How a Latin American drugstore chain boosted revenue by 235% using location-based campaigns

Latin American drugstore giant partnered with Cloud4Wi to harness WiFi functionality across its 2,500 to collect first-party data in line with privacy regulations and target its customers with highly personalised offers.

RaiaDrogasil is Latin America’s largest drugstore chain, with more than 2,500 stores across Brazil’s 26 states. Despite this mass presence across the country, the brand understood that to engage customers in 2022, it had to deliver a continuous and engaging experience beyond a physical store. Enter Cloud4Wi to leverage existing guest WiFi capabilities and collect actionable customer data to increase engagement – and drive revenue.

The challenge

The drugstore chain wanted to bridge the gap between its physical retail and digital commerce, using each individual store to engage local customers and build relationships with them to encourage repeat business and word of mouth recommendations.

RaiaDrogasil already has dedicated app and WiFi functionality at its stores, but needed the tech to help it collect actionable customer data in line with compliance regulations. If customers could be digitally onboarded when they visited a store and opt-in to sharing data about themselves, like frequency of visits, RaiaDrogasil could start distributing personalised offers at both the right place and right time.

The solution

Cloud4Wi, a location-based tech platform provider, came on board as RaiaDrogasil’s partner to leverage its existing guest WiFi networks. The chain was able, with Cloud4Wi, to start building a first-party customer database in compliance with the Brazilian Lei Geral de Proteção de Dados (LGPD) – the equivalent of Europe’s GDPR in the country — refreshing and cleansing the data associated with its existing 30 million contacts to ensure there was relevant and up-to-date insights.

The solution, which was running in all stores after a matter of weeks, meant that when customers sign up to the guest WiFi in store, they land on a branded captive onboarding portal, where they share personal information – like their full name, email address, phone number and personal tax account – to sync with RaiaDrogasil’s Salesforce CRM platform.

Customers then get an SMS with a link to their personal special offers that can be activated in the mobile app, that they can then use both online or in-store.

Cloud4Wi checks in real time when a customer joins the network, whether they are already a subscriber to RaiaDrogasil’s marketing activities. Every in-store or online interaction is logged on an individual 360-degree customer profile that connects both channels, so customers are targeted with highly relevant and personalised offers as they move between the physical and digital experience.

When they enter a store, a customer would automatically join the guest WiFi and recieve time-based deals based on past purchases or browsing activity.

The results

Revenue impact was the core KPI for the initiative, which launched in April 2022. After three months, RaiaDrogasil’s revenue was up 235% when compared to a previous well-performing campaign.

Alongside this uplift, the solution collected 1.1 million contacts, with an SMS opt-in rate of 75%. RaiaDrogasil also monitored online conversion rate, which hit 7.9% and revenue generated per 1,000 SMS sends, which came in at R$ 390.45.

Raia Drogasil now plans to send an SMS when customers leave the store to continue their shopping, and send promotions based on their specific interests.

The client view

Aretha Cursino, Head of Digital marketing at Raia Drogasil, said: “From the beginning of the project, Cloud4Wi was a proactive, high-impact partner, which is precisely what we needed to get up and running with our marketing transformation efforts. “In a matter of weeks, we unlocked the ability to turn one-time visitors into long-term customers, and create joined up customer journeys that just a few years ago would have seemed impossible.”