American Express recently ran an ad campaign featuring
the slogan, “My Life. My Card.” The AmEx ads center on
high-wattage celebrities such as Tiger Woods, Ellen DeGeneres, Kate
Winslet and Robert De Niro. Each celebrity was asked a series of
questions about their life including, “When you were a child, what
did you want to be when you grew up?” Responses included all of
the childhood standards: teacher, mom, fireman, veterinarian,
doctor, etc. As children, we tend to favor helping professions. You
never hear a child say they want to be in sales when they grow up.
You also don’t hear very many eyecare professionals wanting to be
associated with selling.
Sales has developed a very negative connotation thanks to
stereotypic sales people. Perhaps you’ve worked with one of them as
a consumer. You’ve
learned that you can’t
trust them. They don’t
care about what you
need or want. They
don’t listen. They
don’t ask questions.
At the end of the day,
they will trick you
or push you into
something you don’t
want. The last thing
you want to be is one
of them.
As an eyecare professional, you are in a
helping profession,
which like it or not,
includes the art of
consultative selling.The average dispensary is responsible for 50 to 60 percent of
practice revenue. Practices enjoying the highest levels of profitability
understand the value of maximizing their dispensaries through
needs-based dispensing. They’ve mastered the ability to sell and to
help patients at the same time because in reality, these terms are synonymous when done properly.
CONSULTATIVE SELLING
Consultative selling, in our profession, may best be described as satisfying patient eyecare needs. A professional exam is only one part of
the equation in satisfying patient needs. The other part happens in
the dispensary when you take the time to build trust, understand
patient needs, educate and provide solutions to satisfy those needs.
If patient needs go unmet after visiting your office, they may seek to
have those needs met elsewhere. Figure 1. shows the results of
consumer exam and eyewear-purchasing patterns as reported by
VisionWatch, a Jobson and Vision Council program. Sixty six
percent of consumers had eye exams in a private practice but
purchased only 41 percent of their eyewear in the same office. The
opposite trend is true at retail chains.
This is an alarming trend. It tells us that patients prefer the
quality of the exam through independent channels but their
experience in the dispensary is lacking. Retail chains capitalize on
patients bringing in their prescriptions from the private-practice
sector of the market. The financial impact of this trend is staggering.
Based on the current patient population and average cost of goods,
we estimate that private practice as a whole is losing up to $3.5 billion annually to chains and other businesses when patients leave.
Individual practices are losing as much as $150,000 annually (about
$3.5B/25K locations).
Changing this trend may be as simple as changing your mind about
what selling is all about. If you embrace the concept that helping
patients goes beyond satisfying their needs in the exam room to
include the dispensary, you will create a win-win for your patients and
your practice.
So how is your practice doing when it comes to satisfying patient
needs in your dispensary? Only your patients can truly answer that
question. The answer lies in your capture rate. It is your report card
to track your progress in needs-based dispensing.
CAPTURE RATE
Capture rate is defined as the numbers of patients that get their eyes
examined in your office and purchase their eyewear from you.
Simply divide the purchase number by the exam number. For
example, last month you conducted 100 eye exams and 75 of those
patients purchased a complete set of eyewear from you. Your
capture rate is 75 percent. Is your capture rate up or down from last
year? How does this November compare to last November? Is it
getting better? Is it getting worse? How do you measure it? How
often do you measure it?
In a VSP survey, less than half of offices surveyed currently track
capture rates. Yet most offices would say they have a very high
capture rate. You may have a great day and say you have a good
capture rate. It might have been a good week or a good month.
However, an office really needs to look at its capture rate over a
sustainable period of time to best understand how effectively you’re
satisfying patient needs. We would suggest that high capture rates
are equivalent to better meeting patient’s needs. In order
to truly calculate where
your office stands, track
the capture rate daily
and create monthly and
annual reports.
A good capture rate targets 70 to 80 percent or
better. This number will never be 100 percent because you will have
patients without prescriptions or there will be contact lens patients
who already have adequate back up glasses. There will be patients
that have no prescription change. The goal is not to focus on the
number and “100 percent of patients who come in” but to satisfy all
potential buyers’ varying eyewear needs.
On average, many private practices that we see have a capture rate
of roughly 50 to 60 percent. This means nearly half of the patients
are leaving the office after their eye exam without purchasing
eyewear, plano sunglasses or optical products. Clearly, from the data,
the largest optical retail chains have the best chance of capturing the
majority of these lost sales. One of the primary disconnects is tracking. Most offices don’t track capture rate at all. By simply tracking
your capture rate, the focus on the process can improve it by at least
5 percent. We’ve included a sample capture rate form below.
Improving the capture rate takes time and perseverance. The
balance of this article provides strategic needs-based dispensing
techniques to use with individual patients. It will also help you look
at your dispensary with a critical eye to make sure it’s set up to
complement your needs-based dispensing efforts. As you embrace
and apply the principles of needs-based dispensing, capture rate and
sales per patient will increase.
NEEDS ASSESSMENT
How do you know what your patients need? Every good
consultative sale begins with a needs assessment. Every good
assessment begins with asking the right questions. How does the
patient typically use their eyes? What do they do for a living? What
hobbies do they enjoy? What sports do they play? How do they
protect their eyes from harmful UV rays? How much time do they
spend behind the computer? How often do they drive at night? By
collecting and discussing pertinent information with your patients,
you will be able to recommend custom solutions that meet their
specific visual needs.
There are two challenges to a needs-based approach. One is time.
The other is accumulating information and then doing nothing with
it. If your practice is like most, you have the desire to get to know
your patients but rarely the time. This poses an interesting dilemma.
Patients gravitate to private practice for the thoroughness of the exam
and the personal attention they receive. They’ve come to expect
a level of customized service. You can gather the information you
need to customize their experience without consuming a large
amount of time.
Have patients complete a lifestyle questionnaire online before their
office visit or in the reception area at the time of their visit. Make sure the entire staff is well trained in what to look for when viewing
the questionnaire. We’ve included a sample questionnaire for
your reference and a full size version will be available in this CE at
2020mag.com.
For example, a patient is a 50-year-old working professional. He is
myopic and presbyopic and prefers to wear glasses. He’s a lawyer that
spends a considerable amount of time in front of a computer doing
research. When he’s not in front of his computer, he’s in front of a
jury as a trial lawyer. On the weekends, he enjoys motorcycle riding
and golfing. Based on this patient’s occupation and weekend
activities, what eyewear options
would you recommend?
Without a thorough understanding of your patient’s lifestyle,
you may be inclined to believe
you’ve satisfied their needs based
on their primary occupation
and/or contact lens preference.
Implementing a lifestyle questionnaire provides a starting point
to begin to understand the
patient’s needs to better satisfy
them. In this case, the patient
could benefit from a pair of glasses with photochromic in polycarbonate or Trivex lenses when motorcycle riding. Glasses will reduce
dryness and the photochromic lens will add an element of convenience as the level of light changes throughout their ride. He’ll also
need a good pair of computer glasses. Amber, copper or green tinted
sunglasses could improve his golf game. With more patient insight,
you may discover multiple needs exist that you can satisfy.
It’s critical to emphasize that the questionnaire is only a starting
point to uncovering patient needs. It’s important to never “assume” a
need based on a questionnaire response. Ask additional questions
to uncover patient needs. Questionnaire responses by design should
trigger your desire to take your patient interaction to the next level.
RESPONSIVE LISTENING
The first step in this interaction is responsive listening.
Responsive listening is an outward indication that you have heard
what has been communicated through the questionnaire and
expresses a genuine interest in what’s been shared. There are two key
aspects to responsive listening. The first part is letting the patient
know that you’ve heard them. This is as simple as “playing back”
what’s been communicated. For example, “I see that you enjoy
motorcycle riding. That’s something I’m interested in as well.” The
second part of responsive listening is to show genuine interest by
asking a layering question, “How long have you been riding?”
Responsive listening acknowledges what’s been communicated and
seeks additional understanding.
After acknowledging you’ve heard your patient through responsive
listening, understand whether or not motorcycle riding
creates additional visual needs for this particular patient.
Uncover those needs by asking one good open-ended question. An
open-ended question will begin with “what, why or how.” For
example, “How satisfied are you with your contact lens
performance while motorcycle riding?” You may find out this patient
has severe dryness problems as a result of his hobby.
It’s important to avoid closed-ended questions because they limit
the amount of information you’ll receive. A closed-ended
question will begin with “is, do and are.” If you were to ask, “Do you
have any issues with your contacts while motorcycle riding?” you
have a 50 percent chance of hearing “no” even if an actual need
exists. You may have to ask five closed-ended questions to get
the same amount of information that one good open-ended
question provides.
Ask a few questions that aren’t on the survey. Two of the most
critical open-ended questions to ask that will help with frame
selection are, “What did you like most about your last pair of
glasses?” and “What did you like least?” Layering questions and
best/least questions demonstrate a genuine interest and give you
critical insights to your patient’s needs.
A DOCTOR’S ROLE
What should the doctor’s involvement be in needs-based
dispensing? The doctor plays a very important role in the process
because the doctor holds the highest level of trust in the eyes of the
patient. Generally speaking, a doctor’s recommendations are taken
very seriously. The doctor and the staff should work in tandem to
reference the lifestyle questionnaire, probe for patient needs and
provide needs-based recommendations.
Upon completion of the exam, it’s important the doctor
facilitates a transition of trust. The doctor should escort the patient
from the exam room to the dispensary. It’s important for the doctor
to review patient recommendations with the dispenser or optician in
the presence of the patient. When done properly, the dispenser or
optician’s recommendation will be trustworthy because it originated
with the doctor. As a side note, even if the patient isn’t a candidate
for new frames, it’s a good idea for them to visit the dispensary for a
complimentary adjustment or cleaning because it adds visibility to
your dispensary.
SOLUTION-BASED RECOMMENDATIONS
The final step in needs-based dispensing is to make solution-based
recommendations rather than product-based recommendations.
You’ve uncovered a need — possibly multiple needs. Now the
primary job is to help the patient by providing solutions. Let’s assume
you’ve gone through the process of selecting a new frame for this
patient (with a prescription in mind). Your frame recommendation
accommodates their need for a progressive lens and the style is pefect
for their face shape and skin tone. Now it’s time to make sure they
understand the various options and additional pairs they need to satisfy their lifestyle. Selling solutions might sound like this: “Based on
Dr. Smith’s recommendation and what I see noted in your chart, you
spend a fair amount of time out on the golf course so you will need
sunglasses with UV protection for your eyes and a tint color that will
help your golf game. Is that right? Based on that I’d recommend…”
Notice that price is not part of the discussion. Needs-based
dispensing always focuses on the need and the solution. Address
pricing only after all needs have been addressed and solutions have
been clearly described. You’ll be surprised to discover what patients
will spend to address their needs. The result is much different when
you lead with price or what insurance will cover.
FOLLOW-UP
Complete the patient experience in your practice with follow-up. The
willingness to reach out to patients after they’ve left your office conveys a genuine interest in making sure their visual needs have been
met. We recommend you make contact within one week of your
patient receiving their frames and/or contacts. Place a phone call or
send an email or postcard. Some offices shy away from this step for
fear it may create problems by suggesting something may be wrong.
The benefits of follow-up far outweigh the potential risks. You’ll find
very few patients will have complaints. For those that do, it’s better
to address them as soon as you can after their visit.
Once you embrace these needs-based dispensing techniques, you’ll
have a better understanding of your patient’s needs, established
greater trust and rapport and ultimately move closer in the direction
of satisfying their total eyecare needs. There’s only one thing
standing in the way — the dispensary. Does the frame board help or
hinder needs-based selling efforts?
How many frames should you have on your board? What styles
should you have on your board? Some frame board management
methodologies advocate calculating the number of frames you need
by your current capture rate. If you have a lower capture rate
(private practice average is 50 to 60 percent) you could perpetuate a
low capture rate by not having a sufficient selection. To create a
better experience for your patients and your practice, calculate the
number of frames you need by your desired capture rate. Let’s say
you’re shooting for a 70 percent capture rate. Do the math as follows:
- Determine desired capture rate. Exams per day (10)/ frame
selects per day (7) = 70 percent
- Multiply frame selects per day by the number of days per
week eye exams are provided. 7 (frames per day) x 5 (days
per week) = 35 (frame selects per week)
- Multiply the number of frame selects per week by 52 weeks
per year. 52 x 35 = 1820
- Divide the total number of frame selects by your desired
turn rate (An industry average of 3 inventory turns per year
is a good starting point.) = 1820/3 = 607
So, about 600 frames will support the sales of seven per day or
70 percent capture rate, allow three times replacement annually
and conserve cash but require good style and color consideration. This example is from the article “Managing Your Profit
Center: Take the Guesswork Out Of Frame Inventory
Management,”by Mary Schmidt, which appeared in the
November 04 issue of Vision Monday.
What if you have a 40 percent capture rate even though you
have enough frames for a 70 percent desired capture rate? You
have too many of the wrong frames on your board!
Unfortunately, purchasing errors are common and costly. We
tend to buy based on personal preferences. Frames we like.
Frames we don’t like. Reps we like. Reps we don’t like. The
results are a board with slow moving frames that can cost the
practice a considerable amount of money. There are tangible
costs of an exchange, which can add up to $15 per frame when
staff time and shipping costs are factored in. The intangible
costs of missed opportunities in patients taking their
prescriptions elsewhere can add up to 20 percent loss of all jobs.
To promote better cash flow and reduce costs, work with vendors that can supply data to support objective purchasing decisions, no-cost inventories and no-questions-asked exchanges.
Remember, the frame board exists to satisfy patient needs. You
can’t satisfy their needs if your best sellers are missing from the
board. It’s imperative to keep best sellers on the board at all
times so evaluate how you order.
An optimal situation would be to work with a vendor that
offers centralized inventory. If the vendor has a centralized lab
based inventory that stocks your best sellers, sample frames
never have to leave your board. There is a saving on shipping
costs and patients can get their completed prescription in less
time without the delays of “frame to come.”
CONCLUSION
Needs-based dispensing provides the tools needed to take a practice
and dispensary to the next level in satisfying patient eyecare needs.
Adjusting an office’s approach will take time and training, however,
don’t get frustrated. Adopt the steps in phases and you can anticipate
new levels of patient satisfaction. |