Shopper segmentation is common practice in many retail markets to characterise consumer behaviour and motivation. Market research of this type often supplements the internal research conducted by individual retailers, providing data for strategic business planning and an in-depth understanding of what delights patients.
In eye care practice, ongoing independent market research is limited and very few individual practices have the time or resources to conduct extensive research of their own.1 But understanding customer attitudes and behaviour is important if patient needs are to be fully met.
To identify key drivers when purchasing vision correction, Johnson & Johnson Vision Care commissioned independent market research agency Millward Brown to carry out a large-scale survey among vision-corrected consumers in Europe. The aim was to understand customer needs and tailor practice strategies accordingly.
Online surveys received responses from 11,873 vision-corrected consumers: 9,208 contact lens wearers and 2,665 spectacle-only wearers (Table 1). The survey was conducted in 2012 in five European countries (Germany, Italy, Poland, Russia and the UK). Results are for all countries unless specified; some questions were different or omitted in the UK survey since this was the original pilot study.
Customer segmentation
Vision correction customers were segmented into key attitudes to identify patient needs and desires, not just what the market provides today. The key attitudinal drivers selected were:
? Patient attitudes to the relative importance of health and eye care professional (ECP) expertise
? Patient attitudes to convenience and time
? Patient attitudes towards either getting the lowest price or obtaining the best deal.
Those surveyed were asked to indicate which one of four statements best described their attitude to purchasing vision correction in order to categorise them into segments. They were then asked questions about their attitudes and behaviour in relation to purchasing vision correction, factors influencing their choice of practice and the relative importance of various product aspects.
Contact lens vs spectacle-only wearers
Figure 1 shows the four statements and represents the four customer segments created by these behavioural drivers. Customers were asked ‘When thinking about vision care, which of these describes you best?’ Across the countries, over 90 per cent agreed that the chosen statement described them well.
[CaptionComponent="375"]Figure 2 shows the customer segments for both contact lens and spectacle-only wearers. Across all countries, nearly half of contact lens wearers (46 per cent) were categorised as health driven, the largest segment. Nearly one in four (23 per cent) were value driven and around one in five (19 per cent) were driven by time. Only about one in eight (13 per cent) was categorised as price driven.
[CaptionComponent="376"]In contrast, spectacle-only wearers were more likely to be price driven (17 per cent) and less likely to be health driven (40 per cent) than contact lens wearers, with both being statistically significantly different (p<0.05).
When the segments are grouped according to related pairs and compared, more contact lens wearers than spectacle-only wearers are neither price nor deal driven (65 per cent vs 59 per cent).
Market differences
Comparison between countries also reveals some interesting findings. Figure 3 shows the proportion in each segment for contact lens wearers by market. In four of the five markets surveyed, health driven customers are the largest segment by some margin. Price driven customers are less prevalent in Russia but more prevalent in Germany and Poland. In Italy and Germany, consumers are less driven by time and convenience.
[CaptionComponent="377"]In the UK, although the health segment remains the largest (35 per cent), consumers are relatively more likely to be in the value driven segment compared to the European average (32 per cent vs 23 per cent). Remember that value driven customers agree with this statement as most accurately describing their attitude: ‘I would like to go to the best opticians but I have to compromise to make ends meet, so look for deals on the best products.’ The expertise of the practitioner, value and quality of product are therefore important to these customers.
Customer needs
By looking in detail at each segment’s needs and desires, practitioners can tailor their practice strategies to best suit their target group. Figure 4 shows key characteristics by segment, indexed against the total sample.
[CaptionComponent="378"]Health driven customers are more likely to agree that the practitioner is most influential in their choice of contact lens (+67) and that they are interested in buying the best contact lens brand available (+60). Contrast this with price driven customers (equivalent scores -42 and -15 respectively) for whom these factors are much less important.
Note the relative importance of the practitioner to choice of practice among health driven customers, the low ranking given to price as a factor and their loyalty to buy from the same practice. However, this segment also wants the practitioner to ‘talk more about contact lens information’ suggesting they are more discerning customers who may need more detailed explanation of lens features and benefits.
Probing factors important in their choice of practice reveals similar differences in customer needs between segments. Overall, four of the top five factors cited across all segments related to the practitioner and service. ‘Excellent value for money’ was ranked highly (+52) but ‘Staff very knowledgeable’ (+45), Excellent range of lenses (+42), ‘Opticians excellent at giving high quality eye exams’ (+42) and ‘Opticians excellent at helping choose the right lenses’ (+40) were also seen as important.
In the UK survey, contact lens wearers were asked specifically about the importance of various factors in choosing a practice. Five of the top eight reasons for their choice related in some way to the practitioner. These were: ‘Has excellent opticians’ (70 per cent), ‘Excellent at helping choose the right lenses’ (60 per cent), ‘Provide the best service’ (60 per cent), ‘Excellent aftercare’ (59 per cent) and ‘Make wearing contact lenses easy’ (55 per cent).
Across all countries, customer experience tended to be driven by positive staff and service, and by the contact lens wearer’s familiarity with and previous experience of the practice. In some countries, particularly Italy and Poland, customers placed even more emphasis on the importance of staff to their experience.
Price vs value
To delve more deeply into price, contact lens wearers were asked directly how important this aspect was to where they chose to buy their lenses. Most (53 per cent) felt price was of moderate importance but those categorised as price or value driven were significantly more likely to say price was very important to them, whereas those who were health or time driven were significantly less likely to say that.
Very few wearers – only 2 per cent – saw value as related only to price. Almost all considered value to be either price combined with other factors (58 per cent) or did not see value as related to price at all (40 per cent) and this was consistent across all countries asked this question.
There is also evidence of the relative importance of eye health among contact lens wearers other than those categorised as health driven. ‘Healthiness for eyes’ was considered the top lens attribute likely to drive their contact lens purchasing decision by each of the four segments, rather than attributes such as quality of vision or comfort. Value and price driven customers still rated this attribute the highest.
Spend on vision correction
Customers were asked how much per year they spent on their vision correction and the findings were then analysed by segment. Figure 5 shows the results for contact lens wearers in each market (excluding UK) and against the total share of patients.
[CaptionComponent="379"]Health driven wearers accounted for the greatest proportion of spend across markets and a significantly higher share of spend than share of patients (56 per cent vs 46 per cent). Both price (40 per cent vs 34 per cent) and value (54 per cent vs 47 per cent) increased significantly in importance after four years or more of contact lens wear compared with a year’s wear or less.
Comparing actual annual spend on contact lenses with estimates of those considering wearing contact lenses as to what contact lenses might cost2 revealed a gap in perception of lens pricing. Contact lens considerers expected to pay 42 per cent more for contact lenses than wearers actually did. In Poland, with the highest proportion of price driven consumers, the gap was considerably greater (77 per cent more).
Two-thirds of considerers (67 per cent) do not feel well informed about contact lenses and around three in four (76 per cent) want their practitioner to give them more contact lens information.2 With ready access to information about contact lenses and pricing via the internet, these potential contact lens wearers are likely to seek help online.
Contact lens wearers are significantly more likely than spectacle-only wearers to have an eye examination every two years or more often (84 per cent vs 73 per cent). They are also significantly more likely to buy non-prescription sunglasses (54 per cent vs 38 per cent) and to purchase prescription sunglasses every three years or more often than are spectacle-only wearers (64 per cent vs 53 per cent).
‘Dual wearers’ (using contact lenses and spectacles) and ‘triple wearers’ (contact lenses, spectacles and sunglasses) not only add greater financial value to your business; prescribing multiple forms of vision correction provides a better way of addressing patients’ needs and ensuring they have optimum vision at all times.3
Contact lens wearers are also willing to pay extra for better performance from their lenses (Figure 6). A majority of wearers (66-79 per cent) would be prepared to pay more for contact lenses with specific benefits: better UV blocking, clearer vision, enhanced comfort and lenses that ‘help keep the eyes healthy’.
[CaptionComponent="380"]In the UK, two-thirds of wearers (67 per cent) would pay more for a contact lens better than their current lens for keeping the eye healthy and, on average, they would pay an extra £6.24 per month for the added benefit. For improved comfort, that figure rises to £6.66 per month. For better UV blocking, less readily appreciable in the short term but an important long-term benefit, wearers would pay an average of £5.29 a month more.3
Customer segmentation and your practice
So what does this mean for you and your practice? How can customer segmentation help inform your future business planning? Here’s how…
? Think about your current customers
Build up a personal profile of your typical customer, their interests, behaviours and concerns, and consider how you can tailor your practice strategies to focus more closely on their needs. What proportion of your own customer base would you estimate falls in each of the segments identified? Which patients are most likely to be satisfied by your products and services?
? Consider a pre-screening questionnaire
Including questions such as those used in this segmentation survey (Figure 1) could help identify the individual patient’s drivers. You might also use the questionnaire to gather other details such as lifestyle and occupation.
? Remember that health, not price, drives most purchasing decisions
Health driven contact lens customers are particularly valuable due to their greater loyalty, higher spend on vision correction and engagement with the practice (Figure 7). Think value not price – very few of your customers see value as related only to price.
[CaptionComponent="381"]? Look at the range of CLs you offer
You may decide that, since customers have different needs, a balanced portfolio is required. However, analysis of lenses currently on the UK market4 shows that the volume of lenses available in the lowest price range outweighs the small proportion of customers who are price driven (31 per cent vs 11 per cent), creating a mismatch between what patients are looking for and what they are recommended. Many customers are willing to pay more for lenses that offer additional health benefits. Examine the features and benefits of lenses you prescribe and make sure you fit the lens to the patient, not the patient to the lens.
? Review pricing and delivery options
Inclusive packages, discounts on supplementary products and loyalty schemes may appeal to your value driven customers. Convenience is often a factor for those considering buying online and direct-to-patient home delivery – such as Acuvue Home Delivery offered by Johnson & Johnson Vision Care – is a popular option, especially among this group.
? Communicate effectively
Offer clear explanations both on pricing and product features, and tailor your message to the relevant segment. Remember that your prospective patients want more information about contact lenses and that you and your practice team have a strong influence over your customers’ experience.
? Think about how you want your practice to be perceived
While it would be unwise to change the direction of your practice without a careful review of all aspects of your offer, Figure 8 suggests some strategies to consider for targeting different customer segments. Develop your own list to implement in future years.
[CaptionComponent="382"]Whichever segment or segments you target, your focus throughout should be on the individual. Recommending a vision correction option that meets your patient’s specific requirements and creating a personalised eye care plan for each customer are some of the simple steps you can incorporate in your practice today. As in many retail markets, customer segmentation has an important role to play in eye care practice by identifying what motivates customers and drives their purchasing decisions. Use it to bring success to your patients and to your business.
References
1 Petito GT, Olivares GE, Schnider C et al. Study of market segmentation in vision care: how consumers make choices in vision care purchases. Optometry, 2012;83:6 94-102.
2 UK Shopper Segmentation Study 2012 among 717 contact lens considerers.
3 Aslam A. Contact lenses and spectacles: a winning combination. Optician, 2013; 246:6425 26-28.
4 JJVC Data on File, 2013.
? Aftab Aslam is Global Strategic Insights Director, Johnson and Johnson Vision Care, Europe, Middle East and Africa