Merchandise Concepts Article #49

A Prescription for Healthcare Retailers

By Anne M. Obarski

As I travel around the country speaking to different associations I find myself frequenting the healthcare industry. My background has nothing to do with the medical field; in fact, I have fainted in more medical facilities than I care to admit. There is one area of a hospital that I just can't pass up and that is the gift shop. Gift shops are now becoming fancy boutiques with fine jewelry, leather handbags, artwork and the list goes on.

I asked a gift shop owner who her average customer was and she answered, "Mainly doctors and nurses and staff people". She added that they were starting to be known in the community as the best gift shop in town, so she was seeing people coming to the hospital just to shop! They were getting so well known for their high end items, that sadly, their theft rate had risen at an alarming rate. Obviously, the thieves found value in the hospital gift shop too!

Another part of the hospital that I have needed to find my way to is the hospital pharmacy. It doesn't look anything like my neighborhood pharmacy which is tucked in the back of the store and requires a roadmap to find. The things I needed were there but I had to ask and the pharmacist was very "matter of fact" in dispensing my prescription.

The same experience was true at my neighborhood "big-box" pharmacy. I was actually trying to get a reaction recently from the pharmacist when I added a half gallon of overpriced chocolate ice cream to my sinus medication. I thought for sure he would say, "You will have no adverse side effects by taking these together". I guess he just didn't have the same sense of humor I do, but with the way I was feeling, it would have been nice to have seen his caring side.

I recently read that health care retail is a $400 billion industry in the United States. No wonder hospitals want to capture the retail market and increase revenue. With tighter reimbursements from insurers, medical service providers, pharmacies, urgent care clinics and others are starting to dabble in the retail arena.

I believe this is going to be an explosive area for the medical community to embrace. However, just having a good bedside manner won't cut it when it comes to delivering outstanding, memorable customer service, to an already savvy retail customer. That's why I am going to prescribe a retail customer service prescription for all healthcare providers who want to become "retail merchants"!

Diagnosis: Strategic Focus: Retailers are successful when they know what they want to offer their customers and they strategically plan to accomplish it. Competition in the retail industry is fierce. Focusing on products and services that you can offer your customer that set you apart from the competition is step one. Second is to control your inventory selection and pricing structure so that your turnover rate provides you the ability to have fresh, new merchandise for your repeat customers. Third is to consistently analyze every area of the business and see it through your customer's eyes.

Prescription: Excellent Employees: Healthcare retailers have some challenges when it comes to employees. Hospitals normally have volunteers who are the "salespeople" for their gift shops. The challenge is training a volunteer staff, that usually has a high turnover, as well as scheduling issues. The customer may see a different "face" each time, but the consistency of their training should be identical. In pharmacies and other medical services operations, the employees are skilled at providing technical and accurate medical information but may not be trained or even comfortable in up-selling a customer or even suggesting add on products or services. Retail training that encompasses communication skills, sales and phone skills, product knowledge and merchandising techniques will help develop a staff of retail employees that customers will appreciate, and seek out on return visits.

Retail Health: Exercise! If you want a healthy retail store, your employees and staff need to exercise. I don't mean pumping iron at the gym or running a 5K race. I mean to "act healthy" when they come to work. Challenge your employees to leave their grumpy faces in the car and be ready to great each customer with a friendly smile, just as if the curtain went up and someone yelled "show time"! Customers appreciate an employee who is friendly, efficient, who goes out of their way to help and most of all, does not take the customer for granted. Those are the employees who get a huge star on the retail walk of fame!

It should be evident that successful retail businesses have one thing in common; they consistently manage, measure and motivate their entire store staff. They are always looking for areas to improve whether it is inventory control, merchandising techniques, marketing avenues, pricing structure or communication skills. The advantage of retail healthcare providers is they already have existing customers. Those are customers who frequently return to a hospital or pharmacy or clinic and have an established relationship with the employees. For many retailers, that is half the battle! Take that advantage and let the additional retail products or services you have added be the springboard your employees can use to add additional revenue to your bottom line.

If these don't give you the results you are looking for, call me in the morning and I'll refill your prescription!

Anne M. Obarski is The “Eye on Performance.” Anne works with organizations who want to focus on becoming CONTAGIOUS! Anne provides keynotes and breakout training sessions on how to develop the right strategies to effectively keep your customers coming back and referring others along the way. For your Free Business Health Quiz, email Anne at anne@merchandiseconcepts.com. With the words “BHQuiz” in the subject line. Visit her website at www.MerchandiseConcepts.com

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