Pharmacy Market Research [1 of 2]: Why does your competition rock?
Who is your competition? It’s natural to think of all the big-box pharmacies in your area and mail-order companies right off the bat, but the truth is it may not be who you think. With the upcoming Pharmacy Business Development Conference, we’ve been having defining conversations with many new pharmacy owners that are realizing their main competition isn’t the big boxes around the corner, but the five other independent pharmacies surrounding their pharmacy.
Think about it for a minute, how many other independents are within a five mile radius of your pharmacy? Whether it’s one or five, having independent pharmacies as your competition is tough … they too might be capitalizing on the benefits of being the local, neighborhood pharmacy where patients are people, not numbers. What are you doing to help your pharmacy stand out from another business?
A few of the most effective ways to find out what makes you different from your competition is to tactfully survey your customers, talk with your employees, and ask people at networking and community events why they choose their current pharmacy. Being able to examine the entire business from the customer’s viewpoint takes into account every aspect of the marketing mix from the product to price, distribution channels and marketing communications. In turn, all of these factors affect the customer’s decision to choose one pharmacy over another, as well as a product or service you may offer. Knowing your competitive edge is vital to your pharmacy’s success and growth.
One of the fastest and easiest ways to determine what differentiates you from your competition is by requiring your entire staff to ‘Secret Shop the Competition’. It's simple--throughout the month, have employees visit another pharmacy in your area (big box or independent) and report back to you with at least 10 things they other guys were doing well (i.e. Free antibiotics, coffee and cookies in the waiting room, staff in matching scrubs, etc.).
Whether the pharmacy is a direct competitor or a little bit further away, you’ll be able to come up with new ideas to help build a better pharmacy and also discover the needs and wants of your customers. As business owners, it is natural for us to focus only on what our competition is doing wrong. Wouldn’t it make sense to figure out what they are doing to WOW their patients and bring it back to your store?
Give us a call at the office if you would like an evaluation sheet to give to your employees before they go on their discovery.
