Al Cleinman's Blog

It's Moving Day

Hello all, I’ve moved this blog to a new address which will give my blog additional capabilities.  You can find me at http://alsblog.cleinman.com.  All of my posts, and all of your comments, have been carried over to this new space.  You will want to update any bookmarks or links to the new address.  Thanks for stopping by, and I hope you enjoy the new site!

You're Kidding, Right?

A reader, who happens to visit many optometrist's offices, sent me a copy of VSP's Promotional Literature for their individual plan.  This is the plan where VSP goes directly to consumers and convinces them that they can buy eye care and eyewear at a discount.  The premiums for this plan are, of course, paid directly to VSP.  Then, VSP shares these premiums with the provider in the form of paltry reimbursements.  VSP, of course, says that they're driving new patients to their providers and everyone wins.  The consumer gets a discount.  The provider gets a new patient.  And VSP gets a boatload of money.

Sounds like a logical plan.

But here's the amazing part.  This brochure was picked up in a provider's office.  Yep, right there in the waiting room.  This astute provider was telling his patients "Hey, you don't have to pay me what I usually charge, just join up with VSP and you can get a discount." 

There are two seriously big concerns with this.  First, VSP is no longer moving patients exclusively to private practice optometry...nope.  Today, they own their own retail operation within the Cisco Campus (not likely the one and only); they're sending your patients to COSTCO; and soon, logic says, they'll be sending more to COSTCO and others as VSP and the likes of COSTCO plot to develop a special plan designed exclusively for COSTCO members.

The other problem with this is that this particular provider has already secured the patient.  If they simply WOWed the patient, they wouldn't have to worry about the patient going elsewhere for service.  Why would you sell against yourself?

According to our research, the difference between gross charges and collected dollars has eroded by eleven percentage points over just the past five years.  That means that you have eleven percent fewer dollars to pay your staff; your overhead; yourself.  And it's not like you can make it up on volume; since VSP now demands additional discounts for second pair sales.

THROW OUT THOSE BROCHURES!  Fill the landfills.  It's time to cry "we're sick and tired and aren't going to take it anymore!"

Download VSP Vision Care Coverage - Individual Plan

Some Questions for VSP Regarding their Cisco Vision Center

The banter about VSP's opening of a vision center on the Cisco campus in San Jose has been significant.  Announced on this blog on May 11th, the topic is hot enough for VSP to feel compelled to respond with various PR efforts, including releases to the press and a national "town hall" tour.  These efforts are likely the work of an expensive PR firm retained by VSP for just such events.

In one recently released communication, VSP works hard to rationalize their action as a competitive response.  "If not us, then it would have been someone else," they say.  OK, I get that.  Competitive actions require competitive response.  I'm a firm believer in the law of the marketplace.  But had VSP done just two things...only two...they could have turned this sow's ear into a silk purse.  And the fact that VSP doesn't do these things generates other questions, for sure.  So I have two questions for VSP:

a) If this is so good for your providers, why not announce the action back last fall when you took it instead of hiding it and then reacting once it was discovered?  Why not transparency?

b) If this is so good for the providers, why not take the profits from the activity and return them to the VSP providers within a 20 mile radius of the Cisco Campus.  After all, this can't be a highly profitable activity, with only 1000 on-site claims.  Why not give the money back to your providers, VSP? 

My own opinion  of VSP's strategy is well documented in this blog.  Let's see if VSP has the cojones to respond.

Hey, Help an Uncle Out!

My nephew, Jordan, is 15 and is a car nut.  He's a very bright young man with lots of entrepreneurial energy.  He's been writing a blog about high performance cars for some time.  I told him that I'd make him famous...so I need the help of my readers.  Please check out Jordan's blog.  It's full of information, videos and interviews about really cool cars.  Your encouragement may help to launch the career of the next Lee Iacocca.  Thanks!

Jordan's Big Bad Auto Blog

First Impressions Count!

The other day, I found myself in Marlborough, Massachusetts for one of our Business of Eyecare Forum events.  This program, a one-day practice leadership "university," is loaded with lessons on how to deliver a lasting and memorable patient/customer experience.  The event was held at the Best Western Plaza Hotel and Trade Center, apparently about the only facility available in the area and large enough for our event.

This facility is on a large property, so the driveway is quite long.  As I turned off the highway into the driveway, I'm met with a large BANG!  My first impression of the hotel is a pothole.  From the sound, I was convinced that it was the size of a Volkswagen and that I'm now in need of a front-end alignment.  As I proceed up this quarter-mile long drive, I begin having to reach back to my country-road driving experiences; dodging pothole after pothole.  The driveway is a virtual obstacle course.  Needless to say, having just bought a new car, I wasn't very pleased with the fact that my expensive high-performance tires were taking a beating.  Worse, though, was my concern for the 200 participants of the Forum.

This first impression set the stage for my entire hotel experience at the Best Western Plaza Hotel and Trade Center in Marlborough, Massachusetts.  If management/ownership is so blase about their driveway, the very first thing that a visitor encounters, what else were they missing.  Well, I certainly began noticing all that was wrong with the physical plant (yes, it's old and tired).  And, in spite of the good service by attentive staff, my overall impression of this facility and it's management was very, very poor. 

My negative perspective of the hotel was exacerbated when I placed a call through the front desk and tried to meet with the General Manager, Mr. Rick Skinner, to share my concerns over the driveway.  In spite of the fact that we were the only significant customer at the hotel that day; and in spite of the fact that we were spending tens of thousands of dollars at his hotel, Mr. Skinner chose to respond to my query with what amounted to "I'm busy...have him speak to someone else."  Now, Mr. Skinner had the entire afternoon to respond to my query and chose to do otherwise.  Like the potholes, his attitude didn't sit very well with me.  Perhaps he was busy filling potholes or making arrangements for their repair, but I don't think he was demonstrating very good leadership...to his team or his customers. 

Yes, I had the choice of speaking to another hotel employee about my concerns.  I also had the choice of not doing anything.  After all, I'm sure that Mr. Skinner and his owners are aware of the potholes and the overall condition of their hotel.  But, instead, during my morning workshop on Secrets of High Performers (and likely during the 20 or so similar events that we'll have over the coming year), I used the hotel's condition and Mr. Skinner's approach as an example of how important it is to maintain a quality environment...to see your facility through your customers eyes...and to be open to listening to your customers. 

And, of course, I'm now using this experience as a lesson on brand-destruction for my loyal readers. 

In the old days, a negative experience was thought to have been told to about 15 people.  In this particular case, I'm sharing it with over 30,000 readers.  Blogs, Facebook, Yelp, etc. have totally changed the power of your customers ability to impact your brand; both positively and negatively. 

First impressions count.  Listening to your customers counts.

Is it in your Job Description?

I'm vacationing in one of my favorite areas, Rockport, Massachusetts.  This quintessential New England seaport village near Gloucester is like stepping back in time. 

So I call a favorite Rockport restaurant (My Place by the Sea) to make reservations for this evening.  It's 11am.  Phone is answered.  I tell the guy that I want to make a reservation for this evening and I'm told..."I'm sorry, you'll have to call back at noon.  We don't take reservations before noon."  I ask him if he has a piece of paper and a pencil handy and he tells me "Sir, I don't take reservations.  Our reservationist doesn't get in until noon...you'll have to call back then."

Now this restaurant has, maybe, 50 seats.  Here's another situation where there exists job description confusion.  While taking a reservation may not be in this guy's job description, choosing another restaurant to spend my $200 at certainly is in mine.  I just love these customer service moments. 

(next day)...so what's "the rest of the story?"  We show up at the restaurant.  Except for two other tables, the place is empty.  Hmmm...perhaps 30 people called before noon and got the same message that I did...and, unlike me, chose to go elsewhere.

Think about your job descriptions and culture.  What policies do you have that get in the way of good, practical, logical customer service?