What a year it’s been – persistent economic ups and downs, nervous consumers saving more and spending less, retailers and businesses incurring increased operating costs, deflating products, increased competition and erosion to the Internet. This means that the right time to expand your business thinking is now.
It is not just optometry that has undergone significant changes this year. Since the dawn of 2012, clothing brands Fletcher Jones and Specialty Fashion Group (Katies, Millers); gaming and electronic companies GAME Australia, WOW Sight and Sound, Dick Smith; and chocolate company Darrell Lea have all announced plans to reduce their stores.
In the optical industry, we have seen store ‘reductions’ and ‘relocations’… in reality, the net result is store closures. In today’s environment, companies are no longer willing to carry stores that are not returning an adequate return on investment.
So what has changed?
Nothing makes an impression like a surprise. It doesn’t have to be big or expensive, just let your patient know you are thinking of them
Optometry was a fairly simple business at its origins. Right product, right price and good service available in store were guaranteed to drive sales.
The advance of technology of smart phones, tablets and online stores has resulted in global price transparency, which means consumers are more equipped and more educated. They are better able to judge the relative value of each item they buy, and no longer willing to pay more for them.
Most independent optometrists today are focused on the stresses of running their businesses and surviving. They may not be taking the time to really understand how rapidly change is occurring and will suffer a death of a thousand cuts. If you are a staff optometrist, don’t think this has nothing to do with you – the momentum of change will affect everyone.
No Time Like The Present
So now is the time to expand your business thinking! Let’s take Sensis as an example. Sensis was Telstra’s cash cow year after year making great profits but has now reported a significant decline in profitability. Rather than thinking it was in the business of printed directories, Sensis needed to regard itself as being in the information business. It failed to future-proof or adapt to the changes occurring – both in technology and in consumer habits – until it had become too late.
Borders bookstores sold books and CDs – and a lot of them. It, too, failed to adapt. It may have been better off considering its business as part of the overall entertainment business, rather than limiting itself to books and music.
Similarly, optometry needs to move away from selling products such as frames and lenses, which are becoming commodities, to concentrating on the benefits and solutions that the optometry profession can provide to the consumer.
Action Plan
So it’s time to start thinking. How would you change your business to best be able to provide this benefit to your patient demographic? How can you deliver this differently compared to your competitors? And, most importantly, are you able to adjust your business before it’s too late?
Our world has become very rational and transactional. Bricks and mortar retail stores in Australia have followed this course, which is one of the reasons why there has been such an erosion to online e-tailers.
However, it is important to remember that humans crave social interaction – and that is a significant advantage that traditional optometry has over online stores. One of optometry’s key strengths is its ability to develop close personal relationship with patients. The ability to provide exceptional customer service beyond your competition will see you develop a considerable competitive advantage.
Most companies and store owners will tell you that they already provide great service, but the terms ‘customer service’ and ‘quality’ are being used so often that they have become meaningless and fail to cut through the constant advertising ‘noise’ that consumers are exposed to.
To be able to communicate service and quality today, you really need to be able to deliver a good customer experience. So what are some of the factors that help deliver a good customer experience?
Build Consumer Relevance
Review your product assortment to ensure you have the best and most relevant products to suit your customer base, satisfy their needs and provide a convenient shopping experience. This ensures customers remain loyal and do not have to go elsewhere to source products you don’t have.
Create Price Relevance
Today’s consumers are exposed to media advertising, email marketing, direct mail, and online stores, resulting in a large number of price messages. The consumers your business serves need to be segmented by gender, age, behaviour, and product purchases. Understanding your customer base in this way will allow you to become more price relevant. Certain items may need to be priced lower; others can remain at a higher price, where there is less competition. Having the right prices on the right items can help the price perception of your customers.
Finding Your Point of Difference
A great shopping experience means different things to different people and, as a business owner, your task is to find out what it is that your customers want. Ask yourself what it is that clearly identifies you and how you distinguish yourself from your competitors.
Will your customers value the experience that is being delivered? Do all your staff members believe in the practice values and goals? How can you make the customer experience consistent? What is your point of difference?
At eyeclarity, for example, we developed the myeyes software, which delivers an engaging and unique customer experience through a touch screen kiosk…. so how do you ‘wow’ your customers?
Building a great customer experience is not a one step process. It is an ongoing journey. Pick a starting point, set some goals, get the team on board and start building a great experience because ultimately your patients will thank you for it.
Jim Papas is the Managing Director of eyeclarity. The business opened its first store in the Melbourne suburb of Melton in 1986 and now operates five stores across the western suburbs of Melbourne.
Jim and his companies have received numerous awards for customer service and innovation in retail.
