CVS Caremark (NYSE: CVS) is taking how it personalizes its My Weekly Ad program a step further. The initiative, which debuted last October, delivers tailored versions of the weekly print circulars and now CVS wants to add more features and technologies that will personalize them even more.
The company is investing in new technologies and personalization tools which will further enable it to send custom offers to those enrolled in the My Weekly Ad program. Last year, the company spent roughly 30 percent of the total program's budget on such investments. It will look to create customized product assortments that are locally relevant to make the CVS shopping experience even more unique to each shopper and store location.
As traditional newspaper sales decline, CVS has had to get creative in making sure that customers know about the deals published in its weekly circulars which are sent to about 45 million people. The My Weekly Ad program data gathered by CVS from its 70 million ExtraCare members' purchases is designed to suggest sale items based on previous purchases and make available in one place all ExtraCare savings and rewards offers.
Since its launch in October, customers have responded very well to the program, driving redemption rates higher than traditional ads
"With My Weekly Ad we are seeing redemption rates that are seven to 10 times the rate of non-personalized offers, which is allowing us to drive a higher level of engagement," said Judy Sansone, CVS Caremark SVP of merchandising and retail pricing, reports Retailing Today. "Roughly 30 percent of everything we spent in 2013 was on personalization tools because the investment is driving a higher level of engagement and that figure will be even higher this year."
The My Weekly Ad program is available on both desktop and mobile. Users can also opt to receive custom coupons sent by e-mail. At point of sale, shoppers receive coupons printed on sales receipts that are customized to the items they have purchased.
-See this Retailing Today article
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