In the highly competitive world of retail pharmacy, having a clear and compelling mission statement is essential for success. CVS, one of the largest pharmacy chains in the United States, has crafted a mission statement that not only defines its purpose but also sets it apart from its rivals. As a picky shopper and retail consumer expert, I‘ve closely examined CVS‘s mission statement to uncover the secrets to its success. In this blog post, I‘ll share my findings, backed up by extensive research and analysis, to help you understand how CVS‘s mission drives its business strategy and customer loyalty.
Deconstructing CVS‘s Mission Statement
CVS‘s mission statement reads: "We help people on their path to better health." While concise, this statement packs a powerful punch. Let‘s break it down:
1. "We help people"
By starting with "we help," CVS positions itself as a supportive partner in its customers‘ health journeys. This language emphasizes the company‘s commitment to customer service and its role as a trusted healthcare provider. As a picky shopper, I appreciate companies that prioritize customer assistance and make me feel valued.
2. "on their path"
The phrase "on their path" acknowledges that health is a unique and personal journey for each individual. It suggests that CVS meets its customers wherever they are on their healthcare journey and provides tailored solutions to help them progress. This personalized approach is a key differentiator for CVS in the crowded retail pharmacy market.
3. "to better health"
The ultimate goal of CVS‘s mission is to help people achieve "better health." This broad term encompasses not only physical health but also mental, emotional, and social well-being. By focusing on "better health," CVS positions itself as a holistic healthcare provider that goes beyond simply filling prescriptions. As a consumer expert, I know that shoppers increasingly value retailers that offer comprehensive solutions to their needs.
Aligning with Core Values and Strategy
CVS‘s mission statement is closely aligned with its core values of innovation, collaboration, caring, integrity, and accountability. These values guide every aspect of the company‘s operations, from its customer service to its product offerings to its community outreach.
For example, CVS‘s commitment to innovation is evident in its development of cutting-edge digital health tools, such as the CVS mobile app, which allows customers to refill prescriptions, track their health progress, and receive personalized health recommendations. According to a 2021 survey by J.D. Power, the CVS app ranked highest in customer satisfaction among pharmacy apps, with a score of 871 out of 1,000[^1^].
Similarly, CVS‘s caring value is reflected in its various philanthropic initiatives, such as its Project Health program, which provides free health screenings to underserved communities. In 2020 alone, Project Health provided over $22.4 million worth of free health services to nearly 165,000 people across the United States[^2^].
CVS‘s mission statement also underpins its corporate strategy, which focuses on becoming a one-stop-shop for healthcare needs. By offering a wide range of products and services, from prescription medications to over-the-counter remedies to preventive care, CVS aims to be the go-to destination for all of its customers‘ health and wellness needs. This strategy has paid off; in 2021, CVS reported revenue of $292.1 billion, up 8.7% from the previous year[^3^].
Putting Mission into Practice
CVS brings its mission statement to life through a variety of initiatives and programs. Here are a few examples:
1. MinuteClinic
CVS‘s MinuteClinic is a network of walk-in medical clinics that provide convenient, affordable care for minor illnesses and injuries. By offering these services, CVS helps people access quality healthcare without the need for an appointment or a trip to the doctor‘s office. MinuteClinic has been a key driver of CVS‘s growth; in 2021, MinuteClinic visits increased by 17.5% compared to the previous year[^3^].
2. Prescription Delivery
CVS offers free prescription delivery to customers‘ homes, making it easier for people to access the medications they need to manage their health. This service is especially valuable for elderly or homebound customers who may have difficulty getting to a pharmacy. According to a 2021 survey by Consumer Reports, CVS ranked second among pharmacies for customer satisfaction with prescription delivery, with a score of 88 out of 100[^4^].
3. Health Hub
CVS‘s Health Hub is a new store format that provides expanded health services, such as chronic disease management, nutrition counseling, and wellness rooms for yoga and meditation. By offering these services, CVS helps customers take a more proactive approach to their health and well-being. As of 2021, CVS had opened over 1,500 Health Hub locations across the United States[^3^].
4. Response to the Opioid Crisis
In addition to its consumer-facing initiatives, CVS has also taken a leadership role in addressing public health crises, such as the opioid epidemic. In 2017, CVS became the first national pharmacy chain to limit opioid prescriptions to a seven-day supply for certain acute conditions[^5^]. The company also launched a program to educate students about the dangers of prescription drug abuse, reaching over 1 million students by the end of 2021[^6^].
5. Efforts to Reduce Healthcare Costs
As a picky shopper, I‘m always looking for ways to save money on healthcare expenses. CVS has made significant efforts to reduce healthcare costs for its customers, such as offering discounted prescription drugs through its CareMark pharmacy benefit management service. In 2020, CVS‘s efforts to control healthcare costs saved its clients over $50 billion[^7^].
Comparing to Competitors
CVS‘s mission statement sets it apart from its competitors in the retail pharmacy industry. While other companies, such as Walgreens and Rite Aid, also have mission statements that focus on health and wellness, CVS‘s emphasis on helping people "on their path to better health" suggests a more personalized and supportive approach.
Moreover, CVS‘s mission statement is backed up by concrete actions and initiatives that demonstrate the company‘s commitment to its purpose. For example, CVS was the first major pharmacy chain to stop selling tobacco products in 2014, a move that aligned with its mission to promote better health and drew praise from public health advocates. In contrast, Walgreens only stopped selling tobacco products in 2020[^8^].
CVS‘s focus on healthcare innovation also differentiates it from competitors like Amazon, which has recently entered the pharmacy market with its acquisition of PillPack. While Amazon brings significant logistics and e-commerce expertise to the table, it lacks CVS‘s deep understanding of the healthcare system and its network of physical locations and clinics.
Impact on Stakeholders
CVS‘s mission statement has had a significant impact on its stakeholders, including customers, employees, and the healthcare industry as a whole.
For customers, CVS‘s focus on helping people achieve better health has translated into a wide range of products and services that make it easier to manage their health and wellness. From convenient MinuteClinics to comprehensive Health Hubs, CVS provides customers with the tools and resources they need to take control of their health. This commitment to customer health has helped CVS build a loyal customer base; in 2021, CVS reported that its retail loyalty program had over 82 million members[^3^].
For employees, CVS‘s mission statement provides a sense of purpose and meaning in their work. By helping people on their path to better health, CVS employees know that they are making a positive difference in their communities and in the lives of their customers. This sense of purpose has helped CVS attract and retain top talent; in 2021, CVS was named one of Fortune‘s "World‘s Most Admired Companies" for the eighth consecutive year[^9^].
Finally, for the healthcare industry, CVS‘s mission statement has helped to drive innovation and change. By embracing a more holistic and customer-centric approach to healthcare, CVS has challenged traditional models of care delivery and has inspired other companies to follow suit. For example, Walgreens has recently launched its own line of health clinics, called Village Medical at Walgreens, in partnership with VillageMD[^10^].
Evolution and Adaptation
While CVS‘s mission statement has remained consistent over the years, the company has adapted its approach to fit changing consumer needs and industry trends. For example, in response to the growing demand for digital health tools, CVS has invested heavily in its mobile app and online platform, making it easier for customers to access their health information and manage their prescriptions. In 2021, over 20% of CVS‘s retail prescription orders were fulfilled through digital channels[^3^].
Similarly, as the COVID-19 pandemic has highlighted the importance of accessible and affordable healthcare, CVS has stepped up its efforts to provide testing, vaccinations, and other critical services to communities across the country. In 2021, CVS administered over 32 million COVID-19 tests and over 59 million COVID-19 vaccines[^3^].
Challenges and Opportunities
Looking ahead, CVS faces both challenges and opportunities as it seeks to expand its healthcare offerings and compete with new entrants to the market. One major challenge is the increasing pressure to lower prescription drug prices, which could squeeze CVS‘s margins in its retail pharmacy business. Additionally, the rise of e-commerce giants like Amazon in the pharmacy space could pose a threat to CVS‘s market share.
However, CVS also has significant opportunities to grow its business and deepen its impact on the healthcare industry. For example, the company‘s recent acquisition of health insurer Aetna has given it a powerful platform to offer integrated health services and reduce costs for customers. CVS is also well-positioned to benefit from the aging of the U.S. population and the increasing prevalence of chronic diseases, which will drive demand for the company‘s pharmacy and healthcare services.
To capitalize on these opportunities, CVS will need to continue to innovate and adapt to changing consumer needs and industry dynamics. This may involve further expanding its digital health offerings, partnering with other healthcare providers to improve care coordination, and investing in research and development to create new products and services.
Conclusion
As a picky shopper and retail consumer expert, I have come to appreciate the power and significance of CVS‘s mission statement. By putting people at the center of its business strategy and focusing on helping them achieve better health, CVS has built a strong and differentiated brand that resonates with customers and drives long-term growth.
Through its innovative products and services, its commitment to customer service, and its leadership on key public health issues, CVS has demonstrated that its mission is more than just words on a page – it is a guiding force that shapes every aspect of the company‘s operations and culture.
As the healthcare industry continues to evolve and new challengers emerge, CVS will need to remain focused on its mission and values to stay ahead of the curve. But with its deep expertise, its loyal customer base, and its proven track record of success, I am confident that CVS will continue to be a leader in the retail pharmacy space for years to come.
As a final thought, I encourage all readers to take a closer look at the mission statements of the companies they do business with. As consumers, we have the power to support companies that align with our values and prioritize our well-being. By choosing to shop at companies like CVS that put people first, we can help build a healthier, more sustainable future for ourselves and for generations to come.
[^1^]: J.D. Power. (2021). 2021 U.S. Pharmacy Study. Retrieved from https://www.jdpower.com/business/press-releases/2021-us-pharmacy-study[^2^]: CVS Health. (2021). 2020 Corporate Social Responsibility Report. Retrieved from https://cvshealth.com/sites/default/files/cvs-health-csr-report-2020.pdf
[^3^]: CVS Health. (2022). Form 10-K for the fiscal year ended December 31, 2021. Retrieved from https://investors.cvshealth.com/investors/financial-information/sec-filings/default.aspx
[^4^]: Consumer Reports. (2021). Best and Worst Pharmacies for Customer Satisfaction. Retrieved from https://www.consumerreports.org/pharmacies/best-and-worst-pharmacies-for-customer-satisfaction-a8678068762/
[^5^]: CVS Health. (2017). CVS Health Fighting National Opioid Abuse Epidemic With Enterprise Initiatives. Retrieved from https://cvshealth.com/news-and-insights/articles/cvs-health-fighting-national-opioid-abuse-epidemic-with-enterprise
[^6^]: CVS Health. (2021). Prescription for a Better World: 2020 Corporate Social Responsibility Report. Retrieved from https://cvshealth.com/sites/default/files/cvs-health-csr-report-2020.pdf
[^7^]: CVS Health. (2021). 2020 Annual Report. Retrieved from https://investors.cvshealth.com/investors/financial-information/annual-reports-and-proxy-statements/default.aspx
[^8^]: Walgreens. (2020). Walgreens to Stop Selling Tobacco Products. Retrieved from https://news.walgreens.com/press-center/news/walgreens-to-stop-selling-tobacco-products.htm
[^9^]: Fortune. (2021). World‘s Most Admired Companies. Retrieved from https://fortune.com/worlds-most-admired-companies/2021/
[^10^]: Walgreens. (2021). Walgreens and VillageMD to Open 500 to 700 Full-Service Doctor Offices within Next Five Years in a Major Industry First. Retrieved from https://news.walgreens.com/press-center/news/walgreens-and-villagemd-to-open-500-to-700-full-service-doctor-offices-within-next-five-years-in-a-major-industry-first.htm
