This Saudi pharmacy chain uses data tools to personalise shopper journeys

Technology is fast redefining the retail and shopper journey and how brands are experienced by customers. Of particular significance are data tools that help retailers curate insights-based shopper experiences.  

Middle East’s leading retail pharmacy chain Nahdi Medical Company has come up with a unique Solution Project, which is being talked about as a shining example of how innovative technology and data-driven insights can be leveraged to enhance customer service, drive sales, and gain a competitive edge in the industry.

The initiative, part of the company’s operational strategy, pharmacists are equipped with data-driven tools and insights that enable them to provide personalised recommendations and promotions. These insights are displayed on a web screen at the point of sale, integrated with each transaction.

The initiative has secured the Store Retail Initiative of the Year - Saudi Arabia category win at the prestigious Retail Asia Awards 2024. 

Using a sophisticated artificial intelligence (AI) algorithm, the system analyses guest profiles, online search histories, and past purchase behaviours to craft customised promotions. This ensures that each recommendation is aligned with individual preferences. The project also includes cross-sales recommendations, suggesting complementary products based on the current contents of a guest’s basket. This feature enhances the shopping experience by making personalised suggestions, thereby increasing the transaction basket value.

Additionally, the Solution Project integrates Medication Adherence Programs, which send timely reminders for refills to guests on chronic medications. This promotes continuous health management and plays a crucial role in improving public health outcomes. The AI algorithm also bridges the gap between online browsing and in-store purchases by notifying store staff about products that have caught a guest’s interest online but were not purchased

Moreover, the system compiles detailed guest profiles, offering pharmacists comprehensive insights, including buying preferences, dominant item categories, and responsiveness to promotions. This deep understanding facilitates highly personalised interactions, substantially enhancing customer service and satisfaction. The project also provides recommendations for suitable healthcare services, such as physical visits, on-spot consultations, virtual medical consultations with specialised physicians, and free e-pharmacist services.

“Since the launch of the Solution Project in September 2021, Nahdi Medical Company has implemented four significant updates aimed at refining the system to ensure a seamless user experience and improved performance by adding new algorithms. As a result, Nahdi Medical Company has noticed a significant rise in its Net Promoter Score (NPS) rose from 85 in 2022 to 87 in 2023 Loyalty penetration contributions increased from 77% in 2022 to 80.5% in 2023,” shares the company statement .

The project generated US$60 million in incremental sales in 2023, with projections to reach US$80m in 2024. These impressive figures underscore the effectiveness of the Solution Project’s conversion strategies. By continually adapting to the evolving retail landscape and consumer behaviour, the project's innovative approach to sales and customer service has yielded significant commercial benefits for Nahdi Medical Company and set new operational standards within the industry, ensuring that sales figures and guest satisfaction metrics are optimised.