Anyone seen any studies on customer retention from transfer coupons?

[vardenafil]

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I just found out yesterday that my store had given away almost 55,000 dollars in transfer coupons last year. Im curious if anybody has seen any studies or knows the inside numbers on customer retention due to transfer coupons. Im sure the non pharmacy bean counters "think" they are making money off the coupons or they wouldn't do it. Im just wondering what percentage of the people actually stick around. Im guessing less than 5%

 

[maria1oh]

The chain pharmacists are always complaining about Walmart/Sam's Club/Costco ruining our profession with their $4 generics and cheap prices yet they are just as guilty of ruining our profession with their silly transfer coupons. How could they make money off a $11.99 prescriptions (price of a lot of generic medications at local CVS/Wags) if they are handing out $25 gift cards!

 

[rx2010]

This is what they told us at our pharmacy managers meeting about the coupons and profit... They said found that those who got the $25 coupons spent more than $25 at the store in groceries, so in turn, they make profit because it makes them shop at their store for groceries than go to a competitor and that's why they love giving the $25 coupons.

 

[FarscapeGirl]

I wonder if they factored in the time they're paying the pharmacist to be on hold to get the transfer and the income lost by making your customers frustrated by being slower with checking prescriptions.

Of course, I guess you can just ding the pharmacist for not being able to do 18 things at once.

 

[owlegrad]

It's been so long since I've processed a coupon for $25 I forgot they still did that.

 

[Old Timer]

I just found out yesterday that my store had given away almost 55,000 dollars in transfer coupons last year. Im curious if anybody has seen any studies or knows the inside numbers on customer retention due to transfer coupons. Im sure the non pharmacy bean counters "think" they are making money off the coupons or they wouldn't do it. Im just wondering what percentage of the people actually stick around. Im guessing less than 5%

To do that you would have to transfer in 42 prescriptions per week every week for 52 weeks. It's really not a believable number.

Why does any business advertise in any way? To get new clients/customers/patients in the door. If you could lure my stepfather into your store, your sales would increase by $20,00.00. Diabetic in CRF w/neuropathy S/P MI S/P hip replacement S/P pacemaker insertion, CHF, you name it he has it.

Is it a good thing, I'm not sure. I don't much like it as it cheapens the profession. But lawyers, doctors and hospitals are adverting all over the place, so pharmacy will as well.

The bottom line is the bottom line. One coupon for $25.00 off gets you $20,0000.00 per year for several years? Not everybody is that sick. But the average middle aged American is taking something for BP, diabetes, anxiety or depression so even the guy who gets a three generic rxs a month for $30.00 still spends $360.00 per year for the $25.00. Don't look at the transaction look at the overall gain.

 

[owlegrad]

I totally jinxed myself and did a transfer gift card right after posting that!

 

[Momus]

But the average middle aged American is taking something for BP, diabetes, anxiety or depression so even the guy who gets a three generic rxs a month for $30.00 still spends $360.00 per year for the $25.00. Don't look at the transaction look at the overall gain.

I'd transfer back and forth with 5 different chains so my cost will be $5/mo, $60/year... not $360.

 

[Old Timer]

I'd transfer back and forth with 5 different chains so my cost will be $5/mo, $60/year... not $360.

There are schnorrers everywhere. But the idea is to get them in your store and they will like your service so much they will come back. This is the purpose of all advertising.

 

[MountainPharmD]

To do that you would have to transfer in 42 prescriptions per week every week for 52 weeks. It's really not a believable number.

Really? Totally believable. We did close to that at my last retail gig! I had to report the transfer numbers every week in my weekly report. I think we averaged 7 transfer coupons a day. This was a very low number compared to some of the other stores. I **** you not I got flagged on a report because my transfer coupon number was the lowest in the district. I was told I had to give more away and stop being so restrictive. Silly me I was actually following the rules as printed on the front of the coupon. Reason number 1267 that I bailed out of retail.

We averaged about a 140 total transfers a week. Usually ended up +10 or so.

 

[pharaday]

Really? Totally believable. .

I agree. Those numbers are definitely possible at a busy store.

 

[BMBiology]

Why does any business advertise in any way? To get new clients/customers/patients in the door. If you could lure my stepfather into your store, your sales would increase by $20,00.00. Diabetic in CRF w/neuropathy S/P MI S/P hip replacement S/P pacemaker insertion, CHF, you name it he has it.

This would work if your business is the only business in town doing this but when other businesses are also doing this, I am sure the customers will transfer the prescriptions back and forth.

But, you can argue that by having transfer coupons, the business gets its customers back and retains them. In the end, no one win except for the customers.

 

[MountainPharmD]

I was told there was a 90% average retention rate in my district on customers who used a transfer coupon. This was measured by a subsequent prescription fill the next month.

I brought this up to my district manager and asked if they ran a report to see how many of the transfer coupons belonged to customers who had never filled at our pharmacy. Crickets....

So I did a little report magic and showed that 100% of the transfer coupons we did for a month were for customers who had filled a prescription in the previous 3 months. Proving at my store the coupons were a waste of time and only used by coupon scammers and not by new customers as the coupon was intended. Crickets again....

Yes, I understand marketing and the fact the gift card has to be used in the store and increases stores sales because they usually buy way more than $25 in groceries. However the $25 came out of my sales which effects my bonus and the hours I get to schedule. You also have to add in the wasted man hours holding on the phone for 45 minutes to get a transfer from CVS or Walgreens.

 

[vardenafil]

To do that you would have to transfer in 42 prescriptions per week every week for 52 weeks. It's really not a believable number.

we offer 25$ dollars for transfer coupons as well as having coupons floating around for 25$ for new prescriptions. Patients can get 75 dollars a pop up to 300 dollars a year.