Pharmacy Loyalty Programs: A Cure Sure to Make Customers Come Back
We have seen the changing face of airline loyalty, discussed the benefits of service-minded loyalty and dove into the lack of industry-wide wireless loyalty, but we have not yet touched on an industry that continues to see rapid loyalty growth.
The pharmacy health and wellness market is a lucrative one, expected to reach $170 billion by the end of 2012. Pharmacies such as CVS, RiteAid and Pharmaca are by no means new to loyalty, but have recently been investing in programs with increased enthusiasm not seen in the past. Why have pharmacies become so loyalty-driven? Partly due to the numbers — customer spending and repeat shopping is on the rise.
Another driving factor is the ability to collect customer data through loyalty programs. When customers make purchases, pharmacies are able to track this spending. This enables them to offer personalized offers and rewards. Understanding where and how often customers are spending is crucial for growing loyalty, and for allowing pharmacies to remain competitive by better serving their customers’ needs. And, based on the positive numbers that pharmacies, Pharmaca included, are seeing, it looks like this personal touch has been the perfect remedy.
Pharmaca’s Feel Better Rewards program alone has seen a 50% increase in customers who are spending in both the pharmacy and store, with a 10% to 15% increase in spending per-member. This is not luck or the product of a growing industry; rather, it is the result of well-planned, thoughtful loyalty programs.
In today’s market, if you are not offering a loyalty program, good luck — you’re fighting a losing battle. Increased costs in healthcare and a weak economy have made pharmacy loyalty more effective than ever, bolstering membership and sales. When you have a loyalty program that delivers with increased customer spending and retention, it can be a boon for your bottom line.
It’s an easy choice from the customer perspective, too. Medical expenses can add up, but loyalty programs can help lesson this financial stress, making this approach a win-win for all parties. The customers feel valued and are saving money, while pharmacies and health and wellness stores are gaining better customer insight, increasing sales and retaining customers.
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