Cvs Case

References: https://www.cvs.com/CVSApp/user/extracare/extracare.jsp 2. Suppose a major competitor launches its own customer value card program. How might CVS respond? What recommendations would you give CVS to improve the ExtraCare program? If one CVS’S major competitors launch its own customer value card program then CVS would most likely respond by adding extra incentives to their existing ExtraCare program. CVS has done an excellent job of staying ahead of its competition’s attempts compete with their customer value program with ExtraCare. The major competitor of CVS is Walgreens. The Walgreen’s Prescription Value Card is the closest thing to CVS’s ExtraCare program but is only designed to offer savings for employees and hardly comparable to CVS’s program. Only CVS has a free rewards card with which customers can earn the equivalent of cash back to spend on their next trip. CVS ExtraCare is one of the largest rewards program promotions ever offered by a retailer. Cardholders receive 2% back on nearly every dollar spent in the store. When an ExtraCare cardholder makes a purchase at CVS pharmacy, he or she will receive a coupon for a free product. This instant reward coupon will appear on the receipt during each shopper 's first visit. Each cardholder is eligible for one free gift coupon. I feel that CVS could improve their ExtraCare program by perhaps offering discounts on healthcare insurance premiums and by adding extra discounts for senior citizens since they make up such a large percentage of their business. 3. What are the advantages and disadvantages of not requiring personal information form customers for participating in the ExtraCare program? Due to people’s fears of identity theft and being inundated with junk mail and telemarketers when divulging personal information, I feel that by not requiring personal information to participate in the ExtraCare program CVS has most likely attained a much larger number of participants than they would have if they required personal information to participate. A major disadvantage of this strategy is that by not obtaining personal information about their customers they are forfeiting their ability to send coupons and ad information about special discounts that may be of interest to their existing customers that could potentially encourage them to purchase items. They are also giving up the ability to track customer purchases to create a costumer profiles that would allow advertising targeted specifically for particular customer needs and interests. 4. What ethical issues would CVS need to consider before changing their ExtraCare policy to require and address and phone number? CVS would need to consider the ethics involved with attaining the ability to compile potentially sensitive medical information about their customers by tracking their purchases. This could be considered by many to be an invasion of privacy. They also would need to follow legal guidelines in place to protect an individual’s privacy and prevent potential identity theft.