Retail and Complex Rehab: A Match Made in Heaven Presented by: Jim Greatorex, Business Development VGM Retail Services

Transcription

1 Retail and Complex Rehab: A Match Made in Heaven Presented by: Jim Greatorex, Business Development VGM Retail Services

2 5 Components of a Retail Program Financial analysis consisting of market study, location, business plan and revenue projections Store Experience and design - floor plan for a welcoming store Merchandising with great product selection and depth Operations and in-store sales training Marketing a four-prong approach

3 Caretailing Definition: The act of providing customer service and expertise to consumers willing to pay cash for healthrelated products that improve their lives and are beyond the usual scope of government and other third party payers.

4 The Myths to HME Retail/ Caretailing Nobody in my area has any money! My referrals will never allow us to ask their patients for money. We can never sell big ticket items. The product offering is limited and, therefore, so is the market.

5 Complex Rehab Retail Advantages Complex rehab companies are already in tune with a buy/sell medical transaction. We already educate our clients on products that make them independent we just need to get comfortable showing cash-pay items. We have an intimate customer relationship based on trust that other businesses can only dream of.

6 Disadvantages The HME industry is not good at marketing direct to the consumer. We are weak at creating a positive retail environment and retail experience. We lack at training customer service folks to be successful retail sales people. We may times lack the commitment from ownership needed to be a successful retail program.

7 Creating the Cash Model! Key Points: Most times the best person to run your cash/retail is not your current employees and most likely not current ownership! Knowing that it requires a model that is a 180 degree different mindset from your current third party model. To be a successful caretailer requires an all-in management team. With the right people in place, many caretailers can break even in 6-9 months or increase their average ticket immediately.

8 Who is our Customer Your current customer list (think core products) and their circle Baby boomers Females Clinicians The Silent Generation Athletes Everyday active people

9 Canadian Market Stat s Canadian baby boomers are born in , the only years where the country s births in a year exceeded 400,000.

10 Boomer Income Baby boomers have 3 trillion packed away in retirement savings, and the Canadian government managed a $269 billion pension fund.

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13 The Three Most Effective Boomer Marketing Channels So, which marketing channels are the most effective to reach baby boomers? If we define "effective by the popularity of each channel, the answer is: Television Search marketing Source DMN3

14 Other Marketing Venues Direct mail Product catalogue Radio (sometimes) Social media Any opportunity for face-to-face: trade shows, charity events, chamber of commerce

15 What Boomers Want Transparency - no bull tookey! Empathy - not sympathy Great customer service Product benefits, not just features Brands/quality Positive aging Low-pressure sales with product experts

16 Advertising Budget Tips Average spend for an established store is 2.5-4% of revenue, higher for less established stores. Budget a minimum of 40% on digital marketing. Shoot for one trade show per quarter. Direct mail/brochures. All other means require trial and error in each market, e.g., TV, print, radio, etc.

17 Search Engine Marketing Best spend of your advertising dollar. Think small at first, and market only in your current service area. Decide what products are your core. Build an SEM campaign and develop key words. Build landing pages for your core. Analyze your data bi-monthly, and make adjustments based on bounce rates.

18 In-store Caretailing Tips Remember that clinical medical equipment does NOT portray positive aging. Positive category names: NO Mobility Aids or Sick Room Supplies. Signage next to products that connect the dots; also pull-up banner signs. Looping videos (3-5 monitors if possible) Accurate pricing. Clearance sales make room for new!

19 In-store Tips Price products at MSRP and then your price to show value. Have a different monthly promotion. Make your CSR s product experts. Boomers like empathy - educate them about related products that meet their needs. Good, better, best whenever feasible. Aesthetics are important!

20 Out-of-Store Retail Marketing Pharmacy brochure campaign State association shows for chiropractors, PT s/ot s and physicians Drop-by visits to clinics, physician practices and health clubs Assisted living center visits In-service home health agencies Get involved in local charities

21 Video No better way of marketing. Make the connection by making the ad show your company personality. Be careful where you place your ads as the market is diluted and does not offer the returns it once did. Post all videos on your website.

22 HME Staff Great Traits Retail experience Merchandising experience Marketing Website know-how Excellent listening and problem solving

23 Hiring Suggestions Look for employees with big box store experience. Consider the job to be all encompassing. Industry experience is a non-factor for HME retail. Always be recruiting.

24 Compensation Suggestions $11-15 per hour to start. Provide spiffs for high-ticket items, add-on sales or new lines you want to move. Initiate a store bonus/profit sharing plan that rewards for profitable months/ qtrs. Post results.

25 HME Retail Responsibilities Coordinate and execute a quarterly retail merchandising plan. To greet and acknowledge every customer who comes in the door. To return unanswered phone calls within one hour of receipt. To execute on-going, in-store promotions.

26 Product Opportunities Find the Customers Pain Pain management: fantastic non-pharmaceutical, natural life-changing products. The quality of products at every price point has never been better. Shoes, creams, element-enhanced sleeves, compression painwear, OTC Tens, hot/cold and massagers. Huge market; need concerted effort to educate consumers.

27 Pain Management Products Vionic pain relief shoes Incrediwear pain relief apparrel fabric sleeves for muscle, nerve and joint pain Orthosleeve - compression painwear Bio Medical Life Systems OTC TENS

28 Compression Market is growing as boomers age and products become more mainstream. Products from custom venous needs to wounds to everyday active to athletes of all levels. New technology in this category.

29 Home Independence/ Home Assessibility Safe-at-home senior products, e.g., seat lift chairs, home bedroom, bathing, home monitors, accessibility, comfort and ADL s. Young boomers shopping for parents and older boomers as consumers. Take a look at the ComfortTek line that is a seat lift chair for the kitchen Helping Hands Reachers

30 Comfort Products Seat lift chairs Cervical pillows, knee pillows, bed wedges, back and seat cushions Circulation socks Aromatherapy, Essential Oils, skin creams, and powder baths See Contour Products for great pillows of all types

31 Great Caretailing Categories CPAP tag-alongs Wound care/healing center Incontinence Recovery (OSP) Foot-care (also pain relief) Mom and baby

32 A Busy Retail Store Enviroment The phone rings and there are customers to wait on. People return things! One minute nobody is in the store, and the next there are five parties needing help! You have a lengthy process for a walk-in RX, and someone else just wants to pay cash and leave! Do we need extended hours? In the Buffalo area, we have a walk-in HME retail that sees approximately 153 people a day, with six customer service reps.

33 Boomers Want an Experience With consumers paying more for their own health care, we must focus on an experience where they want to spend their money with you! Our product expertise will set us apart; we must know our products very well and match them expertly to the consumers needs. We need to upgrade customer service so we can educate on a complete product package to increase our average ticket sales. We need to take advantage of the trusted relationship we already have with existing customers. We are viewed as companies that only have products for the very sick; boomers do not get sick or old.

34 Questions? Contact: Tel# US Thank-you