May 11, 2007
Walgreens Goes On Alert to Protect Customers
Walgreens is teaming up with American Medical Alert Corp. (AMAC) to offer a national service to help support caregivers and protect aging Americans from falls around the home.
According to a joint press release from the two companies, the Walgreens Ready Response system is intended to help older Americans maintain their ability to live independently at home.
The service, which will be offered at the drugstore chain’s 5,600 pharmacies, was initially tested in three markets over a three-month period. Having deemed the test a success, the chain decided it was time for a national rollout.
Frederic Siegel, executive vice president of AMAC, said, “Falls have become the leading cause of injury related deaths for seniors. According to a recently published CDC report, in 2003, 1.8 million older Americans (65+) were treated in emergency departments due to falls. The Walgreens Ready Response system has delivered positive results for subscribers and their loved ones, confirming Walgreens decision to integrate this product as part of its caregiver initiative to help address this national epidemic.”
Ric Leonardi, Walgreens director of pharmacy acquisitions and business development, said a benefit of the program is that it can help “postpone the need for more costly assisted-living programs” and enable seniors to “continue leading a secure and independent life.”
Consumers may enroll in the Walgreens Ready Response Medical Alert System for a one-time activation fee of $34.95 and an additional $34.95 a month. The system, which can be purchased through any Walgreens or online at www.walgreens.com/readyresponse beginning on June 1, includes a two-way voice console unit, a personal help activator, a bathroom activator, a telephone, power cord and 24/7 monitoring.
Discussion Questions: What will the Walgreens Ready Response system do for the drugstore chain’s reputation and its top and bottom line results? Do you see pharmacies getting more involved in selling services (monitoring, in-store clinics) than simply sticking with product sales?
BrainTrust
Recent Discussions
Discussion Questions
Poll
The Walgreens Ready Response system will do amazing things for the drugstore chain’s reputation and its top and bottom line results. Pharmacies are remarkably involved in the day to day lives of the elderly. Seniors living by themselves count on and rely on the closest pharmacy for health guidance for everything from how to take their medicines to just being the friendly place where everybody knows their names. The only concern I have out of the gate about the ready response system is the affordability for many. However, for those that can afford the monthly fee, Walgreen’s will be directly associated with piece of mind for the senior person, and for relatives of the senior that worry about their safety while they are by themselves. The enhancement of image that this brings to Walgreens will likely translate to greater loyalty, new customers, and larger sales and profits.
The best thing about Walgreen’s Medical Alert is the profit margin (commissions). People who sell Life Alert and similar services can make a lot of money. It’s an annuity revenue stream. Let’s see if Wal-Mart and Costco start selling similar services at a big discount.
Great move in creating another stream of sustaining revenue. By playing to this audience they are also helping to extend the level of loyalty and confidence which helps to separate them from other retailers with pharmacies such as Target and Wal-Mart. Even if the program is at best a break-even they will more than make up for it through incremental sales. The only challenge will be to control the liability/negative press side of the equation should something go wrong. Controlling the risk of downside is nothing new to them as they operate in an industry where they have to ensure a high degree of quality control already.
The demographics of an aging population suggest this is a service that will only grow in popularity. Great move for Walgreens and a wise choice in a partner to deliver the service.
If the actual response to help people experiencing distress or danger is consistently professional and quick, this service can successfully extend the pharmacy legacy to the home. It will provide comfort not only to seniors living longer (often alone), but to their Boomer children who want an extra measure of assurance that mom or dad will be ok. I don’t think affordability will be a key hurdle to consumer adoption because even if the senior balks at the fee, many adult children would gladly pay. Where smaller independent enterprises have introduced these services before, the ubiquitous brand of Walgreens, with its strength, trust and familiarity, will likely encourage more people to consider it seriously.
Another great marketing program, to lock in the shopper!
Does Walgreens’s get any better than this?
Marketing is an evolution of thinking about
your target audience.
Nothing mentioned about price, or a special discount.
Just another meaningful way to keep Walgreens and the
shopper together!!!!!!!!!!!!!!!!
And we wonder why some Industries make pennies on the bot-
tom line. Hmmmmmmmmmmmmmmmmmmmmmmmmm
More Discussions
Has Same-Day Delivery Become an Expectation Across Retail?
Are expectations around retail delivery speed in flux?OpenAI Names the Infrastructure Standard for Agentic Commerce
Will OpenAI or Google (or another entity) set the gold standard for agentic commerce?Is Five Below Poised For Even Greater Growth?
Five Below is hitting serious growth numbers. Can this trend continue?
The Walgreens Ready Response system will do amazing things for the drugstore chain’s reputation and its top and bottom line results. Pharmacies are remarkably involved in the day to day lives of the elderly. Seniors living by themselves count on and rely on the closest pharmacy for health guidance for everything from how to take their medicines to just being the friendly place where everybody knows their names. The only concern I have out of the gate about the ready response system is the affordability for many. However, for those that can afford the monthly fee, Walgreen’s will be directly associated with piece of mind for the senior person, and for relatives of the senior that worry about their safety while they are by themselves. The enhancement of image that this brings to Walgreens will likely translate to greater loyalty, new customers, and larger sales and profits.
The best thing about Walgreen’s Medical Alert is the profit margin (commissions). People who sell Life Alert and similar services can make a lot of money. It’s an annuity revenue stream. Let’s see if Wal-Mart and Costco start selling similar services at a big discount.
Great move in creating another stream of sustaining revenue. By playing to this audience they are also helping to extend the level of loyalty and confidence which helps to separate them from other retailers with pharmacies such as Target and Wal-Mart. Even if the program is at best a break-even they will more than make up for it through incremental sales. The only challenge will be to control the liability/negative press side of the equation should something go wrong. Controlling the risk of downside is nothing new to them as they operate in an industry where they have to ensure a high degree of quality control already.
The demographics of an aging population suggest this is a service that will only grow in popularity. Great move for Walgreens and a wise choice in a partner to deliver the service.
If the actual response to help people experiencing distress or danger is consistently professional and quick, this service can successfully extend the pharmacy legacy to the home. It will provide comfort not only to seniors living longer (often alone), but to their Boomer children who want an extra measure of assurance that mom or dad will be ok. I don’t think affordability will be a key hurdle to consumer adoption because even if the senior balks at the fee, many adult children would gladly pay. Where smaller independent enterprises have introduced these services before, the ubiquitous brand of Walgreens, with its strength, trust and familiarity, will likely encourage more people to consider it seriously.
Another great marketing program, to lock in the shopper!
Does Walgreens’s get any better than this?
Marketing is an evolution of thinking about
your target audience.
Nothing mentioned about price, or a special discount.
Just another meaningful way to keep Walgreens and the
shopper together!!!!!!!!!!!!!!!!
And we wonder why some Industries make pennies on the bot-
tom line. Hmmmmmmmmmmmmmmmmmmmmmmmmm