How to retain customer loyalty

In the current climate of change within the NHS, with increased Government emphasis on local and accessible services for patients, pharmacists are in the ideal place to provide a wider range of services and products than ever before.

So thinks Raj Nutan, pharmacy business manager at the National Pharmacy Association. But he warns that the new climate presents threats as well as opportunities.

We can compete for new income streams, but the community pharmacy sector is becoming increasingly competitive, and we cannot take anything for granted, he points out.

“New entrants, such as the private sector, are competing with existing healthcare professionals for the same pots of money at primary care organisation level,” he says.

Increased competition means pharmacies must step up their game if they are going to stay ahead. Initiatives such as loyalty cards have proved a successful tool for some of the big pharmacy multiples, but are unlikely to be a viable option for smaller businesses.

The first step is to identify the areas in which your pharmacy will compete with other businesses, Mr Nutan advises. This requires knowing who your customers are.

Identify potential customers

In the current business climate, customers are not limited to members of the public who walk into the pharmacy. “Times have changed and new markets are opening up for the average pharmacist,” says Mr Nutan.

“These include NHS patients, private patients, local authorities, drug action teams, PCOs, care homes, GP practices, other healthcare professionals, practice based commissioning groups, prisons — the list is endless.”

Work with GPs

Jag Gujral, a pharmacist at Selby’s Pharmacy in Haywards Heath, West Sussex, has increased his customer base by working closely with GPs and PCOs. It emerged that GPs did not have the time to discuss gluten-free diets and products with patients who require them. The pharmacy now offers this service to customers, and has attracted new and repeat business.

“People have found out from friends that the pharmacy is dealing with this and they have come in for advice. The turnover and profit of the service are nil, but it increases profile and, in the long run, it will increase profits,” he explains.

Mr Gujral attends regular meetings with other pharmacists in his area and sits on the local pharmaceutical committee. “The majority of pharmacists in the past were insular and worked in the confines of their own shop. Now we have got to exchange ideas and work together. If we don’t, we will be left on the wayside,” he says.

Give customers a reason to return

With the Government push towards self-care and customers having a greater awareness of medicine and health products, promoting products that people can buy over the counter is another way to compete, Mr Nutan says, especially as more prescription only medicines become switched to pharmacy medicines.

Raj Patel of Mount Elgon Pharmacy in Wimbledon, Greater London, has worked hard to ensure that the types of products he sells help retain customer loyalty.

Studying local population demographics and the results of customer satisfaction surveys has led to Mr Patel stocking products such as ecofriendly nappies and the pharmacy’s own brand of organic health foods.

If the pharmacy does not stock a requested product, he will order it and contact the customer when it arrives. “That brings very good loyalty,” he says.

A regularly refreshed shop window (see Retail Round-up, May 2007, p1), a newsletter and constant product promotions also keep the business popular with customers.

Mr Patel also runs a repeat prescription collection and dispensing service, and has authority from local surgeries to start new patients on repeat prescriptions.

Such innovation won Mr Patel the top prize at the 2007 UniChem Pharmacy Awards after just two years in business.“In the future a loyalty card is something I’m looking to do but I need the technology to deliver it. Or I could do a voucher scheme — I have not explored that yet,” he says.

Update your services

Keeping your service unique by continuing to update it is vital to continue to compete successfully, says Mr Nutan. Here, wholesalers like can play a part by offering new and updated supporting tools.

One such tool is Healthwatch, provided by AAH Pharmaceuticals, which covers 15 services including a weight management programme, diabetes screening and blood pressure testing. Each service has its own training pack, information for patients, leaflets and appointment cards.

Porsotam Leal, who runs Stockbridge Pharmacy in Hampshire, provides blood pressure testing, diabetes screening, cholesterol testing and weight management through Healthwatch. He believes that offering these services is changing the “traditional” image of a pharmacist held by many elderly customers in particular, who are now realising the added value that a pharmacist provides.

Mr Leal has also completed PCT-accredited training to offer enhanced services so he can advise on smoking cessation, emergency contraception and palliative care.

“If I can persuade customers to seek our advice on minor ailments and lifestyle matters, and choose us for prescription dispensing instead of going to the dispensing doctor, I feel I am promoting the appropriate use of NHS resources,” he says.