Someone asked me the other day, what are the basic things a pharmacy business needs to do to always see improvement. If I lean on the brains trust at Peak and reflect on the successful pharmacies that I know, and the effective owners that I admire, there are some simple things that you can do. It is all about getting the basics right and doing them well.
Community-based marketing – You need a marketing machine
One of my mentors years ago told me, every business needs a marketing machine. In this case, I am talking about community-based marketing, not brand marketing.
Now, I know most Pharmacist/Owners shiver at the thought of marketing. However, marketing is nothing more than connection and building authentic relationships with your community. I firmly believe that a pharmacy as a business cannot survive without a solid marketing strategy, that would mean you’re just opening your doors every day and hoping for the best.
Your marketing strategy should be designed to engage and connect with customers who will most likely purchase your products and services in the next three months. This can be achieved through a variety of channels (not just social media) and needs to be a consistent cog of your pharmacy.
Remember, it doesn’t need to be overly complicated. In my mind (though I am just a young apprentice here compared to the master that is Sarah Rendell) these are the basic functions you need to get right:
· Social media content strategy – 3 to 4 posts per week covering products, community, the team, services, and educational content.
· Email strategy to your customer database – email your customers and educate them on how to live a healthier life. Keep it to 1 per fortnight is fine, no more no less.
· Store events – e.g. charity fundraisers, educational events.
· Website – A personalised website so customers can find you through Google Search and book appointments.
Now, I know you’re thinking, John that is not overly complicated! Well, that is because your marketing is not solely dependent on the owner, it needs to be a team strategy and therefore, your team can help with the content and implementation. However, as the owner you will still have to oversee everything that goes out, it needs to embody your values and vision as a business.
If you’re still a little unsure of how to kickstart your marketing, near fear! We have a three-month marketing module designed for pharmacies. Click here to learn more.
Build a strong customer database
In my opinion, this is a vital component. A good customer loyalty program works well because it gives you a customer database that you can use to promote and communicate with. In simple terms, he who has the most names wins. It must be a basic function of your team to sign up as many people as possible to a loyalty program and regular use the email addresses to communicate regularly. These people are your hot leads, they have been to your store, they like you enough to sign up to a loyalty program, they have bought from you. Work with them and encourage them to come back for more.
Customer Service
Many say they service their customers, but some do it extremely well. It is more than “Hi Mrs Johnson did you watch the footy at the weekend?”. Those that are the best at it understand the vital link between customers, turnover and profitability. You see turnover is a function of the number of transactions multiplied by the average spend. The number of transactions is made up of the number of customers and how often they come to your store. Systems and procedures are built around this function.
A good example of this is Scripts on File. The discipline within your staff to ask patients to keep their repeats on file with a script reminder service, not only services your patients well, improves medication adherence but encourages them to keep coming back to your store. The better they are at this function, the more patients they have that repeatedly come back to the pharmacy. You then combine this with additional services for examples, DAA’s, flu immunization etc. and you’ve got a system that encourages sustained growth.
So, what are the things you need to concentrate on that is going to increase the frequency by which customers interact with your store?
Measure everything
Measure everything, notice the trends, change the system, re-measure and learn. Measure the key results from the key activities. Then improve the process to try and achieve a better result.
Minimise your rostered-on time
You are a business owner first!. Don’t get stuck doing the things you can employ a pharmacist to do. It is my opinion that whilst a good owner needs to be present in the store, you should not be rostered on. You are far too talented for that. You are there to train and mentor your team, to build and perfect systems and procedures, to establish relationships with doctors and build networks. Make sure you spend your time wisely, but above all be effective.
These simple functions, done well, encourages the continued sustained growth in turnover that the best pharmacies achieve year after year. These are what we work on with the members of our the Pharmacy Mastermind.