Photos: Inaugural CVS/Pharmacy y más opens in Miami
MIAMI — Earlier this month, CVS Health announced its new store concept aimed at Hispanic consumers, CVS/Pharmacy y más. The Miami-based concept stores feature bilingual employees, as well as products well-known to Hispanic consumers, a Navarro fragrance counter, an OTC Health Solutions center and MetroPCS payment services. DSN presents a first look at photos of CVS' exciting new format.
How does mobile impact the way millennial parents shop the store?
CHICAGO — The majority of millennial parents are using smartphones to help them shop at brick-and-mortar retail locations, according to the results of a commissioned study from Retale, a location-based mobile platform connecting more than 3.5 million shoppers with major retailers locally.
The study examined the differences in mobile shopping habits between millennial moms and millennial dads. More than 500 millennial adult men and women (18 to 34 years old) across the United States were polled for the study.
According to the findings, 85% of all millennial parents are using smartphones to help them shop at brick-and-mortar retail locations. Moms (86%) were slightly more likely to use their mobile devices than dads (84%) to prepare for or help them during shopping trips.
While mobile is nearly equally ubiquitous for millennial mom and dad shoppers, how each group uses their devices varied. For example, while a majority of dads (53%) said they use smartphones primarily to check product reviews, checking product reviews was the task moms did least (42%). In addition, moms (66%) cited searching for coupons or deals as the top task they use their mobile device for, but checking deals and coupons ranked only the fifth most popular task among millennial dad shoppers (49%).
“Millennial moms and dads use their mobile devices to support brick-and-mortar shopping in different ways,” stated Pat Dermody, president of Retale. “However, despite varying preferences, it is clear that to meet the demands of both groups, retailers and retail service providers must lean heavily on mobile to compel online-to-offline engagement and sales.”
The study also found that 83% of millennial mom shoppers surveyed said they wait until the day before, day of or while they are in-store before checking for deals and coupons versus 71% of dads. Meanwhile, millennial dads (28%) were 11% more likely to search for deals or coupons at least a week in advance of visiting a retailer.
Millennial Parents Likely to Purchase When Pushed Deals Near or In Stores
A majority of both moms (76%) and dads (64%) are likely to make a purchase with a coupon or deal they receive to their smartphone while in or near a retail location. Furthermore, of these groups, 45% of moms and 32% of dads said they are “very likely” to make a purchase. Millennial moms are 12% more likely to make a purchase when pushed deals in or near a store than dads.
Of those surveyed, 40% of millennial moms compared with 22% of millennial dads said that they never shop without a deal, while both (53% of dads and 52% of moms) said that they will take advantage of deals on occasion. Alternatively, dads care less about deals with 19% stating that they either rarely or never use deals, compared with only 5% of moms, according to the findings.
“Deals remain a huge driving factor in making a transaction happen,” added Dermody. “Shoppers are always connected and always on, and retailers must use every channel to their advantage to get them through the door and through the checkout line.”
Q&A: Talking innovation strategy with CVS’ Brian Tilzer
BOSTON — Brian Tilzer, SVP and chief digital officer of CVS Health, sat down with Drug Store News at the opening of the CVS Digital Innovation Lab in Boston on June 18 to discuss the strategy behind the lab and CVS’ larger goals for transforming healthcare through digital technology.
How does the Digital Innovation Lab fit in with CVS Health’s larger mission of leveraging digital technology to improve healthcare?
Our vision is to leverage digital technology to do good things that were previously impossible. A major challenge is that digital technologies and channels are evolving so rapidly. You have to understand how the technology is changing and how the customer will respond when they use a new digital solution.
The Digital Innovation Lab enables us to experiment with what’s unknown and bring it to what’s known and perform iterative testing. Also, innovation is happening all over the place and is not just limited to what CVS Health is developing ourselves. The lab lets us work with other technology firms, both big companies and start-ups, and effectively put ideas through the experimentation model.
Since you joined the company in 2013, CVS has tripled its investment in digital technology. How does the Digital Innovation Lab build on this investment?
We tripled our digital technology investment and are now doubling it again. A lot of the program is focused on mobile. We are all carrying these super-powerful devices all the time. How do you leverage that for a better patient experience?
We now have top-rated retail, specialty and pharmacy benefit management apps. We have introduced and expanded text messaging so 20 million people are now picking up and refilling prescriptions with text. We brought texting into the Minute Clinic so people can register by smartphone when they arrive at the store, then shop and get a text when they are next in line.
That’s why we rolled out the latest mobile technology –beacons – in our stores. When you walk into the store with our app on your mobile device the beacons will recognize you and provide information that is pertinent to your visit.
Also, it’s important to note that we are not trying to market with mobile, but solve pain points and provide services and utility. Twenty million people would not have given us their mobile numbers if we just sent promotions.
An increasing number of large retailers are opening proprietary innovation labs. Is this being driven by broader industry trends?
There are some commonalities. We’re trying to rapidly experiment and go from unknown to known in an 8,000-store chain. Larger retailers need operational disciplines to build things at a certain scale and figure out if innovations work.
Specifically in healthcare, investment in digital technology has taken off. There was a total of $4 billion invested in digital healthcare last year. The lab will help us engage with start-ups who do certain things especially well.
Can you provide an update on any of your work with start-ups?
We’re working with start-ups on a number of customer-facing solutions. For example, we’re working with a start-up called Livongo, which has a device to take the blood glucose readings of diabetes patients and automatically upload them so they can get a call from a clinician if anything is unusual.
We’re also working with a start-up called Mango Health, which targets medical adherence with “gaming tools” that encourage people to take prescriptions by providing incentives when they acknowledge taking a prescription. The app forces patients to think about their medications.
How does personalization fit into your lab efforts?
Personalization is the underlying theme to everything we do. Mobile is incredibly personal – you carry it all the time. The future of our ExtraCare rewards program hinges on personalization delivered by mobile tools. Mobile is the perfect way for customers to engage with ExtraCare. We’re leveraging mobile and other digital tools to make the experience better.