Independent pharmacies are adapting to new dynamics, with digital tools and patient expectations changing how they operate and deliver care. Once overshadowed by large chain pharmacies, these independent businesses are finding creative ways to stay competitive by integrating new technologies and expanding their roles beyond traditional dispensing services.
Good Neighbor Pharmacy, part of Cencora (formerly AmerisourceBergen), has become a key ally for independent pharmacy owners. The organization provides tools and resources that help members meet modern challenges, from optimizing day-to-day operations to engaging customers and strengthening community relationships. By leveraging digital solutions, Good Neighbor Pharmacy is helping pharmacies remain competitive while continuing to offer trusted healthcare services.
In an interview with PYMNTS, Jenni Zilka, senior vice president, Community and Specialty Pharmacy, Cencora and president, Good Neighbor Pharmacy, discussed the company’s origin in the 1980s.
“Initially, the emphasis was on enhancing buying power and brand awareness to help independent pharmacies feel more like chains,” Zilka said. “Our organization focused on helping member pharmacies with efforts such as standardized signage and branding, traditional marketing tactics, and generating revenue through high-margin products like Good Neighbor Pharmacy private label brand products.
“As the pharmacy industry evolved, particularly with the substantial growth of chain pharmacies in the mid- to late 1990s and changes in drug coverage and reimbursement models in the early 2000s, Good Neighbor Pharmacy continued to adapt while staying true to its core mission.”
That mission remains unchanged: to provide independent pharmacies with the tools and resources they need to deliver exceptional healthcare while growing their businesses.
“Even a decade ago, a pharmacy owner wouldn’t have needed to concern themselves with digital advertising or social media marketing to attract more customers and make pharmacy inventory more accessible to the community, but that of course has shifted,” Zilka said.
“Today, Good Neighbor Pharmacy is focused on so much more. That ‘more’ includes assisting pharmacy owners with digital marketing and advertising on platforms like Google and Facebook to drive consumer awareness of the products and services available to patients and position independent pharmacies as local healthcare destinations to get trusted healthcare advice and products.
“We maintain a line of sight into pharmacists’ continually evolving needs, with an overarching goal to help pharmacies navigate the digital transformation necessary to thrive in the modern business environment.”
A key element of Good Neighbor Pharmacy’s approach to supporting independent pharmacies is offering digital tools that reduce the burden of back-office tasks, Zilka said. Good Neighbor Pharmacy’s digital solutions help streamline marketing, merchandising and other time-consuming functions, giving pharmacists the freedom to focus on delivering personalized, high-touch care.
“It’s important to highlight the critical role of pharmacists, who are often the most accessible healthcare providers in the U.S., with some research suggesting that patients see their pharmacists more frequently than any other healthcare provider,” Zilka said.
“This positions pharmacists uniquely to meet broader public health needs, beyond dispensing medications. This is especially true for independent pharmacies, whose proximity and deep community ties allow them to nurture deep relationships and better understand patient needs and barriers to accessing care.”
The company’s commitment to leveraging digital tools has paid off, evidenced Good Neighbor Pharmacy being named No. 1 in Customer Satisfaction with Chain Drug Store Pharmacies in the J.D. Power 2024 U.S. Pharmacy Study., marking its eighth consecutive year earning this ranking.
As the pharmacy competition intensifies, Zilka said independent pharmacies face challenges in standing out and reaching customers in a crowded market.
“In addition to providing marketing solutions that help our customers drive awareness of their pharmacies … we also leverage the expertise of the larger Cencora organization to provide our member pharmacies with detailed snapshots of their communities and insights to identify care gaps and opportunities for tailored service offerings.
“As a result, our members can employ even simple tactics — like stocking multilingual signage, brochures at a pharmacy with a large, non-English-speaking community — that make an impact.”
Given continued challenges surrounding reimbursement for the prescriptions pharmacists dispense, Good Neighbor Pharmacy helps member pharmacies enhance their front-end store products to appeal more to customer needs, Zilka noted.
“Cencora launched Marketplace in August 2023 to provide our pharmacies with a comprehensive over-the-counter merchandising solution,” she added. “Marketplace is seamlessly integrated with ABC Order (the eCommerce platform our customers use to place all other product orders) and provides members access to over 250 sellers and more than 50,000 front-of-store products, enabling pharmacies to stock consumable products without the burden of numerous vendor contracts and consolidated invoicing.”
While Cencora’s Marketplace seeks to streamline the procurement process for pharmacies, the broader healthcare industry is struggling with financial inefficiencies.
A PYMNTS Intelligence report, “Pains and Gains: Conquering Healthcare’s Payment Woes,” in collaboration with American Express, underscores the issues surrounding healthcare payments and suggests digital transformation could be the key to solving these problems. According to the report, 84% of healthcare organizations have experienced financial losses due to ineffective accounts payable processes, leading to $935 billion in annual waste.
As consumer expectations change, particularly among younger generations, Good Neighbor Pharmacy seeks to help its members adapt by elevating their digital offerings.
“We’re focusing on adapting our digital offerings and strategies in a way that helps our members capture the attention and meet the needs of this younger demographic,” Zilka said.
“Through our research, we know that younger generations are using technology to inform, influence, and secure their purchases across industries and product types. They value convenience and leverage technology to search for products and services through mobile apps and websites. Social media, internet search, and YouTube ads are the top ways they discover new products.”
We’re always on the lookout for opportunities to partner with innovators and disruptors.
Learn More