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TRANSCRIPT
The Commercial Future of Independent Op6cs
The Power of the Pa,ent Membership Programme
Philip Everett-‐Lyons Iris Visioncare
ASK AN EXPERT
1. The role a PMP have in the future of Independent prac,ce
2. Standardising your income whist guaranteeing the loyalty of pa,ents
3. Turning your loss leading eye examina,on into a profitable ac,vity
4. How you posi,on your prac,ce or group ahead of the curve
Objectives
flexible affordable eyecareIris Visioncare
• Group practice founder • 35 Years in practice • Founder of Iris Visioncare
Background
• Outside of optics • TV/Film, PLC., SME • 10 years of creative commercial development
• Fresh perspective to optics
Philip Everett-‐Lyons
Peter Noakes B.Sc., F.C.Optom
What is a PMP?
Patient Membership Programme (PMP)/ˈpeɪʃ(ə)nt / ˈmɛmbəʃɪp / ˈprəʊɡram
The fact of a patient being a member of an independent optical practice or group.“patients who are a member of their local practice’synonyms: member rewards, members club; More
• the members or the numbers of members in a group.“our membership has grown by 5000 in the past year”synonyms: members, subscribers, associated, fellows, comrades, followers; more
Loya l ty incentiviser for your patients
A PMPs is a strong
Invest in your services to increase their level of eyecare
Allows your patients to
Reward your Hard won patients
The best method to
Management of outsourced administration
Simple fee collection and
How does it work?
Change the way you approach your patients
Use PMPs to
Change the way you approach your patients
Use PMPs to
PMPs aid you to
Future ProofYour business
Use PMPs to
Your professional feesRing-‐Fence
Achieve guaranteed
in return for value to patientsLoya l t y
© The Chartered Institute of Marketing 2010
This document is guidance only and should not be used as a substitute for specific legal advice.
Fact File
Making membership work for you
Cost of customer acquisition vs customer retention
What is the cost of acquiring a new customer compared to the cost of keeping an existing customer?
There is no definitive answer to this question, but most sources say the answer is that it costs between 4 and 10 times more to acquire a new customer than it does to keep an existing one. Some sources say cost of acquiring a new customer is over 30 times that of keeping an existing one. A key element in the cost is probably the industry or market sector your customers are in.
The sources below list various figures for the cost of retaining a customer vs acquiring a new customer. The ‘cost’ in the sources listed here ranges from 3 to 30 times.
“It is generally recognised that acquiring new customers costs between 4-to-6 times more.” This article includes a lifetime value calculation formula.
“It’s often cheaper to market to existing customers as it can cost between 5 and 8 times more to attract a new customer than it does to keep an existing one.”
“65% of a company’s business comes from existing customers, and it costs five times as much to attract a new customer than to keep an existing one satisfied.” Source quoted as Gartner.
“We know that it costs more to acquire a new customer (roughly seven times) than it does to sell to an existing customer, so it makes sense to spend much more of your marketing effort with people who know you rather than with absolute strangers.”
“It’s generally accepted that it costs three times more to find a new customer than it does to sell to an existing customer.”
“Conventional business wisdom contends that it costs 10 times as much to obtain a new customer as it does to retain an existing customer.” Pricing for Profitability: Activity-Based Pricing for Competitive Advantage By John L. Daly (2002), p85. Published by John Wiley and Sons. ISBN 0471221597
“The commonly quoted ‘average’ being “it costs 7 times more to sell to a new customer than to an existing customer.”
“Attracting a new customer can cost as much as 15 times more than retaining an existing customer.” Winning New Business in Construction By Terry Gillen (2005), p89. Published by Gower Publishing Ltd. ISBN 0566086158
“Statistically speaking, the cost of acquiring a new customer costs five to ten times more than retaining an existing one. Not only that, but repeat customers spend, on average, 67% more.”
"Research shows that it can cost up to 30 times as much to get a new customer as it does to keep an existing one. It pays to stay very close to your customers, so you know their exact needs, today and tomorrow. Your aim is to be irreplaceable as their supplier."
Mike Johnston former Chairman The Chartered Institute of Marketing
How PMPs reward your
pa?ents
Durable contact lens d a m a g e c o v e r
Pay monthly contact lenses
Contact lens a f t e r c a r e
Retinal Photography
Year round savings on daily lenses
Comprehensive I n s u r a n c e
Savings on glasses & accessories
0% Interest free finance Retinal
Imaging
OCT Imaging D i s c o u n t s
Group family D i s c o u n t s
Durable contact lens d a m a g e c o v e r
Pay monthly contact lenses
Contact lens a f t e r c a r e
Retinal Photography
Year round savings on daily lenses
Comprehensive I n s u r a n c e
Savings on glasses & accessories
0% Interest free finance Retinal
Imaging
OCT Imaging D i s c o u n t s
Group family D i s c o u n t s
How PMPs affect your
prac?ce
Affect• Increasing dispense value • Increasing dispense frequency • Smoothing cash-‐flow • Reducing administration time • Cross-‐selling from contacts to spectacles • Guarantees the loyalty of patients • Rewards loyal patients • Targetable member specific promotions
Turning loss making exam
into a profitable ac?vity
½Commercial
½Clinical
Symbiotic
80%Commercial
20%Clinical
Symbiotic
80%Commercial
20%Clinical FEE £40
COST £90 LOSS -‐£50
Symbiotic
Using PMPs to
Standardise income
PATIENT FEE INCOME
NUMER OF PATIENTS
OUTSOURCING COSTS
500
Professional Fee only
500
PRIVATE CIRCA £210
Patient value
PMP VALUE CIRCA £340
Patient value-‐ Loyalty
-‐ No fee changing hands -‐ Reward savings
-‐ 0% Finance purchase (Need vs Want)
PMP DISPENSE VALUE £340
PRIVATE PATIENT VALUE £210
500
Placing your prac?ce at the front of the curve
1. The role a PMP has in the future of Independent prac,ce
2. Standardising your income whist guaranteeing the loyalty of pa,ents
3. Turning your loss leading eye examina,on into a profitable ac,vity
4. How you posi,on your prac,ce or group ahead of the curve
Objectives
flexible affordable eyecareIris Visioncare
Philip Everett-Lyonswww.iris-visioncare.co.uk
0844 800 9114 07740 111 400
Stand B30