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CVS Pharmacy Improvement Essay

The first “Consumer Value Store” was opened in Lowell, Massachusetts in 1963. The company grew quickly and by 2002 CVS was one of America’s largest retail drugstores, with over 4,000 outlets and income of $24. 2 billion. As the company got bigger, managers started to worry that pharmacy maneuvers were not carrying out well. Reviews from both customers and employees designated that many localities had severe troubles with customer service. The company’s pharmacy business, however, grew further at an industrial average. This inferred to some people that CVS did not have any serious problems but it actually had.

Therefore, to identify the true crisis of pharmacy customer service and to make any required changes, CVS initiated the PSI and staffed it with operations executives and managers. Customer Service Problems: The PSI team started gathering information by evaluating historical data and interviewing existing and past customers. This work verified that CVS had problems in customer service. Besides, customers feel difficult to adjust from one pharmacy to another; deeper analysis revealed that many of the regular customers have switched somewhere else.

PSI team showed that about 7. 2 million customers have left which could have paid $2. 5 billion revenue. It has been noticed that different kinds of customers have left due to different types of problems. The PCI team has categorized these former CVS Pharmacy members into two main groups. First, the one who filled an average of five prescriptions per year; they were most likely to complain about the pharmacy’s location. The other group of heavy users, who filled an average of 40 scripts a year, was most likely to leave because of poor service.

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