In an increasingly competitive marketplace, it is essential that your practice clearly offers services and products that make you stand out and are valued by patients over other providers. As Mark Overton writes, while this is hard for franchises, it is particularly important for independent practices.

WRITER Mark Overton

What is the difference between your practice and the one down the street?

Actually, this question has two answers – everything and only one thing. If we were to examine your practice in detail, almost nothing would be the same as other practices. But we might find there’s not a lot that’s different either.

This is a good thing, except that if your patients want a good eye examination, they can get it somewhere else. Perhaps not like you do it, but good, nevertheless. They can buy the same frames and lenses (or at least good substitutes) for the same price or cheaper. Almost everything in your practice can and is duplicated somewhere else.

You need to find, and do, something different. You want to find your competitive advantage.

LET’S GET THEORETICAL FOR A MINUTE

Competitive advantage is the practice or business attribute, element, or resource that allows you to outperform your competitors. Your advantage needs to be sustainable, unique, and hard to duplicate. Renowned American economic academic, Professor Michael Porter suggests that this can happen in two ways:

Cost advantage. This arises when a business can provide the same or substitute products and services as its competitors but at a lower cost. You can get this if you can reduce your purchase cost (cost of goods) – you should be more profitable, but unless the reduced cost is reflected in what your patients are charged, the benefit is largely internal. You can have a cost advantage (and you are never worse off for it) and still not dominate your market. Cost is important in optics, but it’s not a total solution. We are dealing with a cost-volume-profit situation. This is a complex strategy in optometry, and many other factors come into play.

Differentiation advantage. This happens when a practice can provide different products and services from its competitors that are more closely aligned to customers’ needs.1 To defer to Prof Porter again, strategic management should be concerned with building and sustaining competitive advantage.2

Most of the time this isn’t about the obvious service and product aspects of the practice. Though absolutely, you have to get your consultation, dispensing, and other service elements right. You also must have the right frames, lenses, and other products that your patients want to buy. That is harder than it sounds.

The difference needs to be meaningful and obvious to your patients.

WHAT ISN’T A COMPETITIVE ADVANTAGE

Technology is rarely a sustainable advantage because your competitors can buy the same equipment. And while you will do a better job with great technology at your disposal, unless you communicate that benefit to your patients, it will have little meaning.

Focusing on specific fields in optometry, like dry eye, paediatrics, low vision or contact lenses can be helpful but again, only if you really have the expertise and those who are wanting that service can find you. For this to work you need to be well ahead of the pack and stay there. Be careful with focusing on one area of optometry. It can limit your market as well.

HOW TO BE DIFFERENT

We are going to put aside cost advantage because in business, this requires a volume basis or a unique production methodology. That’s hard in optometry, particularly for independent practices (and, my personal view, price is not as important to patients as it might appear).

Instead, we will broadly split specific strategies for differentiation into two categories:

1. Business differences a. Deliver services better, and

b. Be better at business – planning, implementation, marketing, communication, people management, and stock selection.

2. Professional differences a. Be a brilliant optometrist or dispenser, and b. Do things your competitors don’t.

GET THE MACHINE OPERATING PERFECTLY

Most of your patient consultations will be housekeeping, however they still require great care. Excellent processes and systems are essential to enable this high level of care. Without them, you and your team will be distracted, and your service will be slow. So keep your systems running perfectly to maintain a competitive advantage.

BE THE BEST BUSINESS OWNER

Leadership and management are two separate spheres of practice. Leadership is making the right things happen; management is making things happen right.

There are many different styles of leadership and management; but one of the key attributes for success is flexibility: you need to be able to adapt to new circumstances.

Other attributes include planning, implementation, and communication. If you can run marketing tactics, communicate effectively with your patients and suppliers, and manage your staff, you are 90% of the way to success.

If your practice is to be the best, you need to be the best leader and manager. But you’ll need to work on this – it often doesn’t come naturally. Learn and practise.

BE THE BEST PROVIDER YOU CAN BE

So, what is the difference that matters? The difference is you and your staff, and the things you do for your patients to satisfy them, and to reduce the risk they encounter when buying optical products and services.

The people who work in your practice (including you) need to be the very best they can be, in fact, better than anybody else. Your patients will remember excellent service for a long time after they have left the practice, and it’s one of the main reasons for word-of-mouth referral.

But there’s not much point in being a fabulous optometrist or dispenser unless your patients know that. So, demonstrate your expertise and communicate it. Your patients have no real points of reference to place you on the scale of competence. You have to do this. It’s called authority marketing.

THE IMPORTANCE OF EDUCATION

“If you think education is expensive, try ignorance.” Derek Bok, educator and lawyer (Harvard University President, 1971–1991).

Education is essential.

Some important aspects to focus on include communication, product delivery and presentation, product finish and compliance with standards, and staff technical and product knowledge.

You can also differentiate your practice by gaining postgraduate training in specific clinical areas. Short courses are available, both online and in person, and of course there are conferences throughout the year offering lectures and workshops.

You can differentiate your practice by the products you sell: high fashion eyewear, paediatric frames, sports vision, etc.

Make education a regular part of how your practice works. Small staff room sessions every week. Clinical case presentations. Service development. Formal education program attendance. Conferences. Guest speakers. You can’t do too much.

And again, do the work to ensure your market knows about your point of difference.

PLANNING

Key to the success of being different is planning. You have to work out the way forward carefully. Get the practice team lined up and on the same path. Take care of the change management process. Get help if you need it. Write up a practical plan. It doesn’t have to be complicated, but as US General Dwight Eisenhower noted, in war, “plans are useless, but planning is indispensable”.

Mark Overton BSci MBA is the Founder and Principal at Ideology Consulting. With an extensive 35 years of experience working in both public and private business in the health sector, general management, consulting, and professional service roles, he is able to pass on a depth of experience and knowledge to businesses he works with. Visit: ideologyconsulting.com.au.

References available at mivision.com.au.