In Services development

Follow this topic

Bookmark

Record learning outcomes

There are many parallels between independent pharmacy and independent optometry. Paul Surridge, chief executive of Sight Care, shares some ideas that optometrists have used to raise their profile and differentiate themselves from the chains

Decades ago, a newl-qualified optometrist could very easily choose to be an independent, raise cheap finance, find suitable premises, hire staff, put a sign above the front door, open for business and never look back. How times have changed.

As chief executive of a business and product resource group for independent opticians, I’ve battled for a number of years to persuade our practice owners to think and act differently, and importantly to embrace the commercial challenges of the day.

Consumers across the UK want choice – not everyone is destined to shop with the chains. There’s no hard evidence for this next statement, but it’s a generally accepted rule that 20 per cent of people buy on price alone. This is their only criterion. It’s the cheapest or nothing. The other 80 per cent of people want value-for-money and, of course, VFM is in the eye of the beholder.

If you believe the above assertion then it should put a smile on your face. The chains in any business sector have enormous marketing budgets aimed at achieving one or more of the following drivers: increasing sales volumes, increasing market share or retaining market share. When a company and/or brand reach a level of saturation their marketing budget is often directed at the latter strategy.

An independent response

So how can independents respond? The answer is not in any way to attempt to compete with the chains on their terms, which are usually price-led. If 80 per cent of consumers seek value for money, it’s the independents’ responsibility to respond to that call in a differentiated way, and that’s invariably service-driven. But offering great service is not enough, it’s just a part of the package.

Don’t be fooled into believing that everyone in your community knows your business, let alone where you are

First, it’s important to know where you are going. Do you have a business plan, annual budgets and management accounts enabling you to plot progress throughout the year? A business plan is like a ship’s rudder. It steers you in the direction you wish to go rather than allowing the business to drift aimlessly.

The budget should reflect a financial commitment to marketing and promotion. You’ll notice I didn’t use the word, ‘advertising’. Generally speaking, advertising is a waste of money for independents, but there are exceptions to this rule. I believe that marketing and promotional budgets should be in the region of 6-8 per cent of turnover for independents.

Attracting new shoppers

Regular income comes from loyal customers. But incremental income comes from attracting new shoppers, and often this target audience will not have you on their radar either because of their habitual nature of shopping or because they don’t know you exist. Don’t be fooled into believing that everyone in your community knows your business, let alone where you are.

If exceptional service delivered by exceptional staff is a given, what else can you do to ensure that existing customers remain loyal and potential customers find you, shop with you and recommend you to family and friends? Poet Maya Angelou said: “People will forget what you said, people will forget what you did, but people will never forget how you made them feel”. That philosophy should be at the heart of your business.

Having set your business plan and financial goals, now’s the time to look at your marketing activity. Everything you do, everything you say and everything you communicate to your target audience should ideally have the following elements:

• It says who you are and what you do
• It reflects the kind of business you are and what you stand for
• The messaging is succinct and memorable
• It has novelty value.

The two major hurdles that hold independents back are a commitment to doing the things that need to be done, and committing the resources to achieving marketing/commercial objectives. Jump the hurdles and have control of the rudder, and being an independent pharmacist can be fun and rewarding long-term.