MARKETING/SOCIAL MEDIA

CVS ‘My Weekly Ad’ program creates loyal customers, strong sales

BY Mike Troy

Orlando, Fla. — The digital marketing initiative known as “My Weekly Ad” is helping CVS Caremark grow sales and deepen engagement with loyal customers by providing them with personalized versions of the retailer’s weekly ad.

The My Weekly Ad program was launched last fall, and Wednesday morning during a presentation at the IRI Summit CVS Caremark senior VP of merchandising and retail pricing Judy Sansone shared additional details regarding the program.

“We deliver a personal circular to every customer who is a member of our ExtraCare program and is registered on CVS.com,” Sansone said. “There is so much more power in delivering a truly personalized experience.”

CVS Caremark still relies on traditional print circulars, about 45 million each week, but the ongoing decline in Sunday newspaper circulation presents a major challenge for CVS Caremark and other retailers who for decades relied on the Sunday paper as a delivery vehicle for their weekly ads.

Recognizing this shift as well as the potential for digital technology to serve customized offers, CVS Caremark sought to leverage the wealth of data found in its database of ExtraCare member behavior. The result was the creation of My Weekly Ad last fall and superior redemption metrics that have the company looking to increase its investment this year.

According to Sansone, the typical print circular features about 300 items and the average customer will purchase about eight of the featured items.

“With My Weekly Ad we are seeing redemption rates that are seven-to-10 times the rate of non-personalized offers, which is allowing us to drive a higher level of engagement,” Sansone said. “Roughly 30% of everything we spent in 2013 was on personalization tools because the investment is driving a higher level of engagement and that figure will be even higher this year.”

The opportunity for personalization and engagement is huge at CVS Caremark because the company’s 15-year-old ExtraCare program now boasts 70 million active members (defined as those who have participated in the past six months) and the shift toward further personalization is undeniable.

More than 1,000 people attended the IRI Summit and in a message clearly intended for an audience largely made up of CPG company representatives, Sansone said it is time for marketers to evaluate their investments.

“Review your portfolios for opportunities to reinvest from underperforming mass vehicles to more personalized and profitable offers,” Sansone said.

CVS Caremark is applying that same philosophy to the store experience with a clustering initiative designed to make assortment more locally relevant. Sansone said the company has about 8,500 planograms for 70 categories and further optimizing assortment based on local demand characteristics offers tremendous potential.

While most of her comments were focused on front of store, she made sure to mention that at CVS Caremark, “pharmacies and Minute Clinics are where personalization comes to life.”

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

Polls

Consumer confidence is high. Is that reflected in your stores’ revenues?

View Results

Loading ... Loading ...
FINANCE

Men’s Wearhouse to acquire Jos. A. Bank for $1.8 billion

BY Marianne Wilson

New York — Ending a five-month saga, Men’s Wearhouse said it would acquire Jos. A. Bank Clothiers for about $1.8 billion, or $65 per share in cash. As part of the deal, Jos. A. Bank will terminate its plan to acquire Eddie Bauer from Golden Gate Capital.

The boards of both companies unanimously approved the transaction.

The offer is above the previous bid of $63.50 a share which Jos A. Bank had rejected in late February.

The deal will create the fourth largest men’s clothing retailer in the United States, with annual revenue of about $3.5 billion.

"We are pleased to have reached this agreement with Jos. A. Bank, which we believe will deliver substantial benefits to our respective shareholders, employees and customers," said Doug Ewert, president and CEO of Men’s Wearhouse. "Together, Men’s Wearhouse and Jos. A. Bank will have increased scale and breadth, and Jos. A. Bank’s strong brand and complementary business model will broaden our customer reach. We expect the transaction will be accretive to Men’s Wearhouse’s earnings in the first full year."

Ewert added that the combined company will have the operational flexibility to successfully execute on strategic plans at both brands and anticipates that the transaction will help drive significant shareholder value.

Men’s Wearhouse and Jos. A. Bank expect a smooth integration, as there will be no rebranding or remodels required — Jos. A. Bank’s store banner will remain in place.

In conjunction with this transaction, Jos. A. Bank has terminated its agreement to acquire Everest Holdings, the parent company of Eddie Bauer. Effective immediately, Jos. A. Bank is also withdrawing its previously announced tender offer to purchase for cash up to $300 million in value of its common stock.

keyboard_arrow_downCOMMENTS

Leave a Reply

J.Shaughness says:
Mar-12-2014 11:15 am

MW/bank merger
Two competitors with markedly different business models will maintain their separate identities, thereby continuing to compete with eachother? Really? This will be fun to watch as both "evolve" in the future.

J.Shaughness says:
Mar-12-2014 11:15 am

Two competitors with markedly different business models will maintain their separate identities, thereby continuing to compete with eachother? Really? This will be fun to watch as both "evolve" in the future.

Polls

Consumer confidence is high. Is that reflected in your stores’ revenues?

View Results

Loading ... Loading ...
News

Jelly Belly gears up for St. Patrick’s Day

BY CSA STAFF

Jelly Belly Candy Co. makes more than 100 different flavors of jelly beans, but in celebration of St. Patrick’s Day, it’s showing some special attention to its green Jelly Belly beans. There are 17 green varieties in all, each containing its own special flavor.

The company’s multitude of green treats include Watermelon, Green Apple, Sugar-Free Green Apple, Kiwi, Margarita, Sour Apple, Juicy Pear, Jewel Sour Apple, Booger (yes … booger), Mint Mint Chocolate Chocolate Chip, Mojito, Sunkist Lime, Lawn Clippings, Mango, Lemon Lime, Green Tea and 7up.

The company also is releasing a Green Draft Beer jelly bean, a festive variation of the previously released beer-flavored bean, just for St. Patrick’s Day. It’s available beginning March 14 exclusively (and in limited supply) at Jelly Belly Visitor and Tour Centers in California and Wisconsin.

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

Polls

Consumer confidence is high. Is that reflected in your stores’ revenues?

View Results

Loading ... Loading ...