CVS launches pilot membership program: $5 monthly gets you $10 store credit

CVS Health is launching a pilot membership program that provides delivery perks, discounts and $10 monthly to spend in its stores.

The drugstore giant, one of the largest retailers in the U.S., will charge $5 monthly or $48 for a full year for the new CarePass program, which will be tested in Boston.

“The goal is to expand the program nationally but the pilot is to test-and-learn so we can make sure it is a great experience for customers,” CVS spokesperson Erin Pensa said in an email.

The $10 monthly store credit can be spent on most retail items at CVS Pharmacy locations but doesn’t roll over to the next month if you haven’t used the full amount.

The membership program includes free one-day or two-day delivery on certain prescription drugs and “eligible purchases” from the company’s website with no minimum amount required, CVS said.

In that respect, CarePass bears a resemblance to Amazon’s Prime membership, which requires users to pay an annual fee of $119 for free shipping and other services.

Fending off Amazon is crucial to the long-term success of CVS. The drug industry is bracing for Amazon’s entry into the pharmacy business after the company recently bought online pharmacy startup PillPack.

With more than 9,800 locations, CVS is one of the largest retailers in the U.S. and had about the same annual revenue as Amazon in 2017.

CVS currently offers retail customers discounts through a free membership card called ExtraCare. Cardholders can also accumulate ExtraCare dollars, which act like expiring gift-card money, to spend on in-store products.

CarePass members will get $10 to spend every month on most items in the store. Exceptions include alcohol, lottery tickets, prescriptions and gift cards.

“The CarePass promo reward is automatically added to the customer’s ExtraCare card at the beginning of each monthly benefit cycle and expires at the end of the monthly benefit cycle,” CVS said.

Article via USAToday