Fast Five Shorts | There’s An App For That

Summary

Podcast Summary: Omni Talk Retail - "Fast Five Shorts | There’s An App For That"

Release Date: February 6, 2025
Host: Omni Talk Retail
Guests: Ben and Chris
Topic: CVS Health's Revamped Mobile App and Its Impact on Retail Pharmacy Experience

---

Introduction

In the latest episode of Omni Talk Retail, hosts Ben and Chris delve into CVS Health's newly unveiled mobile application aimed at enhancing the retail pharmacy experience. Titled "Fast Five Shorts | There’s An App For That," the episode dissects the app's innovative features, potential benefits, and the challenges it may pose to both consumers and the retail pharmacy industry.

---

CVS Health's Revamped App: Features and Objectives

The episode begins with an overview of CVS Health's revamped app, which seeks to address common pain points associated with in-store pharmacy visits. Key features introduced include:

• Barcode Prescription Lookup: Allows pharmacies to quickly access prescription details and process payments efficiently. (00:00)

• Prescription Status and Cost Transparency: Enables customers to monitor the status of their prescriptions and view associated costs upfront. (00:00)

• Unlocking Locked Cabinets: Currently in pilot mode at three stores, this feature permits app users to unlock prescription cabinets using their devices, provided they are logged in, connected to the store's Wi-Fi, and have Bluetooth enabled. (00:56)

Ben expresses enthusiasm about the cabinet unlocking feature, noting its potential to reduce customer friction while maintaining security against theft.

---

Guest Insights: Ben's Perspective on the App Rollout

Ben commends CVS for prioritizing customer experience (CX) through technological enhancements. He highlights the necessity of protecting high-value, easily stealable items in retail pharmacies, especially within the demanding environment of drugstores. Ben remarks:

"I like the overall focus on CX. It's really good to hear CVS talking about improving the in-store experience for customers." (01:31)

He further elaborates on the balance between securing inventory and minimizing customer inconvenience, emphasizing the importance of reducing frustration caused by traditional locked cabinets. Ben underscores the pilot program's success in Manhattan, suggesting a positive trajectory for broader implementation.

When questioned about whether such investments are sustainable or merely temporary fixes, Ben asserts that the dual objectives of stock protection and customer convenience necessitate ongoing technological solutions. He posits that:

"Is it where we want to be in retail? No. Is it a positive that we are doing something for our known customers that helps reduce that friction? For me, that's a yes." (03:06)

---

Guest Insights: Chris's Evaluation of the App's Effectiveness

Chris provides a balanced critique, acknowledging the merits of CVS's efforts while expressing skepticism about the app's overall impact. He appreciates the move towards fixture-based security solutions but questions the extent to which these features genuinely save customers time. Chris observes:

"Too many of the features of the app itself don't blow me away when they were discussed; they're just table stakes at this point." (04:54)

He remains cautiously optimistic about the cabinet unlocking functionality but critiques the app's current limited rollout, suggesting that presenting it as a major time-saving enhancement may be premature. Chris also touches upon the pricing transparency feature, noting that competitors like Walgreens have long offered similar capabilities, rendering it a standard expectation rather than a differentiator.

---

Pricing Transparency and Its Implications for Consumers and the Industry

A significant portion of the discussion centers on the app's ability to provide upfront pricing for prescriptions. The hosts explore whether this transparency aids consumers in making informed decisions and pressures the drug industry to adopt more robust pricing optimization technologies.

Chris contends that while pricing transparency benefits CVS customers, it is not a unique selling point:

"Walgreens has been doing this as long as I can remember... So they're telling you how they are before you pick them up. Yeah, 100%." (07:57)

Ben concurs, reinforcing the notion that such features have become industry standards. The hosts acknowledge that while transparency is valuable, it may not significantly differentiate CVS in a competitive market where similar functionalities are already prevalent.

---

Conclusion

The episode concludes with a consensus that CVS Health's revamped app introduces commendable features aimed at enhancing the retail pharmacy experience. While the initiative to reduce customer friction and improve transparency is lauded, there remains a degree of uncertainty regarding the app's long-term efficacy and its ability to stand out in a market where many features are becoming standardized.

Notable Quotes:

• Ben on Customer Experience:
  "I like the overall focus on CX. It's really good to hear CVS talking about improving the in-store experience for customers." (01:31)

• Ben on Reducing Friction:
  "Anything that can help reduce the friction. And I know a multi-stage login, Wi-Fi, Bluetooth. Okay, we haven't... it's got to be the right road." (02:00)

• Ben on Stock Protection vs. Customer Convenience:
  "Is it where we want to be in retail? No. Is it a positive that we are doing something for our known customers that helps reduce that friction? For me, that's a yes." (03:06)

• Chris on Feature Saturation:
  "Too many of the features of the app itself don't blow me away when they were discussed; they're just table stakes at this point." (04:54)

• Chris on Pricing Transparency as Table Stakes:
  "Walgreens has been doing this as long as I can remember... So they're telling you how they are before you pick them up. Yeah, 100%." (07:57)

---

Takeaway: CVS Health's app revamp signifies a step towards integrating more technology-driven solutions to enhance the retail pharmacy experience. While certain features offer tangible benefits, the industry's evolving standards necessitate continual innovation to maintain a competitive edge.

Transcript

[Host]

CVS Health is going to change that for us today because they unveiled a revamped app that aims to shorten long pharmacy lines, deliver more transparency on prescription costs, and ultimately makes visits to the retail pharmacy chain quicker and less painful and potentially a shorter receipt. In the it's in digital form, but I can't make any promises on that one yet. Let's go to the facts on this story here. According to the Wall Street Journal, the new features include a barcode that lets pharmacies quickly look up a prescription and receive a payment, a way for customers to view prescription status and costs, and in pilot mode at three stores. Wait for it. The ability to unlock locked cabinets. I know, right? Exciting stuff here. App users however, in order to use that feature need to be logged in and on the local store wi fi and with their devices Bluetooth enabled to activate the cabinet.

[Chris]

Just that feature.

[Host]

So while Joe calls, Mom can leave a comment on YouTube. Will she be able to unlock the cabinet with her device at a cvs? That is the question that still remains with a pilot is while it's currently just in three stores, CVS has said that they're going to roll this out because it's going well. The next step would be to expand to 10 to 15 stores with the ultimate goal of full scale deployment. Ben, we're going to go to you first on this one, friend. What do you like and not like about CVS's new app rollout?

[Ben]

So what do I like? I guess number one, I like the overall focus on cx. Yeah, I think it's really good to hear CVS talking about. We want our in store experience to be better for our customers. I think anybody who has frequented many drugstores recently will kind of understand that there is a can do better and here we are using technology to make that. So that's the umbrella. The bit I definitely like and I know it's only a three store pilot, but I'm so pleased to see investment in being able to open and unlock cabinets. So I guess stepping back completely get the situation that we're in. We I've talked to a lot of retailers and particularly in the US the levels of, of wastage, the level of loss, the level of theft, the level of stock, it's, it's tangible so we get the importance of locking things up but the customer friction it creates is, you know, we know is terrible. I was in my local drugstore yesterday and I watched someone just getting frustrated that they couldn't get someone just to unlock a cabinet for them to Be able to get razor blades. So we get it. Anything that can help reduce the friction. And I know a multi stage login, WI fi, Bluetooth. Okay, we haven't, look, we're on the road, but it's the, it's got to be the right road. It's got to be the right road to be on. And do you, do you think that.

[Host]

Ben, just a second. Like, do you, I, I, in, in general, like, do you really think that this is something that if back in your retail days, like would you be investing in this as heavily as we're seeing some retailers or do you think this is more of a temporary fix?

[Ben]

Look, I think it's, it's two phases. So number one is do we need to protect stock in store? And I think the reality, and particularly, particularly in drug, when you've got small, easy, stealable, high, high value items, particularly some of the locations and some of the demographics that the RX present requires your risk, your risk factors in a drugstore are so much higher. So you have. Unfortunately we're at the point of having to do something. So you've got a range of solutions that you've got to go through. We know the formats where you control entry, have lower stock loss. Is that possible across an 8000 drug estate? I'm not sure. So therefore you've got to do something at Fixture and if you're doing something at Fixture where you, where you're adding in that friction, you've then got to remove it for customers who have honest intentions. So I spoke to our friend John Harmon from Coresight Research, One of these three pilot stores is in Manhattan. He's been to it, he's tested the tech, he was pretty positive. It works. So is it where we want to be in retail? No. Is it a positive that we are doing something for our known customers that helps reduce that friction? For me, that's a yes.

[Host]

Okay, well Chris, I gotta go to you on this. I mean we've talked about the value of this, especially bringing loyalty into the mix as a way to give perks. We talked about this with Walmart on our end of the year show. Where do you land on this, Chris? Are you feeling like this app is, is really going to improve things for cvs?

[Chris]

I don't know. I think part and parcel. I agree with, I agree with Ben. I think brings, Ben's bring up a lot of good points. Especially I like the phrase at Fixture. Too bad I've never heard that before. That's a good one. I might start stealing that. But you know, I think it highlights the fact that, you know, these companies don't know what to do except put products behind glass. And so they've got to figure that out in the short term. So that's obviously why they're so excited in talking about this. But you know, for me, on the like side of it, at the end of the day, I think a lot of this is just CVS keeping up with the Joneses. Too many of the features of the app itself don't blow me away when, when they were discussed, when you discuss them, they're just table stakes at this point. And the unlocking the cabinet thing, like. Sure, I guess. I mean, it's, it's, it'll be interesting to see how it works though. And it sounds like from, from Ben's intelligence that it's actually works pretty well. So that's good. But the biggest thing I don't like about the store though is just how it was pitched to the media. I don't feel like the app in and of itself saves a customer that much time. Consumers, you have to go into the store and pick up your prescription and maybe the unlocking of the cabinets, but you're only in three stores and you're pitching this as a time saving app enhancement. So that just seems incongruous to me.

[Host]

So.

[Chris]

Net. Net. I don't know, I, I just don't see the features as described in this giving customers back all that much time. That's my opinion on this story.

[Host]

Yeah, I agree with you, Chris. I, I'm Chris because you resident pharmacy expert here. Because I feel like you have many more interactions with going and picking up prescriptions than I do.

[Chris]

We're letting people under the covers again of this show already.

[Host]

Well, you, I mean, I'm not saying anything you haven't said in a podcast previously. I'm just saying in this, I take.

[Chris]

Like 10 medications a day. Yes, you're right. You're right. Just put it out there.

[Host]

But go ahead. No, my question is. I'm sorry, I feel bad. No, that was not my intent. Listen, the thing that you both didn't call out and was. And probably because it was so like slightly covered in this, in this coverage of the app release is the pricing, availability and being able to see that up front now, I, I don't know if that is something that could be valuable and I think that could be. And maybe this is because we have a conversation coming up with Revionics. Where I've been, this has been more top of mind for me. But I'm wondering if, you know, being able to see pricing for prescriptions up front in the app, if that's of all valuable for consumers before they're going in and they're at the checkout point and they're getting slapped in the face with this, this number for a prescription. Or maybe they're able to, like, shop around a little bit before they would pick up a prescription, if that could actually be of value. I know there's other, like, prescription drugs price finders out there to make sure that you're getting the lowest price, but do you think, Chris, that that has any impact here, like, one, on consumers and two, on the drug industry for being needing to focus more on pricing optimization technology?

[Chris]

No, I think it just goes back to the point I made. Like, it's probably good for CVS customers, but it's table stakes for the industry. Walgreens. Walgreens has been doing this as long as I can remember, since I started using the app two or three years ago. So you can see.

[Host]

So they're telling you how they are.

[Chris]

Before you pick them up. Yeah, 100%.

[Host]

Okay. So this goes. This is table stakes.

[Ben]

All right.

[Host]

Yeah, well, that's all I had.

[Ben]

All right.

[Host]

That was my saving grace. I was trying cvs. I was like, maybe this is something new.