News Feature | August 8, 2013

Walgreens Partners With L'Oréal In Search Of Mobile ROI

Source: Retail Solutions Online
Sam Lewis

By Sam Lewis

Mobile incentives guide in-store purchases study

Mobile retailing, in theory, should be the best and most reliable medium in determining proof of ROI. After all, mobile retailing knows exactly who the shopper is and exactly where the shopper is at the moment of a mobile transaction. Yet ROI related to mobile initiatives has proven very difficult to track. To determine why, Walgreens has decided to use its own New York City stores, its New York City-based Duane Reade stores, and a little help from cosmetic behemoth L’Oréal.

Walgreens’ plan is to have shoppers complete an in-store/mobile loop. Shoppers will scan various items for price points and additional background information with the Pretty in My Pocket (PRIMP)  mobile app. Coupons will then be sent to the customers, based on the items scanned, to be instantly redeemed through a scan by an associate during checkout. Sparkfly, a digital promotions company, will track the conversion rate at participating NYC locations. “PRIMP is utilizing mobile to influence the consumer in a relevant, timely, and convenient way while adding value to the consumer experience by providing a valuable shopping tool. PRIMP allows brands and retailers to track sales online and offline,” PRIMP founder and CEO, Caroline Van Sickle, says.

This method will serve three purposes. First, it will address the retailer’s need for ROI numbers regarding mobile by seeing which ads return the greatest yield based on location, demographics, and time of day. For Walgreens, Duane Reade, and L’Oréal, the offers will most likely lead to heightened cosmetic sales in New York City. Finally, by using the PRIMP app, customers can see the benefits of using and interacting with the company through the app, which helps both retailers and consumers.

There’s no question that mobile is driving e-commerce sales upward. By having two trusted brands dive into an experiment involving a small portion of a market, we can begin to see just how influential mobile retail has been and will become.