Pharmacy Service Improvement at Cvs

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Secondly, according to the research from PSI team, dozens of scripts do not have refill allowed, 20% of all scripts will be in a hard stop, 17 percent of scripts will encounter the insurance problem, and 7% customers complained that they cannot get what they want because the medicine they want in CVS is out of stock. All this problems will cause customers waiting a long time at the line and reduce the customer value leading to the high churn rate of their service. I think this can be all solved if CVS establish an information system about their customers’ preference and then improve the connection with all these three party service providers and the medicine providers.

Thirdly, we can see that lots of problems at Drop-Off and Pick-Up counters result from less and inflexible human resources managements. So, I will recommend CVS to operate the following policies. Firstly, hiring more 2-3 employees at Drop-Off and Pick-Up counters will be better for the customer services. Secondly, flexible work time schedules should be promoted during CVS. Thirdly, hiring more 1-2 professional chemists to answer customers’ questions at Pick-Up counters will highly increase the customer service.

Alternatives analysis

The strength of the alternative one should be customers will have more accessibility to the pharmacy fulfillment procedure, and it will improve the essence and spirit of service in CVS.

The weakness of the alternative one should be it will improve the cost of advertisement and reduce the margin of the products

The strength of the alternative two should be CVS already have the big data about their customers, and it will cost lower than other choices.

The weakness of the alternative two should be the establishment of this information system may need a long time and its accuracy need to be tested.

The strength of the alternative three should be it is the easiest way to operate. What CVS need to do is to hire more professional employees in different areas.

The weakness of the alternative three should be the high cost of the labor fee.

Recommendation

I will recommend CVS operate the second alternative since they have already had the big data of their customers, and it is the lowest cost of all these three alternatives. Also, CVS is one of the biggest pharmacy stores in the US. I believe all the partners will like to increase the relationship with them since their co-operation will help all of them to make more profit.

Implementation

CVS had already been one of the biggest pharmacies in the US, so I think they should have the ability and resource to analyze their customers’ habits and behaviors.

For more specific, firstly, CVS can collect information about customers’ most preference hospitals and doctors and most preference insurance companies in the different region. In this way, they can enhance the connection between them leading to acquiring quick reply when they meet all these problems.

Secondly, they can analyze all the previous scripts of customers to reduce the hard stop rate.

Thirdly, they also can make the prediction about their sales according to the previous customers’ buying to increase the connection with the medicine providers.