Visible Results News - Article

JOINING THE CLUB - 14 October 2004 - Pharmacy News

When Simon Blacker decided to refit his Dubbo pharmacy, a major part of his plan was to implement a new customer loyalty program. Mr Blacker is the pharmacist and manager at Orana Mall Pharmacy in Dubbo. He bought the pharmacy in 2001, but believed it was tired and dated, and he wanted to take the pharmacy in new directions to differentiate it from his competitors. "We withdrew from a banner group because we felt we weren't really seeing any benefits," he said. "We wanted something different. Dubbo has nine pharmacies in a town of 38,000 people, with a large rural hinterland. So the new look and the loyalty program were undertaken with the aim of differentiating us from the other pharmacies."

The refit, giving the pharmacy a bright, modern look, took place in March-April 2003. This was followed by an extension to the shop next door in July of that year. At the same time, Mr Blacker wanted a loyalty program that could help reflect this facelift - one that would reward both his customers and his business. "It was clear what we needed - a customer rewards program to help drive sales and increase loyalty, that would also work in our newly fitted-out and rebranded store. I knew that something different was required other than a simple run-of-the mill discount card loyalty - we needed a program with a difference if it was going to really help drive sales and customer loyalty."

After researching the market, he chose LifeClub, an innovative, pharmacy-only customer rewards program. With LifeClub, customers earn points on all non-prescription purchases which they can redeem in-store. The program also incorporates the latest technology. The most obvious use of this technology is the customer card itself. It is a rewritable card that utilises "smart technology". The face of the card changes with every swipe, updating the points earned, dollars available to redeem in-store, and the on-card message. This cuts down time wasted on administering voucher-based loyalty programs.

All customer purchase history is held on the LifeClub terminal and downloaded to a central data centre via a freecall number every evening (between midnight and 5am). Mr Blacker said this was saving him up to $500 a month on phone charges from his previous loyalty program. The previous program had required its terminals to dial in throughout the day to download/upload data. Another feature of the LifeClub program is that it's not aligned with any wholesaler or buying group. This means a participating pharmacy can stock whichever products they choose, without having to take part in any particular buys that may be unsuitable to their store.

Every month, up to 20 per cent of the messages appearing on the card can be customised to an individual store's needs, to promote special offers, competitions and other in-store promotional activity, providing a new channel for promoting in-store specials and activities. The program allows up to three different discount tiers of customers.

Certain VIP account holders and senior customers could be enrolled on a higher level of discount than regular customers, eliminating the need for customers to show their seniors' cards or for the accounts department to calculate discounts at a later date. The program's flexibility means it can be linked to other stores. Orana Mall Pharmacy is now part of a small group of five rural pharmacies. Customers can earn and redeem points at any of the five stores in the group.

LifeClub also provides regular mailings to the pharmacy's customer base on various health topics of interest, competitions and special offers included in the monthly fee. "LifeClub has worked tremendously for us," Mr Blacker said. "In my opinion it's the best loyalty program in pharmacy. Despite being in a shopping centre containing a Woolworths and a Big W, our retail performance has really kicked on in the last 12 months, and I think that's because of the refit and LifeClub." After a month in the LifeClub program, Orana Mall Pharmacy had signed up almost 2000 members; now they have more than 6000. With the average LifeClub customer spending $8 more per average retail sale, Mr Blacker is starting to see the rewards. "Having been in a banner loyalty program before, we've been impressed by LifeClub's state-of-the-art technology. It means that our customers get immediate benefits, and the quality of information we capture means we can really target our customers' needs."

By October 2003, the pharmacy had been listed as a finalist in the Rhino Awards, a local business award, in the product and services, and marketing and presentation categories. The loyalty program is only part of the strategy for Orana Mall Pharmacy. Mr Blacker sees retail as one major avenue down which he can take his store. "We see our way ahead not through discounting, but through differentiation and professionalism. We want to make our pharmacy the first point of call for health products and advice in Dubbo, and the retail side is obviously really important to getting people through the door and making them loyal customers. On the other side we offer asthma, sleep apnoea, early childhood and other professional services. We now open till seven every night, seven days a week. We're the only pharmacy in Dubbo with these hours and which is offering some of these services."