How to Increase Customer Spending
The pharmaceutical industry is facing major changes with the introduction of automated technologies, online pharmacies and stiff competition from supermarkets. Pharmacies are in a unique position, being a healthcare provider in a retail industry which is becoming increasingly competitive, both within the pharmacy sector and external providers. Pharmacies are being forced to adapt to survive. Many are doing this by looking outside of their traditionally stocked items, and increasing their offerings. Other industries have also been noticing a drop in customer sentient, it is clear that pharmacies must improve their retail abilities to succeed. According to the 2019 Bankwest report, a typical pharmacy derives 21% of its revenue from general retail, and they are looking to increase this revenue stream further.
1. Market Research
One of the first steps to increasing customer spending, is to find out what they are spending! Conduct market research to identify the patterns and trends in your consumers and use data found by research companies to figure out the best way to grow your non prescription sales. Just because you like a product, doesn’t mean everyone else likes it, don’t rely solely on your intuition. Market research is an extremely valuable tool that can help you make decisions about products, pricing, and promotion. As well as understanding how your products and services fit your target market, and how you can deliver and expand on your products and services.
Pharmacists are one of the most trusted professions, use this to your advantage. If a customer comes in after cold and flu medication, offer them a vitamin supplement to compliment their treatment, this will come across as added value and give the perception you care about the customer, thus creating loyalty. Win win situation. Train your staff to create relationships with the customers and make relevant product suggestions based off the drugs they are prescribed.
Many pharmacies have already realised to remain competitive they need to diversify their offerings, and they have looked beyond their usual pharmaceutical offerings to enhance their current ranges. Start by stocking appealing products that are in demand by the market, use the market research data to identify what your consumers want.
4.Train Your Staff
One of the main reasons people come into the pharmacy is to seek advice, so it is crucial that your staff are well trained and have a good product knowledge. To increase customer spending, your staff should also be trained in cross and upselling. Their primary role is to provide extraordinary patient care. As mentioned before, cross selling isn’t just a sales tactic, but it’s a part of customer service that can help to build greater relationships with customers.
5. Retail Tactics
As pharmacies look to increase their retail sales, they need to employ retail sales tactics to ensure success. There are simple strategies that once implemented will create results. Start by reviewing your pharmacy layout and use your pharmacy layout your advantage. Certain areas of your store will receive more foot traffic than others, so it is important to focus on your visual merchandising and positioning of products. By grouping related products, customers are more likely to impulse buy out of convenience, eg placing tissues by the cold and flu medication section. An attractive store layout will encourage people to buy things, moving merchandise around weekly will keep your store fresh and people will feel like they are being introduced to new products each week.
6. Increase Foot Traffic
The last tip to increase customer spending in your pharmacy is to increase foot traffic into your store. There are a few ways you can do this. Start by making your pharmacy a destination that offers allied health options. The more reasons someone has to visit your store, the more likely they will. By offering more services you will also add convenience for your customers. Have an attractive storefront, that is appealing, encouraging customers to come inside.
By employing these tips in your pharmacy you will begin to notice an increase in customer spending.