Rayovac, Madison, Wisconsin
Introduction:
As a hearing healthcare professional, you desire a successful practice. Unfortunately, desire is not enough! Success is built on passion, knowledge, skill and the relentless pursuit of excellence.
You're doing all the right things; effective and timely marketing, adding new patients, taking care of follow-up patients, providing top-notch care, selling high-quality hearing aids and assistive and alerting devices, and selling high quality hearing aid batteries.
Or -- are batteries missing from the mix?
By not offering high quality hearing aid batteries, professionals miss an opportunity to add to their bottom line while providing patients with a necessary value-added product and service. Low quality batteries negatively impact the performance of amplification systems, and importantly, when a high quality hearing instrument performs poorly, it reflects on your practice!
Are Profits Leaving the Office With Your Patients?
Research shows that hearing care professionals dispense essentially all of the hearing aids, but professionals provide a much lower percentage of hearing aid batteries. Although MarkeTrak1 statistics indicate that hearing care professionals dispense virtually all (93%) of the hearing instruments on the market, they dispense only 49% of the hearing aid batteries. Battery sales are lost to retail outlets like mass-market discount chains and national drug stores too.
Many audiologists and dispensers have discovered that with appropriate programs and tools in place, hearing aid battery sales can be a valuable benefit for patients and a profit center for professionals as well. In fact, for the two practices noted below, the success they've enjoyed selling hearing aids batteries has been a vital part of their business, and they have maximized it through their own creative and innovative programs:
Hearing Associates:
Dr. Ken Smith, of Hearing Associates in Shawnee Mission, Kansas, believes battery sales transcend dollars. ''Batteries are part of the whole package and speak to the relationship with your patient,'' he explains. ''At the very least, it keeps them coming in the door. By sending them elsewhere to purchase batteries, you lose the opportunity for additional contact, internal marketing and problem identification,'' he adds.
Smith emphasizes to patients that he offers the best battery on the market. ''We provide a battery that offers an unconditional guarantee; if there are any problems, the patient gets a whole new package, not just a new battery,'' he says. ''You want your patients to use the best battery available and you want to make it easy.'' He includes a supply of batteries with every sale to build brand identification and demonstrates that he endorses a unique, high quality product at a competitive price.
Another key element to Dr. Smith's plan is the battery club. When a patient receives his/her new hearing aid, they also receive a $10 ''Welcome to the Practice'' coupon to be used toward future purchases in the battery club. The battery club at Hearing Associates is all about ease and convenience and saving time and money. Battery club members simply make a phone call, send an e-mail or submit a form online to place an order, and the staff does the rest. Smith prices batteries to be competitive in the local market. As a unique incentive, he offers a ''90s Club,'' where patients 90 years of age and older are provided complimentary batteries for life.
''Battery clubs are a win-win proposition for the professional and the patients,'' notes Tom Begley, director of sales for the North American hearing aid division of Rayovac in Madison, Wisconsin. ''Research shows that offices with battery clubs sell 20% more batteries and they give patients an easy way to purchase batteries, something retail stores cannot provide.''
Westchester Audiology Center:
Dr. Dennis Hampton of Westchester Audiology Center in White Plains, New York, agrees. He has had phenomenal success selling hearing aid batteries to his patients via battery clubs. Hampton believes there are three essential components to a successful battery club implementation: convenience, savings and communication.
''Make your battery club easy for patients and they'll be willing to pay for the convenience,'' says Hampton, who, in addition to running his practice, publishes Hearing HealthCare News, a patient newsletter for audiologists.
''The fact is, they would rather purchase from someone they know, particularly a trusted healthcare provider.'' Hampton says that coupons and battery punch cards are not advantageous because patients don't want to keep track of them. Instead, his office keeps track of all orders (that can be phoned in day or night) and payments. There's nothing for patients to keep track of and Hampton already knows their battery sizes and other preferences. Hampton does not add costs to join the battery club, and he does not add postage costs for battery shipments. ''You already have a relationship with the patient. These conveniences allow them to get in the habit of buying batteries from you,'' he explains.
Although battery clubs offer advantages beyond price, cost is a factor. At the Westchester Audiology office, battery club patients receive a 20% discount. The discount is given for two reasons: because patients have committed to the battery club - and - they pay in advance for their batteries. The discount obviously benefits the patient, and the pre-payment arrangement provides cash flow for the business. ''It also guarantees patients will return to our office to get their batteries as they've already paid for them,'' says Hampton.
''The best program in the world means nothing if your patients aren't aware of it,'' says Hampton. That's why communication plays such an essential role in success. Hampton communicates the features of the battery club in a patient newsletter and a card handed out to new patients. Hampton says a battery discussion should be part of every checkout procedure. ''Be sure to train your staff to invite patients to join the battery club whenever they ask about batteries,'' he comments. ''Communicate the attributes of the battery club over and over and at every opportunity.'' Hampton gets his hearing aid users into the ''battery club habit'' by including an initial club membership with their hearing aid purchase.
Hampton also offers an added incentive to battery club members by applying half of all money spent on battery club purchases to the patient's next hearing aid purchase.
As a result of the creative efforts of Hampton and his staff, nearly 70% of his patients take advantage of buying batteries through his battery club. ''When all is said and done, hearing aid batteries sales accomplish two primary goals; they help my patients and they help my practice,'' he says.
Other Opportunities in the Office
In addition to the proven success of battery clubs, merchandising and display of hearing aid batteries in your office will enhance sales. Effective displays are designed to attract, inform and influence a consumer's purchasing decision. An eye-catching display is an easy way to reinforce the consumers' perceived need for the product simply by having it readily available. Display racks are available that use minimal space by hanging on a wall or sitting on a counter, and often it is best to offer multiple displays throughout the office. Additionally, multiple packaging units are a good idea too! Some consumers will buy one pack at a time forever! Others like the idea of getting a better discount by purchasing a larger card, or even a case of batteries. To meet all of their needs and preferences, keep all packages available and prominently displayed!
Internet Ordering
You're reading this article online right now. Your patients are online too, in surprising numbers! We recommend an easy to navigate website, with an easy to find and an easy-to-order BATTERY CLUB. Online ordering is a useful option for many of your consumers and their families, and if they ''bookmark'' your website, they'll have an easier time acquiring batteries from your practice! The Wall St Journal, reported 4 billion Internet searches in MAY, 2003. Other sources have estimated approximately 80 percent of all people searching for information on the Internet are searching for health related information.
The Power of Perception
''When patients are not offered the option to acquire the highest quality hearing aid batteries in the professional's office, the consumer gets the unintended message that any battery will do,'' says Jennifer Clark, associate marketing manager for Rayovac. ''In fact, it pays to remember that the battery is the source of power for your product. Your patient has just paid for a premium hearing aid and professional guidance. It doesn't make sense to skimp on the single product that will make that hearing aid perform at the optimal level.'' Clark explains that the performance of high-quality, long-lasting hearing aid batteries can reflect on your professionalism and service, just as the poor performance of a lesser battery can, whether they buy it from you or not. And it can follow if patients buy hearing aid batteries somewhere else, they may buy their aids there too. Providing your patients the option of high-quality hearing aid batteries preserves the integrity of the professional market.
Don't Forget Batteries
Smart retailers selling toys, games and other battery-powered devices know that sales result from asking, ''do you need batteries today?''
Recommended Action Points
Make a commitment to promote the product, versus just having it available in a drawer or a non-prominent location.
Market your hearing aid batteries by consistently communicating to your patient base about batteries and related promotions, including battery clubs.
Use your regular communications vehicles, such as newsletters, postcards, etc. to remind patients that you offer hearing aid batteries.
When patients visit the office, be sure your staff asks, ''do you need batteries today?''
Make batteries a regular part of your checkout evaluation.
Conclusion:
You will discover that with a small investment in effort, hearing aid battery sales can offer considerable returns that benefit your business and your patients.
References:
Kochkin S: MarkeTrak VI. The VA and direct mail sales spark growth in hearing aid market. Hearing Review. 2001;8(12): 16-24, 63-65.
Wall Street Journal, Front Page. 7-16-2003.
ACKNOWLEDGMENT:
This article is a revision of a previously published article in the May 2003 issue of Hearing Review. We are grateful to the Hearing Review for allowing us to revise this article as published here.
Click here to visit the Rayovac website.
Hearing Aid Batteries: Marketing Hints
August 18, 2003
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This article is sponsored by Rayovac.