Al Cleinman's Blog

Thank You!

One year ago today I started this blog.  My purpose was to provide my readers with observations and opinion arising from what many have told me is a unique perspective...working closely with hundreds of high-performing optometry leaders throughout North America for the past twenty years.  Indeed, this month is the 20th anniversary of Cleinman Performance Partners.  Today, a year since I started these posts, we've surpassed 21,000 page views. 

Now, I don't know if 21,000 page views in a year for a non-promoted blog is good or bad.  And I don't much care.  What I do care about is saying "Thanks." 

Thank you to my readers who, through your kind words and posted comments have told me that you value what you read on this forum.  Thank you to our clients and the members of Cleinman Performance Network for your ongoing support of our mission...to help our clients recognize and realize all of their possibilities.  Thank you to the eye care industry, which for 37 years has provided me with an incredibly interesting adventure, full of psychic reward. 

If you enjoy what you read on this blog, please pass it on to your friends and colleagues.  If you don't enjoy what you read or take exception to one of my opinions, thanks for having the courage to make a comment.  In my opinion it's not important on which side of a debate any of us reside.  What's important is the debate itself.  Thank you for your participation!

VSP's Provider Network to Include Chains and Private Opticians?

A fellow blogger sent me the following question:

 

What do you hear about VSP opening up their plans to chains and other "types" of practices who they previously didn't offer the ability to be a provider for their insurance?

I hear they are still not going to allow an independent optician to be part of their network.

 

VSP is faced with some significant competition from EyeMed, which certainly includes chain retailers in the form of Lenscrafters and Pearle.  So, VSP might feel compelled to add some kind of provider alternative to combat EyeMed's promoted advantage (Mr. Employer Group - "our Lenscrafter's relationship provides your employees with 7 day a week service access and the pricing advantages of Lenscrafters").  So, we might see VSP making an attempt to combat that "advantage." 

 

As for adding private opticians to their provider network, I think that anything along those lines is pure conjecture and, perhaps, wishful thinking on the part of opticians. What purpose would it serve?  Certainly, it would appear that there's little benefit on the insurance side and, indeed, such a move represents additional cost to VSP. In my opinion, as it relates to the insurance side, VSP doesn't need more "independent" providers.

 

On the Marchon side, one would guess that they thought this situation through prior to the acquistion and feel they're going to add more opportunitywith the VSP association then they'll lose because of pushback from non-VSP customers frozen out of the Provider Network.  That said, one has to believe that Marchon's focus, and perhaps even VSP's, is largely international. That was a significant stated objective with the acquisition.  One can assume that the addition of Claudio Gottardias Marchon's COO only supports that focus. 

 

On the lab side, it would appear beneficial for VSP to open its doors to opticians...but why would opticians follow (there's lots of good labs and price competition is fierce)and would the resulting push-back from their current provider network be worth it? And then one must consider that non-examining opticians (vs. optician/O.D. combinations) are not much of a market for Officemate products.

 

In the US, VSP already "owns" 55 million consumers.  That's what has driven their business in the past. Now, with the loss of their non-profit status and their acquisition of Marchon, one must question who VSP is today.  Are they a provider of patients to their private O.D. network?  Are they a supplier of frames and lenses?  Are they an integrated retailer?  Until they answer this question with their actions, we'll have a hard time predicting their moves.

Perhaps, the real question is: Does VSP care enough about its existing provider base to be loyal to them at the expense of Marchon market share? Can they serve multiple masters?

 

Let's see.

 

 

Recession...what recession

I'm in Dallas, attending one of our monthly Cleinman Performance Network meetings.  During each of our immersion weekends, our members work diligently to address their business issues and identify resolution.  They participate in unique learning activities designed to help them reach their desired goals.  They collect scores of great ideas from the cumulative knowledge and wisdom of scores of fellow high-performing leaders.  And they get a dose of inspiration from Team Cleinman and the performance of their fellow members. 

This weekend, we've all had inspiration.  While I won't share names for reasons of respect for  confidentiality, what I will share are the amazing numbers turned in by the winners of each of the Cleinman Performance Network Groups who were in attendance this weekend.

Group Name                    2008 Growth in Cash Flow over 2007

^{Maximize                                     15%}                   

^{Prosperity Partners                       16%}

^{Capital Eyes                                 22%}

^{Box Cars                                      26%}

Recession...what recession?  The winners of these Cleinman Performance Awards are leaders who refused to give in to the hype of gloom and doom.  Their success is not the result of luck or location...but that of bringing their teams together towards a common goal; of being in control of their destiny; of not of becoming a victim of their economic environment.

Congratulations!

Do Brands Matter?

I'm frequently asked about the importance of branding for professional practices.  Does a "brand" matter?"  What is a brand?  Should we operate under our last name as in Dr. Thomas Jones?  Or should we operate under a trade name like Advanced Family Vision Care? 

Often, I believe that the term "brand" is confused with "logo" or "image."  Brand is not something easily described.  It's a value quotient.  It's what you stand for and what you're customers perceive you stand for.  Your logo is not your brand...but a manifestation of your brand. 

Here's an interesting video that speaks to the importance of brands in a recession.

http://www.youtube.com/watch?v=OoFRu_9_7YQ

My personal opinion is that your brand is absolutely critical to your success...because you are your brand and it is your customers/patients perception of your value system that ultimately defines their definition of your brand.  Said another way, we cannot determine our brand...it's our customers that do so.  We can only set the course for our brand.

Selling Multiple Pair Eyewear - The Strategic Way

  

We’re all leaders; both in our families and our respective enterprises, but also of an industry. Our families, staff, patients and colleagues look to us for guidance, both directly and surreptitiously.  The words we use and the actions that we take play a significant role in our success; both individually and as an industry.  Do not underestimate the power of what might otherwise be considered a small act. 

 

As I have with the members of Cleinman Performance Network, I’d like to introduce my readers to one “small act” that I believe has the potential to accomplish great things…if we all help lead the way.  My reason for sharing this idea, normally reserved for our clients, is simple; a rising tide carries all ships.  Perhaps, through this one small act, we can accomplish a further step towards one of our industries' most daunting challenges; growing the eyewear market through multiple pair sales.   

 

I often joke that my eyewear collection is a line item on my balance sheet.  I generally carry at least four pair of eyewear wherever I go.  Last year, I looked around for a case that would carry multiple-pair.  I was tired of a collection of individual cases haphazardly thrown into my suitcase.  So I searched the industry and found one multi-segmented eyewear case.  Only one!  And as I searched, I thought it so prophetic that I had difficulty finding what I was seeking.  No surprise; it seems that our industry doesn’t systemically think in terms of multiple-pair sales; why would we think in terms of multiple-pair cases.  Well, perhaps we can change that attitude through the backdoor?

 

The “small act” was that we introduced our clients to my four-position eyewear case.  The cases were obtained from Norm Pasche of Hard Case (www.hard-case.com) in Compton, RI (phone 401-635-8201).  I encouraged every one of our clients to acquire a supply and a great many have taken me up on my challenge.  In addition to providing patients with an individual case, these clients are giving the four-position case to many of their patients as a gift.  The objective: to send the message that its normal behavior to own multiple pair of eyewear, just as it is to own multiple pair of shoes.

 

                                                   

 

If you go through the aisles of any department store or retailers like “The

Closet Company, Hold Everything or The Container Store, you’ll see entire aisles devoted to shoe storage.  No wonder we own more then one pair of shoes...we are conditioned to the concept. 

Do you suppose, if we provide patients with multiple section eyewear cases and write multiple prescriptions for individual eyewear needs, they’ll become conditioned to thinking they’re supposed to own more than one pair of eyewear?  I personally think so and our clients are proving this true.

 

Dillards Department Store and the Cleinman "WOW" Award

This past Monday, while visiting my brother, I purchased a new suitcase at the Dillards in Mesa, Arizona.  While I call upstate NY home, it's not unusual for me to do my shopping on the road...after all, it's where I spend the majority of my time and the pickins are slim where I live.  As you can imagine, with my travel schedule, I need a good suitcase.  My last one hit the million mile mark and started to disintegrate.

I packed up my new bag and headed for home.  Upon arrival, I noticed that the outside zipper was broken.  Given my need for quality, I didn't have confidence that this bag was going to work for me and I simply don't have time for trial and error.  I wanted to return the suitcase for credit...but I'm a long ways from a Dillards.  So, putting on my "customer from hell" hat and preparing for a fight, I called the Dillards in Mesa and spoke to Neil, the manager of the luggage department.  My conversation took nomore than 3 minutes.

AHC:  "I purchased a piece of luggage from you on Monday and used it once.  The zipper has broken."

Neil:   "Well, just return it and we'll give you a new one."

AHC:  "That's a problem on two fronts.  First, I won't be in Phoenix anytime soon and second I don't really trust the piece, given that it broke on its first run.

Neil:  "OK, go to your receipt and read me the ten digit number at the top.  I'll just credit your account."

AHC:  "That's great!  How do I get the bag back to you?"

Neil:  "Just throw it away, keep it or give it away."  No sense spending money on shipping."

WOW! 

Neil, to put it mildly, I'm still blown away by our conversation and yourno nonsence, customer centric approach.  I was prepared for a hassle or at the least, the need to pack the bag up and ship it to Arizona.  You didn't even try to satisfy me...no...you WOWed me!  You took the wind right out of my sails.

Congratulations!  Today I award you an Al Cleinman WOW Award.  As a professional speaker, I spend a good deal of my year talking about the topic of customer service to audiences throughout North America.  I am now a Dillards "ambassador."  You and your team, both up and down the corporate ladder, can rest assured that your gesture to me will be repayed.  This WOW experience will be shared with thousands from the podium, for many, many years to come.

Neil's action reminds me of one of my thirteen mantras..."Destroy bureacracy.  See clearly the decisions that are yours.  Make them!"  Neil didn't hesitate to read the situation and take action.

Congratulations Neil and Dillards.  You've anambassador in Al Cleinman and a customer for life.

What might you do in your business to take what would be perceived as a customer hassle and turn it into a service goldmine?  Are your employees empowered to do what Neil so smartly did?  Why not?