Company overview

RaiaDrogasil is the largest drugstore company in Latin America in terms of revenue and market capitalization. It’s one of the leading companies in the Brazilian drug market, with more than 2,500 stores populating all 26 states. The company was created in November 2011 from the merger between Raia S.A. and Drogasil S.A.

The challenge

Having a physical store isn’t enough to engage customers in 2022. It’s one thing to have excellent products and offers, but another entirely to wrap them up and deliver them as part of a continuous and engaging customer experience. If retailers want to engage customers and encourage them to return to the shop floor, they need to start bridging the gap that exists between physical retail and digital commerce.

RaiaDrogasil understood this. The company knew that its success depended on the ability of each individual store to engage local customers, understand their needs, and build relationships with them in order to encourage repeat business and word of mouth recommendations.

If customers could be digitally onboarded when they visited a particular store, and opt-in to sharing data such as frequency of visits, RaiaDrogasil could start engaging them with highly personalized offers via digital channels at not only the right place, but also at the right time.

RaiaDrogasil already had a dedicated app and WiFi functionality at its stores. Now it needed the technology to help collect actionable customer data in line with compliance regulations to increase engagement and drive revenue.

The solution

RaiaDrogasil identified Cloud4Wi as the perfect partner to leverage the existing Fortinet WiFi network across each of its 2,500 Brazilian stores. With Cloud4Wi, RaiaDrogasil was able to start building a detailed “first party” customer database in compliance with LGPD (the Brazilian equivalent of GDPR) and to refresh the information associated with each of its existing 30 million contacts, cleansing the data and ensuring it contained up-to-date and relevant insights.

Now, when customers sign-up to the guest WiFi, they land on a branded captive onboarding portal. Through this portal, customers share their personal information such as full name, email address, phone number and CPF (personal tax account) –to sync with the company’s Salesforce CRM platform. Then, customers receive an SMS with a link to their special offers that can be activated in the mobile app and bought either online or in-store.

To prevent duplicate records and maintain good data hygiene, Cloud4Wi also checks in real-time when a customer joins the network whether they have already subscribed to the company’s marketing programs or not.

Since Cloud4Wi and Salesforce work seamlessly, every in-store or online interaction is logged on an individual 360-degree customer profile that connects online and in-store services, allowing customers to be targeted with highly relevant and personalized offers as they move between the two. Upon entering a store, an existing customer would automatically join the guest WiFi and get perfectly timed deals based on their past purchases or online browsing activity.

Results

Through its partnership with Cloud4Wi, Accenture and FocalData, RaiaDrogasil had its location-based marketing initiative up and running across all 2,500 stores in a matter of weeks.

The key performance indicator (KPI) used to assess whether or not the initiative was a success was the revenue directly impacted. The location-based marketing initiative was launched in April 2022, and after just three months, RaiaDrogasil was able to measure a real business impact. Specifically, the initiative generated a online revenue uplift of about 235%, when compared to the existing “cart abandonment” campaign – one of the best performing campaigns.

Other KPIs monitored by RaiaDrogasil are:

Number of contacts collected: 1.1 million
SMS opt-in rate: 75%
Online conversion rate: 7.9%
Revenue generated per 1K SMS sent: R$ 390.45
Online revenue uplift: 235%

Next steps

To boost the impact of this initiative further, RaiaDrogasil plans to send an SMS when customers leave the store to continue their shopping and raise the personalization bar by sending promotions based on their specific interests.