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Big Data is a Double-Edged Sword

Walgreens is after me big time. They pursue me day and night using an omni-channel array of technology and messages. They know an awful lot about me and they aren’t bashful about using it.

My purchase volume or my margin must be in the top tier or they must be concerned that I might easily defect to CVS or Rite-Aid. Either way their aggressive stance documents the upside and downside of retailers using big data for relationship marketing.

There’s a Walgreen’s across the street from my house. They geo fenced me. Every single time I leave the house, I get a text message inviting me into the store. I am one of the 83 million Americans with a Balance Rewards card, which yields a $5 credit for each $100 worth of purchases and countless pre-loaded discounts at the point of sale.

I use the mobile app to renew my medications. They text me, call me at home and work plus they ping my mobile number with all kinds of reminders. They developed a simple, easy-to-use click-to-reply RX renewal function and they email me frequently to proactively renew my prescriptions. They offer me the option to manage my meds online and they stuff my daily paper with circulars. But somehow nobody ever asked me what I want from the store and nobody ever says “thank you.”

They are in my face and all over me though I’m not sure my present or lifetime value justifies all this attention. Based on the cadence of contact, the multiplicity of channels or the intrusiveness of the messages they see me as a cornerstone of their business or they so desperately need the transactions they are willing to alienate me in the process.

Ironically the in-store experience is much less intense. Associates are casual and hard to find. There’s always a line because there are never enough cashiers. The pharmacists are a mixed bag alternately cordial and helpful or snarly.

Walgreen’s surround-sound marketing points to the limits of using big data aggressively and suggests 3 guidelines for relationship marketers.

Count the Cadence. Brand affinity is impacted by the cumulative sum of brand experiences over time. When customers feel chased or bombarded goodwill is depleted. Brands must understand consumer thinking and consumer routines and then carefully plot when and where interactions make sense. This engagement planning has to be done strictly and solely from the customer perspective. Too many brands reveling in the number of available touch carpet bomb customers into submission or attrition.

Ask for Preferences. Everyone likes to be asked what he or she wants and when or how they want it. Brands that solicit preferences and then deliver on them always score higher on awareness, preference and conversion measures. Don’t assume or infer that access, downloads or even frequent use of channels or functionalities is an implied preference. Ask.

Balance Utility with Humility. Not worrying about prescriptions is a very useful timesaving benefit. But the value of this benefit can be easily offset by the annoyance of over communication or the sense of being harassed by a low-involvement brand.

A pharmacy is a utility. How much of a deep personal relationship does the average consumer want or need from a national chain? Face it. The average American wants to get things quickly and easily, avoid a battle over insurance reimbursement, find a good selection of merchandise, get the best deals or prices and then get in and get out. Focus on the basics. Don’t pretend to be BFFs. Say please and thank you often.

The agile use of data and evolving digital functionality is a double-edge sword. Skillful use of these tools yields customer loyalty and delight. Presumptive messaging, aggressive pursuit and a never-ending cadence can drive away business and dissipate brand loyalty or preference.

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