After successful test runs in Boston, Philadelphia and Tampa, the CVS membership program CarePass will expand nationally with free delivery for an annual fee, CNBC reported on Monday (Aug. 5).
Membership is $5 per month or $48 a year, which allows users to access free two-day delivery of store products and prescriptions. Members also get a $10 coupon each month, special discounts and access to a pharmacy hotline. The pilot program indicated that 20 percent of users were millennials and that CarePass members spent 15-20 percent more at CVS.
“That’s something we wanted,” CVS Pharmacy President Kevin Hourican told CNBC. “Millennials are time-starved, and we want it to be easier to do business with you.”
In contrast, Amazon Prime is $119 per year or $12.99 per month for free expedited shipping, along with other benefits.
CVS is joining other pharmacy chains in offering new programs to lure customers away from Amazon, which has eaten into its sales of health and beauty items and is threatening its prescription business.
Hourican told CNBC the “vast majority” of purchases are made in stores, but CVS doesn’t want to lose customers who prefer to shop online.
“We think this program extends the convenience advantage,” he noted. “We are a very convenient shopping location because of our footprint, and this expands our convenience one step further.”
CVS has tried various strategies to attract and keep customers, including offering an on-demand prescription delivery service powered by Shipt, rolling out a mobile app and launching CBD offerings. Last year, they partnered with GlamSquad to offer beauty services like blowouts, dry styling, braids, a 30-minute makeup refresher, skin services and manicures.
To order from the pharmacy, consumers can choose the on-demand prescription delivery service through the company’s app by calling a pharmacy or sending an SMS text. The on-demand delivery charge is $7.99, while the fee for the one- to two-day offering is $4.99.