CNBC reports that drugstore chain CVS, which already has made significant moves to establish its healthcare-oriented bona fides, is creating a new Amazon Prime-like program designed to reinforce loyalty among its customers.
According to the story, CVS’s new CarePass program will offer consumers “free delivery on drugstore products and prescription drugs, discounts on CVS-branded items, a monthly $10 coupon and access to a pharmacy hotline” - all for $5 a month or $48 annually.
The move follows successful pilots of the program in Boston, Philadelphia and Tampa that resulted in strong appeal to millennials - “20% of people who enrolled were born between 1981 and 1996.” In addition, “CarePass members spent 15% to 20% more at CVS.”
CNBC notes that “pharmacy chains like CVS and Walgreens are fighting to stay relevant as consumers, especially younger ones, shop online more and in physical stores less. Their business models rely on people buying toothpaste, vitamins and other convenience items in addition to filling their prescriptions.
“Amazon has already eaten into sales of these items, called front-store products. The e-commerce giant also threatens their pharmacy businesses with PillPack, an online pharmacy it acquired last year.”
According to the story, CVS’s new CarePass program will offer consumers “free delivery on drugstore products and prescription drugs, discounts on CVS-branded items, a monthly $10 coupon and access to a pharmacy hotline” - all for $5 a month or $48 annually.
The move follows successful pilots of the program in Boston, Philadelphia and Tampa that resulted in strong appeal to millennials - “20% of people who enrolled were born between 1981 and 1996.” In addition, “CarePass members spent 15% to 20% more at CVS.”
CNBC notes that “pharmacy chains like CVS and Walgreens are fighting to stay relevant as consumers, especially younger ones, shop online more and in physical stores less. Their business models rely on people buying toothpaste, vitamins and other convenience items in addition to filling their prescriptions.
“Amazon has already eaten into sales of these items, called front-store products. The e-commerce giant also threatens their pharmacy businesses with PillPack, an online pharmacy it acquired last year.”
- KC's View:
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The only thing that surprises me about this is the fact that delivery via the CarePass program takes one-to-two days, which strikes me as too long when you think about CVS being perceived as being local in orientation.
Other than this, CarePass strikes me as a good idea … as CVS looks to extend its own version of a healthcare ecosystem.
