Data mining is one of the most valuable business tools at your pharmacy’s disposal, so it’s important to understand what it is and how to use it.
So, what exactly is data mining?
Data mining refers to analyzing data to find useful information that you can apply to your pharmacy. It enables you to identify patterns, associations or relationships that exist among the data, and summarize what those patterns, associations and relationships mean. You can then convert this information into knowledge that will help identify new opportunities and ways to increase your business’s profitability.
Here are some of the most beneficial ways to use data mining to increase your pharmacy’s profitability.
Identify your most profitable patients
According to the Pareto Principle—otherwise known as the 80/20 rule—80 percent of your pharmacy’s profits will come from 20 percent of your patients. This means it’s imperative to know which patients make up your top 20 percent.
In other words, which of your patients are your most profitable? By analyzing your pharmacy’s data, you should easily be able to identify who these patients are.
Once identified, your most profitable patients need to take priority. As an independent community pharmacy, you already pride yourself on providing outstanding customer service. But for the top 20 percent, you need to go above and beyond that service, as they’re your VIPs (very important patients). When VIPs are treated as such, they’re more likely to continue to visit your pharmacy, grow your profits and drive referrals.
Ideas for providing exceptional service to your VIPs include mailing ‘thank you’ notes or ‘get well’ cards, making personal phone calls to check up on them and performing other random acts of kindness that will make them feel special.
Pinpoint your most profitable prescribers
You should also be aware of your most profitable prescribers.
When physicians recommend your pharmacy to their patients, it builds your credibility. Analyze your data to figure out where your most profitable referrals are coming from. Once you determine who the prescribers are, you can strive to maintain good relationships with them to keep the referrals coming.
To continue building on these prescriber recommendations, your pharmacy needs to provide value. Physicians want to refer their patients to the pharmacy that will provide the best service and care possible.
Try to understand why certain prescribers are more profitable for you, and customize your services to fit the needs of those specific offices and patients. Make sure physicians understand they can rely on you, and that recommending your pharmacy will make them look good. And, be sure to treat the patients referred by these prescribers as VIPs so they will sing your praises.
Get to know your patients
By understanding the needs of patients who visit your pharmacy, you can ensure you offer all of the products and services they’re looking for.
Based on their history, what is it that your patients need? If the data shows your clinical services have been thriving, consider how you can add and improve on those services. Do patterns indicate there’s a spike in interest around immunizations or specific diseases? If so, offering immunizations or disease education could be a great way to increase the profitability of these patients.
Keep up with purchasing trends
It’s also important to use your data to identify purchasing trends in your front end.
You may find there’s a need to stock a certain product, or perhaps one that can be eliminated. For example, maybe there’s a vitamin product that keeps selling out. Knowing when to increase your inventory can result in making more sales, as opposed to running out. You can then apply this knowledge to your next promotion or marketing campaign in order to make it more successful.
In addition, look for opportunities where you can replace the product with a more profitable one. If vitamins are a best seller, is there a similar, more profitable product that you can stock instead?
Improve your customer service
Customer service is especially important for independent community pharmacies, and you can use data mining to improve this aspect as well.
Do you issue surveys to your patients? Analyze the survey data closely to figure out where you can enhance your customer service.
If patients are unhappy with any aspect of your service, find a solution that will make a noticeable difference. Continuing to provide the best customer service possible will help guarantee your current patients keep coming back, drive referrals and bring in new patients to your pharmacy.
For more insight on increasing your pharmacy’s profitability, check out these six tips to keep your profits high and costs low.
