Interesting article from Colloquy that discusses the potential impacts on CVS' loyalty program from their decision to stop selling tobacco products. I don't know if anyone really knows the answer completely just yet. They are taking a corporate responsibility stand to do right for its customers while also reinforcing their brand re-positioning as a health care merchant. Aside from these admirable and consistent strategies, I believe they have also fully analyzed their customer data before making such a major business decision and found that the benefits will fully outweigh the costs over the long-term.
Earlier in my career, I developed and delivered targeted marketing programs and campaigns for two major cigarette brands for their lead agency. The tobacco industry is very unique, and response rates to mailings are unheard of compared to just about all other industries. However, I believe CVS is taking the broad view here and not just looking at tobacco on its own or the short-term.
CVS Tobacco Decision A Lesson in Filtering Loyalty Programs - COLLOQUY
Friday, February 28, 2014
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