Shopper Marketing - May 2018 - 10



Walgreens CMO Says Today's Loyalty Currency Is Trust
By Tim Binder

Schaumburg, Ill. - From a retail perspective, it's imperative to rethink loyalty, according to Wendy Liebmann, founder,
chief executive officer and chief shopper at
WSL Strategic Retail.
Speaking alongside Walgreens senior
vice president and chief marketing officer
Adam Holyk on March 13 during a Path
to Purchase Summit keynote presentation, Liebmann said, "Retail is in turmoil,
but shoppers are not. They are incredibly
clear about what they want from us and
expect from us every day. They say, 'I love

" We are going beyond product and price
to information and expertise [with our
pharmacists and beauty advisors]. How
do we bring that to life across the entire
store? We'll find more ways to do that."
Adam Holyk, Walgreens

you when you are being what
I want you to be. I hate you
when you are being what you
want to be.'"
Considering Walgreens'
Balance Rewards program
has 88 million active members and more than 70% of
all purchases at Walgreens are
made using the loyalty card,
customer loyalty is at the forefront of everything the drugstore chain does.
"Building customer loyalty
has evolved quickly from discounts to rewards to personalization," said Holyk. "And
today's loyalty currency is
Trust was the centerpiece
of Walgreens' brand relaunch
in December 2017, when the
retailer introduced a new tagline, "Trusted since 1901."
According to Holyk, focus

groups had revealed a common sentiment
about the retailer, "We know that since
you've been here since 1901 that you'll always be here for me. ... [The tagline] was
authentic and believable."
Holyk said Walgreens has been on a
mission to transform the organization to
become brand-led, and its employees are
helping bring the brand to life. For example, in 2017 Walgreens employees were
on hand to deliver immunizations to first
responders working in Houston to handle
the aftermath of Hurricane Harvey and the
subsequent flooding. "The work our team
members did was remarkable," Holyk said.
"We now have customers for life."
Holyk expects Walgreens to continue to
evolve. "We are going beyond product and
price to information and expertise," Holyk
said, referring to Walgreens' pharmacists
and beauty advisors. "How do we bring
that to life across the entire store? We'll find
more ways to do that."
He also talked about the importance of
Walgreens' corporate social responsibility,
or CSR, in "helping kids in the U.S. and
abroad." There are four primary components of that: Red Nose Day; Get a Shot.
Give a Shot; Vitamin Angels; and Me to
We, which all receive a plethora of marketing support.
Holyk offered this advice to the brand
marketers in attendance: "Understand
how your products and services help Walgreens deliver on its brand promise. Help
us to understand the relevance of your
brand. Make it specific to the Walgreens
customer. Fit the broader Walgreens stratSM

Kantar Consulting Exec: Algorithms Are the New Consumers
By Samantha Nelson

mIamI - It is generally accepted among
CPG manufacturers that advancements in
technology have shifted the control from
marketers to consumers, but now they
need to prepare for a new shift in which
shoppers are relinquishing their power to
In a keynote presentation at the WPP
Checkout event on Feb. 6 in Miami, Kantar Consulting executive chairman J.
Walker Smith warned that "this is already
happening," citing the power of an Amazon
Dash Button working with a smart washing machine to ensure a consumer's favorite detergent brand is ordered whenever
they're running low.
"You never have to pay attention to another laundry detergent ad," he said. "All
you have to do is interact with it once and
let algorithms do all the work."
Smith said we are in the midst of a third
age of consumption, where cognitive constraints on buying are as important as economics or resources. Consumers receive
an average of 74 GB of data through their
computers and mobile devices every day,
more than double what they were served
up in 2008. The number of ads they see has
increased 120% in the same time period,
which leaves them feeling overwhelmed,
and leads them to seek out products and
services that will anticipate their needs.
Smith compared algorithms that can

send shoppers notifications or even make
purchasing decisions for them to the shopping equivalent of a self-driving car, giving
time and headspace back to consumers.
Amazon is a leader in the field when it
comes to product recommendation algorithms and uses that data to reduce shipping times by placing products in warehouses near likely purchasers. The retailer
will even start processing transactions before a shopper confirms the purchase if
they've determined it's likely for the interaction to end in a sale.
Other brands are taking different approaches to using technology to meet consumer needs. Pizza Hut has experimented
with letting customers order through eye
tracking, Procter & Gamble's Oral-B has
a Bluetooth-enabled toothbrush that will
monitor a user's brushing habits and share
data with her dentists, and some shoes can
be synced with Google Maps to buzz when
the wearer needs to turn while traveling a
specific route.
All of these innovations take consumers
from active to passive involvement in their
decisions. When it comes to purchasing,
efforts to land in a shopper's initial consideration set will no longer be useful. Instead,
Smith said brands will need to adapt by
learning how to read a user's profile and
finding ways to get an algorithm to match

Kantar Consulting executive chairman
J. Walker Smith presents at the WPP
Checkout event on Feb. 6 in Miami.


Table of Contents for the Digital Edition of Shopper Marketing - May 2018

Shopper Marketing - May 2018 - Intro
Shopper Marketing - May 2018 - 1
Shopper Marketing - May 2018 - 2
Shopper Marketing - May 2018 - Contents
Shopper Marketing - May 2018 - 4
Shopper Marketing - May 2018 - 5
Shopper Marketing - May 2018 - 6
Shopper Marketing - May 2018 - 7
Shopper Marketing - May 2018 - 8
Shopper Marketing - May 2018 - 9
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