Dive Brief:
- Following last year's layoffs and financial woes, CVS Pharmacy has updated its loyalty program to offer two tiers: ExtraCare and ExtraCare Plus, the pharmacy retailer announced Thursday.
- With its free ExtraCare tier, shoppers can access perks like 2% back in ExtraBucks rewards and personalized discounts via text message. Benefits that were previously found within ExtraCare Pharmacy & Health Rewards will now be available through ExtraCare. Members can earn up to $50 for filling prescriptions and getting vaccines, according to the announcement.
- For $5 per month, ExtraCare Plus subscribers can access the same ExtraCare benefits as well as free same-day deliveries and a $10 monthly bonus reward. The drugstore chain first debuted its ExtraCare Plus program, formerly known as CarePass, in 2019.
Dive Insight:
CVS in recent years has made other changes to its loyalty incentives. In 2021, the company announced that it would pay 2% in ExtraBucks rewards in its ExtraCare Rewards program more frequently, shifting from quarterly payouts to nearly every transaction. CVS Pharmacy also made other enhancements such as improving its text messaging, mobile app and in-store checkout capabilities.
“ExtraCare is a long-standing leader in the loyalty program industry and this evolution will allow us to provide even greater simplicity to our members, while providing value and making it easy for people to take care of their health,” Zach Dennett, vice president of loyalty, omnichannel and Hispanic formats at CVS Health, said in a statement. “Now, instead of having to join various programs to unlock all the savings available to them, we’ve made it easier for our members and patients to choose from our two-tiered offerings and access the benefits that best fit their needs, including new same-day delivery and pharmacy rewards, which are now a core benefit.”
CVS is stepping up its perks to court customers amid financial woes. Last year, the retailer announced plans to cut 5,000 positions. In August, CVS announced a restructuring initiative after the company’s profits fell 37% year over year in the second quarter. The retailer at the time said it expected to substantially complete the restructuring plan by the end of 2023.
