Rich LesperanceDirector, Online Marketing

Delivering Your Brand Promise Online

Our Customer Segments

• Loves to shop and browse – likes Walgreens “treasure hunt”

• Considered to be “in the know”• More likely to purchase grocery

items and vitamins• Extremely social; knows

employees everywhere she shops

Walgreens Devoted,Social Influencer

• Young Boomers & Older GenXers

• Segment skews Caucasian and suburban

• Enjoys efficiency and neighborhood convenience

• Purchases medications to take right away

Rx Loyal,Convenience Seeker

• 35-54 year-old with children

• More likely to read Walgreens circular: in-store and at home

• Community-conscious

• More health and wellness information needs

Walgreens Loyal,Health Partner Seeker

Care/High TouchFunctional 2

How do we serve them better Online?

Listening for both Stated and Unstated Needs

Care/High TouchFunctional

Stated Needs•Social monitoring•Customer Service feedback•Website surveys•Quantitative research

Un-stated Needs•Social concept testing / ideation•Pilots•Qualitative research

“Help me find local stores that have flu shots.”

“I would love to chat with a pharmacist online.”

“Let me register online without having to call a

phone number.”

“It would be easy to just scan a bottle to refill my

prescription.”

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Creating a Multichannel Experience

Pick Up in an Hour

Redesigned site

50+% traffic growth in 2 years

Customers within a click

Closest to our Customers

7600+ locations

Best corners in America

63% of consumers live within 3 miles

On the Go

Mobile site, iPhone and Android

Pharmacy, photo, retail

85% of consumers have mobile phones

++ ++

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A New Shopping Experience

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Giving Our Customers More…

Ways to Connect

Ways to Stay Well

Ways to Buy Delivery Options

Products

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Building the Digital Marketing Engine

Step 1 Step 2

Search Engines Walgreens store

Email & SMSCombination of efficiency and

personalization

Compelling in-store marketing drives awareness of website

Affiliates>600 publishers

Display AdvertisingFrom impressions to performance-based

Mobile AppsA richer experience with our brand

Comparison ShoppingMajority have never visited us before

Relevant to user / group

Relevant by device

Both Paid and Natural search efforts drive our share of voice

Social Media>750K Walgreens Likes, Twitter & FourSquare

Walgreens.com

Relevant to store

Relevant by browse behavior

Relevant to your friends & location

Relevant to searcher intent

Relevant by Community

Relevant by Product

Building the Digital Marketing Engine

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Building a Social Following

750,000+ Fans

“What questions do you have about the

flu?”

“Don’t forget to use our friends and family

discount this weekend!

Chicago Union Station Walgreens

“This flu season: Wash your hands or use hand

sanitizer after using public transportation. There’s a

way to stay well.”10

Source: Walgreens Internal Analysis

Walgreens.com Traffic Average Daily Visits to Walgreens.com

50+% growth

Results

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Source: InterbrandCopyright 2010 Walgreen Co.

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Creating Value for the Brand

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20092010

The Most Valuable U.S. Retail Brands

Top 50 List

Biggest increase in Brand Value, due to:

• Electronic Prescriptions• Mobile Offering• Enhanced Online Shopping

Results

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Source: Walgreens Internal Analysis

3x More Valuable

than Single-Channel Customers

Results

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Multichannel Customers

Walgreens.comCustomer Perspectives

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Case Study #1: Mobile

• Young Boomers & Older GenXers

• Segment skews Caucasian and suburban

• Enjoys efficiency and neighborhood convenience

• Purchases medications to take right away

Rx Loyal,Convenience Seeker

How do we take

“convenience” to the

next level?

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Mobile Solutions

Refill on the Go

Prescription Text Alerts

Alert:Over 1 Million Subscribers to Prescription Text Alerts

• Easy Refills from anywhere• Order photo prints directly from your phone• Sneak peek of our weekly ad• Check in-store product availability• Find the nearest store

• Don’t wait in store for prescriptions to be ready

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A New Way to Buy:Refill by Scan

Easy as 1… 3!2…

Click Scan Send

Key Elements of the Marketing Plan

Online Display

Search

Radio Endorsements

Press Support & Reviews in Magazines / Blogs / TV celebrities

Times SquareIn-Store

Walgreens MobileAdoption

Results

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Award Winning Mobile OfferingResults

Text APP to 21525 to

download !

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Case Study #2: Chat

What if we took one of

the best things about

Walgreens, and put it

online? For Free.

• 35-54 year-old with children

• More likely to read Walgreens circular: in-store and at home

• Community-conscious

• More health and wellness information needs

Walgreens Loyal,Health Partner Seeker

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Introducing….Walgreens Pharmacy Chat

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Key Elements of the Marketing Plan Social Media - Facebook event In-Store Radio

In-Store Rx Bags

Email Banners

In-Store Signs

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Pharmacy Chat CommercialLarge media buy included shows like Good Morning America, the Biggest Loser, Dancing with the Stars, and Medium.

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OF THOSE WHO SAW THE AD

Shopping Intent

Likelihood to visit Walgreens.com

Likelihood to use Pharmacy Chat Feature

Imagery“expert advice” , “knowledgeable”

OF THOSE WHO TRIED PHARMACY CHAT

% Extremely Satisfied

% Repeat Usage

% More Loyalty

Total

Among Chronic

Pharmacy Chat

Customer Feedback

82%

84%

82%

Results

Thank You

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