While retail pharmacies have been offering incentives for consumers to switch their prescriptions for years, many are hoping that new types of coupons may fan sales into new life. During a difficult economic time, when some consumers delay filling their prescriptions or stop taking medications, pharmacies are looking for new ways to get business.

One creative new program from CVS rewards loyal customers with $2.00 off their prescriptions. From May 1 through June 15, CVS is offering $2.00 in “Extra Bucks” to customers who use the CVS “ExtraCare” rewards card to purchase their prescriptions. The “Extra Bucks” are issued to customers in the ExtraCare program quarterly. After June 15, CVS ExtraCare cardholders will receive $1 in “Extra Bucks” when they fill two prescriptions, an offer that has been in place for a while. “Reducing healthcare costs is a priority for most Americans. CVS/pharmacy is the only pharmacy that pays customers back for purchasing prescriptions,” said John Barron, director of relationship marketing for CVS/pharmacy. Customers are flocking to this type of rewards program. CVS/pharmacy customers earned nearly $95 million in ExtraBucks savings on their prescriptions last year, Barron said.

Consumers are more interested in discounts and coupons than they were before, according to Drugstore.com in Bellevue, Wash. Over the past year, the number of consumers visiting Drugstore.com’s coupon, sale, and clearance pages has soared 75 percent, and orders placed by customers searching for bargains have spiked 90 percent since last year, according to the online retailer. “Since the beginning of the year, we’ve also seen more customers taking advantage of our Drugstore.com Dollars program … offering five percent back towards future purchases,” said David Lonczak, vice president and chief marketing officer of Drugstore.com.

Coupons and rewards programs may serve as more effective incentives than the $4 generic programs and store gift cards offered to customers who transfer prescriptions to those stores, say those who have studied the matter. After surveying 20 retail pharmacies last fall, Lisa Marie Tremuth, PharmD, a recent graduate of the University of Michigan, found that incentives for transferring prescriptions do not result in loyal customers, and they increase the risk of prescription errors. “I think it is really harmful, and it is incentivizing patients to do something that is harmful to them. They are not going to have any kind of relationship with the pharmacist or pharmacy,” Tremuth said. The survey was published in the journal Michigan Pharmacist.

With transfer offers, certain customers transfer their prescriptions from one pharmacy to the next on a consistent basis and typically transfer only one of several prescriptions. The pharmacist does not have a clear view of all the medications those customers are taking and typically does not ask them to list all their medications, according to Tremuth. One-third of pharmacists surveyed said prescription errors occurred as a direct result of the prescription transfer programs.

NCPA also is concerned about incentives for transferring prescriptions, and many independent pharmacies are not offering these programs. “We are hearing that patients are taking the bait and transferring their prescriptions from pharmacy to pharmacy, in order to take advantage of the coupons. This is of concern to us, because we advocate that patients should find a pharmacist who addresses their needs and stick with that pharmacist,” said John Norton, public relations manager for NCPA. In addition, those transferring prescriptions are generally not customers who will remain loyal to the retailer offering the incentive, so the business does not typically benefit over the long term. Instead, the industry should make offers that build customer loyalty, such as “If you leave your prescription at our pharmacy for three months or more, we will give you a gift card,” Tremuth said.

While independent pharmacies are facing more competition from chains’ increased use of coupons and discount generic programs, their concern is with the overall practice of discounting drugs. “Our fundamental concern is the commoditization of prescription drugs. The more they are devalued in an attempt to attract customers to their stores, the less likely a premium is placed on providing customer service and the consultation that helps ensure medication adherence,” Norton said. In fact, in Tremuth’s survey, independent pharmacies had the fewest customers transferring to other pharmacies, because independents typically offer value-added services such as free delivery, free medication reviews, and bubble-wrap packaging for certain orders.

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A new report released by the Institute for Policy Innovation states that the consumer-driven healthcare model is both ethical and sustainable among healthcare reform alternatives. In the report, entitled "The Ethics of Health Care Reform," IPI resident scholar and healthcare expert Dr. Merrill Matthews evaluates the ethical merits of several reform models, concluding that only one best meets the criteria Americans want from an ethical healthcare system. "The consumer-driven model is the only one that incorporates both our fundamental principle-- patient control--and yet balances the consequence-oriented need for access to coverage and quality care that is financially sustainable over the long term," wrote Matthews.

An ethical system must promote and protect the privacy of the patient, without neglecting the practical concerns over affordability, sustainability and quality, Matthews said. Matthews responds to the push for a government-run, universal coverage system, stating: "An ethical healthcare system doesn't just promise people they will get the care they need, it empowers people so they can get that care. A consumer-driven approach comes closest to meeting the leading ethical principle guiding medicine today, while at the same time addressing the issues that most concern a consequentialist."

Hallmark Launches Mobile Greetings Web site
By Allison Cerra

Hallmark has launched a line of greetings that can be accessed through a mobile device. Hallmark Mobile Greetings, which launched Tuesday, is an innovative new product for cell phones that combines the immediacy of a text message with creative design and editorial. Senders can also add their own personal message to any of the greetings. The initial launch includes a small network of phone models, eventually Hallmark Mobile Greetings will work on the majority of mobile phone models and will be able to be sent from most major mobile phone networks to any other network.

Hallmark Mobile Greetings is available by downloading to a cell phone the free mobile phone application from www.mobile.hallmark.com. Users can then send greetings to other mobile phones. In addition, consumers also can send greetings directly from mobile.hallmark.com for delivery to a mobile device. Each Hallmark Mobile Greeting costs 99 cents. Fees are billed as part of monthly service-provider charges and the sender is only charged if the recipient opens the mobile greeting. The application itself is free of charge, though standard data rates may apply so consumers are advised to check their contract with their carrier. More than 500 Hallmark Mobile Greetings are available in the following categories: Just for Fun, Birthday, Thinking of You, Love, Holidays, Characters & Collections, Congratulations and Business Greetings. More categories and mobile greetings will be added in the future. For more information on Hallmark Mobile Greetings, www.mobile.hallmark.com.

Rite Aid Launches Rite Aid Video Values
Michael Johnsen

Rite Aid Thursday evening announced a new online savings program to be hosted at www.riteaid.com where consumers who opt into viewing short informational videos on select products will receive coupons. “Whether it’s in stores or the path our customers take to get to stores, we’re dedicated to creating an exceptional shopping experience,” stated John Learish, Rite Aid SVP marketing. “This launch of Rite Aid Video Values reinforces our commitment to customers and brands. It’s both a fresh offering for consumers and an accountable sales tool that allows brands to understand the direct impact their video has on sales.” Videos on the site are organized by brand, category or manufacturer. In addition to product coupons, participants who watch enough videos can earn a $5 Rite Aid “bonus coupon.” Early vendor participants include Procter & Gamble, Kimberly-Clark, L’Oreal, Johnson and Johnson and Wyeth. The Video Values program was created by AdPerk, a provider of strategic video marketing solutions for retailers.

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