Growing in Non-Growth Times

How optical retailers can just say no to participating in a down economy

By Tom Bowen

In this day and age, one hears plenty of information on the state of the industry. Some of it, like in most sectors of the economy, is more than a little discouraging. The question, however, is, "Do I really have to participate in this down economy?"

The answer? Not only no, but heck no. Here are five reasons why:

1. PEOPLE NEED YOU. One of the top concerns people have when surveyed about what they fear most in their health is going blind. They hire you to make sure that doesn't happen.
2. PEOPLE REQUIRE YOU. Most of the population has to have your services and products.
3. PEOPLE WANT YOU. Most people still want to have the best vision they can possibly have. The vast majority of consumers will opt for what they perceive as the higher quality and thoroughness of care over what they perceive as the cheapest. People choose you.
4. THE SYSTEM INCLUDES YOU. Most of the population has medical insurance, and much of it has vision plans.
5. PEOPLE TRUST YOU. You're the eyecare professional, and what you say goes.

EXCEPTION TO RULE

All of this puts you in a strong position to be an exception to the revenuedown rule sweeping small businesses.

In 25 years of consulting with eyecare practices, I've learned one thing is certain: If you control everything as best you can, you need not worry about the things you can't. The question is this: What are you not controlling in the best possible way?

That's where marketing strategies come in. Pick the right options and they will help grow your practice in non-growing times.

• REDEFINE YOUR POSITION. A good start is some redefining of position. Every owner has to make a choice: Is the practice going to be a few things to all people, or all things to a few people? It can no longer try to be both.

The decision is simple. We don't need all people to be our patients. We don't even need most people to be our patients. In fact, we can do swimmingly if only some people are our patients, as long as they're the right people.

• PICK TWO. One of the "Marketing 101" concepts with which we always begin a practice marketing plan is the Triplicate of Choice. That is, the three elements that contribute to a consumer's perception of value—price, service, and quality.

Once upon a time, you were probably ok if you were best at one of these. Now, however, you have to be the best at two. Any two will work. But if you try to be the best at all three, you're out of business.

If you're like our clients, you choose quality and service as your two-out-of-three. In fact, you might choose to provide the best quality and the best service. If so, you better take the high road on price, because you can't also be the "best" at low price. If you try—unless something else is subsidizing you—the personnel and product costs you rack up will put you out of business.

• MARKETING THE RELATIONSHIP. The opportunity of our day—at a time when dollars are short, competition is long, and people are disappointed in the healthcare system—is marketing the relationship, not the "commodity" (exams, glasses, contacts, Lasik, etc).

• CREATING THE FOUNDATION. Differentiating the value of that relationship is the foundation for growing the practice. And teaching people—patients, potential patients, and those you don't want as patients—how to value the relationship is the greatest marketing opportunity of our day.

HOW TO IMPLEMENT

It's important to know the way people want you to communicate with them. Consider your website, social networks like Facebook and Twitter, online events and discussions (maybe a macular degeneration support group and chat room on your website), and/or other online services (such as examination stage one or certain products offered over the Internet).

Considering such options is imperative because patients have changed. They're educated about alternatives, and they want personalized solutions (see sidebar below, CONSUMER TRENDS).

In addition, the market itself has segmented. What was once simply the eyecare market is now several distinct markets.

MULTIPLE MARKETS

Here are just some examples of today's multiple eyecare market segments. Your marketing plan and communications strategy should have plans within the plans for marketing to each of these segments.

• TECHNOLOGY. This segment is interested in the best possible vision with the latest technology in lens products—spectacle lenses and contacts. New technology and vision enhancements (such as reduced glare), as well as individualized solutions, are the marketables for this group.

• FASHION/STYLE. Though already a segment, at no time has it been so clearly a purchase-based issue. Selection, envelope-pushing style, and individual solutions are the key marketables here.

• VISION FIXED. This is the segment considering or pursuing a corrective procedure. It is well understood that this segment is motivated by the latest technology to assure the best result, and this still rings true.

However, an additional key marketable for much of this segment, as procedure has become more commoditized, is the breadth of the wellness relationship that comes with the procedure. This is a key marketable in times of failing healthcare relationships, and a great opportunity to establish a quality and service niche.

• CONDITION TREATMENT. This is full-on medical healthcare—a rapidly growing part of many practices. The key marketables for this segment are specialty care, technology, and ongoing care for a given issue (glaucoma, for example). Specialized branding is a great strategy for this, such as a separate entity—with its own marketing plan and communication strategy—within the broader practice.

• VISION PERFORMANCE. These patients are interested in sports vision training, vision therapy, low vision, and other treatments to enhance the performance of vision for specific purposes. The key marketable here is results, and life benefits that come with specialty appeals.

As indicated by both today's trends and hot segments, the opportunity to grow from a quality and service niche has never been greater. However, some of the challenges have never been greater either.

Those potentially negative forces include recession, competition, commoditization of services and products, healthcare and managed care uncertainties, and more. However, with an understanding of the trends and segments—combined with the right marketing plans and communication strategies—the climate for growth is as good or better than ever.

The key is for owners and managers to be more deliberate than ever before. To flourish, everything—every objective, strategy, and tactic—has to be understood, defined, and part of something bigger. EB

Tom Bowen is vice president of Williams Group.