Rewarding the best customers and engaging them through a personalized marketing program can drive increased loyalty and retention, resulting in significant sales growth. While retailers traditionally focus on driving growth through new customer acquisition or win back of lost customers, Walgreen's chose to drive significant growth through focusing on driving more out of the best customers.
Walgreens was aware that in order to break through the noise that passes as marketing, they would need to ensure every communication with their best customers would be targeted and relevant. This session will show how Walgreens was able to leverage product-level longitudinal customer purchase data as a key to delivering relevant offers and content that rewards their customers in categories which were bought in the past, in addition to driving them into adjacent categories. Using this approach proved to be an effective means to drive campaign sales uplift, as well as, affect change in long term customer behavior through improved customer retention and increased share of wallet.
We will also discuss how Walgreens structured their personalized marketing program to engage their vendors to build a partnership program. Examples will be provided of how partnership programs were mutually beneficial to both Walgreens (through offsetting costs of the program) and their vendors (through greater visibility into marketing effectiveness). In addition, we will highlight how such programs are not limited to larger retailers, such as Walgreens, but is an avenue that is open to smaller retailers to drive significant sustainable sales growth and a long term advantage over competition.
Mindy Heintskill, Senior Director of Loyalty and Vendor Collaboration, Walgreens
Lisa Zhao, Sr. Manager of Loyalty and Vendor Collaboration, Walgreens
David Hess, Head of Analytics, emnos
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