For Midwestern supermarket chain Hy-Vee, retail media is an evolving opportunity that allows for brands, shoppers and the retailer itself to smartly intersect along shoppers’ omnichannel journey, says Joe Hammond, Hy-Vee’s group vice president, brand strategy and insights.
“We look for every opportunity to leverage data and insights to create a relevant experience for our shopper and a valuable engagement for our brands and partners,” he says. “We are a little unique in the fact that we have the ability to offer customers and brands engagements far beyond traditional grocery with large c-store, pharmacy, financial and food service presence among other opportunities beyond our stores’ physical aisles."
Hammond will present alongside Quotient Chief Technology Officer Matt Krepsik at the Retail Media in Action forum, a virtual Path to Purchase Institute event taking place Oct. 12-13. Path to Purchase IQ recently picked the brains of Hammond and Krepsik ahead of their session, which is titled “Innovating with Hy-Vee: Omnichannel and Retail Media.”
P2PIQ: Tell us about Hy-Vee’s media network. What does it offer to brands?
Hammond: Today Hy-Vee’s media network allows our partners to connect with our shoppers digitally, off-site and on-site, and via a multitude of physical touchpoints with relevant content throughout the shopping journey.
It enables our CPG brand partners to increase targeted reach and engagement amongst Hy-Vee shoppers with their brand content and promotions. It delivers a seamless experience and increased value for shoppers while driving measurable sales both in-store and online for brands. It’s the best way to reach verified Hy-Vee shoppers across the shopper’s journey with smart co-branded creative fueled by consumer insights and delivered with data-enabled relevance.
P2PIQ: How do Hy-Vee and Quotient work together to target shoppers?
Krepsik: Hy-Vee and Quotient enable brands to effectively connect with relevant Hy-Vee shoppers using exclusive data and technology, putting the right offer in front of the right customer, at the right time. Together, they're able to drive engagement and communication with shoppers off-site as they are planning their shopping journey and along their path to purchase, and then measure performance with shopper spending behavior, purchase intent and location intelligence data.
Whether for independent or conglomerate powerhouse retailers, the success of digital media channels lies in their ability to make them a win-win-win for all parties involved. Shoppers need to benefit from the relevant offers; CPG brands need to experience increased sales, brand awareness and return on their ad spend; and retailers need to garner increased product sales and alternative revenue.
P2PIQ: What role does measurement play with regard to Hy-Vee’s retail media offerings?
Hammond: From the retail perspective, measurement provides Hy-Vee the insights needed to continuously innovate — allowing for testing, measuring, optimizing and learning from newly launched programs, deals and initiatives. Those valuable insights provide intelligence to enable the agility needed to move quickly and scale successful programs across our entire footprint.
Krepsik: Measurement plays a critical role in Hy-Vee’s retail media offerings. Brands are able to quantify results and understand outcomes with insights into how their campaigns are performing. This in turn allows campaigns to be optimized throughout their activation duration, helping drive optimal return on ad spend and incremental sales.
P2PIQ: What does true omnichannel mean to retailers like Hy-Vee today?
Krepsik: I believe true omnichannel today means creating a relationship with consumers across different moments and touchpoints in a way that offers value, relevance and results. The path to purchase is now a very non-linear and multidimensional journey, bridging both offline and online. Consumers today are very digitally savvy and have millions of touchpoints and choices — a true omnichannel strategy is how you can connect and break through the noise.
On a tactical level, omnichannel for us means delivering media placements across key channels that seamlessly integrate a brand’s objectives — from incentivizing through promotions to driving e-commerce. Hy-Vee owns and operates over 250 locations, most of which have in-store Aisle Online shopping operations. With e-commerce growing at such a rapid speed, providing personalization at scale is essential in enabling them to deliver the most efficient messaging to shoppers wherever they are during their entire path to purchase journey.
P2PIQ: What is Hy-Vee’s approach to innovation and “test-and-learn”?
Hammond: Be decisive and agile — empower those who know their markets best to see what works best for their shoppers. Also, lean on and embrace new technology and measurement to try new things, learn, optimize and innovate. And, stay true to our core values — making lives easier, healthier and happier — continuing to provide relevant and accessible ways for our shoppers to connect, shop and increase their loyalty, no matter the channel.