CVS Pharmacy, the retail division of CVS Well being® (NYSE: CVS), is understood for its ExtraCare loyalty program which gives reductions, coupons, and rewards to thousands and thousands of consumers. Publicly disclosed info studies membership of about 74 million individuals in Q1 2024. In 2019, the corporate added CarePass, a premium paid membership designed to ship extra financial savings and comfort.
CVS acknowledged that as retailers broaden their choices, the proliferation of a number of loyalty packages can complicate the patron expertise and pose challenges for each clients and retailers. In a streamlining effort, CVS Pharmacy, introduced the evolution of its loyalty program to incorporate two membership tiers: ExtraCare® and ExtraCare Plus™.
At the moment, Zach Dennett, Vice President of Loyalty, Omnichannel and Hispanic Codecs, CVS Well being, mentioned “Now, as an alternative of getting to hitch varied packages to unlock all of the financial savings obtainable to them, we’ve made it simpler for our members and sufferers to select from our two-tiered choices and entry the advantages that greatest match their wants, together with new same-day supply and pharmacy rewards, which at the moment are a core profit.”
Eighteen months later, we have a look at the worth provided by ExtraCare Plus (the paid membership tier). Right here’s a breakdown of this system’s options, together with insights from Erin LeRoy, Director, Affiliate Relations at ebbo.
The Fundamentals: Begin with ExtraCare
Earlier than becoming a member of ExtraCare Plus, you could already be a member of ExtraCare, CVS’s free loyalty program. Enrollment might be accomplished in-store or on-line, opening up these advantages:
- 2% again in ExtraBucks Rewards on most purchases
- A $3 birthday reward
- Weekly sale costs marked in-store and on-line
- Personalised coupons through electronic mail, app, or textual content
- As much as $50 yearly in pharmacy-related rewards for filling prescriptions or receiving vaccines
The free program satisfies the wants of most customers procuring within the each day spend retail class, however for individuals who wish to improve and luxuriate in extra advantages, ExtraCare turns into an attention-grabbing possibility.
Membership in ExtraCare Plus prices $5 per 30 days or $48 yearly – a 20% low cost for these keen to pay membership charges up entrance. ExtraCare Plus consists of all the free tier advantages plus:
- $10 month-to-month bonus reward mechanically credited to your account
- 20% off CVS Well being® model merchandise, from nutritional vitamins to non-public care gadgets
- Free 1–2 day supply on prescriptions and qualifying CVS.com orders
- Free same-day supply (usually inside three hours) for eligible retailer gadgets
- Free delivery on CVS.com orders over $10
- 24/7 Pharmacist Helpline, providing steering on prescriptions and financial savings alternatives
As Erin LeRoy, Director, Affiliate Relations at ebbo notes “with $120 in annual ExtraBucks, members web $60–$72 after charges—so this system greater than pays for itself.” Erin summed up her participation in this system positively: “I’ve had an incredible expertise with CarePass, and the CVS app makes it particularly user-friendly. While you log in and click on “Store & Save,” you’ll see all of your energetic gives in a single place—together with your $10 Month-to-month ExtraBucks, birthday rewards, and personalised coupons. You possibly can simply ship chosen gives to your card and monitor them in a devoted tab, making it easy to remain organized and store strategically.”
Erin’s Professional Tip: When you’re in-store and wish to examine for relevant coupons on a product, simply scan it utilizing the app—any obtainable gives will pop up immediately. For instance, once I scanned a tube of Colgate toothpaste, the app responded with a “Whoohoo! You’ve got received offers for that product” message. I used to be ready so as to add the coupon to my card proper then and there by tapping the inexperienced checkmark—tremendous fast and handy.
Shopper Worth: Who Advantages Most?
Erin’s expertise exemplifies the the explanation why paid loyalty packages exist. On this case, frequent CVS consumers and people who handle a number of prescriptions profit from the layers of extra advantages and the “loyalty math” is sensible:
- Assured payback: The $10 month-to-month reward doubles the $5 membership charge, offered you redeem it.
- Comfort: Free supply choices save journeys to the pharmacy, an interesting perk for busy households, caregivers, or mobility-restricted clients.
- Financial savings stackability: Members can mix the month-to-month reward with different ExtraCare coupons and gross sales for bigger reductions.
Erin shared what she loves most about this system:
The $10 Month-to-month ExtraBucks:
- As a yearly subscriber, I primarily make $6/month in web worth (I pay $48/yr vs. $5/mon)—which provides up shortly and makes the membership really feel like a win.
Stacking Financial savings:
- CVS is beneficiant with layered promotions. This is a fast instance from a current journey: I purchased 2 tubes of toothpaste at $11.29 every and used a $4 CVS retailer coupon plus a $10 producer coupon. In return, I obtained $6 in ExtraBucks post-purchase for getting that particular product and received a shock $2 ExtraBucks provide.
The Outcome?
- I paid $8.58 upfront after my two coupons AND obtained $8 again in ExtraBucks, bringing my precise price to $8.58, and my perceived price down to simply $0.58 for 2 tubes—or $0.29 every. Fairly unbelievable for brand-name gadgets.
Marketer Takeaways: Why ExtraCare Plus Issues
CVS has constructed a case examine in subscription-based loyalty. By combining predictable rewards, comfort options, and unique reductions, this system creates a self-funding cycle of engagement.
It’s an instance of how conventional loyalty packages can evolve into subscription fashions that deepen model stickiness and generate recurring income. Entrepreneurs contemplating whether or not a paid or subscription program is an effective match for his or her model can study from the instance of ExtraCare Plus.
- Upselling by way of familiarity – CVS funnels its current loyalty base right into a paid improve by requiring ExtraCare first.
- Constructed-in retention lever – The $10 month-to-month reward nudges clients into recurring procuring habits.
- Behavioral knowledge assortment – Members have interaction extra usually, offering CVS with invaluable personalization insights.
- Simplified construction – The 2024 rebrand lowered confusion by consolidating loyalty into two clear tiers.
Entrepreneurs want to know their viewers and each subscription program has a powerful focus group to assist it, whereas occasional consumers might not see the identical worth. Keep in mind that subscription packages – identical to any loyalty program – aren’t designed to fulfill the wants of each buyer.
For instance:
- The 20% low cost in ExtraCare Plus applies solely to CVS Well being model gadgets, which can not align with each shopper’s preferences.
- And the worth proposition disappears if you happen to don’t store at CVS not less than as soon as a month.
- As one buyer put it on a CVS discussion board: “It’s solely value it if you happen to’re within the retailer commonly or want prescriptions delivered. In any other case, you is likely to be paying for advantages you don’t use.”
However for customers that store at CVS not less than as soon as per 30 days, ExtraCare Plus is a simple win. The $10 month-to-month reward alone offsets the membership price, whereas supply perks and model reductions add bonus worth.
ExtraCare Plus displays a broader development in loyalty advertising and marketing: the shift from free factors packages to paid memberships that assure quick worth. On this case, ExtraCare Plus is an effective deal if CVS is already a part of your common procuring routine.
And for entrepreneurs, it’s a reminder that the way forward for loyalty lies not solely in reductions but in addition in comfort, consistency, and dedication.
