CVS Pharmacy, the retail arm of CVS Health, looks to be borrowing a page from Amazon Prime for a new addition to its customer loyalty program.
Amazon Prime is Amazon’s rewards program, which offers paying members two-day free shipping on millions of items and a streaming video program. To date, Amazon has an estimated 95 million Prime members in the U.S., says Consumer Intelligence Research Partners.
CVS claims to have more than 80 million members for its ExtraCare loyalty program and is adding a new feature—CarePass—at its 350 pharmacies in Boston as a test market.
CarePass includes free delivery on most medications and purchases, access to a 24/7 pharmacist hotline and 20% off all CVS Health brand products.
Similar to Amazon Prime, which charges $119 per year for an annual Prime membership and $59 each year for an annual student membership, CVS also is charging a fee.
Customers can join CarePass for $5 a month or $48 a year and also receive a monthly $10 CarePass promotional reward that can be used towards nearly all purchases in-store and online at CVS.com, CVS says.
The ExtraCare program, which CVS says it will expand to other markets without detailing when or where, is the latest in a series of recent moves to beef up customer loyalty and add on more services.
In December, CVS, which operates 9,800 pharmacies nationwide, rolled out same-day prescription delivery in New York an in June expanded service to Boston, Miami, Philadelphia, San Francisco and Washington, D.C. In these cities, customers have the option to choose same-day delivery for a one-time cost of $8.99. All orders placed by 4:00 p.m. local time are delivered within hours, by 8:00 p.m. Monday through Friday. On Saturday and Sunday, orders received by 11:00 a.m. are delivered by 4:00 p.m., CVS says.
CVS Pharmacy, the retail pharmacy division of CVS Health, also is rolling out additional delivery options for its stores and mobile app. CVS Pharmacy customers nationally can now opt to have their prescriptions delivered to their home, rather than going to the store to pick them up. Customers can place orders for one- to two-day prescription delivery service through the CVS app or by calling their local CVS store. The delivery service charge is $4.99.
With CarePass, in addition to extra product discounts and loyalty points, CVS customers in Boston that sign up also get free one- to two-day delivery on qualifying prescription drug orders with home delivery through the post office.
“We are designing and testing programs that meet our customers’ health needs whenever, wherever and however they want,” says CVS executive vice president Kevin Hourican. “The CarePass pilot program in Boston offers our customers an additional level of benefits and receive access to on-demand pharmacy care.”
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