Enhancing the Customer Experience

CVS Caremark is continually finding new opportunities to engage with our customers to more fully understand their needs and provide better solutions that improve the customer experience.

Rewarding Customers with ExtraCare^®

CVS/pharmacy’s ExtraCare program has become the largest retail savings and rewards program in the United States with more than 69 million active cardholders. ExtraCare is also the vehicle for offering our customers value and a personalized shopping experience.

In January 2011, we launched the ExtraCare Beauty Club®, offering members a 10 percent off beauty shopping pass upon enrollment, $5 in ExtraBucks® Rewards for every $50 spent on beauty purchase and $3 in ExtraBucks Rewards on the member’s birthday, as well as special beauty offers throughout the year. Members also receive monthly email newsletters with exclusive coupons, tips from experts and new product information. By the end of 2011, the ExtraCare BeautyClub had 11.1 million members.

In 2011, ExtraCare also introduced a new Send to Card™ option for cardholders to redeem their ExtraBucks Rewards. This new feature gives cardholders the ability to send select ExtraCare email offers and quarterly ExtraBucks Rewards directly to their ExtraCare card, eliminating the need for shoppers to print and carry paper rewards.

In recognition of high gas prices and the continued need for consumers to find value in a tough economy, in 2011 we introduced free gas card and free gift card promotions for ExtraCare cardholders who purchased specially-marked products. The gas card promotion alone delivered $800 million in rewards to ExtraCare cardholders.

Engaging Customers Through Social Media

The use of social media provides many opportunities to communicate and connect with customers and other stakeholders.

The official CVS/pharmacy Facebook page, which now has more than 900,000 fans, is used to provide health care tips, information on our unique pharmacy offerings and other relevant news for customers. In addition, by posting our latest sales and ExtraCare deals, we help our customers make the most of their money. We also invite customers to tell us about their experiences in our stores and the Facebook page has been used to host pharmacist chats on topics including the flu, diabetes and allergies. The MinuteClinic Facebook page, with 275,000 followers, provides information on common medical problems and seasonal health conditions.

The CVS ExtraCare Beauty Club® Facebook page, with more than 300,000 fans, helps consumers learn how to save on their favorite beauty items and learn about new products from beauty experts. In addition, CVS Caremark All Kids Can® Facebook page is a community resource for families raising children with disabilities and for our nonprofit partners who support those families.

The ExtraCare Twitter feed, @CVS_Extra, gives followers access to ExtraCare deals, exclusives and savings advice from experts. The corporate microsite, CVSCaremarkFYI.com is the place where we feature our innovative people – and the customers, clients and patients who they are helping on their path to better health. CVS Caremark on Twitter – @CVSCaremarkFYI – communicates ways we are reinventing pharmacy for better health.

Making Digital Connections

In 2011, CVS Caremark relaunched www.caremark.com to further enhance the online experience for the company’s pharmacy benefit management (PBM) members. The updated website unveiled a new look as well as enhanced functionality to provide members with an online destination to help them quickly and easily manage their prescription benefits. A new app also makes it possible for both Android and iPhone users to log in securely to their existing Caremark.com account to refill a prescription, check prescription order status, view prescription history, request a new prescription, check the cost of a drug or find a nearby network pharmacy. PBM mobile traffic grew in excess of 300 percent in 2011.

CVS/pharmacy also introduced new mobile features, including iPhone and Android apps to enhance customers’ shopping and prescription refill functionality through its mobile site (m.cvs.com), making it possible for customers to use mobile devices to scan their ExtraCare card and manage their ExtraCare account, scan and send prescription refill requests and order photo prints from CVS Photo Centers.

In early 2012, CVS/pharmacy introduced Order Ready Text Messaging to provide customers with immediate notification via text message when their prescription is ready to be picked up.

Gathering Retail Customer Feedback

CVS/pharmacy has a proprietary Advisor Panel of more than 100,000 consumers who provide us with feedback on a quarterly basis on a variety of topics that we use to develop new programs and products. In 2011, the Advisory Panel provided input on the exterior design of the CVS/pharmacy freestanding prototype, the look and feel of weekly circulars and the design of the CVS Brand “Big Chill” water bottle.

We have a state-of-the-art focus group facility, which is attached to a full-sized prototype of a CVS/pharmacy store. We use this facility to gain input on store layout and design, product merchandising concepts, signage, way-finding and other store features. The facility is also equipped with eye-tracking technology to help measure what customers actually see while shopping our aisles. Advanced analytics in the area of shopping-path tracking within the store have yielded insights that have allowed us to build awareness and usage of MinuteClinic, utilize product to help shoppers navigate the store, remove materials that don’t contribute positively to the shopping experience and reorient critical messaging to the right places in the store for maximum visibility.

Engagement with customers has helped to identify their desires – such as staying healthy and saving time and money – and the successful innovations we have to address them, such as drive-thru pharmacies, ReadyFill, large “club” sizes of OTC products, Maintenance Choice, ExtraCare and MinuteClinic.

In addition, our service measurement system garners feedback from more than two million retail customers annually, with results reported to every store, district, region and area on a monthly basis. This system allows us to call a centralized IVR system and listen to audio recordings of comments from customers of any store across the chain. We have utilized this system to both leverage existing service strengths and focus on areas where we have improvement opportunities. For example, based on customer feedback, we added the Send to Card feature on ExtraCare, streamlined our store automated phone system and began fulfilling requests to provide text messaging to customers when their prescriptions were ready to be picked up.

PBM Client and Member Satisfaction Measures

We continuously strive to exceed customer expectations. Twice a year we conduct a survey to assess PBM client satisfaction with the account teams that serve them and with CVS Caremark services overall. In addition, we continuously monitor satisfaction among members who use our mail and specialty pharmacy services and our Customer Care call centers. Results of these surveys provide critical input to service improvement strategies.

For example, based on member feedback, we adjusted certain plan member contact phone numbers to eliminate a transfer and shorten the call length, making it possible for members to call a dedicated team directly to have their question resolved. We also adjusted the drug supply triage call process to include authorizing an emergency supply to be picked up at retail if a plan member is completely out of medication.