Shopper Marketing - August 2017 - 18
Sam's Club Drills Into Data
With Targeted Offers
By Nidhi Madhavan
New York - As technology continues to drive
increased consumer expectations of retailers,
Sam's Club found an opportunity to both satisfy its members and boost revenue by leveraging its unique data capabilities. "Every single
transaction that happens in the club or online,
we know about," Adrien Fung, vice president
of online engagement at Sam's Club, said in
March during a presentation at the Shopper
Marketing Summit. "Because we're a membership organization, our members know we
have all of this data, and they expect us to do
something with it."
Pointing to a survey from the CMO Council, Fung noted that utilizing personalized and
enriched content results in stronger response
and engagement rates - factors that ultimately
affect loyalty and retention.
Although the retailer was reaching a mass
audience through its Instant Savings program
- a periodic mailer containing several hundred exclusive offers - it couldn't consistently
present the most relevant offers and items to
key members through the print medium. "We
wanted to figure out how to tie all the capabilities we have in terms of data personalization
and the different ways of reaching our members to an actual incentive," Fung said.
This insight led Fung and his team to turn
to Chicago-based Triad Retail Media, which
already had an 11-year history creating digital
y SHOPPER MARKETING AUGUST 2017
and personalized content for the retailer, such
as its Sam's Club Kitchen live video program.
Working together, and with the help of suppliers, they created a program dubbed "targeted
The program uses the first-party data collected from member trips or online visits and
aggregated on the Walmart Exchange (WMX)
platform to define audience segments such as
look-alike members, new members to a category, or those lapsed in a category.
"We got [members] to try
it once, and they came
back and kept buying it."
Adrien Fung, Sam's Club,
about a Foster Farms promotion
Suppliers can then utilize an optimized digital media mix, including email, web and mobile, to send these groups of members specific
incentives intended to drive key purchase behaviors. With such a targeted audience, the
incentives can often be deeper while avoiding
what Fung called "passive redemption."
In one case, frozen food manufacturer Foster Farms sought to gain buyers from a recently discontinued brand, while Sam's Club hoped