Are you letting money walk out the door? According to recent hearing aid battery sales figures, many hearing health care professionals are. Retailers today are growing their battery sales at professionals'expense.
While battery sales among audiology professionals have declined, retailer profits have sky rocketed. In fact, according to Energizer estimates, intense retail competition in the hearing aid battery category has shifted 23 percent of battery sales towards retailers over the past three years (Source: AC Nielsen, HIA Statistics, Energizer Estimates). Hearing aid battery sales currently have a 62-dollar share at retail vs. a 38 share in the professional market (Source: Energizer estimates). Hearing aid batteries are a vital component to your practice because they can help generate traffic, provide incremental profits, build potential relationships with your patients and serve as a vehicle to build awareness of your practice.
The shrinking professional share of hearing aid battery sales is causing hearing health care professionals to look for innovative ways to market their products and increase profits. What is the solution for increasing battery sales? First and foremost, you must know your customers, including their perceptions and needs regarding their hearing health, and then market to them using promotions and incentives. This formula will generate sales for your practice and establish solid relationships with your patients.
Why Hearing Health Care Professionals Are Losing Battery Sales
As chain pharmacies and grocery stores double in size, competition for sales of hearing aid batteries is fierce and will only continue to intensify. A large part of retailers' success in battery sales is built on the convenience retailers provide. Convenience is a driving factor in consumers' decisions when purchasing batteries, and it's convenient for consumers to buy batteries at retail locations -- where they may already be going or can purchase additional items.
However, hearing health care professionals also are losing sales due to consumers' perceptions. A recent study by Grapentine Company, Inc. found that only one in four hearing aid users wants to buy their hearing aid batteries from professionals. The study cited the lack of selection and the perception that batteries professionals carry are not "fresh" or "of higher quality," as reasons for purchasing batteries elsewhere. While these perceptions may not always be accurate, in general, professionals haven't marketed their batteries very well to patients or provided incentives for purchase, contributing in part to these perceptions.
The study also found that the majority of battery sales by professionals are to patients ages 76 and up. This leaves a large number of patients the professionals are currently not capturing, and a large potential market that can be tapped.
Know Your Customer
Your patient of today is not the same as your patient of tomorrow. Today's patient is more apt to be conservative, adaptable and silent. Tomorrow's patient, the "Boomer," is much different. The Baby Boomers are 16 million potential patients strong, highly educated, trail blazers, with more income than ever before. Boomers are active, healthy individuals who do not let life slow them down. They expect service, convenience and choices while embracing technology.
Learning from Retailers
For professionals to build their battery sales, it's important to look at the best practices of successful retailers, as many of these practices can be translated to the professional market.
Retailers, overall, maximize hearing aid battery sales through an intricate balance of strategy and marketing. First, they take time to understand the consumer's wants and needs and incorporate this information into their product offerings. Retailers have benefited from understanding key consumer purchasing behaviors, and as a result offer:
- Recognized brands - Patients today are willing to pay more for the brands they trust. Retail markets have taken full advantage of this and supply nearly 80 percent of their stores with nationally recognized brands such as Energizer®
- New product innovations - Recent new product innovations, such as the Energizer® EZ Change™ Battery Dispenser, respond to consumers' needs by providing solutions that make changing batteries easier. This stimulates purchase and helps build customer loyalty.
- Assortment of Items - Top retailers carry an average of 2.8 brands and 18 different items from which consumers can choose (Source: AC Nielsen). Offering consumers multiple brands with vast assortments, including nationally advertised brands as well as generic store brands, helps spark demand and increase revenue.
- Merchandising - Retailers merchandise hearing aid batteries in plain view of consumers, providing them with the cues and clues they need to be fully aware of batteries.
- Large-packs - Though only one in four patients is powered by price, users are still very value conscious. Seventy-one percent of users purchase large packs of eight or more batteries, giving them the feeling they are getting the most for their money (Source: AC Nielsen).
Energizer Tips for Growing Your Sales
Simple practices in your office can make substantial differences in your sales of hearing aid batteries. With these five simple practices, you can not only grow battery sales, but help to increase overall traffic and create strong relationships with your patients.
- Product assortment: Patients enjoy flexibility in choosing from a variety of products. Offer your patients an assortment of nationally advertised brands and products, including the latest innovations, as well as traditional spin packs. Along with variety of products and brands, provide your patients value package options and solutions. Sales figures show patients prefer to purchase batteries in the large value packs containing eight or more batteries.
- Ensure that your everyday price is competitive: To compete with the retail market you don't need to "give away" your products, but you should be familiar with local retail pricing to make sure your prices stay competitive and to provide your patients with accurate information.
- Visibility: Finding a professional's battery display can often be like looking for a needle in a haystack. Retailers profit from having a variety of in-store signage and point of purchase displays, and from merchandising their products throughout their stores. Think about the visibility of your products and ways to make them stand out. Consider displaying products in a variety of locations, such as the front counter, reading tables, patient rooms, and other places where patients spend a good amount of time. Batteries appeal to all patients but it is your responsibility to attract, inform and convert them to purchase.
- Inform: When discussing hearing aid maintenance with your patients, talk with them about the variety and options of batteries that are available. Use educational materials such as videos, informative brochures and window decals provided by battery manufacturers to help your patients learn more about the products you are selling. The time you spend explaining a patient's options will also help create trust and build your relationship with your patient.
- Promote: Promotions help encourage trial and generate sales. Like retailers, market your products and encourage your patients to try your products through a variety of promotions and marketing incentives. A few ideas include:
- Battery Club - Offer a battery club to your patients, where frequent purchasers of batteries are rewarded with free product. Battery club members can also receive special discounts and promotions.
- Patient Communication - Include coupons or offers for discounts in birthday cards, appointment reminders, or any other form of communication with your patients.
- Advertising - Include coupons or discount offers in your newspaper, magazine, and/or direct mail advertising.
- Patient Referrals - Offer discounts or free product to patients who refer new patients. Inform your patients of your referral program to incentivize them.
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