With plans to win over the technologically inclined millennial market, CVS Pharmacy’s CarePass looks a lot like Amazon Prime. The service offers free home delivery of their product offerings after you pay the $48 annual membership fee
CVS has released a statement that the CarePass program, which was initially tested in Tampa, Boston, and Philadelphia, will now be available in the whole country. Customers need to pay $5 monthly or $48 annually to enjoy free delivery on prescription drugs and other products, membership discounts, access to a pharmacy hotline, and a monthly coupon worth $10.
When it was tested in the first three cities, it was shown that 20% of the pilot members are millennials, people born between 1981 and 1996.
According to CVS Pharmacy President Kevin Hourican, the company’s principal goal is to reach millennials, because they are time-starved and the company wants to get and retain their business.
Pharmacy companies are trying to stay relevant to the buying market, especially to younger customers who do their shopping online instead of physical stores. The business models of these companies, like CVS and Walgreens, depend on people buying personal hygiene products, vitamins, and other convenience items for their survival.
Amazon, as the leading retail brand, has eaten the more significant percentage of these type of front-store goods. This eCommerce empire also threatens the entire pharmacy industry as they have acquired an online pharmacy, Philpack, last year.
The CVS President has not provided the specific percentages that tell how many people shop in-store versus online. Their statement only said that the majority still prefer to shop in their physical branches.
Hourican adds, “We think this program extends the convenience advantage. We are a very convenient shopping location because of our footprint, and this expands our convenience one step further.”