Stop the Churn Patient Retention Strategies

Patient retention is all about turning new patients into loyal patients.

There are multiple ‘touchpoints’ in every patient’s journey with recalls, email newsletters, and online engagement now standard operating procedures. But how do you know what will work?

The late Peter Drucker, an American management consultant who has been described as “the founder of modern management” is quoted as saying: “You can’t improve what you don’t measure”.

To measure whether your retention strategies are working, you need to know what your retention rate is now.

Here’s a handy formula to measure a particular period: [(E-N)/S] x 100 (where E is the number of existing patients you have at the end of a particular period; N is the new patients gained during the period; and S is the number of patients at the start of that period).² So, you want to measure your patient retention rate for last year. In nice easy numbers, let’s say you started the year with 400 patients (S) and had 500 patients at the end of the year (E) with 250 new patients in the year (N). That’s a patient retention rate for 2022 of 62.5%. And, conversely, a patient loss rate of 37.5%.

Improving that patient retention rate is going to be cheaper than encouraging new patients through the door.

“There’s a multiplier effect to acquire a new customer versus retaining a customer,” The Optical Co’s Group Manager, Marketing, Anthony Whittle explained.

“Identifying, attracting and ensuring that we are in front of (a potential new customer) in that path to purchase is an expensive exercise and is definitely a higher cost than it would be to communicate directly with someone who has seen us previously.”

MAKING A GREAT FIRST IMPRESSION

First impressions happen in one of several ways. It may be when the patient logs onto your website or checks out your social media. It may be when they walk past the front of your practice or walk in the door. It may be over the phone to book in an appointment.

No matter how that first impression is made, you want it to be helpful, professional, and friendly.

On the web, you usually have less than 10 seconds before your customer decides whether they’ll keep browsing. To keep them there, your website must be professional, up-to-date, easy to navigate, and aesthetically pleasing.

In store and on the phone, your whole team needs to get on board with making people feel welcome and valued. “You’re not giving them a reason to leave, you’re giving them every reason to stay,” said Bailey Nelson Eyecare Director Lawrie Jacobson.

“Identifying, attracting and ensuring that we are in front of (a potential new customer) in that path to purchase is an expensive exercise and is definitely a higher cost than it would be to communicate directly with someone who has seen us previously”

ADVERTISING

For Bailey Nelson, customer retention is wrapped into its general advertising strategy and conducted at a brand level.

“I don’t think we really have a defined split in what we’re trying to achieve in terms of prioritising one over the other – there is equal importance in attracting a new customer base and also maintaining the current customer base,” Mr Jacobson said.

Similarly, Specsavers said it supports its store partners, communicating to customers through TV, radio, outdoor advertising, digital, and social media.

“We speak to customers about offers, expertise, and style, and deliver it all with our own unique and well-known wit and humour,” said Samantha Ferreri, Senior Marketing Manager, Specsavers Australia and New Zealand.

WORKING THE DATABASE

For those without the brand-level advertising budget that targets both new and existing customers, building an ongoing relationship with patients is crucial.

ProVision’s NSW Business Coach Kelvin Bartholomeusz said for independent optometrists, open and regular communication is key, “rather than only talking to someone when you want something”.

“With everything, it is always a combination. The ‘silver bullet’, I always say, is made up of little pieces. The first one I think of is active communication. In other words, the worst thing you could do is see someone and then in 12 or 18 months… recall them suddenly when they have never heard from you.”

For this reason, ProVision provides its members with an electronic newsletter that can be personalised. Mr Bartholomeusz said newsletters should be informative and interesting – perhaps including clinical eye health information or articles on fashion – “just to be in touch with that person, you’re not trying to sell them anything”.

RECALL IS KING

“Recall is really important, but you have got to have done the groundwork, because that increases your conversion on recall enormously,” Mr Bartholomeusz said.

Mr Whittle describes The Optical Co as an “optometry-led business, so we lead with our optometry service and that duty of care”.

“We place a high importance on recalls and reminders for existing customers, so it is not around a marketing message. It is around the fact that our records show that person is how important it is for somebody to maintain good vision care.”

Similarly, Bailey Nelson discards its “fun, joyous” brand personality in recall messages, which become strictly professional.

“It (the recall) doesn’t speak to any offers; it doesn’t speak to any product. It is to the point, succinct, and quite serious because we’re talking about people’s eye health. When you look at your retail direct marketing (to existing customers) that is where you get to play around and add your creativity,” Mr Jacobson explained.

Specsavers too places a priority on recall: “Recall is vital in ensuring our customers are reminded to care for their sight and to drive customers to store. Our automated CRM and digital technology enable us to keep on top of such activity,” Ms Ferreri told mivision.

But, there is the opportunity to further streamline SMS recalls for patients.

“We have a recall system which enables an optometrist to send recalls… using smart SMS technology that automatically knows who the patient is, why they need to come into the practice, the duration of the appointment and which optometrist they need to see,” 1st Group Sales Director Eddie Quinones said.

“All the patient needs to do is open up the text message, select the date and time, and then it’s booked. We’re trying to simplify everything for the patients.

“This recall system can be combined with pre- and post-appointment patient surveys if required by the practice,” he added.

Keep in mind that depending on your practice demographic, you might need to experiment with the recall and reminder process.

Bernie Zacharia, Practice Manager from Zacharia Naumann Optometry Wagga, part of the ProVision network, said nothing beats the phone recall. “People in our regional area of Australia, look forward to the phone call and we have good success with that.”

She said an experiment with SMS-only recalls was not a success in their practice although it is still used as a backup, if the phone call is not answered.

CONTACT LENS CUSTOMERS

Patients who wear contact lenses often cause a dilemma for optometry practices, because these devices can often be quickly and cheaply purchased online. But Mr Whittle said fitting contact lenses provides the opportunity for “more regular conversations” with patients, as the optometrist educates them about contact lenses, guides them through the fitting process, and provides appropriate follow-up care.

Mr Jacobson, from Bailey Nelson, agreed. “Our approach is to attract contact lens patients through the instore experience. It really comes down to the service provided to the optometrist and giving a good narrative around care.” But Mr Jacobson said it is crucial to eliminate all possible hurdles for customers placing orders.

“A contact lens customer wants everything at the last minute – that’s the reality – so one of the main ways to retain those customers is to make sure the ordering and fulfillment processes are as easy as possible.”

A contact lens customer wants everything at the last minute – that’s the reality – so one of the main ways to retain those customers is to make sure the ordering and fulfillment processes are as easy as possible

He said Bailey Nelson do this through contact lens subscriptions and easy, one click reordering. The Optical Co also introduced online contact lens sales during the COVID pandemic and uses the recall and reminder system to prompt reorders.

THINKING OUTSIDE THE BOX

Mr Bartholomeusz said some of the ProVision stores have had success with customer retention by creating relationships with other small businesses in the area and creating VIP nights.

“You invite a small group and one or two suppliers (of frames) to show them the full range of something new or fashionable,” Mr Bartholomeusz said.

Adding a bit of “theatre” with complimentary services such as make-up, hair styling or hand massages creates a symbiotic relationship with other small business owners. “They’re a little bit of work but suppliers often fund it and they do go down really well,” he added.

Building Relationships

Asked to nominate a shining light in patient retention, ProVision’s Kelvin Bartholomeusz nominated Zacharia Naumann Optometry in Wagga. Practice Manager Bernie Zacharia said a turning point for practice retention was deliberately working on patients’ relationship with the dispenser. “Not only do they (patients) have a relationship with the optometrist, we dedicate the one person to that patient while they are in store. So, they go through the whole patient journey with them. “That’s been a really big thing for not only endorsing our team’s technical skill and knowledge but also creating that deeper connection outside the consulting room.

“The main way we retain business is just being upfront, putting the customer first, following through, and making sure that person feels like you appreciate their custom and knows that they’re important to us. Their support of our business is not something we take lightly, I suppose.”

References

1. www.invespcro.com/blog/customer-acquisitionretention
2. blog.titanwebagency.com/patient-retention-strategies