September 19, 2014 ©2014 Xerox Corporation. All rights ... · 15 September 19, 2014 • It’s not just the future in the retail aisle, it’s also the future at the community pharmacy

September 19, 20141 ©2014 Xerox Corporation. All rights reserved

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• Let’s get right to some images most of us can appreciate: The Shopping Championships.

• The Shopping Championships are essential to almost all of us — whether we’re consumers or retailers or manufacturers.

• What’s great about this event is that so many shoppers love to enter. Old, young. Women, men. They’re willing to show up at midnight or get up at four AM and line up at your doors. They are highly motivated and on a mission.

• When the doors open, the race begins.

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• Shoppers’ expectation, during the event, is that they’re mostly on their own. The bigger the crowd, the more impersonal the experience. The Shopping Championships bring people together, but they don’t bring people together, so to speak.

• That’s okay: these shopping champs tend to be prepared and know what they want. For nearly every one of them, it’s all about the deal, the best buy for the right product.

• It’s impersonal. The experience is barely mediated by the retailer. And on these few days, during these events, that’s okay.


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• The Shopping Championships is a real sports event. Sometimes the passion gets out of hand, as it does here, where the entrants have gotten overly zealous about a product and need to be separated. But that only happens rarely, and only in someone else’s retail store.


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• The best thing about these championships? There are plenty of winners: retailers, manufacturers, and most of all, consumers.

• But the Shopping Championships wouldn’t be the championships if they happened more than once or twice a year.


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• And then one day they’re over.

• Midnight and four AM openings and mega deals are not viable, year-round business plan. There’s not enough consumer motivation to fuel it, and for most retailers, not enough profit margin to survive it.

• A few retailers can continue on “The Deal” model. But for most, there has to be another way to profit.

• So when it’s over, it’s back to…back to…what?

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• The mass becomes the individual. Customerzz become “the customer.” And the impersonal approach now requires a personal one.


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• And I would add that for health and wellness, the impersonal becomes very personal.

• It’s hard to think of another category of products that’s more personal – even intimate.

• What this singular customer in the aisle really wants is the body lotion that’s made to give her exactly what she needs, which is not quite exactly what I need because our body chemistries are not identical – and neither is our environments. Even better, she’d like a body lotion that adjusts to the seasons, so it’s just right for her in winter, and then is modified to be just right for her in summer.

• Oh, and can you do that with her vitamins, and with her prescription drugs? Can you really personalize her products?


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• Now this is more like it – products made just for me. I like my Milk of Magnesia with just a hint of cinnamon. But more importantly, these were developed using all of my personal health information. It’s a complex process, especially with HIPAA in the U.S. and PIPEDA in Canada.

• Unfortunately, these products cost more than their weight in gold. One day products will automagically reformulate themselves upon contact with an individual, but for now, our OTCs continue to be very effective, though not perfectly personalized.

• So personalize my products? Not quite yet, at least not yet in this sense.


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• Okay, so my own specialized formula of Milk of Magnesia will have to wait.

• But how about personalized solutions. Can you offer those?

• Yes, absolutely.



• Now even though we can’t personalize most types of products currently on shelves, they are pretty damn good as is. Product improvement is often a case of improving on perfection.

• So I would say products are not the obstacle in personalizing solutions.

• But an interesting thing about products: While they sit on shelves or behind pharmacies, they are simply products with potential. No matter how perfect the products, when they sit on the shelves, they are simply potential. And they are impersonal. I think it’s important to think this way about products.



• Now once they land in a customer’s basket, they’re being transformed into personalized solutions.

• But from the shelf to the customer’s basket can be a mighty long gap. When a customer holds a product in her or his hand, you’re almost there – but not quite, and close doesn’t count.

• For many of us, the future of retailing is how to motivate her to put the right product in her basket, AND to obtain the product information to make that product a product solution for her unique need.

• How do we bridge this gap? What new -- and old -- ways can we recruit to turn products on shelves into solutions.

• Transforming products often requires support — someone or some thing that can motivate the customer, and in some cases, even motivate them to change behavior.

• The someone or something must have two qualities.

• First, they have to have product knowledge. More than ever, consumers want to know. We live in a world where information is available at the touch of a finger. In fact scarcity is no longer the problem. Most of us suffer from an overabundance of information. So this someone or something serves as the customer’s filter --providing just the right amount of accurate and timely information.

• As you can see from the customer on my screen, the right information can turn bewilderment or confusion into belief.

• In addition to product information, this someone or something also must have the skills or technology to interact or interface with customers. We know that product information alone won’t bridge the gap in many shopping situations. The customer engagement is often critical in motivating the customer to put a product


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in their basket or virtual cart.



• Now we’re focusing on personalizing the shopping experience.

• Put another way, the question is: how do we use the shopping experience to frame the right product for each shopper or consumer as a personalized solution?

• Unless retailers can survive on “the deal,” I believe success in future retailing requires us to use our human resources and technologies to answer this question every time a shopper comes into our stores or a consumer interfaces with our digital resources or searches online.



• So let’s talk about how to do this in the twenty-first century. Let’s start with our approach and then add technologies.

• First, we start by discarding the sales mantra of old — of course, I’m referring to “Can I help you?”

• There are a whole lot of reasons why someone answers “No” to this question —even when they need or could use some expert guidance. And of course, some people some of the time don’t want help, and we violate their expressed wishes at our own peril.

• So first let’s move from “Can I help you?” to “How can I help you?”

• The question “How can I help you?” may be explicitly asked or it may just be an implied question that underlies a customer’s entire shopping experience.

• In my ten-plus years of working in this field, I can tell you that this change in approach can be one of the simplest yet most dramatic and positive transformations any retailer can make.

• “How can I help you?” It’s a bigger question than it might seem. It can be integrated into face-to-face interactions, and it can even happen via technology while a customer is in the store or online and at home.

• Framing the shopping experience with “How can I help you?” makes valuable assumptions about the shopper experience. It can be the key to unlocking a shopper’s needs, values, and motivations -- and creating win-wins for everyone.

• And here’s something that might surprise you. [Move to next slide.]



• It’s not just the future in the retail aisle, it’s also the future at the community pharmacy counter. Again, the question may change in form, but not in substance. Because whether it’s in the aisle, the pharmacy, online, or wherever, for many retailers the future of retail depends on personalizing the shopping experience. And nothing personalizes the experience than focusing on the shopper as a unique individual who has unique needs.



• So how have we been doing at personalizing the shopping experience? Well, overwhelmingly retail executives say “Not good enough” — we’ve got work to do.

• What makes the customer experience so integral to success is that it can be the most powerful way to create loyal customers and build brands. Every time a customer enters a store they are a loyal customer waiting to happen. I don’t think many retailers or manufacturers would argue that loyal customers and return business are important keys to survival and success.

• But one of the barriers to providing personalized customer experience has always been scale. How to personalize the customer experience at scale?

• How do we train all or most of our associates and employees with the necessary product knowledge and people skills. How do we touch all of customers, whether it’s face-to-face or online?

• Well, technology is opening up some promising ways of scaling the personalized experience.



• So now it shouldn’t surprise you that the question I want to ask you is not whether you should offer personalized solutions, but how you offer personalized solutions.

• What’s your personal?

• How do you offer personalized solutions and personalized customer experiences? It won’t be the same for every retailer – or manufacturer.



• Let me offer an approach to finding your own personal.

• Perhaps you’ve been asking yourself these questions already: Who are you? Who are your customers. And what are your products and product solutions?

• It doesn’t matter where you start because each of these is so inter-related with the other two. And each is a deep well. So, for instance, the question of “Who are you?” is equally about your brand and about your resources. What are your technological resources? What can you do with what you have? What more do you need to achieve the personalized service and solutions you want to deliver?

• There is one element not to be overlooked in the process. Asking yourself whether your organization’s culture already or can support personalized solutions.

• I’ve seen organizations do all the right things except create a culture of personalized service -- kind of like developing a great vehicle but not having the gas to fuel it. This is another topic, but an essential one.



• Your answer to “What’s your personal?” will inform your approach to the two ways of providing personalized solutions.

• One is what I’d call the new-old way. It’s the traditional way of offering personalized solutions. It’s unmediated—just pure face-to-face. You’ll see in a moment why I call it the “new-old way.”

• And then, of course, there’s the new-new way. It’s mediated by technology. It can happen in the aisle or at home. It can have sophisticated bells and whistles.

• It can be easy to let the technology take over, but we shouldn’t lose sight of our objective: motivating shoppers to take action by making them confident in your products. Whether it’s the new-old or the new-new, it’s still about bridging the gap. After all: When was the last time a product on the shelf stood up and talked with you?

• Who speaks for your products? You do!



• So let’s consider our possibilities.

• First, don’t ignore the face-to-face experience just because it’s traditional and looks difficult to scale.

• The stumbling block has always been the time and technology required to train individuals. That is, how to make it scalable.

• But we’ve perfected the process of turning employees and professional staff into “experts” in both product information and interaction skills.

• There was a time when online training was figuring out what it meant to learn online. We’re past that now. The better instructional design teams develop instructional formats exclusively for PCs, tablets, smart phones, and other mobile devices. We now have enough experience in the field to know how to really harness the technology and make it work for us.

• No matter how large, or small, your staffs are, training can be convenient and cost-effective. And whatever type of product information and customer engagement skills work for you, online training can make sure they’re consistent from store from store, so your organization’s values and brand are reflected in each shopper engagement.

• And online training can be used as “just-in-time” training. It’s there when you need it.

• For many of you, face-to-face may be the best way to increase loyalty and basket size in the short and long run. We can say that a little bit of education for employees can provide a great ROI.

• And here’s another benefit: Better educated employees are more satisfied. That means less churn. An organization's culture doesn’t just happen. Companies that value well trained employees do better than those who don’t. Period. The studies


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are in. The metrics are available.



• So which organizations have retired the “Can I help you?” opener for “How can I help you?”

• Just across the border are Wegmans supermarkets. They educate all of their associates in “knowledge-based service.” Their associates know products and they know how provide a high-touch shopping experience that leads to satisfied customers. They tell their associates that their customers don’t leave the store with products. They leave the store with product solutions.

• And interestingly, Wegmans has always been rated as the best or one of the best retailers to work for. It’s no coincidence that they educate their employees and put the customer first.

• There’s also Target. They’ve integrated their “Everyday Guest Experience” into their culture. They describe this as “providing unique experiences.” The “Everyday Guest Experience” also includes motivational interviewing, or MI, at their pharmacies. We’ll get back to MI later. There are many retailers who’ve made the switch. I’m using these in my presentation because they’ve done it well and because one is a high-end grocery and the other is a big-box store. Quite different in some ways but with the same goal.



• We’ve spent a few minutes on the value of creating personalized solutions through face-to-face engagements.

• Now let’s discuss using technology. Technology and personalized service -- it can seem like an oxymoron.

• So I want to stop and mention something, in case you’re not familiar with it. I was surprised to discover that Amazon is rated very highly at offering personalized service. Very highly rated.

• Amazon is interesting: they constantly tell me about me -- for instance, telling me what I’m showing an interest in and making those products and related ones instantly available for my perusal. Professional and amateur reviews are instantly accessible.

• If you think that online is cold and impersonal, then warm it up! In the end, Amazon delivers the right product, the right product information, and the right experience. That’s a powerful equation for success.

• There are other ways to succeed, of course. Apple is ranked low in personalized service. They are product-centric. They don’t offer “the deal” or “the experience”—mostly just the product. And it is some kind of product.

• It works for Apple. But is their approach “your personal”?



• The new-new technologies can mediate the entire shopping experience.

• Here’s what a shopper can experience right now through technology. When they walk into a store, they can receive messages and product promotions. The technology can give them an Amazon-like experience in the store. It can provide them with access to product reviews and point them to accessories and related products. It’s a 360 experience that lets them satisfy their unique needs.

• The shopper’s product solution may be a product they wouldn’t have considered when they entered the store. But discovering via their smartphone that there’s a promotion on the product — well, now that product has become their product solution. That’s personalized service in the store – but it’s not face-to-face.

• So this is what I would call “warm technology.” It’s technology used to build an emotional relationship with customers.

• Now, of course, when they go to the aisle – and they know which aisle because itis included in the promotion – they may be received by an associate. So now we’re complementing technology with face-to-face. The associate can provide the shopper with more personalized solutions, and that enhances customer loyalty and likely increases basket size.

• And on it goes.

• Technology also allows customers to check stock availability … to purchase goods for collection before visiting the store … to receive digital notifications of products and offers that match their purchasing taste. And of course be able topay for stuff.



• These options are primarily built on two technologies: “Near field communication” or NFC and iBeacon.

• The technologies allow smartphones or other mobile devices to communicate with one another when in close proximity. The iBeacon is triggered when a customer walks within range. It broadcasts information, such as specials, to shoppers, but also can send personalized recommendations based on a shopper’s history or even location.

• NFC is triggered by the shopper, so it can be perceived as less invasive.

• There are some technology advantages to each. But in the end, the question is: What’s your personal?



• Now these new technologies can really transform your aisles.

• What if I want to look down your aisles and see the specials? Or I only want to see green products, or gluten free products, or only the products I’ve put on my weekly staples list. We can fill in whatever the customer’s need is.

• It’s here and it shows you what you want to see. Now how personalized is that shopping experience and how well does it deliver personalized solutions?

• Of course, sometimes product searching can be satisfying. But mostly it’s an opportunity to lose a customer’s sale when they can’t find what they want.



• Of course, what’s opening this whole new world of access and instant information is the mobile device, and particularly the smartphone.

• Customers want the ability to interact and complete transactions on their own terms. If a customer wants to view an item online, purchase it using their phone, and return it by dropping by the store, then personalized service lets them do so seamlessly. The experience should feel organic.

• From cash to checks, to credit cards to the iBeacon and NFC I described a moment ago. This may take some time for widespread adoption, but tap-to-pay using a smartphone and smart wallets, like ISIS and Google Wallet, are becoming an integral part of our transactions. Mobile payments will soon amount to $90 billion.



• Now here’s a fascinating technology that still has low adoption but is brimming with potential: the magic mirror.

• Augmented reality combines physical objects, Internet data, and rendering technologies to deliver immersive experiences. Not only is it entertaining, but it exponentially increases a customer’s decision-making confidence. Don’t know how you’d look with that hair color or lipstick? No problem. The magic mirror lets you see how that color would look on you, or that makeup, or hair color, or anything.



• Now here’s a similar use of augmented reality. These are all experiences mediated by technology, but the technology is providing an intimate experience for the shopper. I would call this very warm technology.



• Already 30% of a consumer’s purchase behavior is influenced by social media. Consider what it will be in another generation.

• Consider that Nordstrom and Target use the social network Pinterest to decide which products to display in their stores.

• And Target has launched a site that showcases Target’s “best-reviewed” and “most-pinned” items. If something develops a buzz, these retailers leverage it. Buzz can influence stocking and even planograms.

• But again, I would caution copying even successful projects without first asking, “What’s your personal?”



• Now let’s take a look at how technology goes beneath the surface … of your customers. Sometimes customers aren’t particularly accurate when they self-report about their purchase history, decision-making or motivations. But video analytics uses eye and attention tracking to tell you how much time customers are spending in different locations and what they’re looking at.

• Equally or even more important, video analytics can tell you what kind of emotional reaction they’re having to what they see.

• We can use these consumer insights to create planograms, design aisles — you name it — all aimed at shaping the retail environment to provide a more personalized and motivating experience.



• Now I’d like to spend this last part of my time with you focusing on pharmacies, where the stakes are so high.

• Non-medication adherence results in poor health and costs every major health care system millions and billions of dollars. I know this is not news to you.

• Now one of the ways to increase medication adherence is to provide pharmacy patients with personalized solutions. I’d like to describe one program being used to accomplish this. A disclaimer here: My company participated in the creation of this program. And I’m quite proud of our contribution.

• One of the drug chains using this program is Bartell Drugs. Bartell’s is the oldestfamily owned drugstore chain in the U.S.

• Bartell's has piloted a version of the program called the “Teachable moment” intervention program.

• It’s a simple model to motivate pharmacy patients.

• First, the program uses the pharmacist as the motivator. Now obviously a pharmacist is a good choice because they can interact with patients. But pharmacists are also ranked year after year as one of the most respected professionals. So they have credibility.

• Bartell’s prepares pharmacists for this role by combining – you guessed it: engagement skills training and product information programs. Pharmacists learn a simple model for briefly interacting with patients. Not only does engagement skills training give pharmacists the tools they need, but they also gain the confidence to reach across the counter.

• You’d be surprised how many pharmacists avoid interactions because they’ve never been trained in these people skills.



• Then pharmacists take very brief online programs in drugs and devices frequently used for chronic diseases.

• During the pharmacist’s adjudication, a third-party database identifies each patient with a chronic condition. The system then provides the pharmacist with printed information tailored for the individual patient. This prepares the pharmacist to counsel the patient on their specific chronic condition.

• The system also prints motivational information for the patient to take with.

• The pharmacist also provides the patient with an online resource that has been specifically developed for their condition and provides support for medication adherence and behavior change.

• If there’s a way to support the patient, this program leverages it.



• Now the entire process integrates seamlessly within the pharmacy to minimize the pharmacist’s effort and maximize the impact on patient behavior. Retailers are paid per intervention by pharmaceutical manufacturers.

• This is a program that can help retail pharmacies achieve their core mission and help patients manage chronic conditions. The bottom line here is that when a pharmacist projects a “We-care-about-you” message to a patient, it matters. Many patients only need a figurative booster shot, so to speak, to stay on top of their treatment and improve their medication adherence.



• I’ve saved motivational interviewing for last because it really speaks to the essence of personalized solutions.

• We know that even with a pharmacist’s high credibility, their interventions aren’t very successful when it comes to resistant patients. Especially with these patients, providing authoritative information just doesn’t work. Using persuasive reasoning or encouragement doesn’t work.

• So what’s a pharmacist to do when faced with a patient who has a chronic condition, makes poor lifestyle choices, and doesn’t take their drugs as prescribed? MI may just be the solution.

• Using collaboration, acceptance and compassion, a pharmacist can help a patient clarify their own values and goals. MI can help the patient articulate what’s really important to them. And what’s important to a patient can become the engine to power their change.

• MI recognizes that the patient is in charge, and no one can force the patient to follow their treatment plan and make better choices.

• Think how incredibly valuable a personalized solution is that helps a patient with diabetes, hypertension, obesity, or cholesterol change their behavior.



• MI is a good approach for all patients, but particularly for resistant patients. The patient on this screen may take a heavy dose of collaboration, acceptance and compassion, but just getting him to alter his posture during an interaction moves us in the right direction. So for him, maybe today it’s a small attitude adjustment, and maybe tomorrow better medication adherence.



• Well, as you can see from our screen, we’ve come full circle.

• During our talk, we’ve looked at a few of the ways retailers are dipping into the past and adopting the future to create personalized solutions today.

• I believe that a retailer is likely to have the most success using approaches and technologies that fit their own character, their own brand, their own customers, and their own resources.

• If you keep these variables in your equation and keep fine tuning them, then I believe you’ll be well prepared for the future of retailing.

• So I leave you with the question: “What’s your personal?”


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September 19, 2014 ©2014 Xerox Corporation. All rights ... · 15 September 19, 2014 • It’s not just the future in the retail aisle, it’s also the future at the community pharmacy