Independently owned pharmacies are one of the fastest-growing businesses in the United States. And here is an interesting fact, the Independent pharmacy marketplace accounts for nearly US $81.5 billion in revenue. Filling prescriptions is the key driver many pharmacies have for obtaining and retaining a loyal customer base. Of course, as pharmacists, you already know that scripts are the primary source of revenue for your business. From a statistical standpoint, large chain-retailers benefit greatly from profits generated at the front-end of the store. If they are doing it correctly, then so should you.
This article will discuss innovative ways to facilitate sales growth by concentrating on non-prescription merchandise, specifically what Rx retailers can accomplish by increasing the number of impulse purchases made at your pharmacy.
A Store Layout Designed to Sell Merchandise
When you begin the initial store design process of laying out your pharmacy with store fixtures, as a store owner, there are a few things that should be on your mind as your objective. How do I design a location that entices purchasing decisions and exceeds the customer experience inside my pharmacy? Every independent pharmacy is different; therefore, there is not a one-size-fits-all approach to store design. But at the end of the day, the goal will always remain the same, increase in-store sales.
In an article featured in PBA Health, two prime factors highlight that independent pharmacy owners should consider designing a store layout, retail space, and customer base. This is critical because when you plan your pharmacy, you will create various departments (health, beauty, snacks, CBD, etc.) within your store. These departments' size will be predicated on consumer preferences of the community you serve and the allocated square footage size of each area. Your store layout should be constructed in a manner that will help you maximize revenue. When creating a path you want customers to walk through inside your pharmacy, have your Rx prescription department and sales counter dictate the direction you want customers to follow.
Focus On Shelving Displays that Promote Impulse Sales
A surefire way you can increase the revenue of your business is to increase impulse sales. Naturally, that is easier said than done. Here is a statistic that even we cannot believe. According to a recent study by Cardinal Health, only 6% of customers who enter a chain pharmacy leave the store without making a purchase. However, nearly 56% of consumers leave an independent without buying something at the store's front-end.
Impulse sales are vital to any retail business. MSNBC recently had a study that resulted in findings that showed that the average adult American spent nearly $5400 a year on impulse purchases alone. As a store fixture supplier serving the pharmaceutical industry for over 35 years, our team knows a thing or two about shelving displays that promote impulse sales.
End Unit Shelving
End Units can increase sales because customers are naturally drawn to their attention. In fact, according to a recent study from Oracle Retail, merchandise displayed on end units gives a product around a 93% increase in customer exposure. The best part, end caps can be easily added to your existing pharmacy without disrupting your store layout. They can match your current gondola shelving colors, or you can make these displays stand out more to your customers by customizing the end unit display.
Pharmacy Sales Counters
The chances are that most of your customers are coming into your pharmacy to head directly to your Rx prescription department. This makes your pharmacy sales counter a terrific opportunity to increase impulse sales by effectively displaying merchandise right in your customers' eyesight. The gondola checkout counter is a perfect unit to display impulse merchandise, and the top and end panels of the counter can be constructed to match all the colors of your pharmacy.
Take Advantage of Store Loyalty Software
Store loyalty software programs are not new, but they can help your pharmacy retain consumers. Let's face it, no matter how wonderful your retail store fixtures look inside your pharmacy, if you can't retain a strong consumer base, then it will be challenging to increase impulse sales.
Customer loyalty programs have become an expected "norm" for many consumers. The real question is can your pharmacy afford NOT to have a store loyalty program. Here is a statistic you might find interesting. 69% of customers say that loyalty programs influence their preferred choice of retailer. Below are some ideas on how you can promote your pharmacy store loyalty program with excellent results.
Make it Simple to Enroll
This is a no-brainer. Customers move at a faster pace now than ever. Make it quick and easy for your customer to enroll in your loyalty program with the least number of questions or related fields required as possible. Plus, some of your older customers are not tech-savvy, and they will require your assistant with setup.
Customers love when retailers acknowledge their special day with a kind email or text. Offer promotional discounts to help them celebrate. Numerous email marketing studies have concluded that emails containing the best birthday wishes have the highest opening rates. Take advantage of the exposure as a method to build goodwill with your customer.
Welcome Consumers with a Reward
We now live in a world where we have all become accustomed to instant gratification. Your pharmacy's store loyalty program is no different. Entice customers to your Rx loyalty program by offering a welcome reward they will receive as soon as they sign up. Something as simple as save 20% off their first order can be enough to keep your customers happy and loyal.
These are just some ideas that can help your pharmacy increase sales. Remember, your goal as a retailer is to have your customers explore your entire pharmacy to increase the likelihood of a non-prescription sale. If you have any questions, please feel free to contact Handy Store Fixtures today. For over 35 years, we have provided pharmacists with high-quality pharmacy store fixtures and displays.