At the end of the first quarter we take a look at how our key performance indicators compare with the same quarter of the previous two years, as well as how they have performed against last month and March 2013. After some positive signs in February the data for March is weaker than expected with all key performance indicators, apart from sales volume of bi/trifocal lenses and turnover per eye examination, at lower levels than last month. With the exception of total sight tests and value of solutions sold, our indicators failed to meet the Index figures reported in March 2013.
Optician Index is based around the idea of benchmarking. Benchmarking has become a sophisticated management tool providing performance indicator comparisons which assist business owners and managers in their strategic and tactical business planning.
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The figures can be used for more than just looking at market trends. By comparing the sample data with your own practice performance, the practitioner can identify problem areas and take the necessary steps to correct and fine tune their business activity. Without benchmarking it is only possible to look internally at historical results and therefore the practitioner only has a subjective view of what customers want and what competitors are achieving.
One of the benefits available to Optician Index panel members is a customised report which tracks their business performance against the sample Index in each area and enables them to see if they are under- or over-performing. The contact details for joining the panel are listed at the end of this article.
The total practice turnover chart (Figure 1) shows the positive start to 2014 in January and February but the Index figure in March falls below that of the previous two years. The net result for the first quarter is still marginally positive with just a 0.2 per cent increase over the same period last year. Total turnover this month shows a small decrease of 0.5 per cent to 172 Index points from February and this is almost 1 per cent lower than March last year. This is a small percentage reduction on March last year, but as can be seen from the chart, total turnover exceeded the figures each month of 2013 on 2012, apart from April and December. Annual growth which compares the totals for the last 12 months with the preceding 12 months is positive at just over 1 per cent.
Turnover per eye examination (Figure 2) shows a steady increase this quarter with higher values reported each month, but the average monthly figure is just over £2 down from the first quarter last year. March produced a value of £177.60 which is a £4 increase on last month but £3 lower than March last year. It should be noted that this is a sample average value and reflects the change in the sample, from the start of 2013, to include only independent practices and regional chains.
Total eye examinations (Figure 3) did not reach the same peak in February as the previous two years, reducing in March 2014 to 103 Index points, 1 per cent lower than February but, encouragingly, slightly higher than March last year. The net result for the first quarter is a 3 per cent fall compared with the same period in 2013 and annual growth is negative at -8 per cent.
The percentage of eye examinations which are NHS (Figure 4) this quarter is lower than the first quarters of the two previous years. In March the value increased by almost one percentage point to 75 per cent from February, the same percentage as March 2013.
Dispensing and lenses
The sample average total dispensing has decreased this month to 93 Index points, 3 per cent lower than both last month and March 2013. The sample average dispensing rate, which is calculated by dividing the total volume of spectacles dispensed by the total number of eye examinations carried out, has gone up this month by just one percentage point to 64 per cent which is four percentage points lower than March last year.
The sales volume of single-vision lenses (Figure 5) failed to meet the peak Index value of last February and fell by 7 per cent this month to an Index figure of 65, which is 5 per cent lower than March last year.
Bi/trifocal lenses (Figure 6) saw the volume of sales reported for the first quarter below those of the two previous years but have seen a significant 20 per cent increase, from February of this year, to 66 Index points.
Progressive lens (Figure 7) sales volume has fallen slightly month on month in this first quarter of 2014 to an Index figure of 209 just below that recorded in March last year. The net result for the first quarter is almost identical to the first quarter in 2013 but annual growth is positive at just over 1 per cent.
Contact lenses
New contact lens fits (Figure 8) are lower this first quarter than over the previous two years. The Index value for March reduced by 3 per cent to 115 Index points from February, which is almost 2 per cent lower than the Index value last March.
Contact lens solution sales (Figure 9) for March reduced by 2 per cent to 90 Index points from February this year, but this is 12 per cent higher than March last year. The Index values for this measure, over the first quarter of 2014, are higher than last year and match those of 2012.
The percentage of spectacles dispensed with photochromic lenses (Figure 10) has bounced this month, with the arrival of brighter weather, by four percentage points to 13 per cent and this is two percentage points higher than March last year. The percentage for this first quarter is slightly below the same quarter in 2013 and does not match the average 13 per cent in the first quarter of 2012.
Anti-reflective coatings (Figure 11) show a slightly higher percentage of lenses treated during this first quarter of 2014 compared with the same quarter in 2013. March this year is three percentage points higher than February and March last year at 45 per cent of all spectacles dispensed.
Reglazes (Figure 12) changes little month by month, the lowest figure since January 2013 being 13 per cent and the highest 16 per cent of spectacle sales. Again, it should be noted that reglazes and the percentage of lenses treated with photochromic or anti-reflective coatings is an actual percentage (not an Index figure) and the marked difference with 2012 reflects the changes to the sample.
Summary
- Total turnover for March falls by 0.5 per cent to 172 Index points from February this year but a quarterly comparison with the same period last year is positive by 0.2 per cent
- Total number of eye examinations for March falls by 1 per cent to 103 Index points from February and the quarterly comparison is negative at -3 per cent
- Average monthly turnover per eye examination is £2 lower for the first quarter of this year compared to the same quarter in 2013 at £173.43
- Sample average dispensing is 3 per cent lower than March 2013, at 93 Index points
- Contact lens solution sales are 12 per cent higher than March last year, at 90 Index points
Benefits of joining the index
- Monitor the practice performance of your practice month by month
- Customised reports benchmark your peformance against your competitors
- Identify new trends quickly
- Optimise performance and establish competitive advantage
- Optician Index is free of charge to participating practices
If you would like to join or discuss the business value in more detail, contact Lynn Hawkins on 01622 260595 or email l.hawkins@businessbenchmarks.co.uk
Please note all figures shown are adjusted to a 25-working-day month. In March 2014 there were 26 working days.