Wellness, beauty and pharmacy retailer CVS continues to drive operational efficiency and execution, as well as further investments in innovation to meet the changing needs of today's customers. With building block strategies in place, including enhancements in the customer experience, digital and mobile initiatives, the retailer plans a strong outlook for 2014 and beyond.
The retailer has significantly invested in digital capabilities for a stronger integrated multi-channel offering. Going forward, CVS will maintain continuous improvement with investments to improve cost structure and service to customers. "We are now focused as an example on optimizing digital communication further automating and streamlining the manual processes and increasing member and clients of service," said Jon Roberts, president of CVS Caremark Pharmacy Services. "We believe these investments will yield savings while improving customer service."
Thus far, CVS has done a lot of work to identify who its top customers are and gain a significant share of wallet opportunity that those customers represent. The retailer works to guarantee its ExtraCare program is simple to use and highly engaging. It is then able to leverage the insights received from the program to convert customers to categories that they may be purchasing elsewhere. These learnings have impacted core product decisions and led the efforts behind its personalized, digital circulars that were introduced to begin the transition away from mass media.
This year CVS is investing in its integrated digital strategy as it is the driver behind many big picture goals for enterprise digital. "We know, it can deliver a differentiated customer experience, digital can help drive greater share of wallet in the health and prescription area," continued Helena Foulkes, incoming president for CVS Pharmacy. "It helps reduce the total cost to serve our customers and ultimately it helps us deliver better health outcomes for our patients."
While the retailer is already delivering a superior mobile experience, it will continue to expand functionality. "We have a great retail app, it’s rated four and a half stars and we saw traffic from our CVS mobile site and the app increased 250% in the last year," noted Foulkes. Many of the retail app features have been updated, as well as a re-launch of the pharmacy benefit management (PBM) app to make it even better. An easy refill process was launched in addition to a pill identifier feature and the ability to check whether over-the-counter medications will interact with a specific prescription.
Traffic to Caremark.com continues to increase, which is an early indication of success. Every retail organization is expanding its digital presence because of the integrated nature of today's business model, bringing together all digital assets to create a seamless experience for customers.
In 2014, CVS will focus on revamping its specialty pharmacy digital experience and begin to deliver on its vision of allowing customers to manage all of their retail and mail order scripts in one place – a breakthrough experience that only CVS can deliver.
"Personalization and an integrated digital strategy are key elements of our plan, driving future growth," said Foulkes. "I'm confident we have a strategy, the initiatives and the team to deliver future success."
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