Rite Aid CMO Says ‘Data Is Our Best Friend Right Now’

Data, in the right hands, can be a business leader’s magic wand.

“Data is our best friend right now,” Jeanniey Walden, the chief marketing officer at Rite Aid, told PYMNTS, noting that following an 11-month period in bankruptcy, Rite Aid has emerged with a refined approach to data-driven decision-making and a greater understanding of how customer behaviors have shifted due to both economic pressures and product availability.

Rite Aid’s reinvention strategy is leveraging this information to optimize operational elements like store formats and to inform key marketing and merchandising decisions, Walden said.

For pharmacies, loyalty is not just about doling out points for purchases. It’s about leveraging data to offer incentives that fit into the customer’s healthcare journey. Data in the report, “Leveraging Item-Level Receipt Data: How Card-Linked Offers Helped Drive Year-End Spend,” a PYMNTS Intelligence collaboration with Banyan, found that 97 million cardholders utilized card-linked offers during the 2023 holiday season.

Whether it’s discounts on frequently purchased items, special offers tied to seasonal needs, or reminders for prescription refills, pharmacies that understand their customers through data can create loyalty programs that feel personalized and relevant without overstepping the line.

All that’s to say, by understanding purchasing patterns and health and wellness needs, retail pharmacies can boost profitability and growth, ensuring that loyalty is a two-way street.

And according to Walden, Rite Aid’s loyalty program, Rite Aid Rewards, has played a central role in both revenue generation and customer retention.

Harnessing Data as a Loyalty Engine and Decision Driver

Unlike typical retail loyalty programs, in the retail pharmacy sector, loyalty programs need to serve dual purposes by addressing both the pharmacy and the front-end store needs.

“We have to leverage insights on the front end and marry them with the pharmacy behavior in the back,” Walden said, noting that data has been crucial in understanding how customer behaviors have shifted due to both economic pressures and product availability.

By carefully balancing customer incentives across both pharmacy and general retail purchases, Rite Aid has been able to identify its most valuable customers and craft experiences that cater to their wellness and health needs holistically, Walden said. The rewards program also acts as a communication bridge, helping the marketing team create targeted campaigns that resonate with the full breadth of Rite Aid’s customer base.

These insights into customer demographics and preferences have allowed Rite Aid to rebuild and reconfigure its store operations more effectively. Walden explained this approach has not only enhanced Rite Aid’s product offerings but also sharpened its focus on who its customers are today. From a smaller store footprint to real-time analysis of marketing programs, the company is harnessing data to ensure every dollar invested is targeted strategically.

One particularly innovative development is Rite Aid’s “Endless Aisle” program, which allows customers to scan a QR code and have a product delivered if it’s unavailable in-store. This initiative is part of Rite Aid’s broader mission to enhance the customer experience through convenience and accessibility, regardless of how customers choose to shop.

At the same time, seasonal events such as flu outbreaks, COVID-19 spikes, or allergy season offer prime opportunities for Rite Aid to deliver timely, market-specific messages.

Navigating the Digital Shift to Deliver Customer-First Outcomes

As the number of paycheck-to-paycheck consumers increases, Rite Aid is adapting its pricing strategies to cater to this segment. Drawing on her previous experience as CMO at DailyPay, Walden highlighted that this demographic is not limited to low-income households but now spans across virtually all income levels.

“We appreciate the economic situation of our shoppers and communities,” she said, noting that Rite Aid has adjusted product selections and pricing to meet local needs. Rite Aid’s partnership with buy now, pay later firm Klarna, for example, allows the company to offer flexible payment solutions, helping customers manage their purchases more easily in challenging economic times.

Walden also addressed the evolving role of digital channels in Rite Aid’s strategy. Consumers increasingly expect convenience and flexibility, toggling between in-store shopping, online orders and home delivery. Rite Aid has responded with an omnichannel approach, providing options like DoorDash, Instacart and in-store pickup.

Separately, emerging from bankruptcy required a unified effort across all departments at Rite Aid. Walden emphasized that financial challenges like those faced during the bankruptcy are effective “silo busters,” forcing departments to break down walls and work collaboratively to achieve the company’s goals. From merchandising to marketing to supply chain logistics, every team had to focus on the end-to-end customer experience.

“The entire organization had to sit down around one goal: delivering the best experience for the customer,” she said. This collaborative approach has led to initiatives and broader innovations in customer service designed at helping Rite Aid re-establish itself.

As the company continues to refine its in-store and digital offerings, it remains committed to maintaining the customer-centric values that have been its cornerstone for nearly a century, Walden said.

The post Rite Aid CMO Says ‘Data Is Our Best Friend Right Now’ appeared first on PYMNTS.com.