CVS Expands CarePass Program

Aiming to bring in more millennial customers with free home delivery, CVS rolls out a yearly membership.

August 07, 2019

WOONSOCKET, RI.—CVS thinks it knows what millennials want—free home delivery of health and beauty care products and medications, CNBC reports. The drugstore chain has rolled out its CarePass program nationally after testing the membership-based initiative in three cities.

The program costs $5 per month, or $48 per year, and it gives members free delivery on drugstore items and prescription drugs, a $10 coupon each month, a pharmacy hotline and CVS-brand discounts. Twenty percent of those who enrolled in the pilot program were millennials.

“That’s something we wanted,” said CVS Pharmacy President Kevin Hourican. “Millennials are time-starved, and we want it to be easier to do business with you.” The test found that CarePass members had between 15% and 20% higher transaction totals, which Hourican indicated more than made up for promotions and shipping costs.

Younger customers do more shopping online rather than in physical stores, and drugstores are scrambling to find new ways to bring in these customers. The pharmacy model is built around customers picking up prescriptions and buying other essentials.

Hourican said the “vast majority” of transactions happened in stores, but CVS also knows those customers shop online, too. “We think this program extends the convenience advantage,” he said. “We are a very convenient shopping location because of our footprint, and this expands our convenience one step further.”