CVS to change key loyalty benefit for the first time in 20 years

Dive Brief:

CVS pharmacy will now pay back 2% in ExtraBucks rewards to members of its ExtraCare Rewards loyalty program after almost every transaction instead of every quarter, the first changes to the program's core benefit in 20 years.
Starting in July, the retailer will display the 2% ExtraBucks Rewards within the CVS app, its website, and on digital and printed receipts, the company announced on Tuesday. The company is also offering its app users exclusive incentives in late June and throughout July.
The company also said that it plans to improve its ExtraCare BeautyClub program later this summer. The retailer is introducing a birthday benefit for its members who have opted to share their birthday information, too.

Dive Insight:

CVS noted that its app had seen double-digit increases in downloads over the past year, and the coupons loyalty program members received through the app have more than doubled. Per the announcement, the retailer's loyalty program has 74 million members.

"We've evolved our ExtraCare program following an in-depth assessment that revealed what members love most about the program," Michele Driscoll, vice president of customer engagement, loyalty and personalization at CVS Health, said in a statement. "They appreciate the value their membership provides, and they told us they want more flexibility in how they access and use their rewards."

During the COVID-19 pandemic, shoppers became more open to new brands, prompting retailers to streamline and improve their loyalty programs to keep customers. As CVS adds new benefits to its loyalty programs, other retailers have also either unveiled or added more perks to improve their loyalty programs.

After launching the Target Circle program, Target amassed nearly 80 million members, the company announced in November. That same month, Claire's launched its first loyalty program complete with perks like birthday surprises, special sales and exclusive member events. Meanwhile, Kohl's and Tractor Supply each added extra incentives to their loyalty programs.