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Speaker 1: That’s the premise that loyalty provides. Loyalty as a baseline,

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Speaker 1: as a foundational element for retail media networks is actually

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Speaker 1: truly the differentiator. As we go forward with retail media networks,

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Speaker 1: as we continue to invest in this particular platform, that

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Speaker 1: will be the change agent. And we see that. We

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Speaker 1: see that with many, many different retailers looking to launch

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Speaker 1: loyalty programs or looking to invest further in their loyalty programs.

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Speaker 1: We have one. It’s robust. It’s been around for 20

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Speaker 1: plus years. We have a lot of engagement with our

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Speaker 1: consumers on that particular loyalty program. So we just want

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Speaker 1: to make sure that we continue to utilize that as

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Speaker 1: best we possibly can to continue to provide consumers what

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Speaker 1: they want.

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Speaker 2: Welcome to today’s episode of Brave Commerce.

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Speaker 3: I’m Rachel Tippegraph, the founder and CEO of Micmac.

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Speaker 2: I’m Sarah Hofstetter, president of Profitero.

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Speaker 3: And this is a show that talks about what’s relevant

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Speaker 3: in e-commerce for the world’s biggest brands. Sarah, we know

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Speaker 3: your shopping habits on this show, but where do we

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Speaker 3: talk about who you’re most loyal to from a retailer standpoint?

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Speaker 2: I do have my shopping habits and I can be

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Speaker 2: a switcher. I am very deeply connected to CVS. I’ve

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Speaker 2: tried not to be. But just when I think I’m

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Speaker 2: getting out, they suck me right back in, those receipts

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Speaker 2: with the coupons.

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Speaker 3: It’s like they know when you have allergies. They know everything.

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Speaker 2: But that said, it’s about getting you at the right

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Speaker 2: place at the right time. And what they have been

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Speaker 2: able to do with 1P data, not just as a consumer,

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Speaker 2: but just in general, the way that CVS knows their shoppers,

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Speaker 2: they’re the OG of 1P as far as I’m concerned,

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Speaker 2: much more so than others. And I think there’s been

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Speaker 2: a mad rise race over the past few years by

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Speaker 2: other retailers and obviously plenty by others to try to

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Speaker 2: figure out how do you replicate something like that forget

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Speaker 2: about the upcoming cookie-less internet it was more the wow

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Speaker 2: if you could really understand your shoppers in a special

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Speaker 2: way not only can you sell media against it but

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Speaker 2: you’re going to be able to increase basket sizes increase

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Speaker 2: purchase And particularly for a retailer like CVS, that is

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Speaker 2: a high-low where you’ve got like a really competitive private

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Speaker 2: label capability, but you’re in drug and beauty where brand

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Speaker 2: names rule the day. It’s a very interesting dynamic to

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Speaker 2: see when consumers trade down to a private label, when

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Speaker 2: they don’t, and CVS has got it all. 74 million

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Speaker 2: extra care registered users. That’s crazy.

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Speaker 3: It’s wildly impressive. And so, you know, it started in

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Speaker 3: consumer personalization. Greater care leads to greater loyalty. And now

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Speaker 3: they’ve taken this massive database and began to monetize it

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Speaker 3: in the CBS media exchange. So we’re going to bring Parves,

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Speaker 3: who leads the practice, onto the show to hear how

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Speaker 3: CBS is leveraging all of this first party data they

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Speaker 3: sit on. Today, we are super excited to have Parbinder,

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Speaker 3: who also goes by Parbs, Dariwal, who is the VP

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Speaker 3: GM of CBS Media Exchange. Hey, Parbs.

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Speaker 1: Hey, how are you? Good to be on the show.

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Speaker 1: Thank you for having me.

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Speaker 3: Yeah, we’re super excited. I think Sarah and I have daily,

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Speaker 3: maybe weekly touch points with CBS media. Very curious to

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Speaker 3: learn more about CBS Media Exchange because maybe it’s also

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Speaker 3: touching us. You joined CBS shortly after they announced that

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Speaker 3: they were going to have their foray into the world

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Speaker 3: of retail media. And it feels like every retailer has

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Speaker 3: now launched a retail media practice. So how do you

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Speaker 3: feel CBS is different?

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Speaker 1: Yeah, it’s a great question. First of all, I just

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Speaker 1: say the retail media category is definitely emerging. We launched

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Speaker 1: CMX back in 2020, August 2020, coming up to our

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Speaker 1: fourth birthday. And I joined a couple of years later.

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Speaker 1: And the goal being is, how do we scale this, right?

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Speaker 1: And how do we scale it as fast as possible?

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Speaker 1: But if you look at what CMX is doing, we’re

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Speaker 1: really predicated on, in terms of our value proposition, on

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Speaker 1: how do we grow consumers within our retail environment, both

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Speaker 1: digital and physical environment, but leveraging our extra care consumers.

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Speaker 1: So our business is predicated upon the 74 million extra

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Speaker 1: care members who pretty much rely on everything to do

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Speaker 1: with CVS Pharmacy for their everyday health and wellness and

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Speaker 1: beauty needs. But you’ve also got to think about the

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Speaker 1: way in which the consumer comes into our business as well.

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Speaker 1: constantly engaging. We have almost 5 million interactions every single

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Speaker 1: day who are coming into our stores and store environments.

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Speaker 1: And then, you know, almost 140 million customers are coming

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Speaker 1: onto our website every single month. So we’ve got an

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Speaker 1: enormous amount of interaction. Our differentiator, I would say, versus

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Speaker 1: other retail media networks is that we are built on

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Speaker 1: our loyalty program. We have a clear understanding of the

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Speaker 1: way in which consumers are moving between channels. And consumers

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Speaker 1: are moving between channel. They’re moving between digital, physical. It

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Speaker 1: depends on convenience. And I would say, look, all retailers

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Speaker 1: are not made the same, just as all retail media

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Speaker 1: networks are not made the same. So we’re setting ourselves

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Speaker 1: up in a very differentiated manner in that regard.

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Speaker 2: Yeah, I would agree. I mean, would look at you

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Speaker 2: guys as almost like the OG of really having a

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Speaker 2: healthy understanding of your consumer experience. The long coupons was

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Speaker 2: only the beginning of it all, otherwise known as my

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Speaker 2: moments of pride when I would show my family how

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Speaker 2: much money I saved. But one of the things that

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Speaker 2: we’ve certainly seen when we talk to a lot of

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Speaker 2: our clients who are the suppliers who sell their products

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Speaker 2: at CVS, they’re always wondering like how much of the

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Speaker 2: traffic is in-store versus online. The in-store experience is so special,

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Speaker 2: so unique. online behaviors for CBS were definitely on the

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Speaker 2: later side of the uptick, but you guys have really

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Speaker 2: been hustling on this. So as we think about the

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Speaker 2: role of retail media online, how do you think about

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Speaker 2: it from an Omni perspective?

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Speaker 1: Yeah, and it is purely an Omni perspective. And I

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Speaker 1: think that’s important to know because we want to be

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Speaker 1: there with the consumer in the if that means that

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Speaker 1: that consumer is starting their journey in a digital environment

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Speaker 1: and completing it in a physical environment. And we see

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Speaker 1: a lot of that, right? Like we see over half

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Speaker 1: of our consumers are starting their digital journey with us

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Speaker 1: in terms of shopping and then completing it in stores

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Speaker 1: within 48 hours, right? Because that sort of just really

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Speaker 1: testament to the way in which CVS provides that level of, hey,

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Speaker 1: I need this product now. I have a need for

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Speaker 1: my health and wellness or I’m passing a CVS. and

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Speaker 1: I’ll go and pick that product up, or I’ll just

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Speaker 1: order it online, pick up in store, or I’ll see

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Speaker 1: what store closest to me has that product in stock.

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Speaker 1: You know, we’re also seeing an enormous amount of engagement

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Speaker 1: from our extra care members. So remember, like 74 million

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Speaker 1: of our extra care consumers, over 85% of our e-com

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Speaker 1: sales comes from that loyalty program, right? So They’re incredibly

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Speaker 1: engaged with us. That’s what’s driving our digital engagement and

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Speaker 1: digital growth, but it’s also driving our physical growth as well.

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Speaker 1: We’re seeing our digital growth and purchases on CVS.com grow

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Speaker 1: around about 33%, 34% year over year. There’s an enormous

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Speaker 1: amount of opportunity that continues to be had, but I

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Speaker 1: just want us to make sure that as we build out,

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Speaker 1: whether it’s the digital portfolio or we build out the

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Speaker 1: physical portfolio, How do we service the customer’s needs and

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Speaker 1: give them the product and how they want the product

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Speaker 1: when they want the product? And that’s where the Retail

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Speaker 1: Media Network really comes into effect as well. As we’re

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Speaker 1: on that journey with that consumer, as we see that

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Speaker 1: consumer switching channel depending on certain use case and needs,

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Speaker 1: We want to make sure that we’re connecting with that

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Speaker 1: consumer right the way through, and more importantly, for your suppliers,

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Speaker 1: for the people that you guys are working with and

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Speaker 1: who we’re working with. How do we enable that? How

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Speaker 1: do we bring those products to life when the consumers

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Speaker 1: are touching those different parts of their journey, their purchase journey?

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Speaker 2: So as you think about that connectivity, I mean, 74

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Speaker 2: million Extra Care members is pretty extraordinary. Obviously, personalized experiences

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Speaker 2: become very critical. Yeah. How do you think about the

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Speaker 2: relationship that your customers have with you and your brand

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Speaker 2: and particularly your private label brand because of the added

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Speaker 2: incentives that come with extra care membership and the private

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Speaker 2: label as it relates to price sensitivity? Where does that

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Speaker 2: come into the equation of that connectivity?

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Speaker 1: Yeah, we’re a high-low retailer and that comes into that

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Speaker 1: longevity of who we’ve been for a number of years.

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Speaker 1: I think whether it’s private label or it’s branded, and

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Speaker 1: there’s a lot of conversation that’s happening right now around

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Speaker 1: private label, just given the economic state that we’re in,

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Speaker 1: that connectivity to the consumer and understanding those behaviors, this

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Speaker 1: is what sort of goes back to the first question

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Speaker 1: you’re asking. This is what sets CMX apart. The understanding

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Speaker 1: of the consumer within the categories that they’re purchasing, but

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Speaker 1: understanding that consumer between digital and physical is That data set,

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Speaker 1: those insights across the health and wellness journey of that

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Speaker 1: consumer are incredibly important for us. It doesn’t matter whether

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Speaker 1: or not we’re utilizing that for brands in order to

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Speaker 1: target certain types of consumers to re-engage with that brand

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Speaker 1: or whether we’re using that data for our own branded products. products,

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Speaker 1: for store branded products. What we want to make sure

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Speaker 1: is that we’re providing customers with the best and most

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Speaker 1: robust journey across the CVS ecosystem. And we’re providing connectivity

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Speaker 1: to product, product that they’re going to want, product that

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Speaker 1: they’re going to use, product that they’re going to continue

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Speaker 1: to engage with them. That’s the premise that loyalty provides.

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Speaker 1: Loyalty as a baseline, as a foundational element for retail

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Speaker 1: media networks is actually truly the differentiator as we go

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Speaker 1: forward with retail media networks, as we continue to invest

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Speaker 1: in this particular platform. that will be the change agent.

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Speaker 1: And we see that. We see that with many, many

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Speaker 1: different retailers looking to launch loyalty programs or looking to

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Speaker 1: invest further in their loyalty programs. We have one. It’s robust.

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Speaker 1: It’s been around for 20 plus years. We have a

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Speaker 1: lot of engagement with our consumers on that particular loyalty program.

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Speaker 1: So we just want to make sure that we continue

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Speaker 1: to utilize that as best we possibly can to continue

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Speaker 1: to provide consumers what they want.

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Speaker 3: So if the heartbeat of CBS’s media exchange is CBS’s

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Speaker 3: loyalty program, as Retail media also starts to move more

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Speaker 3: and more off-site. So it’s no longer about just cbs.com

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Speaker 3: or CBS physical stores, but Meta, TikTok, Google, and everything else.

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Speaker 3: How does CBS view the opportunity in off-site media? We’ll

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Speaker 3: start there.

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Speaker 1: Yeah. So in a couple of different ways, whenever we’re

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Speaker 1: working in an off-site capacity, we’re always making sure that

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Speaker 1: we can do as best we possibly can, because there

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Speaker 1: are some world gardens that we know and love out there.

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Speaker 1: We want to make sure that every single impression that

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Speaker 1: we serve is measurable. There’s an attribution model around that.

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Speaker 1: Earlier this year, we launched a program that gives us

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Speaker 1: the ability to target pinners across Pinterest using CVS-specific data.

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Speaker 1: That has an end-to-end attribution model. Consumer sees the ad.

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Speaker 1: We see the consumer on Pinterest. We make sure that

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Speaker 1: we drive that full attribution model end-to-end, whether we see

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Speaker 1: that attribution in a physical store or in a digital capacity.

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Speaker 1: We also want to make sure any other off-site partnerships

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Speaker 1: that we launch, be it through clean room environments or otherwise,

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Speaker 1: that we have the attribution model. Off-site is a big component.

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Speaker 1: It’s a big component for CMX. We do drive considerable

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Speaker 1: scale in an off-site capacity because we have scale throughout

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Speaker 1: loyalty program. And then we also continue to innovate as

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Speaker 1: it relates to off-site. How do we provide more self-service tools,

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Speaker 1: the opportunity for our suppliers to buy us a little

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Speaker 1: bit more seamlessly without more sort of managed service touch points?

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Speaker 1: So we’re bringing that to life as well. And how

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Speaker 1: do we partner with the right brands that are going

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Speaker 1: to drive more connection for our consumers in the beauty, health,

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Speaker 1: wellness categories? But then also, how do we continue to

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Speaker 1: drive that attribution model? And the attribution model is key

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Speaker 1: because I think that, as you talk about retail media,

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Speaker 1: as you look at what we can provide with That

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Speaker 1: is a clear differentiator for our channel versus any other.

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Speaker 3: And as retail media moves into these environments that have

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Speaker 3: been heavily dependent on cookies for attribution, how do you

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Speaker 3: think that changes what CBS is trying to do?

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Speaker 1: The promise that retail media provides is is really a

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Speaker 1: data foundation layer, I would say, for the industry, for

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Speaker 1: the ad industry as a whole. If done correctly, we

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Speaker 1: can really stitch together data sets from retailers to truly

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Speaker 1: understand how consumers are maneuvering between different retail. But how

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Speaker 1: do we utilize that data then as being the foundational

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Speaker 1: layer for the way in which we target effectively that consumer?

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Speaker 1: Personalized approach, because that’s really… where I would say retail

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Speaker 1: sort of 3.0, and there’s a lot of talk about

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Speaker 1: retail 4.0, but that’s where we see retail 3.0, I

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Speaker 1: would say, really coming into its own. It’s setting yourself

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Speaker 1: up as a retail media network to really provide that

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Speaker 1: foundational layer for suppliers to target consumers off-platform, utilizing the

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Speaker 1: data sources that we have access to and in abundance.

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Speaker 1: We truly understand the consumer, right? And That’s why loyalty

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Speaker 1: programs as a whole are incredibly important because that first

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Speaker 1: party data asset is not available in many, like in

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Speaker 1: other retail media networks that don’t necessarily have that. That’s

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Speaker 1: a clear differentiator. It should be something that, you know,

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Speaker 1: if I was starting a retail media network today, I’m

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Speaker 1: truly unsure that it’s built foundationally upon that. That sets

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Speaker 1: us apart from any of the other competitors within our space.

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Speaker 2: One of the things that you alluded to earlier in

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Speaker 2: the conversation was, how much we love walled gardens. I’m

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Speaker 2: guessing a little bit of sarcasm there. No, no, no.

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Speaker 1: We don’t know what sarcasm is.

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Speaker 4: Oh, man.

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Speaker 2: We’ve got a cultural gap here, my friend. And when

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Speaker 2: you start dealing with me and Rachel, the sarcasm drips

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Speaker 2: sometimes a little faster than the tea. So as the

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Speaker 2: retailers do become new walled gardens, brands are demanding more

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Speaker 2: transparency from retailers to increase the spend. You mentioned the

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Speaker 2: trade desk, you’re dropping all the right names, saying all

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Speaker 2: the right things. What do you think the industry needs

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Speaker 2: to do to come together and actually accomplish these obstacles?

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Speaker 2: Like if you were putting together a symposium of all

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Speaker 2: the people that needed to happen, what would it look

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Speaker 2: like to you?

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Speaker 1: Yeah, and I would just sort of really underscore and

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Speaker 1: no sarcasm in this statement is the saying versus the doing.

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Speaker 1: Whilst we’re saying all of the right names, we’re also

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Speaker 1: building those partnerships. And I would say that whether it’s

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Speaker 1: the trade desk or whether it’s Pinterest or the work

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Speaker 1: that we’ve done around standardization and methodology for measurement, we’re

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Speaker 1: not just saying, but we’re doing. And we’re not just doing,

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Speaker 1: we’re doing it fast. I am incredibly impressed by the

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Speaker 1: team that we have here at CMX. The team is

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Speaker 1: driving an enormous amount of change, not just within our

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Speaker 1: business as CVS Pharmacy, but the amount of change that

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Speaker 1: we’re driving across the industry. If you look at the

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Speaker 1: IAB standards that came down, I think sort of February,

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Speaker 1: they were published. We were the first health and wellness

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Speaker 1: retail media network to publish our standards against that and

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Speaker 1: publish the fact that we’re matching, if not beating the

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Speaker 1: baseline measurement methodology that the IAB is recommending. We truly

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Speaker 1: believe that transparency will continue to grow the industry. It’s

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Speaker 1: a pillar upon which we stand. And we will continue

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Speaker 1: to drive. We drive transparency through to not just our consumers,

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Speaker 1: but also our suppliers. I, again, truly believe that transparency

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Speaker 1: will set us apart in terms of growth trajectory as

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Speaker 1: an industry versus other walled gardens that are out there

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Speaker 1: that have, I would say, may have not been as

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Speaker 1: transparent when they first set out. And we can do

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Speaker 1: the transparent. We can do transparency. We can do it

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Speaker 1: incredibly well because we We have the data. We have loyalty.

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Speaker 1: We understand the consumers. They’re shifting across the omni-channel. And

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Speaker 1: we want to make sure that we bring that to bear.

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Speaker 1: So there’s a lot of work that’s been done here.

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Speaker 1: The IAB have done a phenomenal job of bringing the

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Speaker 1: vast majority of the industry together. I’m very, very respectful

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Speaker 1: of the work that they have done. I’m also respectful

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Speaker 1: of the other retailers that have done work in order

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Speaker 1: to get those standards to a good place and the

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Speaker 1: speed at which we did that. You’ve got to bring

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Speaker 1: them to market, right? And you’ve got to be able

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Speaker 1: to stand by them. We do. We absolutely stand by them.

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Speaker 1: So we launched our standards in market earlier this year,

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Speaker 1: around about March. We’ll continue to innovate as it relates

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Speaker 1: to measurement and providing more transparency to our suppliers. We’ve

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Speaker 1: got nothing to hide. We have a medium that works.

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Speaker 1: We fully understand our consumers and the way in which

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Speaker 1: they’re shifting between channels. We want to make sure that

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Speaker 1: we bring that level of understanding of those consumers to

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Speaker 1: brands because It helps them make better decisions in their

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Speaker 1: overall marketing mix as well. Not just by spending on

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Speaker 1: retail media, but how do they use that data to

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Speaker 1: spend in other channels, other channels that could be working

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Speaker 1: for them?

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Speaker 3: Well, we’ve had a few of your colleagues who participated

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Speaker 3: in the IAB retail media standard. So it’s great to

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Speaker 3: hear you talk so favorably about it. We got to

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Speaker 3: ask you, Parb, our famous last question, which is what’s

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Speaker 3: the bravest thing that you’ve ever done?

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Speaker 1: Yeah, I thought long and hard about this. Obviously, a

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Speaker 1: Brit kind of plugged that one earlier. I’ve moved countries

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Speaker 1: and companies a few times. We often think about moving

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Speaker 1: between companies and we see that as, you know, sort

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Speaker 1: of change and, you know, change is often a good thing.

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Speaker 1: But when you move family as well as company, that’s

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Speaker 1: often a scary value proposition when you move into a

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Speaker 1: new place, new environment, new neighborhood. It’s been one of

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Speaker 1: the most challenging things for me. And I’ve moved, just

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Speaker 1: so you’re aware, I’ve moved from London to New York,

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Speaker 1: New York to Barcelona, Barcelona back to New York. And

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Speaker 1: you’re moving a house, right? You’re moving a family. You’re

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Speaker 1: moving everything that goes with it. I have an awful

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Speaker 1: amount of respect for my parents, who were also immigrants

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Speaker 1: at the time in the 60s when they came over

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Speaker 1: to the UK. And I had the opportunity of moving

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Speaker 1: with a company. My parents didn’t have that opportunity back then.

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Speaker 1: And So it’s brave in terms of my understanding of brave. But,

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Speaker 1: you know, there are, you know, people, my parents are

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Speaker 1: a really good example in terms of their success and

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Speaker 1: how they move between countries as well. But there’s others

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Speaker 1: as well that don’t have the luxuries that we do.

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Speaker 1: But that’s kind of, I would say, the bravest thing

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Speaker 1: that I’ve done.

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Speaker 3: Well, as someone who’s moved as far as from New

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Speaker 3: Jersey to New York, I would definitely call what you’ve

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Speaker 3: done brave.

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Speaker 1: Thank you. Thank you.

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Speaker 3: Parbs, we appreciate your insights. I think that they’re isn’t

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Speaker 3: a listener here that doesn’t think about retail media and

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Speaker 3: the future every day. And you’re obviously at the forefront

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Speaker 3: of what’s going on. So we appreciate your time.

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Speaker 1: Thank you as well. I really appreciate your time. You

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Speaker 1: guys have got a tremendous platform and look forward to

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Speaker 1: continue to listening. So thank you for having me on.

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Speaker 3: Thank you. If you like what you heard and you

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Speaker 3: want to go check out some great brands that are

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Speaker 3: available at CBS, you heard us on the show talk

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Speaker 3: about AJ at Bayer. So go check out his episode

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Speaker 3: or go listen to Eric Tanowski from Kenview on the show.

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Speaker 3: If you like what you’re hearing, tell a friend, write

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Speaker 3: a review. Thanks for listening.

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Speaker 4: Hi, I’m Jackie Cooper, Global Chief Brand Officer at Edelman

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Speaker 4: and the host of Touch of Truth, a new podcast

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Speaker 4: launching on the Adweek Podcast Network. My dad gave me

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Speaker 4: this incredibly smart piece of advice. Meet everyone once. As

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Speaker 4: a result, I’ve met some of the most fascinating and

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Speaker 4: inspiring people on the planet. Now on Touch of Truth,

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Speaker 4: we’re coming center stage and sharing the mic to experience

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Speaker 4: stories of truth, insights, and visions for the future that

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Speaker 4: will challenge your way of thinking. Touch of Truth is

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Speaker 4: available wherever you listen to podcasts. New episodes come out

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Speaker 4: every Tuesday. I do hope to see you there.