However, the reward earned by the customers can only be spend at the CVS/pharmacy location or when making online purchases. A person is capable of earning 2% in return for the purchases made either on-line or at store. A person purchasing two prescriptions can earn one extra buck (CVS, 2011).
The company also offers GreenBagTag related program which is one of the novel characteristics of the CVS/pharmacy Extra Care Reward related program. In this program the cardholders are capable of earning incentives if they do not choose to take a ‘single-use plastic bag’ for shopping. They further receive other money-saving advantages that are related with the participation in ExtraCare program (CVS Caremark, 2010).
The company is benefited from the program since such kind of loyalty programs lead to larger transactions, higher profits and frequent purchasing made by the customers. It also provides an insight into customers’ preferences about their needs and wants. It has been found that by such initiatives the CVS cardholders tend to make purchase 11 times per annum and the top cardholder tends to visit the store approximately 27 times in a year. Therefore, the program can be considered as being quite beneficial.
The company’s seven different customer groups are budget shoppers, convenience shoppers, family-focused shoppers, quality shoppers, grab-and-go shoppers, traditional shoppers and watching-the-waist-line shoppers. It can be mentioned that in addition to providing rewards to the top customers and providing loyalty rewards to the customers it is quite essential for the company to identify the potential customers and design the products that can satisfy the demands of the customers. The strategies need to be created that matches the strength of the company. The company has considered the needs of the customers and thus designed its strategy accordingly. Strategies ...