How Walgreens Can Revive Itself with Improved Consumer Insights

Walgreens has been in the spotlight lately due to persistent financial struggles and missteps in its strategies. One Yahoo! Finance article notes that the “impact of consumer trends on front-of-store sales (for beauty and food items), as well as the pressure of being paid fairly for prescriptions, has been the focus of earnings calls for years.”

While Walgreens CEO, Tim Wentworth, pushes for a technology-driven approach to turnaround efforts, questions remain: What’s really going wrong with Walgreens? Why are their efforts failing?

In this article, we’ll dive deep into the challenges that are hurting Walgreens’ bottom line and suggest how they can fix their sales slump by focusing on customer service, convenience, and their core audience using forecasted predictions from our Subconscious.ai platform.

Within the Subconscious.ai platform, I asked “What features of Walgreens stores attract the most visitors”? In 90 seconds, the platform returned the following consumer insights:

Key Takeaways

• Focus on enhancing customer service quality: Across all demographics, the quality of customer service, including friendly and helpful staff, knowledgeable staff, and quick response to inquiries, is a key driver for attracting visitors to Walgreens stores. Training programs emphasizing these aspects should be prioritized.

• Implement competitive pricing strategies: Price sensitivity, especially for items priced between 1-4 USD, is significant among various groups, suggesting that Walgreens should maintain competitive pricing to attract a broader customer base.

• Ensure 24/7 availability in strategic locations: The importance of 24/7 availability increases with age and is valued across different living situations and household compositions. Walgreens should consider expanding round-the-clock operations in areas with a higher concentration of seniors and urban clusters.

• Leverage location convenience and additional services for urban customers: Urban residents value 24/7 availability and in-store clinics or healthcare services. Offering these services and ensuring easy parking or location convenience could enhance Walgreens' appeal in urban markets.

Meeting the Needs of Service-Oriented Night Owls and Convenience Seekers

How can Walgreens reconnect with customers? We analyzed two viable customer mindsets that could be key to turning the brand around:

• Service-Oriented Night Owls (51.81%): Customers who crave 24/7 access to high-quality customer service, even at budget-friendly prices.

• Around-the-Clock Convenience Seekers (48.19%): People who prioritize affordability and expert service, available whenever they need it.

Here's how Walgreens can start attracting and retaining these customers

Service-Oriented Night Owls

Night Owls demand a lot: expert advice, fast response times, and convenience—all at a price they can afford. Walgreens could excel here by:

• Extending Store Hours and Availability: Targeting urban and senior-heavy areas for 24/7 operations.

• Customer Service Excellence: Ensuring every staff member is trained to deliver professional, helpful service around the clock.

• Competitive Pricing: Offering essential products at lower prices without sacrificing quality.

This mindset is indicative of individuals who highly value customer service and accessibility in their transactions. They expect not only a friendly and helpful interaction but also demand expertise from the staff. The emphasis on quick responses and round-the-clock availability suggests that these consumers prioritize efficiency and convenience, likely due to a busy lifestyle or the need for immediate solutions.

Their price sensitivity, indicated by the low cost per item, suggests they are looking for affordable options without compromising on service quality. This group likely includes a wide range of consumers, from budget-conscious individuals to those who, despite a tight budget, do not want to sacrifice service quality for cost.

Why would this mindset be attractive as a target?

This audience segment is highly attractive for service-oriented businesses that prioritize customer satisfaction and accessibility. Their expectations suggest a high value on exceptional customer service, expertise, and round-the-clock availability, all at a low cost. This group is likely to be drawn to businesses that can offer a seamless, supportive, and efficient customer experience without a significant financial burden. They represent a target market for companies capable of delivering high-quality service and support, ensuring customer loyalty and satisfaction at a competitive price point.

Why would this mindset NOT be attractive as a target?

This target audience's expectations for high-quality customer service around the clock combined with an extremely low price point per item present a significant challenge. The demand for staff that is both friendly and knowledgeable, along with the requirement for quick responses at any hour, implies a need for a substantial investment in human resources. However, the very low price range they are willing to pay per item could make it financially unviable for businesses to meet these service levels while also covering costs and maintaining profitability. This could deter businesses that cannot afford to operate on such thin margins or those that prioritize higher-value transactions.

Which messages would this mindset find interesting?

1. Discover unparalleled customer service that's always there when you need it. Our team is dedicated to providing you with the support and expertise to make every interaction a positive one.

2. Step into a world where excellence in service meets round-the-clock availability. Our commitment is to ensure your questions never go unanswered, any time, day or night.

3. Enjoy the peace of mind that comes from a service where value meets quality. Experience top-tier assistance without the premium price tag.

4. Welcome to a seamless experience where every interaction is handled with care and professionalism. Our experts are on hand 24/7 to ensure your satisfaction is guaranteed.

5. Embrace a service that's designed around your needs. With our friendly, knowledgeable team ready to assist at any hour, and prices that make sense for your budget, we're here to redefine what you expect from customer support.

Convenience Seekers Want More Than Just a Store – They Want a Seamless Experience

Convenience Seekers aren’t just looking for a place to grab a quick item. They want a seamless shopping experience that offers:

• Affordable, High-Quality Products: Focus on everyday low prices, especially for items under $5, to attract budget-conscious buyers.

• 24/7 Accessibility: Make sure Walgreens locations cater to convenience seekers with late-night or all-night hours.

• In-Store Clinics and Healthcare Services: Expanding health offerings could significantly improve customer loyalty.

This mindset mirrors the first, highlighting a segment of the market that places a premium on exceptional customer service, expertise, and continuous availability. The identical preferences suggest a consistent expectation among a broader consumer base for high-quality service interactions, quick and knowledgeable responses to inquiries, and the convenience of 24/7 access.

The affordability factor plays a significant role, indicating a desire for value-for-money experiences. This group, similar to the first, encompasses individuals who demand high standards in customer service and accessibility while adhering to a budget, reflecting a broader trend towards value-driven consumption.

Why would this mindset be attractive as a target?

This mindset mirrors the first in valuing businesses that excel in customer service, knowledgeability, responsiveness, and continuous availability, all while maintaining affordability. They are an ideal target for companies that have streamlined their operations to provide efficient, accessible, and friendly service around the clock. This group's preferences indicate a strong potential for loyalty to brands that can meet their high standards for customer interaction and support, suggesting they are a lucrative market for service providers that can consistently meet these demands at a low cost.

Why would this mindset NOT be attractive as a target?

The individuals in this group have identical preferences to the first, emphasizing a high level of customer service and availability alongside a minimal cost expectation. This combination sets a high operational bar while simultaneously limiting revenue potential. The insistence on 24/7 availability and a rapid response rate necessitates a robust support system, which could be costly to maintain, especially when the return per item is so low. This could make this audience less attractive to businesses that are unable to scale their operations efficiently or those whose business models rely on higher-priced items or services to offset customer service expenses.

Which messages would this mindset find interesting?

1. Discover unparalleled customer service that's always there when you need it. Our team is dedicated to providing you with the support and expertise to make every interaction a positive one.

2. Step into a world where excellence in service meets round-the-clock availability. Our commitment is to ensure your questions never go unanswered, any time, day or night.

3. Enjoy the peace of mind that comes from a service where affordability doesn't compromise quality. Experience top-tier customer care without stretching your budget.

4. Welcome to a seamless service experience where every interaction is handled with care and professionalism. Our experts are on hand 24/7 to ensure your satisfaction.

5. Embrace a service that's designed around your needs, offering expert advice and immediate assistance at an unbeatable value. We're here for you, anytime, every time.

To recover from their current slump, Walgreens needs to refocus on what consumers value the most: exceptional service, affordable prices, and round-the-clock convenience. By understanding the shifting dynamics of customer expectations—particularly with the rise of Service-Oriented Night Owls and Convenience Seekers—Walgreens can regain its position as a trusted, go-to brand.

If you’d like to try out the Subconscious.ai platform for your market research needs, you can run 2 free experiments by clicking “Get Started” here.