Retailers like Walgreens and CVS capitalize on vaccine booster traffic—behind the marketing strategy

Last month, when Cristina Ampil went to Sam’s Club for a vaccine, she got more than just the COVID-19 booster she had planned for. She and her family spent an extra hour browsing the Westchester, New York big-box store, stocking up on toilet paper, apparel and snacks. They even had lunch. All told, Ampil spent around $200, most of which was on impulse purchases that wouldn’t normally make the cut for her on a typical Sam’s run. “We had the luxury of just browsing,” said the economist. “On a normal shopping trip, it’s very targeted, we’re there, we need these things, then we get out, but this time we had an hour wait and we were able to browse and get lunch.” Walmart-owned Sam’s Club, which sells bulk-sized products at reduced prices for an annual club fee, is offering a 24-hour “guest membership” to anyone who gets their COVID vaccine at a Sam’s location. It is one of a host of brands marketing incentives like temporary memberships, coupons and prizes as part of a COVID shot. Ampil is already a member of Sam’s, but her vaccine-inspired shopping trip is an example of how retailers are getting a sales boost from the boosters, which are driving demand in the heart of the holiday shopping season. In recent weeks, new federal guidance around booster shots and vaccines for children has millions of consumers rushing to book second-or-third appointments for themselves and their kids. Stores like Sam’s, Kroger and Target are taking advantage with discount programs and other perks, which experts say not only spurs sales with front-of-store merchandise, but also engenders customer loyalty and repeat visits. “In some ways, although the health crisis is something that is not helpful to anyone, it is very useful and it is the gift that keeps on giving as far as some of these retailers are concerned,” said Neil Saunders, managing director at GlobalData Retail. “The key thing is how you capitalize on that foot traffic,” he added. “Most people start off with the view they’ll go in get the vaccination and come out again—they’re not really going for pleasurable reasons to have a browse and again, it’s the job of the retailer to convert them once they’re in there.” See Ad Age’s 2021 Social Commerce Guide here. Now is the time, as more consumers receive inoculations and buzz builds. Last month, the Centers for Disease Control and Prevention authorized the Pfizer vaccine for children ages 5 to 12; soon after, the agency recommended all adults over age 18 receive booster shots. That age recommendation was this week lowered to 16 by the Federal Drug Administration for Pfizer vaccinations. The Ad Council, which leads an education effort with the COVID Collaborative and the CDC, has been vocal about encouraging booster shots on its campaign website. A spokeswoman said the Ad Council will be including booster shot messaging and content in upcoming creative in the coming weeks. Earlier this week, Jimmy Fallon injected some star power into COVID vaccinations by releasing a song with Ariana Grande and Megan Thee Stallion. Called “It Was A (Masked Christmas),” the single includes an earworm of a chorus “But it’s Christmastime, we’ll be in line for a booster.” An accompanying music video, which appears to be inspired by the fashions of Wham’s “Last Christmas,” shows Fallon and Grande in line, waiting to get their booster shots. Already, retailers Walgreens, CVS, Kroger and Publix have together administered nearly 100 million vaccines, according to recent earnings calls. CVS has built out its digital capabilities to provide vaccination records for adults, something that has helped build “digital engagement” with customers, according to CEO and President Karen Lynch, speaking on a recent earnings call with analysts. Don’t miss the latest news. Sign up for Ad Age newsletters here. She also discussed “front store sales momentum,” led by demand for COVID home testing kits and cough and cold products. “We anticipate a benefit from administering boosters and pediatric doses to eligible consumers will occur largely in the fourth quarter of this year,” Lynch said on the call. “We continue to make measurable progress with our strategy to deliver a superior customer experience and address the total cost of care.” CVS is currently offering a $5 off $20 shopping pass with any vaccine visit—the promotion includes coupons at Target stores for Target merchandise. Members who opt into a pharmacy and health rewards program that incentivizes healthy behaviors also earn credits towards rewards for each vaccine they receive. The offers have been highlighted in paid media, through emails and on CVS’s website, according to a spokesman for the Woonsocket, R.I.-based CVS. Walgreens has doled out similar initiatives. For example, over the summer the chain gave out $25 in Walgreens Cash Rewards to consumers who scheduled a COVID shot. Instead of coupons, Kroger invested in a giveaway prize—earlier this year, the grocer promoted a $1 million sweepstakes. Any consumer vaccinated at a Kroger clinic could win one of five $1 million checks or groceries for a year. Of course, retail experts stress that in addition to such programs, retailers need to make sure their customer experience, including the administration of the vaccine by the pharmacist, is seamless and top-notch. “To offer consumers benefits is something that’s nice, but the service that you give around the vaccination is also important,” said Saunders. “If you don’t have the fundamentals in place, you can’t really generate loyalty.” Indeed, because pharmacies are typically in the rear of stores, consumers are forced to walk through a floor of merchandise to get to their destination. This presents an opportunity for retailers to entice them before they even make it to the back, according to Gautham Vadakkepatt, director of the Center for Retail Transformation and associate professor marketing at George Mason University’s School of Business. “You walk through the whole store and engage in this impulse purchase,” he said. “It’s oftentimes a larger share that drives share of wallet for these retailers, that impulse purchase.” Consumers have been responding positively to offers, many taking to social media to flaunt their vaccine Band-Aids and their store spending. the feminine urge to get ur covid booster at target for $5 coupon— adina ștefan (@_adinastefan) December 8, 2021 i am boosted! i got the booster at a cvs inside a target and they gave me a coupon for $5 off any purchase of $5 or more at target. this was booster motivation for my mom, so tell any of your booster-hesitant people who live near a cvs target about this offer. pic.twitter.com/aiBaQGQWg1— ☃️ Marina "the abyssal plane" Kukso ☃️ (@marinakukso) December 7, 2021 You can get your booster and flu shot at the same time in many places! I got both and my tdap all at once this week at @Safeway and got a 10% off coupon for each. I like to see this as I got a free six-pack of Guinness Baltimore Blonde. https://t.co/cWZ5GBOYL8 pic.twitter.com/Fw1iQsBWik— Chris Crawford (@CrawfordStuff) December 8, 2021 As wellness continues to be a focus for consumers, experts expect more marketers to expand their health offerings as a way of building stronger relationships with customers. “We’ll see more and more retailers enter into health care and delivering of health care—vaccinations and primary health appointments are an easy way to make that foray,” said Vadakkepatt. “If you get people to come into the store and you’re able to impress them with the store then you’re able to start that relationship building.” Subscribe to Ad Age now for the latest industry news and analysis.

Retailers like Walgreens and CVS capitalize on vaccine booster traffic—behind the marketing strategy

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