Corporate involvement with consumer data has seen dynamic shifts during the pandemic. Multiple largescale establishments like Target have received enhancements to online & retail infrastructure, which used unknown methods to obtain consumer statistics. Data is made available for sale with partnered advertisers, giving third-party partners analysis of what customers require. Largescale corporations have constructed this method of collection an industry standard, with pharmaceutical suppliers like CVS & Walgreens avoiding customer analysis for monetary gain. For Walgreens, that isn’t the case any longer.
The Walgreens Advertising Group was announced on November 3rd, with the subsidiary having a singular task of analyzing customers & selling those analytics to third-party partners. It’s known that thirty advertising firms have partnered with Walgreens AG, with the majority maintaining products on retail & online stores. Learning that analytics regarding your purchases, activity, and return percentage will be sold shortly is concerning. Minor resentment is mentioned across Walgreen’s social media accounts, which indicates the overwhelming percentage aren’t aware of the dynamic shift Walgreen’s is taking.
Microsoft, Epsilon, and Adobe are contracted through Walgreens for assistance purposes. The three were tasked to enhance online shopping & create a beneficial loyalty program for shoppers. Reward benefits associated with loyalty points with Walgreens are considerably improved, with $100.00 or more earnable for dedicates customers. Those registered with the updated loyalty program will become primary targets for consumer analytics.
Profit margins associated with consumer analytics are higher than unfavourable loyalty programs. This means that Walgreens monetary compensation grows through consumer analytics, that providing $100.00 in points for dedicated customers is returned by an average of three times the original value. Walgreens would earn $400.00 for that $100.00 given to customers.
Walgreens Last to Fall
Multiple corporations in the United States have implemented this method of consumer analytics. Walgreens felt pressured by investors to engage with enhanced analytics, which followed after profit margins in 2020 increased by 2% to $34.7 Billion. Below are the other prominent brands that make millions to billions per year from customer data.
- Trip Advisor.
- Best Buy.
- Home Depot.