What Does CVS Stand For
CVS stands for Consumer Value Stores. 1964 — The chain grows to 17 stores. The original CVS logo is developed (CVS banner inside a shield, with the words “Consumer Value Stores” below) and displayed on store exteriors for the first time.
Questions prior to the article:
- What percentage of the population buys your product or service for its price?
- Before someone called your organization, walked through your door or visited your website … What level of service, on a scale of 1 to 10 (with 10 being the best of the best) do you think? is your consumer? waiting?
- How do your consumers measure the value of your product or service? How can you use this to build a better value proposition than your competition?
Answers from my perspective:
What percentage of the population buys your product or service by price?
I find that most companies think the number is higher than it actually is what does cvs stand for. Even gas stations shouldn’t be so focused on their price, but they are because they’re content to be commodities when they should be thinking about value (more on that later). I think price is more like 3 or 4 on the top 10 criteria list that even the lowest income consumers take into consideration. Take hotel rooms as an example. If price were the main concern of the hotel consumer, then they would stay with a relative, in his car or at the “Bob’s Bargain Motel” next to the railroad tracks with all the graffiti. People will pay a little more to get what they perceive to be a lot more … even minimum wage consumers make these kinds of decisions. “For $ 1.50 more, this hair dryer has multiple speeds, looks cooler, and is more durable … I’ll spend the $ 1.50 to get the extras.”
What level of service, on a scale of 1 to 10 (10 being the best of the best) do you think your consumer expects?
Most of you were thinking 8-9-10 and the answer is much less. Why? I’ve asked 800 audiences if service levels in America are getting better or worse. 99.99999% of them say it is getting worse. And, when talking to international people, I get similar responses. Most companies hope to get a 10. Consumers dream and pray for a 10 … but most expect to get a 5. Why? Because first-time consumers always group companies into the group of bad suppliers that exist. I have asked many people to stand up and tell me the last time a restaurant, shoe shine store, cable company, or AutoZone store surprised them with exceptional service. Most take a long time to say something … and when they say something, they tell stories about how water was served to their table, the food was hot, the waitress is friendly, and the check arrives on time. Folks, this is what we’re S U P P O S E D to achieve! For what we pay! It is amazing that we are impressed with the good feelings because we got what we paid for. But here’s the deciding factor: If companies DO TRY to deliver more than people expect … they will be impressed. Just for the simple fact that they are trying. That’s how bad the service is collectively in America today.
How do your consumers measure the value of your product or service? How can you use this to build a better value proposition than your competition?
Value is calculated in the mind of the consumer starting with an expectation (E) and seeing, feeling, smelling and hearing how your organization delivers (D). My value formula reads like this: V = D / E. If a consumer has never used your services before and expects their business service level to be 5 (E), but then delivers a 9 (D) … then the delivered value is maximized. It is a mutual benefit for you and the consumer. Now when they use you the second time … what will they be waiting for? Right, a 9. And although it is much, much more difficult to impress people a 2nd, 3rd, 4th time, etc … that’s what companies should do. Low prices? Give away free stuff? NO. deliver more than the consumer expects. Never stop adding value to the consumer experience.
Let me offer some real-world examples of business and consumer value:
AutoZone advertised in a big way on billboards, radio and television that if you walked into their stores to buy a new battery, they would first test your old battery to make sure that was the problem before exploring any further. The same goes for other parts of the car. The problem was … the stores, in Memphis, TN (where AutoZone is based), rarely did. I thought this was a great marketing idea when it came out, but it wasn’t supported with training and reinforcement. As a consumer, I had an expectation of No. 7 and they turned in a no. 2. I would have been surprised if your stores had taken the time to actually test customer batteries and other important parts while they were under