The REAL tipping point
"A number of factors are driving the explosion in convenient care…." That’s what a May 4 article, "Retail clinics at tipping point," on the website ModernHealthcare.com had to say about the growth of retail clinics, and the role the model can be expected to play as healthcare reform hits full stride.
The timing was impeccable — the story appeared just one week before our annual Retail Clinician Education Congress, a live continuing education and leadership event, now in its sixth year, that DSN co-hosts with the Convenient Care Association.
But if you are looking for a real tipping point, you will look at how a profession addresses the challenges of training the next-generation work force — that will tell you a lot about what the future is going to look like.
DSN got its first peak over that mountain at RCEC last month during a special closed-door, roundtable discussion of nursing practice and education leaders coordinated by the National League of Nursing in conjunction with the CCA. The goal: to structure transformative strategies in nursing education and training to meet the increased needs for more advanced practice nurses to staff new models of healthcare delivery, such as retail clinics.
CCA executive director Tine Hansen-Turton described the meeting as transformative, bringing together, "the industry, nursing leaders and the universities to strategize around how we build a work force that is trained and educated for this model of care."
"This is a historic endeavor and a level of collaboration that is unheard of," said Beverly Malone, CEO of the National League of Nursing, who moderated the May 15 discussion. "It is all about how do we take education and hook it and bridge it to practice to make sure we are serving the needs of the community and the patients."
"I believe this is a historic meeting," Angela Patterson, chief nurse practitioner officer for CVS Caremark’s MinuteClinic, told DSN. "Bringing two major groups of nursing leaders together who care deeply about transforming nursing education in support of advancing our nation’s health is an exciting opportunity for our profession."
Sandy Ryan, chief nurse practitioner officer and clinical advocate for Walgreens’ Take Care Health Systems, added, "as we look to transform the delivery of health care, we need to think differently and transform clinical education to meet the needs of patients nationally … to strategize ways to increase the number of advanced practice nurses."
Reaching a multicultural market
Understanding the needs of the multicultural marketplace, personal care company Sundial Brands, the maker of SheaMoisture, is working to take a new general market positioning at retail. Richelieu Dennis, founder and CEO of Sundial Brands, talked with Drug Store News about the brand’s heritage and how it is catering to the needs of its customers.
DSN: What makes SheaMoisture unique and what has been key to the brand’s success?
Richelieu Dennis: Our focus goes beyond beauty — to the health and wellness of our consumers, which is of great importance to us, including educating them about the benefits of the unique, natural and certified-organic ingredients we use. … Our marketing efforts have been focused on building brand loyalty through this direct customer connection. … While we also do traditional marketing and industry seeding, we’ve found that our consumers are heavily influenced by the thriving online community of like-minded consumers and a grassroots approach with events and shows.
DSN: Can you elaborate on the new SheaMoisture market positioning?
Dennis: According to the Census Bureau, in the year ended July 31, 2011, African-Americans, Latinos and other minorities accounted for 50.4% of all births. Demographic shifts indicate that by 2040, the non-Caucasian population will equal the Caucasian population. The profile of a typical shopper will evolve in age, family size, family income and, most importantly, the nature of their unmet needs. … Historically, multiethnic consumers have shopped local beauty supply stores, while being relegated to the ‘ethnic’ set in both drug and mass retailers for their personal care needs. However, the ‘ethnic’ set is just a small part of the spend; today the buying power and influence of the emerging multicultural and ‘ethnic’ consumer is undeniable. We take a problem/solution approach to hair and skin care; ethnicity doesn’t play into our product development, but hair and skin care needs do. … At SheaMoisture, we’ve embraced this new category through these key steps: understanding consumer wants, needs and drivers; listening to customer demands; and responding via one-on-one engagement.
DSN: What is important for retailers to understand about this new approach?
Dennis: It’s important to understand that consumers — regardless of skin color — require products that target specific skin and hair care solutions for their special needs, but they want flexibility and versatility in their looks and styles, especially in hair care to wear their hair natural, straight, etc. … African, Latino and Asian consumers have been under-served traditionally in the mass market in terms of availability of products with natural ingredients. It’s interesting to note that Americans of color actually skew more green-minded than whites, according to Packaged Facts. These consumers are looking for products that speak to their quest for green, therapeutic and healthy personal care products. Supporting natural product offerings with education and social engagement helps consumers understand the origin and benefits of ingredients that cater to their specific skin and hair care needs.
Using big data to drive retail personalization
The challenge for retailers and consumer packaged goods manufacturers these days is how to make a molehill out of a mountain. Big data can seem overbearing to many as they try to ascertain how to mine actionable insights out of those reams of data, all while maintaining the speed to market that today’s retail climate demands.
And those mountains are only getting bigger with each day as more retailers come to market with advanced loyalty card programs that use that data to personalize the offer.
Big business and their consumers generate 2.5 exabytes — or 2.5 billion GB — of data, also growing at a rate of 40% per year. With the proliferation of social media sites, consumers now have a multitude of possible avenues through which to engage a brand — Facebook, Instagram, Pinterest and Twitter — and each of those touchpoints generates individual points of data. "The digital revolution has forever changed the consumer’s path to purchase," Appel said. "Big data is not about building massive databases or other costly technology products," Appel said. "It’s about identifying the five to 10 combinations of existing and new data sources that, when combined [with] sophisticated real-time analytics, drive better decision-making."
Making sense out of big data is becoming a big business in itself.
"Big data technology and services will reach $17 billion by 2015, from [a base of ] just $3 billion in 2010," IRI’s new CEO Andrew Appel told attendees of the company’s 2013 Summitt in Las Vegas in March. "That’s a 40% annual growth rate."
According to IRI, the U.S. CPG and retailing industries potentially could see more than $10 billion in annual value created as a result of improved application of advanced analytics to support brands and channels. "If the top 20 CPG manufacturers were able to work collaboratively with the top 10 U.S. retailers and leverage analytics to tap incremental consumer profit pools, we estimate the impact to be more than $10 billion annually for just a 5% improvement," wrote Robert Holston, EVP and division leader symphony analytics at IRI, in a recent IRI white paper based on IRI’s Analytics 2020 survey of senior CPG and retail executives. "For a typical $5 billion CPG manufacturer, this equates to more than $75 million of incremental annual value created by only driving retail sales improvement 3%."
Making sense out of big data is crucial to "this new normal of driving personalization to target [the consumer]; determining a shopper’s propensity to shop a channel, a banner, a category or brand; and discovering what elements determine selection and de-selection," Holston noted. "Companies leveraging average analytics capabilities are 20% more likely to drive higher return to their shareholders than their non-analytics-oriented peers; those with advanced capabilities are 50% more likely."
"Today’s scale needs to be about understanding what consumers want and leveraging your scale to deliver it better than anyone else," said Ann Mukherjee, chief marketing officer for Frito Lay North America. "That’s the new game in town," she said. It’s about understanding the drivers of choice. "It’s actually taking all the variables together — the who, what, where, why and why not — and understanding when it all competes together, what really drives choice. … If you don’t understand [the] whole picture, your growth efforts will compete with each other."
It’s not just about making molehills out of mountains; it’s about identifying and mining the molehills that will provide the greatest return