Like any small business, independent pharmacies are always looking for ways to increase profits. As a pharmacy owner, you may be under the assumption that you must obtain new customers to make more money, but that is not necessarily true. Of course, your pharmacy always needs new customers, but remember that your easiest and most predictable source of revenue is right under your nose. It comes from the loyal customers who already know and love your business.
Upselling current customers is a much more cost effective method of increasing income than working to attract brand new patrons. In fact, some estimates report that acquiring a new customer is five to ten times the cost of retaining an existing one. Before you focus on attracting new customers, use these steps to make sure you are maximizing the profitable opportunities that lie within every one of your current patient relationships.
Do not be nervous about the concept of upselling. It is much more than a sales tactic – it is a component of good customer service that helps build deeper patient relationships by delivering better value. For example, when a customer comes to pick up their monthly vitamins, take the opportunity to offer them another brand with a variety of flavors, even if it is more expensive. They will appreciate the personalized recommendation and consider switching if they believe in the added benefit from the upgraded product.
Work Smarter, Not Harder
Maximizing the potential of your existing patients is a surefire way to work smarter, not harder. In the same way, you can use existing data to decide which patients are appropriate candidates for upselling and which drugs to target. Profitability Pathways is a system developed by that encourages your team to tap into existing niches and anticipate needs based on trends. It also focuses on finding ways to convert low-profit opportunities into high-profit customers. You will begin by running reports that determine which products are most profitable, as well as areas you are losing money.
A great way to stay ahead of competitors and bolster profits is to provide a unique service. In particular, you will help customers and yourself by introducing programs that increase efficiency, such as medication synchronization. These types of programs increase customer satisfaction, build relationships and reduce pharmacy workload. You can use the extra time to mine your pharmacy’s database to increase sales
Do you want to learn how to increase sales?
According to recent sales data, the average repeat customer spends a whopping 67 percent more cash than a new one. Following the steps outlined in this article will certainly provide one method for increasing sales, but there are numerous other opportunities for profit. Utilizing the Profitability Pathways designed by Dan Benamoz will ensure that you do not miss out.