Social Media and Retail Operations Essay

Introduction

The capability of technology to blur distinctions in physical and online retail compels retailers to redesign their competitive strategies. It explains the trend by retailers to modernize their integrated marketing. Such is shown by Walgreens to incorporate emerging technologies to enhance the in-house shopping experience. The social media constitutes a critical channel for the US second-largest pharmacy store chain in matching CVS Health competitiveness (Waxer, 2012). Walgreen social media approach involves integrating online with offline marketing. The pharmacy store chain partnered with Foursquare to issue electronic coupons to customers using the location-based social networking platform. It targets to attract customers with coupons and attractive goodies they cash in Walgreens stores. The approach complements the Refill by Scan platform launched and supported through sponsored conversations in social media platforms (Lesperance, 2013). The application allows smartphone users to refill prescriptions through simple scanning of barcodes on their pill bottles.

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Incorporating Social Media into Walgreens Retail Operations

The Walgreens location-centric approach uses the Foursquare social network to offer its geo-drive mobile coupons. Different from the Refill by Scanning, the Foursquare social network allows shoppers to access coupons they redeem at the point-of-sale. Leaning on the breakthrough of earlier issuances of mobile coupons, the Foursquare location-based social network places Walgreen to access coupon-at-the-ready market (Brynjolfsson, Hu, & Rahman, 2013). The location awareness approach allows Walgreens to accommodate a broad demographic, unlike retailers who target luring younger and tech-savvy shoppers through digital coupons. The social network enables Walgreens to realize higher redemption rates than from print circulars (Waxer, 2012). The interaction helps Walgreen to interact with its target audience beyond the seasonal cycles or during product release cycles.

The Foursquare social network platform fits perfectly to Walgreens evolution from a typical drugstore. With increased competition from Wal-Mart and CVS Health, the Foursquare partnership transforms Walgreens into a neighborhood retail brand in daily living and health destination (Kats, 2016). The mobile-based coupon initiative strengthens Walgreens personal connection with its target customers. Again, it allows the pharmacy to provide real-time value to over six million daily visitors to the Walgreens outlets. The partnership with foursquare platform allows Walgreen drive in-store traffic by winning consumers seeking incentives and redeemable coupons (Brynjolfsson, Hu, & Rahman, 2013). The location-centric approach builds on the check-in strategy launched by Walgreens.

Sponsored conversations in social media platforms accommodate cross-promotions collectively improving the firm's transformation to a neighborhood retailer in products that enhance daily living. Importantly, the Foursquare channel offers a paperless convenience to customers seeking real-time gratification within neighboring outlets. The cross-promotion by Walgreen partners such as Arizona Iced Tea matches the sponsored conversations it targets to win customers to its benefits plan (Waxer, 2012). The cross-promotions extends beyond the mainstream social network sites, Facebook and Twitter, to Walgreens mobile websites including Walgreens.com, Beauty.com, VisonDirect.com, and Drugstore.com alongside the SkinStore.com (Cohn, 2011). Additionally, the company established Apple Watch App targeting consumers' minds through enhanced offline and online experiences.

Walgreens cross-promotions and sponsored conversations sensitize consumers on new and existing products. Such manifests in the launch of Pill and Refill Reminder application in the Apple Watch. The conversations highlight the ballooning cost of medication non-adherence. The sponsored conversations highlight the capability of the Pill and Refill Reminder application to prompt adherence to prescribed regimens and alert when to refill (Cohn, 2011). The decision to integrate Balance Rewards with the Apple Pay offers Walgreens customers one-touch method to earn and redeem their points privately. The integration of the applications with sponsored conversations in multiple social media channels is informative to customers of Walgreens ability to remove friction in online and offline shopping experiences.

Importance of Social Media to Walgreen Operations

Walgreens commits to sustain a 360-degree social media marketing strategy by growing its presence on the social communities. Besides Foursquare, Walgreen followership in Facebook, YouTube, and Twitter reflect an increasing fan base. The drugstore uses the social media tools to extend its offers and initiate informative interaction with users beyond in-store experiences (Cohn, 2011). However, the social media channels allow Walgreens to attain unique consumer engagement that blurs offline and online experience. Such is possible by blending its increased presence in social communities with its mobile vehicles.

The social media presence allows Walgreen interact progressively with millennial population and accommodate their dynamic shopping habits. The involvement of Walgreen in social communities' gives it's a smooth alignment to the digital trends exhibited by the millennial. The retailer presence in social media drives the online population into its stores. Connecting with the millennial within the social media platforms helps Walgreen match their higher expectation through seamless connections with mobile application and digital media (Brynjolfsson, Hu, & Rahman, 2013). Increasing its presence within the social communities transforms Walgreen into a grab-and-go destination.

Walgreen social media strategy is founded on being real-time value provider through local-centric solutions. The approach explains the active involvement in Local Response programs hosted in the social communities. Such events leverage viral trending of local initiatives across the social communities. According to Waxer (2012), it places Walgreen on the horizon of establishing direct personal connections with target consumers by exploiting the local-social space such as the Foursquare location-based social network to issue mobile coupons.

References

Brynjolfsson, E., Hu, Y. J., & Rahman, M. S. (2013). Competing in the Age of Omnichannel Retailing. MIT Sloan Management Review, 54(4), 22-29.

Cohn, J. (2011, July 08). Walgreens Broadens Social Media Presence, Surpassing 1 Million Facebook Fans and Integrating its Store Network through Facebook Places and Foursquare. Business Wire. Retrieved May 17, 2018, from https://www.businesswire.com/news/home/20110708005557/en/Walgreens-Broadens-Social-Media-Presence-Surpassing-1

Kats, R. (2016). Walgreens, foursquare launch mobile coupon program to reward consumers. Retail Dive. Retrieved from https://www.retaildive.com/ex/mobilecommercedaily/walgreen-foursquare-launch-mobile-coupon-program-to-reward-consumers

Lesperance, R. (2013, January 11). Walgreens' Mobile Tactics Include foursquare and Store-Inventory App. eMarketer. Retrieved May 17, 2018, from https://www.emarketer.com/Article/Walgreens-Mobile-Tactics-Include-foursquare-Store-Inventory-App/1009594

Waxer, C. (2012, December 01). Walgreens checks in with Foursquare for a mobile coupon program. Retrieved May 17, 2018, from http://www.dmnews.com/social-media/walgreens-checks-in-with-foursquare-for-a-mobile-coupon-program/article/270046/