rich lesperance - brand building through disruptive mobile innovation (sxsw opening keynote)

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Brand-Building through Disruptive Mobile Innovation Rich Lesperance March 8 th , 2013 ©2013 Walgreen Co. All rights reserved.

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Rich Lesperance's SXSW Keynote: How Walgreens "changed the game" by relentlessly pursuing innovations for customers to interact with Walgreens in new ways.

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Page 1: Rich Lesperance - Brand Building Through Disruptive Mobile Innovation (SXSW Opening Keynote)

Brand-Building through Disruptive Mobile Innovation

Rich Lesperance

March 8th, 2013

©2013 Walgreen Co. All rights reserved.

Page 2: Rich Lesperance - Brand Building Through Disruptive Mobile Innovation (SXSW Opening Keynote)

Charles Walgreen would have loved mobile apps

2 ©2013 Walgreen Co. All rights reserved.

Page 3: Rich Lesperance - Brand Building Through Disruptive Mobile Innovation (SXSW Opening Keynote)

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.

Page 4: Rich Lesperance - Brand Building Through Disruptive Mobile Innovation (SXSW Opening Keynote)

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.

Page 5: Rich Lesperance - Brand Building Through Disruptive Mobile Innovation (SXSW Opening Keynote)

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.

Page 6: Rich Lesperance - Brand Building Through Disruptive Mobile Innovation (SXSW Opening Keynote)

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.

Page 7: Rich Lesperance - Brand Building Through Disruptive Mobile Innovation (SXSW Opening Keynote)

We asked: Why is Walgreens your favorite app?

7 Source: internal research 2012

©2013 Walgreen Co. All rights reserved.

Page 8: Rich Lesperance - Brand Building Through Disruptive Mobile Innovation (SXSW Opening Keynote)

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.

Page 9: Rich Lesperance - Brand Building Through Disruptive Mobile Innovation (SXSW Opening Keynote)

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.

Page 10: Rich Lesperance - Brand Building Through Disruptive Mobile Innovation (SXSW Opening Keynote)

Basically, this was Mobile Marketing 1.0

10 ©2013 Walgreen Co. All rights reserved.

Page 11: Rich Lesperance - Brand Building Through Disruptive Mobile Innovation (SXSW Opening Keynote)

Now we are using Mobile to inspire

11 ©2013 Walgreen Co. All rights reserved.

200K checkins, 10 MM stories, 9 Industry awards

Page 12: Rich Lesperance - Brand Building Through Disruptive Mobile Innovation (SXSW Opening Keynote)

We can make shopping even easier

12 ©2013 Walgreen Co. All rights reserved.

Page 13: Rich Lesperance - Brand Building Through Disruptive Mobile Innovation (SXSW Opening Keynote)

We can inspire people to print photos on their phones

13 ©2013 Walgreen Co. All rights reserved.

Page 14: Rich Lesperance - Brand Building Through Disruptive Mobile Innovation (SXSW Opening Keynote)

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

Page 15: Rich Lesperance - Brand Building Through Disruptive Mobile Innovation (SXSW Opening Keynote)

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.

Page 16: Rich Lesperance - Brand Building Through Disruptive Mobile Innovation (SXSW Opening Keynote)

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

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©2013 Walgreen Co. All rights reserved.

Page 17: Rich Lesperance - Brand Building Through Disruptive Mobile Innovation (SXSW Opening Keynote)

Thank You!