BUSINESS

  BY THE NUMBERS

BOOST ANNUAL SUPPLY SALES

CREATE A PLAN TO IMPROVE SALES OF ANNUAL SUPPLIES OF CONTACT LENSES

JAY BINKOWITZ

SALES OF annual supplies of contact lenses vary greatly throughout the country. Overall, independent optometrists still control the majority of these sales; 42.5% of respondents who purchased eyewear in the last six months indicated they purchased their contact lenses from an independent optometrist, according to the VisionWatch’s 2015 Internet Influence Report. Yet, opportunities are still left on the table.

EXAMINE CURRENT PRACTICES

Understanding where 100% of your contact lens (CL) business comes from is the first step to increasing it. Consider the following:

1. Annual supplies: Annual supplies sold divided by the number of CL exams; for example: 5/10 = 50%

2. Partial supplies: Partial supplies sold divided by the number of CL exams; for example: 3/10 = 30%

3. Quarterly refills: Automated sign up of quarterly refills divided by the number of CL exams; for example: 1/10 = 10%

4. Walk out rate: (Total number of CL exams minus number of CL transactions) divided by the number of CL exams; for example, (10 – 9) / 10 = 10%

Every office should track patients who have do not use their entitlements, because patients are likely getting their optical purchases elsewhere. Have your team save each service record form to review and discuss.

IMPROVEMENT

Most folks I speak with can easily achieve an 80% sell through on annual supplies. I have found that those who have a more practiced approach achieve better results. Some of the steps they take include:

• They exclusively discuss annual supplies with their patients, from the exam room to the front desk.

• They offer back-up services. For example, they offer an exchange of unopened boxes of contact lenses (within one year of purchase), the value of which can be put toward their next annual supply (if their prescription has changed).

• They provide patients with easy-to-use online services. For example, some contact lens distributors offer branded web portals that allow patients to re-order their prescriptions.

• They provide the option of automated quarterly refills.

• They ensure patient fees, with the understanding that savings are pre-configured and on hand to provide quickly and efficiently.

• They offer incentives. For example, via promotional offers, sent via third-party marketing or communication systems, or a savings towards polarized plano sunglasses.

CONTINUOUSLY EVALUATE

As you implement improvements, continue to review sales information quarterly with your team. Keep a score board posted to incentivize the team and keep the goal at the forefront. OM

MR. BINKOWITZ is president of GPN, a leading business management company based in Farmingdale, N.Y. He has had extensive experience in retail operations, merchandising and marketing. Email him at jay@GatewayPN.com, or to comment on this article, visit tinyurl.com/OMcomment.