Page 2 - 2015 Best Practices of Spectacle Lens Management

Full-time
Table of
Part-time Contents Introduction ............................................................................................................................2

Capture Rate............................................................................................................................3
% Contact Lens
Product Mix..............................................................................................................................8
Patients
Patient Profiling and Lens Recommendations........................................................................21
Retail Pricing..........................................................................................................................28

Eyewear Purchase Cycle.........................................................................................................31
Transaction Costs and Re-makes............................................................................................35
Patient Satisfaction................................................................................................................37
50%
Getting Started: Adopting Best Practices..............................................................................39
35%
Appendix................................................................................................................................41
30%
25%
20%
Note on Data on optical industry and optometric practice norms is derived from many sources, including the Management & Business Academy™
Sources Cited (MBA), sponsored by Essilor; Jobson Optical Research; The Vision Council’s VisionWatch research program and a large body of proprietary
research conducted by Essilor. MBA data is derived from an ongoing research program that encompasses performance and processes
information from more than 1,900 U.S. optometric practices, gathered since 2005.

Introduction In most optometric offices, the largest single source of revenue is eyeglasses sales, typically producing 40 to 50 percent of total practice revenue.
Beyond patients’ desire to have their eye health regularly monitored, the primary reason most patients visit an optometrist is to purchase a pair
of eyeglasses. Prescribing eyeglasses is the major service provided by most optometric practices, with the largest impact on revenue and profit.

The spectacle lens component of a pair of eyeglasses produces about
Optometric Practice Sources of Revenue 50 percent of eyewear revenue (with frames the other half), or typically,
20 to 25 percent of total practice revenue. In typical practices, spectacle
2% Other lens sales (excluding frames) generate about the same revenue annually
as do eye exams. It’s clear that effective marketing of spectacle lenses
can have a major impact on the financial health of a practice.
Contact This management report offers concrete, detailed guidance to optimize
Lenses the financial return from dispensing spectacle lenses. In each section,
16% background information is provided about industry norms to frame

Prescription the discussion and to enable ECPs to compare their own behavior and
Medical Eye Eyewear performance to reliable benchmarks. This is followed in each section by
Care 44% a discussion of the financial impact of improving performance and a
17% listing of common management deficiencies. At the end of each section
21%
is a listing of “best practices” derived from observation of processes
Eye Exams in high-performance practices and advice from practice management
21% consultants who are members of the faculties of the MBA and First
Practice Academy™. The report includes tables showing the range of
performance for key eyewear metrics across both quintile and decile
Source: MBA Practice Profile groupings of independent optometric practices surveyed by the MBA.
Each quintile represents 20 percent of all practices sampled, sorted on the basis of performance on each key metric. Each decile represents 10
percent of practices. The top quintile includes practices in the 80th to 99th percentile range of performance. The fourth quintile includes practices
in the 60th to 79th performance percentile range. The third, or median, quintile includes practices in the 40th to 59th percentile of performance—
representing typical performance across all optometric practices in the U.S. Similarly, the top decile of practices of specific dimensions is composed
of those performing in the 90th to 99th percentile range.

The performance quintile and decile data quantitatively define high or low performance of an optometric practice. Start by comparing the
performance of your practice to the overall median. In setting performance goals, target the levels achieved by practices in the fourth and fifth
quintiles, or top 30 percent of practices in the decile performance tables.
2 Best Practices of Spectacle Lens Management 2015