiration products you earn X amount of go points. We have a lot of those types of promotions that we’re doing now and that’s definitely what we’ll be integration into our social media commerce platforms in the future.
Stephanie:
Very cool. And I feel like there’s a lot of interesting opportunities too as you now explore … you’re going to have this new e-commerce platform to get new data and to see what people are really like and what’s maybe swaying them to buy one thing versus the other. It seems like there’s a lot of opportunity that’ll come up around building new offerings that maybe you wouldn’t have thought of otherwise.
Rachel:
Yeah, absolutely, absolutely. And I think if you look at solutions that’s definitely really important to our customers right now. There’s so many families that are just so busy and providing meal solutions, even a night, a couple nights or a week of meal solutions is such a huge time savings for a lot of families.
Stephanie:
Yes, I feel that with three boys now. I’m like anything to not have to cook from scratch would be appreciated. [inaudible] it’s frozen, whatever it is. If it’s edible it’s cool. Where does personalization come into play or you guys? How do you think about showing offerings throughout your e-commerce experience or your apps that really connects with the person who’s looking there?
Rachel:
Well, personalization [inaudible] success, so I think whether or not we get it right 100% of the time I think is something that remains to be seen. I think we have made some huge advances in personalization with the new platform, with our program. The more data we have about a consumer’s shopping behavior, what they like, the better the offerings that we’ll be able to give them.
Rachel:
So, if I purchase Doritos all of the time, hopefully I’m not getting a offer for something else, Lays potato chips, I should be getting offers for Doritos. So, that relevancy is really, really important. And that’s something with this new program that we’re providing customers whether it’s through product coupons, which today now that I look in my coupon gallery on my app, I have six products that are relevant to what I purchase every week which is really great, so I know the algorithm is working correctly.
Rachel:
Then on top of that we also have more of those category offers. So, if I’m somebody that always buys fresh produce now we’re actually doing more of the $5 off your purchase when you add a fresh produce. More of those category offers that are relevant to what I purchase every day. I think it’s incredibly important. And then through the e-commerce journey this is really where I’d like to see us make some improvements. It’s on recommendation engine type of logic, so if I’m putting a pizza dough in my basket on my e-commerce platform then hopefully somebody’s going to be recommending some mozzarella and pizza sauce to me.
Rachel:
That type of a level of personalization is something that we strive for and want in the future. We have some degree of that today but that’s certainly where I expect we will be going in the near future.
Stephanie:
Radical. When it comes to those recommendations are there any tools that you’re relying on to build that out or is it everything you did in custom or how is that working behind the scenes?
Rachel:
Yeah, the recommendation actually is homegrown, so that’s where our internal partner actually has been using all of the data from the loyalty program and understanding what customers buy, and there’s propensity models that we have in place. So, somebody who has the same profile, who typically purchase X, Y, Z. “We actually build a model to say here are look alike customers and here’s what we should recommend to them because it looks like that customer is similar so they may be interested in these types of products.” And that’s something that our internal data scientists have been able to build out for us.
Stephanie:
That’s great. Is there anything when it comes to machine learning or the world of data that you guys have access to that you’re maybe preparing for or different capabilities that you’re building out right now that may be other grocers or other e-commerce stores are maybe a little bit behind on?
Rachel:
Yes, there definitely at the Ahold Delhaize level. I think that AI and certainly machine learning is something that everybody is going to have to be prepared to work on in the near future and be prepared to have teams working on that in the near future. And Ahold Delhaize does. Stop & Shop as a brand doesn’t but at the Ahold Delhaize level we do.
Stephanie:
Very cool. And do they usually come up with something at the higher level and implement it within all of their stores or do they test it out and say, “Okay Stop & Shop you’re going to pilot this and we’ll learn from you and then we’ll have our other brands try it as well,” or how does that work?
Rachel:
That’s exactly what it is, yeah exactly. And I see a big trend in experimentation and learning done with artificial intelligence, natural language processing. The first steps into conversational commerce and customer service. I think individually each of those is interesting but when you string it together it becomes really compelling and AI is now being given enough transactional information. And when combined with data science can match and predict customer behavior at a level not previously possible. So, natural language, processing and conversational tools really make it possible to help customers during the purchase journey and even more importantly in many aspects of customer service.
Rachel:
So, these previously somewhat academic technologies are being put in the hands of digital commerce managers and we begin to see the results. So, I fully expect that within the next couple of years what we’re testing at a Ahold Delhaize level will be brought down to each of the brands.
Stephanie:
Yeah, it seems like there could be an interesting … that you would get interesting results from the different brands because I can see very different consumers who are maybe shopping at Good old Giant back in Maryland.
Rachel:
Yes, you’re absolutely right.
Stephanie:
How do you approach that when you’re trying out different things and maybe you’re like, “Oh, we see this with our customers at Stop & Shop, let’s try this at another brand.” And you’re like womp womp that actually failed at that [inaudible] are so different.
Rachel:
Yeah, no it’s a great call out and I say that all the time. I say what matters to somebody in the food [inaudible 00:40:18], so what matters to somebody maybe in North Carolina is different what matters to somebody in New York City. So, we have probably the toughest competitive market not only from a grocery retail perspective but even just from a media perspective and trying to ensure that our voice is heard within these difficult tough media markets.
Rachel:
So, for Stop & Shop really it’s a little bit tricky and we do have to take a look at every single opportunity that comes our way and say, “Does this resonate with our consumer base?” Because a lot of times it won’t. I think that there were a couple of examples of trying out even just a walk-up pickup service. In a city location you can walk to get your groceries handed to you. There’ve already been shop for you versus the traditional pickup where we load it to your car. That doesn’t work everywhere obviously. [inaudible] work in the suburbs, it really only works at urban locations. That’s one thing that comes to mind, there’s a number of them that come to mind but each brand does have an option to opt out if it’s not something that resonates within their base.
Stephanie:
Yeah, it makes sense. Try and implement that in New York city and all of a sudden these cars are being towed and then they’re mad.
Rachel:
Right.
Stephanie:
[inaudible 00:41:48]. So, to go a little higher level I want to talk about general e-commerce themes and trends. I wanted to hear what kind of disruptions do you see coming to commerce that are not just from COVID or not just COVID because I think a lot people on here are like, “Oh, COVID’s the big disruption.” What else do you see happening in the world of e-commerce that’s maybe coming down the pipe right now?Rachel:
I mean one that’s already here really is one stop shopping like Amazon. So, the retailers who adapt and constantly expand their options, shorten the supply chain, enhance customer service and develop great options for delivery and pick-up have the most success. So, I think that the model that Amazon has and Wayfair, the direct to consumer shipping is not as much as a disruption to e-commerce. That’s here to stay and I think we have to learn from that and we have to adapt in order to stay competitive. And I think a lot of retailers are going to have to adapt in this new world. Everybody’s going to have to be able to figure out how to provide that one stop shop because it’s similar to brick & mortar shopping. You don’t want to go to multiple locations on a Saturday afternoon.
Rachel:
It’s the same thing, if you’re going to pay for shipping you’re going to pay for it once from one retailer or get free shipping, of course with a subscription service or promotion. And I think that’s definitely here to stay. I think that convenience and the ease of finding everything in one place is that it’s that big box retail mentality from back in the 80s when the big box retailers really exploded.
Stephanie:
Yep. Figuring out delivery and trying to compete with Amazon, man that seems very, very tough.
Rachel:
Very tough.
Stephanie:
Consumers have very high expectations now of what they want and yeah, it seems like they are quick to get upset if it’s not one, two day shipping and, “Oh, it can’t be here within two hours? Okay, I’m going to have to cancel the order.”
Rachel:
Right, exactly. And “Oh, you don’t have all the other things I need to? I need my face lotion and my bread. Wait, you don’t have that?”
Stephanie:
Yeah, “Why would you not have that right next to each other?”
Rachel:
Right, exactly.
Stephanie:
Yeah, this has been awesome. Is there anything that I missed that you wanted to highlight before we jump into the lightning round?
Rachel:
No, I don’t think so.
Stephanie:
Okay, cool. Well, I will pull us into the lightning round brought to you by SalesForce Commerce Cloud. This is where I’m going to ask a question and you have a minute or less to answer. Are you ready Rachel?
Rachel:
Oh, boy.
Stephanie:
All right, first one, what does the best day in the office look like for you?
Rachel:
Best day in the office today is at home.
Stephanie:
There you go. What does your virtual best day look like?
Rachel:
My virtual best day is when I actually have time between meetings to go get something to eat [inaudible 00:45:01].
Stephanie:
That is actually a big problem I’ve heard from a lot of my old coworkers and talking about their whole day is now filled with meetings that maybe would’ve taken just a couple minutes to have a quick catch up and instead it’s like, “Okay, 30 minute slots to discuss maybe one question.”
Rachel:
Absolutely and you use your hour to the fullest extent and you’re not moving around from meeting room to meeting room anymore. You’re literally just sitting at your desk all day, so my best day is when I actually have a break to get up and go get something to eat because food is important to me.
Stephanie:
That seems like a crucial part of the day, so what’s up next on your Netflix Queue.
Rachel:
That’s a great question. I’ve actually blown through almost everything.
Stephanie:
And what was your most recent then?
Rachel:
I just watched the Enola Holmes.
Stephanie:
I’m watching that now, it’s so cute.
Rachel:
Oh, it was excellent, I loved it, it was really great. I love Millie Bobby Brown, I think she’s fantastic.
Stephanie:
Yeah, she was really good. Highly recommend that one. What’s up next on your travel destinations when you can travel again?
Rachel:
Oh, gosh I want to go to Scotland so bad.
Stephanie:
Oh, fun. What do you want to go there for?
Rachel:
I want to golf. I love the countryside, just looks amazing, beautiful. I want to go hiking there. I have a lot of grand plans for Scotland and Ireland too as well.
Stephanie:
If you were to have a podcast what would it be about and who would your first guest be?
Rachel:
It would definitely be about true crime because I’m obsessed with true crime, which I know everybody is right now but I really do find it fascinating and I always have. This isn’t just a fab for me, I always really liked it.
Stephanie:
Mm-hmm (affirmative). You started it, everyone else followed.
Rachel:
Yeah, exactly. I’m a trendsetter of course.
Stephanie:
Yes. And who would your guest be then? Will it be a serial killer?
Rachel:
Yeah, absolutely. I would love to interview a serial killer. I just want to know what goes on. I want to get deep for sure with a serial killer, name any one.
Stephanie:
All right, I mean I would listen to that. I hope they’re behind bars when that happens.
Rachel:
Yes, yeah. I could do the interview behind bars for sure.
Stephanie:
There you go. And if you were to pick a virtual event right now for your team or if you already had one that you’ve done recently, what would it be that you think is engaging in these times?
Rachel:
I think there’s a women’s conference coming up in Boston that I would love for my team to attend. I just attended a women’s leadership conference that was really amazing. It was very inspirational, even virtually I was really surprised at how well done it was and how just thought provoking the virtual conference could be. It was really fantastic.
Stephanie:
That sounds awesome. All right, and then the last one, what is a favorite app on your phone right now that you’re loving?
Rachel:
This is bad but I have the CARROT app, which I don’t know if you know, CARROT is the weather app.
Stephanie:
No, I actually don’t.
Rachel:
It’s a weather app that actually gives you a really sarcastic, snarky message every day when you open it up, so …
Stephanie:
Oh, my gosh. That’s great. I like that, that’s really good. Well, Rachel this has been such a fun interview. Where can people find out more about you and Stop & Shop?
Rachel:
So, Stop&Shop.com Stop & Shop app and me, my LinkedIn profile, so Rachel Stephens, S-T-E-P-H-E-N-S.
Stephanie:
Awesome, well thanks so much for joining the show.
Rachel:
Thank you very much for having me.
