The ExtraCare loyalty program has grown to become CVS Health’s crown jewel. In 2015, the program — now in its 15th year — helped drive nearly $4 billion in savings for its roughly 70 million active cardholders. More important, it has emerged as the key engine driving CVS Health’s personalization efforts — a critical component of the company’s five-pillar strategy to reenergize its front-end business.
This isn’t your parents’ private-label business any more. To be sure, the rules of the store brand game have changed over the years — price matters, but it certainly isn’t the only factor driving the growing consumer interest in private label that exists today. CVS has upped its game in private label over the last several years, with store brand penetration up from about 17% in 2010 to more than 22% today.
Digital engagement is an integral part of CVS Health’s growth strategy, and for good reason. The digital customer at CVS spends 4.5 times more and engages with the CVS brand six times more than non-digital customers do.
Two years ago, CVS Pharmacy made the bold decision to walk away from tobacco. It was the right move for a lot of reasons, but the fact remained: There was a $2 billion sales hole that needed to be plugged.