ExtraCare

ExtraCare

OVERVIEW

Originally launched in 2001, the CVS ExtraCare card program has attracted more than 50 million cardholders and continues to grow. The ExtraCare program was created to reward loyal customers with discounts and informational mailings relevant to their needs. It also helps CVS respond to what its customers really want, based on information collected from card sales.

BENEFITS

• Extra Bucks® - The ExtraCare program pays back customers 2% on purchases in the form of a coupon printed at the bottom of the store receipt. It also rewards customers with $1.00 to spend on front store merchandise for every two prescriptions purchased.
• ExtraCare customers receive mailings with special offers and coupons, and information about new products and technologies tailored to their shopping habits.
• Free Extras™ is a way for customers to get free merchandise when they purchase participating products.
• ClipFree Savings - Cardholders don't have to spend time cutting and organizing coupons to reap CVS savings. All they need is their ExtraCare card at the register.
• Customers who have flexible spending accounts (FSA) with their employers can use their ExtraCare card to get a record of their over-the-counter medicine purchases.
• Upromise™ - Every time a customer places an order online with the ExtraCare card, Upromise contributes 5% of the purchase price to his or her college savings account.

MODEL PROGRAM

CVS stands alone in its commitment to being the easiest pharmacy for customers to use, always making patron needs the top priority. Washington Post health writer, Francesca Lunzer Kritz, urges consumers to "Get bucks back from your pharmacy," and cites CVS's ExtraCare program as a model for how loyalty programs should reward their customers.*

Q. How do consumers know their personal information won't be given to other companies?

A. Data collected from card sales is used strictly to help us better understand and serve our customers. Information about CVS customers is never released to any outside company. CVS is so thoroughly committed to honoring ExtraCare cardholders' privacy that the subscription form offers a place for customers to Opt-In for mailings.

Q. But that doesn't guarantee privacy.

A. For anyone wishing to join as an anonymous cardholder, she can apply for the ExtraCare program without filling a name or address. All the same card benefits apply, but she won't receive any mailings.

Q. How does CVS benefit from such a program?

A. The ExtraCare program operates as an extra layer to our mass marketing efforts. It allows us to target customers in direct mailings according to what they really buy and need regularly. Card sales provide us with another body of information that helps us provide better services and products, customize our promotional plans, and generally be a better pharmacy retailer for our customers.

* "The 22 Percent Solution," by Francesca Lunzer Kritz. The Washington Post, October 28, 2003.