Building value for customers in a pharma retail business
Corporations exist to create value for their shareholders by creating desirable products and services that are consumed by their clients. This creation of value manifests itself in a variety of ways, the most visible being added revenue, an increased client base, and profitability.
Having managed and operated businesses for a couple of decades, one phenomenon is noticeably clear. Customers enjoy getting value when they use the services of the organization. It is important for the company to recognize this and, more importantly, to figure out avenues for value creation to keep customers happy, engaged, and, at the same time, returning for more.
In the retail business, in its simplest form, there is an exchange of goods and services for payment. The transaction is finalized, and the customer leaves the store, hopefully happy with their purchase. The key question is whether value has been provided. On the surface, it is quite obvious that the client needed a product, and the business was able to provide this. However, as one digs deeper, it will also become evident that these transactions could be provided by any provider in the vicinity. It is up to the business to retain the client in the best way possible to ensure repeat transactions and continued business.
Providing value and how we changed
Businesses need to continue to provide value to their clients. In the pharmacy retail business, traditionally, products were always the key priority. These products include both prescription and non-prescription products, typically known as front-of-shop products. It is quite easy to sell products. If the quality, authenticity, and reliability are attractive, then clients will purchase these products. In our line of business, we realized that it was extremely easy to get products on the shelves, and attracting clients to our wide array of products was quite straightforward.
However, in healthcare, and specifically, pharmacy retail, we made a conscious decision to innovate to not only generate a stronger following but also to stay abreast of the mushrooming competition. One question we asked ourselves was how we could make the transition for clients as seamless as possible. Once we got them to our store, we needed to offer them more than that for which they came in. Not necessarily to oversell a product, but to find more ways to keep them interested. We started offering complementary services, such as access to money exchange services. We also offered access to Wi-Fi.
Partnering with a lab
One of the most innovative additions to this retail pharmacy chain was the partnership for laboratory diagnostics. Studies have shown that patients have limited time and are eager to drop off samples for laboratory diagnostics if they are able to get a quick turnaround for the results. Generally, waiting lines at hospitals or laboratories are quite long, and waiting can be cumbersome and irritating for a patient who is ill. The retail pharmacy chain was able to partner with a laboratory diagnostic company, which was willing to put in the necessary infrastructure, set up quality standards, and perform all the coordination. Not only was this added revenue for the pharmacy chain, but it also provided clients with a one-stop shop, built more referrals and prescriptions, and enabled clients to shop at the pharmacy.
And then … telemedicine
The next innovation was in the telemedicine space. The advent of telemedicine took an upward trajectory as patients could not find timely, quick service at many of the hospitals or walk-in clinics. Lineups were long and sometimes cumbersome, especially if the patient just had a minor ailment but needed reassurance from a medical practitioner. Working with a renowned telemedicine group that had invested in medical professionals, video and telephone infrastructure, and the necessary algorithms and medical protocols, a partnership was struck between the pharmacy and the company. These were then rolled out to relevant locations, creating a health hub and a destination for patients who wanted a quick turnaround but also access to qualified medical professionals. In a fast-changing retail segment where customers must have priority, clients also had the option to consult with a doctor virtually while carrying out their daily shopping. These interventions proved useful in engaging the clients and making them more responsive.
Loyalty/membership scheme
Seeing the successes of these measures, and in line with keeping the clients engaged, we thought of other ways to build the client base. In the market, the quest to negotiate for discounts at the stores was a common phenomenon. However, with the size and wide network we had, having open discounts would inevitably lead to variations in the operating processes. In line with keeping to standard operating procedures and to reduce variability in the operations, we introduced a member’s program with redetermined instant discounts on the system. Not only would the member benefit from the discount being offered, but it also streamlined the order checkout process in addition to building a database of what the clients liked to purchase, their time of purchase, and the combinations of product purchases. These interventions build a solid foundation for a membership program where clients not only felt valued but were also able to access instant discounts, get information for newer promotions, and get access to friendly customer service agents asking them which additional products they would like to see in the future. The benefit to the company was that they were able to continue to retain a client base and more importantly, gauge their feelings, perceptions and spending habits.’
