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Brand-Building through
Disruptive Mobile Innovation

Rich Lesperance
March 8th, 2013




息2013 Walgreen Co. All rights reserved.
Charles Walgreen would have loved mobile apps




  息2013 Walgreen Co. All rights reserved.       2
Walgreens has a long history of innovation


                                                                  Stand-alone
                                               Pharmacies         stores with           Multiple        Opened
                                                linked by          drive-thru          language           First
                                                 satellite        pharmacies           Rx labels     In-store Clinic
                                                   1981               1992               2002             2006



    1950                   1960                  1970           1980            1990          2000         2010




    1950                           1968                    1991              1999                  2005       2010
 Self-service                First with                 Point-of-sale     Prescription           Online     Refill by
   stores                  child-resistant               scanning        history online       digital photo scan
                            containers
     息2013 Walgreen Co. All rights reserved.                                                                           3
Mobile is now a true omni-channel platform for innovation




                                                     of Walgreens customers use our
                                              >40%   app while in a Walgreens store


                                                       million visits per week to
                                               3.2     Walgreens.com via mobile



                                                     Mobile feature our customers
                                               #1    asked for was store coupons




    息2013 Walgreen Co. All rights reserved.                                           4
In the next 3 years, over half of all retail sales will
happen online or be influenced by online channel

                                                                              3,799
    US Online and Web-Influenced Retail Sales                         3,636
    ($ Billions)                                              3,478
                                                      3,313
                                              3,155
                                 2,977
                                                                              1,812
                                                                      1,780
                                                              1,771
             Non-Web                                  1,741
                                              1,723
           Influenced            1,672
          Retail Sales


                                                                              1,660
                                                              1,429   1,552
    Web Influenced                            1,206   1,320
                                 1,103
          Retail Sales

 Online Retail Sales              202         226     252     278     304     327

  US online and web              2011         2012    2013    2014    2015    2016
influenced as a % of
     total retail sales
                                 44%          45%     47%     49%     51%     52%


    Source: Forrester Research (June 2012)                                            5
    息2013 Walgreen Co. All rights reserved.
And our Mobile customers spend the most

     Walgreens Avg Spend per Customer
           Average annual spend,
                                            2011                6X
              ($)                                      4X
                                            3.5X



          Store ONLY                         Store     Store    Store
                                               +         +        +
                                             Online   MOBILE    Online
                                                                  +
  Source: Internal research
                                                               MOBILE    6
  息2013 Walgreen Co. All rights reserved.
We asked: Why is Walgreens your favorite app?




  Source: internal research 2012                7
  息2013 Walgreen Co. All rights reserved.
Our first big hit was a game-changing utility



                                            % of online refills from mobile


                                                                  >50%

                                                   10%


                                                   2010      Today


  Source: Internal research
                                                                              8
  息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




   息2013 Walgreen Co. All rights reserved.                         9
Basically, this was Mobile Marketing 1.0




  息2013 Walgreen Co. All rights reserved.
                                            10
Now we are using Mobile to inspire




        200K checkins, 10 MM stories, 9 Industry awards
  息2013 Walgreen Co. All rights reserved.
                                                          11
We can make shopping even easier




  息2013 Walgreen Co. All rights reserved.
                                            12
We can inspire people to print photos on their phones




  息2013 Walgreen Co. All rights reserved.
                                                        13
We can turn a successful pharmacy feature
            .into a broad mobile health platform



Manage                                         Manage
 Family                                         Your
Members                                        Rewards




  Health                                     Refill by Scan
Reminders                                     Developer
 & Alerts                                      Program




   息2013 Walgreen Co. All rights reserved.
                                                              14
What people are saying about Walgreens


 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
                                            Scanning prescriptions is so
                                            fun, I wish I had more
                                            prescriptions to fill!
                                             --Pharmacy customer
 wooohooo!! this is great..the
 Printworthy app is really amazing
 to surprise our friends with
 photos.
  --Facebook fan

  息2013 Walgreen Co. All rights reserved.                             15
The New Reality for Brands in the Age of Mobile



 Your customers are more omnichannel than you

 Last years innovation is this years normal

 Theres no more online vs. offline

 If youre not changing the game, you missed the point

 Open your business to other developers

 Make way for non-conformists



   息2013 Walgreen Co. All rights reserved.
                                                          16
Thank You!

More Related Content

Rich Lesperance - Brand Building Through Disruptive Mobile Innovation (SXSW Opening Keynote)

  • 1. Brand-Building through Disruptive Mobile Innovation Rich Lesperance March 8th, 2013 息2013 Walgreen Co. All rights reserved.
  • 2. Charles Walgreen would have loved mobile apps 息2013 Walgreen Co. All rights reserved. 2
  • 3. Walgreens has a long history of innovation Stand-alone Pharmacies stores with Multiple Opened linked by drive-thru language First satellite pharmacies Rx labels In-store Clinic 1981 1992 2002 2006 1950 1960 1970 1980 1990 2000 2010 1950 1968 1991 1999 2005 2010 Self-service First with Point-of-sale Prescription Online Refill by stores child-resistant scanning history online digital photo scan containers 息2013 Walgreen Co. All rights reserved. 3
  • 4. Mobile is now a true omni-channel platform for innovation of Walgreens customers use our >40% app while in a Walgreens store million visits per week to 3.2 Walgreens.com via mobile Mobile feature our customers #1 asked for was store coupons 息2013 Walgreen Co. All rights reserved. 4
  • 5. In the next 3 years, over half of all retail sales will happen online or be influenced by online channel 3,799 US Online and Web-Influenced Retail Sales 3,636 ($ Billions) 3,478 3,313 3,155 2,977 1,812 1,780 1,771 Non-Web 1,741 1,723 Influenced 1,672 Retail Sales 1,660 1,429 1,552 Web Influenced 1,206 1,320 1,103 Retail Sales Online Retail Sales 202 226 252 278 304 327 US online and web 2011 2012 2013 2014 2015 2016 influenced as a % of total retail sales 44% 45% 47% 49% 51% 52% Source: Forrester Research (June 2012) 5 息2013 Walgreen Co. All rights reserved.
  • 6. And our Mobile customers spend the most Walgreens Avg Spend per Customer Average annual spend, 2011 6X ($) 4X 3.5X Store ONLY Store Store Store + + + Online MOBILE Online + Source: Internal research MOBILE 6 息2013 Walgreen Co. All rights reserved.
  • 7. We asked: Why is Walgreens your favorite app? Source: internal research 2012 7 息2013 Walgreen Co. All rights reserved.
  • 8. Our first big hit was a game-changing utility % of online refills from mobile >50% 10% 2010 Today Source: Internal research 8 息2013 Walgreen Co. All rights reserved.
  • 9. 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 息2013 Walgreen Co. All rights reserved. 9
  • 10. Basically, this was Mobile Marketing 1.0 息2013 Walgreen Co. All rights reserved. 10
  • 11. Now we are using Mobile to inspire 200K checkins, 10 MM stories, 9 Industry awards 息2013 Walgreen Co. All rights reserved. 11
  • 12. We can make shopping even easier 息2013 Walgreen Co. All rights reserved. 12
  • 13. We can inspire people to print photos on their phones 息2013 Walgreen Co. All rights reserved. 13
  • 14. We can turn a successful pharmacy feature .into a broad mobile health platform Manage Manage Family Your Members Rewards Health Refill by Scan Reminders Developer & Alerts Program 息2013 Walgreen Co. All rights reserved. 14
  • 15. What people are saying about Walgreens 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 Scanning prescriptions is so fun, I wish I had more prescriptions to fill! --Pharmacy customer wooohooo!! this is great..the Printworthy app is really amazing to surprise our friends with photos. --Facebook fan 息2013 Walgreen Co. All rights reserved. 15
  • 16. The New Reality for Brands in the Age of Mobile Your customers are more omnichannel than you Last years innovation is this years normal Theres no more online vs. offline If youre not changing the game, you missed the point Open your business to other developers Make way for non-conformists 息2013 Walgreen Co. All rights reserved. 16