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