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Brand-Building through Disruptive Mobile Innovation
Rich Lesperance
March 8th, 2013
©2013 Walgreen Co. All rights reserved.
Charles Walgreen would have loved mobile apps
2 ©2013 Walgreen Co. All rights reserved.
Walgreens has a long history of innovation
Stand-alone stores with drive-thru
pharmacies 1992
Multiple language Rx labels
2002
1950
Self-service stores
1968
First with child-resistant
containers
Pharmacies linked by satellite
1981
1999
Prescription history online
2005
Online digital photo
1960 1980 1990 2010 1950 1970 2000
1991
Point-of-sale scanning
Opened
First
In-store Clinic
2006
2010
Refill by scan
3 ©2013 Walgreen Co. All rights reserved.
Mobile is now a true omni-channel platform for innovation
4
million visits per week to Walgreens.com via mobile
of Walgreens customers use our app while in a Walgreens store
>40%
3.2
Mobile feature our customers asked for was store coupons
#1
©2013 Walgreen Co. All rights reserved.
US Online and Web-Influenced Retail Sales ($ Billions)
US online and web influenced as a % of
total retail sales 44% 45% 47% 49% 51% 52%
1,103 1,2061,320 1,429
1,5521,660
2011 2012 2013
Non-Web
Influenced
Retail Sales
Web Influenced
Retail Sales
Online Retail Sales
1,672
202
2,977
1,723
226
3,155
1,741
252
3,313
2014 2016
1,780
3,636 3,478
278
3,799
327 304
2015
1,771
1,812
In the next 3 years, over half of all retail sales will
happen online or be influenced by online channel
5 Source: Forrester Research (June 2012)
©2013 Walgreen Co. All rights reserved.
Average annual spend,
2011
($) 3.5X
4X 6X
Walgreens Avg Spend per Customer
And our Mobile customers spend the most
Store ONLY Store
+
Online
Store
+
MOBILE
Store
+
Online
+
MOBILE 6 Source: Internal research
©2013 Walgreen Co. All rights reserved.
We asked: Why is Walgreens your favorite app?
7 Source: internal research 2012
©2013 Walgreen Co. All rights reserved.
Our first big hit was a game-changing utility
8
% of online refills from mobile
10%
>50%
2010 Today
Source: Internal research
©2013 Walgreen Co. All rights reserved.
And then we had an epiphany
“The real voyage of discovery is not in seeing new lands, but in seeing with new eyes”
Marcel Proust, 1923
9 ©2013 Walgreen Co. All rights reserved.
Basically, this was Mobile Marketing 1.0
10 ©2013 Walgreen Co. All rights reserved.
Now we are using Mobile to inspire
11 ©2013 Walgreen Co. All rights reserved.
200K checkins, 10 MM stories, 9 Industry awards
We can make shopping even easier
12 ©2013 Walgreen Co. All rights reserved.
We can inspire people to print photos on their phones
13 ©2013 Walgreen Co. All rights reserved.
We can turn a successful pharmacy feature
….into a broad mobile health platform
14 ©2013 Walgreen Co. All rights reserved.
Refill by Scan Developer Program
Manage Family
Members
Manage Your
Rewards
Health Reminders
& Alerts
What people are saying about Walgreens
15
“The apocalypse is upon us: Walgreens has an API and SDK....
The real story is that what we think of as traditional businesses are no longer traditional businesses. ”
--VentureBeat.com
“wooohooo!! this is great..the Printworthy app is really amazing to surprise our friends with photos.”
--Facebook fan
“Scanning prescriptions is so fun, I wish I had more prescriptions to fill!”
--Pharmacy customer
©2013 Walgreen Co. All rights reserved.
The New Reality for Brands in the Age of Mobile
• Your customers are more “omnichannel” than you
• Last year’s innovation is this year’s normal
• There’s no more online vs. offline
• If you’re not changing the game, you missed the point
• Open your business to other developers
• Make way for non-conformists
16
©2013 Walgreen Co. All rights reserved.
Thank You!