White Paper. Post #3. Plan Of Actions.

Since it is clear that customers prefer Walgreens to Rite-Aid, it is also safe to say that this is their bigger competitors. In order for Rite-Aid to gain its customer base back, they should follow a few steps:

• Get involved. Get involved in the community’s life. Hold an event like a blood drive. Walgreens does it every 2-4 months while Rite-Aid does it every 6-8 month.
• Get “dolled up”. As mentioned earlier, Rite-Aid’s building is not in its best shape. It should be painted and freshen up. It sounds silly, but that step will allow them to shine through other buildings that surround Rite-Aid.
• Train the staff on how to be interactive with their customers. Make sure the employees understand that loosing one customer per year might cost them their job. Actually, Wal-mart tells their employees that one lost customer costs Wal-mart as a company $250.000 a year. Obviously, in terms of a local Rite-Aid the number will be smaller, but there is a formula to be used to calculate the lost amount. Staff should be more friendly, more welcoming. Most customers who have left Rite-Aid for Walgreens name not being recognized as one of the main reasons they switched.

 Where is the (relevant) retention costs per customer per year (this formula assumes the retention activities are paid for each mid year and they only affect those who were retained in the previous year), is the horizon (in years), is the yearly retention rate, is the yearly discount rate.

• Be more patient. I have had a few customers with little kids who have told me that Rite-Aid does not have the room to move if you come in with a few little children nor does the staff have patience for the little ones running around. I know how annoying it can be to see the mess after you just made your store look pretty or how little ones' cries could get to you, but Rite-Aid should make sure its employees realize this job is not only about them, but about the company’s image as a whole.