Stay True To Your Business Model
Is your business model built on volume or quality? You would not expect to pay $2 for a latte at Starbucks or to pay $7 for a latte at Tims.
Why not? Because they have done an excellent job staying true to their business model. Tim Hortons business model is built on a volume model whereas Stabucks business model is built on a quality model.
The optical industry is no different. Your business should fall into one of the two categories and all that you do should support that model.
Being consistent with your model attracts the appropriate client base and builds trust with them.
There is an opportunity to move away from the thinking that we can be everything to everybody.
1. Start by identifying your target audience by creating a persona, a virtual representation of your target audience that allows you to tailor your marketing and customer experience efforts.
Persona attributes include:
Background (job, family, education)
Demographics (age, gender, income, location)
Needs and pain points
Where and how to communicate with them
Buying behaviours
Feel free to reach out if you would like a copy of a Persona worksheet to get started.
2. You may want to be in the value category and base your business on volume.
Ways to communicate this strategy:
Promotions/marketing based on price point - key to negotiating low pricing usually happens when you can buy in volume.
The physical space’s layout would be simple, dark colours and often price points are displayed.
Product mass merchandised - lots of supply sends the message that the price is low.
Brands are less important - customers want to look good but are less interested in brands or unique independent product.
Limited lens selection - volume in fewer lens types allows for competitive pricing.
Scrubs or casual dress code.
Transactional approach to patient care - simplified efficient flow.
3. You may want to be in the luxury category and base your business on quality.
Ways to communicate this strategy:
Physical space - nice clean and clutter-free decor with lighter colours and attention to detail.
Marketing focused on specialty/brand products, teams, services, and education.
Product assortment - Licensed brands or unique independent products. Product brand names displayed versus price points.
Displayed more sparsely - when there is less of something the assumption is that it costs more.
Business dress code, scrubs could be worn at reception and pretest but not in the Optical gallery.
Consultative approach to the patient experience - spend time understanding the patients needs and making recommendations. Ensure your team is well-educated about your products and services.
Follow up on transactions such as first-time eyewear, progressives, dry eye treatments, Myopia treatment plans, etc.
Showcase certifications and standards and highlight the credentials of the team.
Provide specialized lens options - convey the feeling of custom eyewear, use visual aids such as high-resolution images, and videos.
Collect and share customer feedback that highlights the quality of your offerings
Offer guarantees and warranties to build confidence among your customer bases.
Specialized and up-to-date equipment
There is no right or wrong business model, our industry needs both, the key is to stay true to the model you choose.
Here is an example of how your business model sets expectations with your patient base. I recently switched to a small new pharmacy, the pharmacist knows my name and does follow-up calls on new medications. Likely, the dispensing fee is more than the last place and I am happy to pay it in exchange for the quality of service she provides. The previous pharmacy was very busy, efficient, didn’t have a lot of time for me, and at that location, it was important to me that I was not overpaying.
We train our patients with our business model, be sure to avoid sending mixed messages. I know what to expect at Tim Hortons and what to expect from Starbucks and choose what best suits my needs.
Nancy Dewald is a business development professional, workshop facilitator and optical industry veteran. She is CEO and founder of Lead Up Training & Consulting, which specializes in identifying business gaps, implementing solutions and developing leaders.
Article as seen in Optical Prism.