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What customers think of you

Analysis

What customers think of you

It has certainly been a very busy first quarter of this year. The IPF held its Spring conference, sponsored by Actavis, at the end of last month in Hatfield with almost 100 people attending. We had some great feedback that said we had delivered a conference “a bit different from the normal”. With so many positive comments, we have announced a further conference in the Autumn.

We were able to give the first public launch of research commissioned by Reckitt Benckiser into the strengths and weaknesses of independents and multiples. The study was carried out in Watford – I know it well! It is often the location for polling and focus groups because it is a town with a very mixed demographic that most closely represents the population as a whole.

There were eight focus groups and six shops visited, while participants were a mix of frequent and infrequent independent pharmacy users with a range of needs, such as older people, single people and those with young families. The focused work in Watford was supplemented by a UK-wide online survey. If you want to have a closer look at the data, you can contact me at claire@theipf.co.uk.

Customers clearly see independent pharmacies as more medically focused, whereas supermarkets are retail environments and the multiples sit somewhere between the two. That reference to the medical side is a great start for independents because it confirms that pharmacy is not simply about retail; instead it should be a healthcare service. They noted that supermarkets were often convenient, with everything under one roof, cheaper and with long opening hours, but on the downside they could be faceless, greedy organisations with little time for patients and lacking expertise.

Some of those same disadvantages were raised when asked about multiple pharmacy chains, but they fared better than supermarkets as being the choice for a wider range, loyalty programmes and discounts, as well as having a more appropriate store layout and environment.

Trusted healthcare professionals

The overwhelming view on independent pharmacists was that they are healthcare providers. They are seen as trusted professionals, accessible and conveniently rooted in the local community with the time to build personal relationships. On the downside, there was criticism for their lack of range, poor shop environment and prices.

It was clear that frequent users of independent pharmacies saw their pharmacists as healthcare professionals. Those who did not use the pharmacy regularly tended to be put off by the environment, with some describing independents as “crusty, dark, fusty smelling” with overpriced and out-of-date stock. When patients have something to say, they certainly don’t pull their punches!

Looking at why customers shop at independents rather than multiples or supermarkets, it was clear that they wanted trusted advice. There was a key sector of mums with young children who wanted to purchase products having taken advice. They saw independents as a more appropriate place to do that than a supermarket.

It seems that while the market for pharmacies selling nappies and formula may be rather limited, there is huge potential in an expanded service or in advice and products for mums who want to ease their concerns about their child’s health but don’t want to visit the GP. The study found that this group could be a greater focus for independents.

The details make fascinating reading, but of more importance are the key findings and how independents can improve their businesses by listening to what their patients really think.

Build on your strengths

Firstly, patients overwhelmingly associate independents with a medical and healthcare environment, distinct from multiples and supermarkets – so capitalise on it. Encourage the public to make your pharmacy their first port of call rather than the GP. Position the pharmacy as a place where advice on minor ailments can be accessed from a trusted professional.

Secondly, get close to the customer. Foster repeat business by making sure that the environment is a welcoming one where customers can build relationships with friendly, knowledgeable staff. Make sure that the windows are not so covered in posters that the pharmacy is dark and uninviting. Ask your staff to think about whether the shop smells good. Why do you think that so many bakeries pump out enticing smells of cakes – because it encourages customers to come in and buy them. The environment will also form part of your GPhC inspection, so getting this right will help to improve your rating. Ask friends and family to give you feedback on what it is like to be a customer.

Thirdly, improve the retail proposition. Make sure that the retail offering is tailored to key customer groups and the pharmacy environment encourages people to visit. Make sure your stock is relevant and kept up-to-date. Target young and first-time mothers, from pregnancy onwards. Price is not the key issue when deciding on the health and wellbeing of their children. So if you are adding value to the products you sell by giving them professional advice, they will return.

A helpful reminder

Most of those attending the conference said that they found this information very helpful – although in their hearts many of them knew it already. They simply needed to be reminded and encouraged to refocus on their business. Too often independent contractors are working in the business rather than on the business. Our event was helping them with the latter rather than the former.

With our sessions on GPhC inspections, how to run new services, and learning with the Actavis Academy, it was a day for independents to think again about how to improve their business and their service to patients.

The business environment for contractors remains challenging. Even the recent National Insurance Contributions Allowance has been designed so that most independents will not benefit from the £2,000 tax allowance that the government has introduced. Too often pharmacy is simply not seen or heard enough by the policy wonks to register with them. We need to make sure that in every high street, in every constituency in the run up to the next election, all candidates from all parties understand the value and potential of independent pharmacy, not just the multiples and supermarkets.

Contacting the IPF

The Independent Pharmacy Federation can be reached by e-mail at claire@theipf.co.uk or via its website.

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