Like everything else in retail and in the rest of the industries, what really matters is what the customer wants. And what customers want is convenience, price and a seamless experience. So, instead of making a super complicated loyalty program that even associates don't even understand, build a simple and attractive loyalty program based on what your customers want. Does a personalized loyalty program sound like a potential disruption? It does to me.
More than demand volatility, I would say customer-behavior driven demand which is the new standard in business today. Based on this, retailers need to re-focus their processes, systems, people and culture to be agile and flexible to accommodate this "volatility."
Of course being cash-only or kiosk-only was the biggest push back for SS customers at this location. It's a mistake other retailers are falling into when trying to be disruptive but not: 1) fully understanding based on data-driven analysis what their customers demographics are or/and 2) not thinking about implementing these tests gradually or with a back-door strategy (in this case having a human helping in case a customer wanted to pay with cash).
This is a natural consequence of the Amazon power. Retailers this size and with similar challenges will consider this same strategy as part of their unified commerce strategy. It is wise to stop fighting the giant enemy to better focus on enhancing their brand. Many more to follow.
This strategy of providing a higher value and therefore better CX is right on point. Walgreens is focusing its efforts on capturing and providing value to an extended customer journey by offering additional services within its stores. If Walgreens is also able to find a way to extended such value to its customers by improving their health, make their time efficient and save money then other retail pharmacies on this similar format will follow. If this works out well, I can see big retailers like Walmart or Target building small-format pharmacy retail stores in the future.
It is time for all in the industry to talk about how the new state of retail will look like from a positive point of view, based on what we've seen so far in terms of trends, challenges and opportunities. Enough about retail apocalypse and negative outlook. The ongoing change is evident and I suggest to focus our energy in helping to shape the new face of retail. The new face of successful retailers will be based on 1) Deep understanding of its customer base regarding how they interact with the retailer's brand in every touchpoint of their journey; 2) Ongoing personalized and seamless experiences (anytime, anywhere); 3) Fast, free shipping, returns & exchanges; 4) Provide new local experiences.
Should we call this the CVS-Aetna Affordable Care Act now? I think this will definitely bring benefits to patients in terms of having better/faster access to healthcare or primary care. Also, CVS has the opportunity to use all the insured patient data to come up with a personalized profile and help people to proactively avoid critical illness by sharing key information and taking care of their health in advance.
If CVS executes this plan correctly and delivers a seamless experience then it can compete with what Amazon can do. If on top of this CVS adds value by personalizing the experience based on the customer health information they can gather and complement the in-pharmacy experience then they will be ahead of Amazon.
No doubt. Amazon has now put its eye on this retail sector and long-time recognized brands like Nike and Adidas might be safe if and only if they focus on enhancing the value that their brand uniqueness brings to their customers. Amazon will disrupt and potentially "eat" those (small, new) sportswear companies that do not own this uniqueness and customer intimacy with the brand.
I think this is a natural play Costco had to make to remain relevant and competitive in the current marketplace. If done right and with the right customer data analysis, Costco will understand which products and quantities their customers would benefit from getting shipped in a recurrent way and which ones will make more sense to make it more attractive for customers to buy in their club. The key here is to define the right combination play, and I foresee a great success. Agreed with the need to upgrade their digital fronts (website, mobile app) for the CX to work.
Grocery retailers are definitely the best positioned to increase the customer experience by extending the current customer shopping journey offering additional services within their in-store clinics and pharmacies. However, the solutions they could provide need to be designed in terms of how the customer would value such enhanced experience and not result in adding complexity to the customer experience. Other retailers like active apparel might consider adding some healthcare services that could complement the healthcare journey.
Fair topic, but I still do not understand why we keep emphasizing on the "let's wait to see Amazon fail or being caught up" angle rather than the "what are others doing on their own to really be different and solve the customer experience demands. I think the best for consumers is to have an Amazon and a Walmart both working hard to bring the best innovation to elevate the customer shopping experience, no?
This move, if done right, will benefit Neiman Marcus and it could impact other retailers who have focused on an off-price model. These department stores have lost some of the uniqueness its iconic branding used to bring to customers and this is exactly what customers are hungry for today. If Neiman Marcus does this right and brings back its uniqueness along with personalized customer experience, then they will eventually bring their lost customer base and win new customers.
I think the real game changer will be when Amazon probes that it can effectively and safely deliver groceries along with any other product from their assortment in matter of hours and not only by cutting prices.