doctors of optometry | course notes · 2.bundle products & services 3.create a back-end product...

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Doctors of Optometry | Course Notes

OD24 – 2 CE The 5 Best Practice Lessons: How Can Your Practice Learn from These Companies

Monday, February 19, 2018 1:25 pm – 3:30 pm Georgia A/B – 2nd Fl

Presenter: Dr. Bryan Rogoff Dr. Bryan M. Rogoff has a unique background in areas of holistic eye care, business management and healthcare reform. His experience spans both the corporate, and private sectors and he continues to specialize in clinical management and operations, market trends, industry analysis, healthcare strategy, and high level negotiations.

As a national lecturer and contributing author to Review of Optometry, Optometry Times and Review of Optometric Business, Dr. Rogoff is known for his strategic approach to practice management and healthcare reform that teaches providers how to be part of the solutions which challenge the eye care industry. He lectures nationally on topics ranging from blue light, holistic healthcare, to all aspects of practice management.

Currently, he serves as a consultant for for the FDA as well as other industry partners, Immediate Past-President & Education Chairperson for the Maryland Optometric Association, and reviewer for the Council on Optometric Practitioner Education.

Dr. Rogoff received his Bachelors of Science from Stony Brook University, Doctor of Optometry from Nova Southeastern University, and Masters of Business Administration concentrating in Accounting and Taxation from The George Washington University. To understand the complexity of healthcare system, he completed a certification in 2013; CPHM - Certified Professional in Healthcare Management.

Dr. Rogoff offers consulting services for private practice and industry relations at www.eye-exec.com, and can be reached at [email protected].

Course Description

Identify companies with unique best practices that have made them successful. Discussion of a complete analysis of these best practices and determine how they can be incorporated into todays optometric offices.

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Doctors of Optometry | Course Notes

NOTES:

5

How can your practice learn from these companies

Best Practice

Lessons

COPE #: 48736-PM

Bryan M. Rogoff, OD, MBA, CPHM

• Ways to Generate Cash • Understanding Value • Look at 5 companies • Identify Unique Best Practice • Analyze the Best Practice • How it brings Value • Develop Strategy Using Best Practice • How to Gain Trust from your Patients • Net Promotor Score

COPE #: 48736-PM5 Best Practice Lessons

Overview


A company’s

Worth & Longevity is ultimately determined not by its market value,

but by its ability to

Generate Cash


Generate Cash1. Know Your Expenses

2. Bundle Products & Services

3. Create a Back-end Product or Service

4. Encourage Repeat Business

5. Pre-sell Products or Services


Generate Cash1. Know Your Expenses

You should always know how much you should ideally charge, the cost of your offer and the profit margins on your products or

services.

How else will you know if your discount has you breaking even or operating at a loss?


Generate Cash2. Bundle Products & Services

By creating bundles of products or services practices can inject tremendous amounts of perceived, AND tangible value into their

offerings for very little cost.

You can increase your price point initially since you've helped lower a perceived risk by offering something

as basic as a guarantee.


Generate Cash3. Create a Back-end Product or Service

If you know your initial encounter to attract in new patients won’t be profitable,

find ways to create higher price points on back-end products or services.


Generate Cash4. Encourage Repeat Business

Optometry is a volume-driven business just like any other retail business.

It is imperative to land repeat patients.

It is your holy grail for cash flow, profit and growth.


Generate Cash4. Pre-sell Products or Services

For practice owners who want to encourage sales sooner, pre-sell your products & services.

Pre-sales are a way for patients to plan for their future or get a jump on care.

You can also offer to take old, outdated products back at a pre-arranged price.



ValueWhat You Get

What You Give Up=


Value


ValueDefinitions: 1: the monetary worth of something : market price

2: a fair return or equivalent in goods, services, or money for something exchanged

3: relative worth, utility, or importance a good value at the price the value of base stealing in baseball had nothing of value to say

4: something (such as a principle or quality) intrinsically valuable or desirable sought material values instead of human values — W. H. Jones 5: a numerical quantity that is assigned or is determined by calculation or measurement let x take on positive values a value for the age of the earth


Value

Value Perceived = Quality Perceived x Service Perceived

Cost x Time


Value• Global streaming music service • Owns NO rights to music! • Offers 30 million - 40 million songs. • Currently valued at $8 Billion! • Forced competitors; Apple, Amazon

& Google to rethink how they sell music.


Value• On demand transportation service. • Owns NO no vehicles! • On average, 1 Million trips daily. • Currently valued at $69 Billion! • Forced competitors, like taxi services,

Lyft, etc. pricing strategies because of Uber’s price surge technology


Value

• World’s most popular media provider. • Creates NO content! • Has the most accurate advertising

data in the world • Currently valued at $500 Billion!


Value• The worlds most valuable retailer. • Owns NO stock inventory! • Host millions of merchants &

businesses • Have hundreds of millions of users. • Currently valued at $360 Billion! • Forced competitors; Amazon, EBay,

Zalando in Europe & all brick-and-mortar business to change approach.


Value• World’s largest accommodation

provider. • Owns NO real estate! • Facilitates processes of listing,

booking a space by handling all financial transactions.

• Currently valued at $31 Billion! • Forced competitors; HomeAway &

VRBO to rethink how they book and reserve (more of classified service)


Unique Best Practice?

User Experience!


What’s the Value?

Personal Experience & Demand!


Apple has a 90% brand retention rate!

Muchhigherthan

Samsung,LG and

HTC

COPE #: 48736-PM5 Best Practice Lessons COPE #: 48736-PM5 Best Practice Lessons

What’s the Value?

Personal Experience & Demand!


Cost x Time


Customer Service!


Southwest empowers its employees to take initiative with customer service by having a warrior spirit, a servant’s heart, and a fun-

loving attitude.


Recognition Program: Corporate Newsletters

Intranet Videos from CEO Dinners

2013, Employee Turnover 2%

Received 43,000 commendations from customers per year


What’s the Value?

Word-of-Mouth Referrals!


About 84% of consumers say they completely or somewhat trust recommendations from family, colleagues, and friends.

74% of consumers identify word of mouth as a key influencer in their purchasing decision.


What’s the Value?

Word-of-Mouth Referrals!


Cost x Time


Convenience!


Amazon offers customers: Convenience

Ease of purchase

Expediency Decision-enabling information

Large selection Discounts

Reliability of order fulfillment.


Mission & Vision Statement: Our vision is to be earth’s most customer centric company; to build a

place where people can come to find and discover anything they might want to buy online.

Does your practice have a mission, or value statement?


What’s the Value?

Simplicity & Expediency!



Appeal to the Largest Market!


Wegmans has bridged the gap between the standard grocery chains and high-end grocers.

Strategy: Focus two distinctive market segments:

Middle-class and Upper middle-class customers


How did you determine where to locate your practice?

What demographic studies did you conduct to determine your primary focus of patients: value sector,

middle-of-the-road, and/or luxury sector?


What’s the Value?

Creates a Destination!


Customers have requested Wegmans to be in their neighborhood.

In 2010, the company received over 4,000 requests from local residents for Wegmans to come to

Columbia, MD, outside Washington, DC.



Appeal to the Largest Market!


Cost x Time


Return Policy!


Every return scenario is different and a rulebook cannot take everything into account.

Return policy: There is no return policy!


What’s the Value?

Loyalty & Relationships!


What’s the Value?

Loyalty & Relationships!



Cost x Time

Your practice should be more than patient/customer, or doctor/patient interactions.

Relationships require trust; and the prerequisite to trust, is truth and honesty, which are invaluable

characteristics of your employees and your practice.


Trust

= Credibility + Reliability + Intimacy

Self Interest / Orientation


Trust

= Credibility + Reliability + IntimacySelf Interest / Orientation

Relates to our WORDS and revealed in our credentials & honesty


Trust


Relates to our ACTIONS and revealed by keeping our promises.


Trust


Relates to our EMOTIONS; People feel safe talking about difficult agendas.


Trust


Relates to our CARING and is revealed in our focus.


Net Promoter Score• Index (ranging from -100 to 100) which measures the willingness

of customers to recommend a company's products or services to others.

• An alternative to traditional customer satisfaction research and claims to be correlated with revenue growth.


Net Promoter Score• Developed by Fred Reichheld, Bain & Company, and Satmetrix

Systems.

• It measures the loyalty that exists between a provider and a consumer, where the provider can be a company, employer or any other entity.


Net Promoter Score• Patients who respond with a score of 9 to 10 are called

PROMOTERS.

• They are considered to exhibit value-creating behaviors, such as buying more, remaining customers for longer, and making more positive referrals to other potential customers.


Net Promoter Score

• Patients who respond with a score of 0 to 6 are labeled DETRACTORS.

• They tend to be less likely to exhibit the value-creating behaviors.


Net Promoter Score

• Patients who respond with a score of of 7 and 8 are labeled PASSIVES.

• Their behavior falls in the middle of Promoters and Detractors.


Net Promoter Score• Calculated by subtracting the percentage of customers who are

Detractors from the percentage of customers who are Promoters.

• Passives count towards the total number of respondents, which decrease the percentage of detractors AND promoters, thus pushing the net score towards 0.


Net Promoter Score• A Net Promotor Score that is positive (higher than zero) is

considered to be good.

• A Net Promotor Score that is 50 or higher, is considered to be excellent.


Net Promoter Score Number Percentage

Promoters 88 48%

Passives 44 24%

Detractors 50 27%

Total Responses 182 100%

Net Promoter Score 21

THANK YOU!

Bryan M. Rogoff, OD, MBA, CPHM [email protected]


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