Pharmacy Service Improvement at CVS

1. Would improving customer service be of significant financial benefit to the

company? Support your opinion with the following calculations:
(i)What is the CVS revenue per script?
To calculate the revenue per script :
Total number of prescriptions they lost = 55 million
Total revenue that would’ve generated = 2.5 billion
Hence, Revenue per script = 2500 /55 = $ 45.45

(ii)What percent of pharmacy defectors from CVS in 2000 were light vs heavy
users?
To calculate the pharmacy defectors light vs heavy :
Total revenue = 20 billion
Revenue per script = $ 45.45
Total number of scripts =20 billion / 45.45 = 440044004.4
Scripts per light user = 5 , scripts per heavy user = 40
Total scripts = 45
According to the ratio, light scripts = 48893778.27 , heavy scripts = 391150226.1

(iii)What is the annual amount of revenue lost due to poor customer service?
Due to poor customer service 7.2 million regular pharmacy customers left CVS and
those who left took with them an estimated 55 million annual prescriptions that
contributed a loss in revenue of $2.5 billion to the company.

From the above calculations we can conclude that the loss of revenue and customers is
very high. Hence, we need to improve the customer service to retain the customers.

2. You must have been familiar with flowcharts or other similar diagramming
techniques. Use such charts or simple boxes and arrows to depict stepwise - the
business process of how customer prescription requests are fulfilled at CVS.
 Drop Pick up
script
Hard package
Put in stop
slot
D Producti
Data Refil U IC QA
l on
entry R
Ask
Dr. Call Dr.
for
bin Denial
appro
Box
val
Reac
h
Dr.?
Dr. Call
Back Bin

3.What changes do you recommend to CVS’ existing pharmacy fulfillment process?

● Improve their data entry system
● Abolish the drive through system
● Implement a system that notifies people of the availability of the prescription drug in
advance
● Introduce a call center for customer communication
● Drop off, data entry, insurance check - all done while customers are present

Presented by ,

Group - 3
Khushboo jyoti PGP11028
Khumujam jenish singh PGP11027
Merciline Lalrammuani PGP11034
Madigundu Jyothi PGP11030
Akash Borsaikia PGP11003
Pushpender Malik PGP11044