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Market Assessment

Drug Store Loyalty Programs

Table of Contents

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Trend Implications
Key Insights
Business Opportunity


Drug Store Loyalty Programs at a Glance
Pharmacy & Drug Store Landscape
Competitor Profiles


Premium Loyalty Programs & Consumer Desires
Types of Retail Loyalty Programs
Loyalty Program Stats & Highlights


Pharmaceutical Spending by Channel
Ranking of US Pharmacies by Rx Revenues
Online & Mail Order Sales


The Complexities of the Loyalty Program
Standout Loyalty Features & Winning Formula
COVID-19 Challenging New Landscape
Healthcare Loyalty + Banking Innovations


Key Case Studies / Examples

Research Approach & Methodology


  • Reviewed published content leveraging ENGINE’s access to proprietary databases and reports provided by Client, including Statista, Factiva, and IDC.
  • Sources are combed tenaciously for references to other published sources and possible interview contacts.
  • Analyze sources to determine the market landscape and competitive space.

Executive Summary

Trend Implications: The drug store loyalty landscape is becoming complex, receiving internal and external market pressures from the healthcare ecosystem as well as tech players looking to disrupt the space.  With healthcare remaining a growing and hot industry, many companies remain focused and committed to it, with some banks offering great perks and rewards.

Key Insights:  While the landscape of drugstore and pharmacy loyalty remain complex, it is clear that Americans appreciate their good deals and certainly remains true for pharmaceuticals.

The drugstore loyalty landscape is ruled by two dominant players with little room for other players to rise.

While brick and mortar loyalty remains dominant, other healthcare players have begun their own partnerships to offer unique discounts.

Business Opportunity: While the healthcare opportunity remains clear, the perks approach many banks have taken is a crowded space and one hard to navigate as evidenced by previously failed attempts.

As healthcare companies vertically integrate, there remains opportunity to partner with these growing networks to offer built in banking infrastructure and backbone for growing connectivity.

Loyalty Program Landscape


Drug store loyalty program matrix including insights on the cards like:

Date Established
Sign Up
Ease of Earning
Ease of Redeeming



While Drugstores play a critical role in pharmaceutical acquisition, there are many other players that include insurers, PBMs, and specialty pharmacies. In many cases, especially in the current landscape, these lines have begun to heavily blur, showcasing an ecosystem that often has a provider (such as CVS or Optum) all under one company.

Consumer Demographics

Premium Loyalty Programs & Consumer Desires: Customers say loyalty is more difficult for retailers to maintain than ever before. Those who belong to premium loyalty programs are frequent purchasers, as many premium loyalty members shop at that program’s retailer at least once a month.

Types of Retail Loyalty Programs: Premium loyalty programs are valuable tools for marketers that are seeking to expand CX with key customers. Close to 70% of premium loyalty members plan to join additional premium programs in 2020.

Stats & Highlights: The most popular programs are related to groceries, dining, drugstores, and apparel. Americans decide not to enroll in loyalty programs for reasons like they don’t shop at the retailer enough or they don’t see enough value.

Drug Store Spending Trends


A review of spending trends of pharmaceuticals by channel, a ranking of pharmacies by Rx revenues and online & mail order sales.


(See larger image here)

Loyalty Trends & Innovations


Members of retailers’ customer loyalty programs generate more revenue for retailers than do customers who are not members of the loyalty programs. The key areas that retailers focus most on in terms of their loyalty programs are program growth and revenue production metrics.

While retailers believe that their programs are differentiated from those of their competitors, customers don’t. Some of biggest challenges retailers face regarding their loyalty programs relate to technology, strategy, financial management and people/talent.

Inspiration From Retail


The components and key features of Sephora’s Beauty Insider Program, EyeBuyDirect’s Focus Loyalty Program, and Boots’ Advantage Card include invitation only, tiered programs with mobile apps and personalized offers.

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