Identify Your Target Markets Optometric Mgmt -- G. Timothy Petito, OD Article from Optometric Management: 'Identify Your Target Markets' -G. Timothy Petito, OD

Why do Patients Choose Your Practice? Do you know your Value Proposition? What IS Value Proposition? Investopedia definition: A business or marketing statement that summarizes why a consumer should buy a product or use a service. This statement should convince a potential consumer that one particular product or service will add more value or better solve a problem than other similar offerings. After giving definition ask group to write down and share their value proposition.

Why do Patients Choose Your Practice? Patients Choose, or Reject, your practice based on how well the Value Proposition you offer aligns with their own shopping philosophies. There are 5 types of Vision Care Shopper Segments. Remember, you cannot market to Everyone, you must decide who to market to based on that Value Proposition! All Data Segments are from a survey performed on behalf of Vistakon Division of J&J Vision Care, Inc. A total of 7500 consumers (ages 18-60) answered 624 questions created to determine the factors that play a role in their purchase decisions. Those participants had received exams and materials within the previous 18 mos. All Data from a survey performed on behalf of Vistakon Division of J&J Vision Care, Inc. A total of 7500 consumers (ages 18-60) answered 624 questions created to determine the factors that play a role in their purchase decisions. Those participants had received exams and materials within the previous 18 mos.

#1 – Discriminating Health Investors Make up 19% of Vision Care Shopper Segment What do they want? Value high-quality products and advanced technology Seek to develop trust with providers Expect Excellent Customer Service! Rely on word-of-mouth referrals How to Market to this Segment: Offer high quality products and technology Make the visits personal – Excellent Customer Service! This segment has the highest average income but may also have insurance that neutralizes the impact of price. To Attract: Cultivate Professional referrals, Support private school athletics and extracurriculars, Advertise in high-end real estate magazines, Join philanthropic clubs and groups, Participate in business roundtables and attend sporting events.

Make up 19% of Vision Care Shopper Segment #2 – Skilled Shoppers Make up 19% of Vision Care Shopper Segment What do they want? They want to feel like they're getting a good deal: competitive pricing. Purchase decision based on: product quality or personal lifestyle factors. Value a fun environment and great service. How to Market to this Segment: Patient Education on Value they're Receiving from You vs Others! This segment is highly compliant with and very organized about their healthcare. Ask group: How does your office tell patients about the value you’re offering them?

Make up 25% of Vision Care Shopper Segment, Largest Segment of All! #3 – Effort Minimizers Make up 25% of Vision Care Shopper Segment, Largest Segment of All! What do they want? Similar to #2, yet more concerned about Saving Time vs Money. Impulse Purchasers and tend to be Male How to Market to this Segment: Decrease wait times Post 'Walk-in's Welcome' Make Online Ordering Available and Encourage Annual Supplies to allow ROI on time and money Tend to be 18-34 yr old males, and single. Ask group: What does your office do for this type of patient? (one answer could be– use DemandForce to send out text reminders)

7th Inning Stretch!

#4 – Constrained Budgeters Make up 22% of Vision Care Shopper Segment What do they want? The Best Care and Products, yet it needs to be within their Budget! Often prioritize who in the family healthcare $'s are spent at the time. Lower income bracket and/or larger family How to Market to this Segment: Low Cost Options, either through Insurance Participation, Discount Programs, or Bundling Services and/or Materials This segment is willing to make purchases in different places to get the best deal. Stretches contact lens replacement cycle and/or time between exams to defer cost. In order for offices to take care of this segment offices must operate at high volumes of patient flow using management and purchasing approaches to keep overhead low (use VS brands!).

Make up 15% of Vision Care Shopper Segment #5 – Cost Minimizers Make up 15% of Vision Care Shopper Segment What do they want? Lowest Price Possible, they don't perceive difference in value because of Price Focus. How to Market to this Segment: Include a value-priced section in Optical Market “Buy One, Get One” promotions. To see this segment, offices must practice at a high-volume as well!

Review 1. Discriminating Health Investors 2. Skilled Shoppers 3. Effort Minimizers 4. Constrained Budgeters 5. Cost Minimizers Ask group: Do you know which segment you have the most patients in? Which segment do you Want to have the most patients in? Do you think you can market to the patients you Want to increase that segment in your practice?

So What Is Your Value Proposition? Do You Know Who You're Marketing To?