Walgreens: Why 2 million consumers have an SMS relationship with the leading drugstore chainMobile FirstLook: Strategy 2012 Jan. 19, 2012. NYC M M Abhi Dhar, ecommerce chief technology officer, Walgreens
Walgreens = Convenience • 7,800+ Drugstores and 8,261 Loca7ons • All 50 states, Puerto Rico, and District of Columbia • 819 Million Prescrip7ons Filled in FY2011 • 6.1 Million Customers served daily chain wide
Our Mul3-‐Channel Network Unmatched Mul7-‐billion dollar convenience = impact on Walgreens business Closest to our Pick Up On the Customers + in an + Go Hour 7800+ locations Redesigned site Mobile site, iPhone and Best corners in 50+% traffic growth in 2 Android America years Pharmacy, photo, retail63% of consumers live Customers within a click 85% of consumers have within 3 miles mobile phones
½ Almost of site visitors say their next ac7on is to go to a store Source: Walgreens Internal Analysis
3x More Valuable than Single-Channel CustomersSource: Walgreens Internal Analysis
Award Winning Mobile Connects • 5 Scanning apps -‐ iPhone, Android, iPad, Blackberry, WP7 • 4 Mobile Websites; Drugstore.com, beauty.com, visiondirect.com, walgreens.com • Best Integrated Mobile Experience -‐People’s Choice Webby Award • More than 40% of Walgreens online prescrip3ons come from mobile scanning • Comprehensive SMS Programs
Customers come to our stores Order online, pick-‐up in store 98% 97%
Mobile Makes Visits Convenient Alert: Over 3 Million Subscribers to Prescrip7on Text Alerts Pre-‐Register for Flu Shots Prescrip7on Text Alerts
Tex3ng is almost 20! • Text messaging turned 19 years old on December 2, 2011. • The 1st Text Message was “Merry Christmas” 9 http://www.tatango.com/blog/text-messaging- turns-19-timeline/
People opt in to SMS Campaigns. http://www.tatango.com/blog/text-messaging-turns-19-timeline/
Mobile customers want to act now It takes 48 hours for the average person to respond to an email. It takes 4 minutes for the average person to respond to a text message Source: CTIA.org Copyright 2011 Walgreen Co. 11
Online Head and Mobile Shoulders Later peak Earlier peakSource: Internal Walgreens data
How can we be more convenient? Problem: Go to Walgreens to pick up your Rx but it is not ready.SMS Solu3on: We’ll text you when it’s ready. Problem: Calling the store being put on hold to verify your Rx is ready. SMS Solu3on: We’ll text you when it’s ready. Problem: It’s 3me to reﬁll you prescrip3on. SMS Solu3on: Don’t dial in. Respond yes to a text. Problem: Is my web pickup order ready? SMS Solu3on: We’ll text it’s available to pickup.
Walgreens Pharmacy SMS Programs Rx Refill Text Alerts Rx Ready Text Alerts We’ll remind you when We’ll let you know when it’s time to refill, and with your prescriptions are a simple SMS reply we ready for pick up. can refill it too.
Walgreens Daily Living SMS Programs Special Offers Mobile Coupon Text Alerts We’ll alert you special sales and offer events. We’ll alert you to new exclusive offers within our mobile app. Increases App Usage too!
Walgreens Daily Living SMS Programs. • What is Web Pickup, and how does it use SMS? • Web Pickup is a new service that enables customers to shop their local store online whenever and where ever they want. • SMS Solu3on: We’ll text you when it’s ready
How do we grow our SMS lists? Sign-up at m.walgreens.com Sign Up in Store Sign-up atWalgreens.com
Sign-‐up messaging is important 10% increase!Old Message: New Message:Walgreens Rx Alerts: Reply YES now for texts when Reply YES now to confirmRx is ready and other pharmacy related alerts. Walgreens prescription text alerts
Simple Messages Complex Messages Don’t work as well Work Well The paradox of simplicity: Simple is convenient (for consumers) Simple is hard (for providers)
Eﬀorts Pay Oﬀ Millions of applica7on downloads Highly Successful SMS program 4.5 stars in the iTunes store >40% of Walgreens online Rx from mobile
In conclusion 1. Mul3-‐channel thinking makes retail interac3on more convenient 2. Mobile connects mul3ple channels to moment of need 3. Mobile behavior and expecta3on is diﬀerent but the needs are the same 4. Develop mobile programs around those needs. SMS is integral to the mobile program 5. All channels should feed each other. SMS grows apps, web grows mobile, stores grow SMS. Customer is blind to channels and aligned to the retail brand.