PwC report: Retailers need to think beyond omnichannel to achieve ‘total retail’
NEW YORK — While retailers have historically used the “multichannel” approach to reach consumers, the rapidly growing focus on the consumer and integrated, customer-focused technology has paved way for a “total retail” experience, according to a new report by PricewaterhouseCoopers.
Based on a survey of more than 15,000 online shoppers globally, the report, titled "Achieving Total Retail: Consumer Expectations Driving the Next Retail Business Model," reveals eight consumer expectations that call upon retailers to create a total retail business model transformation.
“Consumers now view multichannel shopping as a given, and the costs and complexities of managing a multichannel model are too great and offer too few rewards to benefit the customer experience,” stated Steven Barr, PwC’s U.S. retail and consumer practice leader. “Today’s non-stop shoppers have taken things into their own hands, becoming more tech-savvy than retailers. Consumers have the tools at their fingertips to immerse themselves into the retail brand. Our report finds that consumers have strict expectations that challenge today’s shopping experience and, in response, retailers should embrace what we at PwC are calling total retail.”
The eight key consumer expectations and business implications for retailers to help achieve the total retail model, according to PwC:
- A compelling brand story that promises a distinctive experience: Retailers should better establish a strong brand promise that solidifies a core of loyal customers. A high percentage of survey respondents were attracted to brands that tell a story in an engaging manner. Seventy-nine percent of U.S. shoppers say they shop at their favorite retailers/brands because they trust the brand.
- Customized offers based on totally protected, personal preferences and information: Big data and predictive analytics will help retailers use customer data to increase marketing and sales effectiveness through customizing digital coupons, exclusive content, and social media promotions, among others. However, 37% of U.S. shoppers say they do not use their smartphone for shopping because they are worried about security. Retailers should better safeguard data, by either building their capabilities step-by-step or adding proper capabilities through acquisitions.
- An enhanced and consistent experience across all devices: Among U.S. survey respondents who do not use their mobile phones or smartphones for shopping, 32% say they do not own mobile/smartphones and 33% said device screens are too small. However, as screen sizes get bigger and more consumers obtain newer mobile devices, mobile shopping will likely accelerate. To prepare for this growth, a total retailer will need to have the technical agility to provide one seamless experience via PC, tablet, mobile phone, in app or web browser.
- Transparency, real time, into a retailer’s inventory: When asked which in-store technologies would make for a better shopping experience, 45% of U.S. survey respondents chose the ability to check other store or online stock quickly. Consumers are looking for actionable inventory information from retailers, pushing retailers to upgrade technology on their supply chain, on how products are tracked, warehoused and distributed.
- Favorite retailers are everywhere: When asked what they would do if their favorite retailer shut down its local store, 53% of survey respondents noted they would locate the next nearest physical store and 40% said they would increase ordering from their website. Shoppers today assume retailers are everywhere and always connected like themselves, and retailers need to look at store portfolio management more strategically.
- To maximize the value of mobile shopping, both store apps and mobile sites must improve: PwC’s survey finds shoppers do not have a strong preference regarding using an app or browser for mobile shopping. When asked how often they use an app and mobile browser for shopping, respondents noted 22% and 28% weekly, respectively, with mobile browser faring a bit higher due to convenience (53% prefer mobile browser because of convenience). Retailers should take note to ensure their mobile site is optimized, while also ramping up apps to improve the experience.
- Two-way social media engagement: Enthusiasm for social media by retailers and brands is driving consumers to engage, comment and even effect change. When asked what attracted them to a particular brand’s social media site, 61% of U.S. respondents noted attractive deals and promotions, 38% noted new product offerings and 28% said because they shop with the retailer. Retailers should in return better listen to customers on social media, transforming commentary into actionable data for new ideas and improved experience.
- “Brands” act like retailers, and we’ll treat them that way: The gray area of overlap is growing between brands and retailers, and 44% of U.S. survey respondents noted that lower price is the main reason they buy from a brand’s website. Retailers today are partnering with brands/manufacturers to share consumer insights and collaborate on category management to drive more success for both.
CVS Caremark becomes contributing member of CommonWell Health Alliance
ORLANDO, Fla. — CommonWell Health Alliance, the health information technology vendor-led interoperability effort, announced on Monday that CVS Caremark has joined as one of the newest contributing members of the organization.
CVS Caremark joins founding members Allscripts, Athenahealth, Cerner, CPSI, Greenway, McKesson and Sunquest and service provider RelayHealth in the Alliance’s work.
As the Alliance grows over time, participation by organizations such as CVS Caremark will help providers easily and securely access prescription information, enabling a more holistic view of the patient, with the goal of providing better care and increased patient and consumer safety. Through the Alliance, pharmacies and health care providers will be able to better connect with the broader health ecosystem, the Alliance stated.
"As pharmacies play an increasingly important role in the delivery of health care and pharmacists become more engaged in advising and counseling patients, there will be more opportunities to improve health outcomes through better data sharing across the provider community," stated CVS Caremark chief medical officer Troyen A. Brennan. "CommonWell will be well-positioned to help deliver real-time pharmacy-based information into physician practices to help identify opportunities to coordinate care and will help the pharmacist deliver care-based messages back to patients."
CVS Caremark will join CommonWell as a contributing member, building upon the foundation of the Alliance’s structure and working with RelayHealth to embed these services natively into its pharmacy system.
"We are thrilled to have CVS Caremark join the CommonWell Health Alliance; they are a terrific complement to our existing membership and their decision to join is testament to the work we’ve accomplished over the past year," stated Jeremy Delinsky, chairman for the CommonWell Health Alliance and chief technology officer of athenahealth. "As an alliance, we look forward to working with CVS Caremark, recruiting and welcoming new members, and most importantly advancing the state of interoperability across health care."
Bloomberg: Cerberus Capital Management lead bidder for Safeway
NEW YORK — New Albertsons is on its way to becoming more than 1,300 stores larger. Cerberus Capital Management is the lead bidder for Safeway, according to a Bloomberg report published Saturday that cited people with knowledge of the matter.
Cerberus is the only firm willing to swallow Safeway whole, the paper reported.
"While other private-equity firms also have expressed interest in buying the second-largest grocery chain in the U.S., they are more interested in cherry-picking assets, people familiar with the situation have said," Bloomberg reported. "Safeway is not interested in selling off pieces and would prefer to be sold in its entirety, said the people, who asked not to be identified because the process is private."
Last year, a Cerberus-led investor group agreed to acquire Supervalu’s Albertsons, Acme, Jewel-Osco, Shaw’s and Star Market grocery stores in a transaction valued at about $3.3 billion.