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LensCrafters:
From Brick to Click
M001 Team 1
William Aramony
Andrew Ardini
Kerwin Bailey
Todd Burach
Leonard Carter, Jr.
Emily Chapman
April 26, 2004
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Table of Contents
Executive Summary……………………………………………………………………....page 3
Focus of the Proposal…………………………………………………………………….page 4
Research and Analysis Supporting the Proposal……………………………………… page 5
Key Recommendations of the Proposal…………………………………………………page 25
Bibliography………………………………………………………………………………page 27
Individual Research Summary…………………………………………………………..page 31
Will Aramony: Marketing………………………………………………………….page 31
Andrew Ardini: The Competitors of LensCrafters in the Eyewear Industry………page 36
Kerwin Bailey: The Financial Analysis and International Relations………………page 43
Todd Burach: Supply Chain Management…………………………………………page 48
Leonard Carter, Jr.: Web Communications………………………………………..page 52
Emily Chapman: Customer Relationship Management……………………………page 56
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Executive Summary
LensCrafters Incorporated has been a successful company. They have provided their
customers with quality products, comparable prices, excellent customer service, and innovation,
all within the boundaries of a brick and mortar store. We now feel that it is time to shift these
competitive advantages and expand them in the field of online retailing. The technology is
present within today’s world to make buying eyeglasses online fun, easy, and enjoyable, and it is
time for LensCrafters to take advantage of this opportunity. We are not suggesting eliminating
the brick and mortar stores that have made LensCrafters the company it is today. We are simply
saying, look at the success of other industries and their adventures with online retailing, look at
the benefits that LensCrafters will entail, and envision the opportunity.
First and foremost, we need to make additions to the LensCrafters.com website in order
to add the aspect of online retailing. The website will contain product catalogs for easy
searching. We also suggest the addition of new ideas to make shopping for glasses online fun.
These additions include virtually trying on styles with the use of a webcam, web bots to assist in
the experience through the new website, glasses used to test eye site, online appointment
scheduling, and personalized glasses. The website will also be equipped with security systems
for using credit cards and webcash for payments.
By implementing online retailing, this allows for the use of i2 supply chain management
systems, which will cut costs and reduce inventories, as well as guaranteeing accurate supply
chain. This will also allow for LensCrafters to further their concentration on the customer by
focusing on marketing, online discounts, and customer loyalty programs. LensCrafters has
always been a leader in innovation for the eye glass industry. These recommendations will take
the company one step further.
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Focus of the Proposal
The eyewear industry has been developing rapidly over the past decade as many new
companies move into online sales. LensCrafters now faces a developing array of competitors,
many of them heavily influenced by online e-tailing. However, while many of the “dot com”
large discount e-tailors will most likely not survive for more than several years, a developing
discount click and mortar sector may call for LensCrafters to take quick action in the IT portion
of its sales. As a subsidiary of Luxottica Inc., there are possible competitive advantages that need
to be capitalized on.
Over the past few years as Internet retailing continues to develop and become even more
successful, brick and mortar sales in the eyewear industry have been hurt. Most national chains
are experiencing losses, and at least stagnant growth. This trend is unfortunately only one of the
factors in which LensCrafters is threatened and is now forced to take action.
Relying solely on brick and mortar store sales, LensCrafters has faced little competition
in the past from major discount chains. However, the recent boom of stores such as Sam’s Club
or BJ’s Wholesale Club pose a threat to LensCrafters as it is currently situated. Costco and
Sam’s Club each grew by over 3% in 2003 (Costco Wholesale Corporation Fact Sheet, 2004),
compiling over $30 billion in sales each (Sam’s Club, 2004). With the recent addition of eyewear
to each of these stores inventory, LensCrafters has a new competitor with a different sales
strategy as compared to optical stores.
Additionally, in the area of Information Technology, LensCrafters faces heavy
competition from many companies on the Internet. Several companies are showing profits using
a pure play strategy, showing the viability of using online retailing to supplement store sales in
the LensCrafters chain. Recent trends, specifically E-tailing and increased customization from
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competitors show that LensCrafters needs to respond immediately with an increased online sales
view.
Once LensCrafters enters the online retailing sector, there are many different strategies
that should be implemented to ensure success and increased profits. First, the supply chain
management system under Luxottica should ensure fast and effective delivery throughout the
United States and beyond. Second, the website must be marketed correctly. A strong strategy
strengthening customer relations, including discounts when using the website will help to
introduce consumers to the process of buying eyewear products online.
The website itself needs to be innovative to stay above the increasing competition online.
In addition to a successful design, including many images and a simple ordering process, newer
technologies should be utilized. Using soon-to-be partner Pearle Vision’s technology, consumers
will be able to try on glasses on their own face online. Additionally, research should be done into
working on consumers take an eye exam online to avoid trips to stores altogether. Combined
with a successful navigation menu and assistance program, LensCrafters can become the leading
eyewear retailer on the Internet.
Research and Analysis Supporting the Proposal
LensCrafters has maintained a brick and mortar sales strategy. The major competitors,
Pearle Vision and Eye Care Centers of America, have also kept their focus on a brick and mortar
strategy; however, as seen from recent financial numbers, this strategy has been successful in the
past. U.S. Vision recorded a loss in 2002 and has had numerous ownership changes (Colbert,
2004). Emerging Vision lost $3 million with only $14 million in sales in 2002 (Emerging Vision
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Inc., 2004). Even Cole National Corporation, operating in Sears and Pearle Vision locations
nationwide is projected to lose over $10 million in 2004.
Even with losses, many of these companies are expanding. LensCrafters has struggled to
maintain its market shares, helping to contribute to Luxottica’s 13% reduction in 2003 net
income compared to 2002 (Luxottica). Luxottica is attempting to maintain LensCrafters’ North
American market share by merging with Cole National Corporation, creating the largest eyewear
corporation in the United States. Even with this merger, there are still many other companies,
including the hundreds of independent optical retailers that could cause sales to continue to fall,
although these companies are different from the traditional optical store competition of the
history of the industry.
Sam’s Club currently sells standard reading glasses as low as $5.50 per pair in hundreds
of store locations as well as online. (Sam’s Club, 2004) Although companies such as Sam’s Club
offer no personal service, customers simply looking for a bargain on standard reading glasses
will often turn away from a complicated exam and expensive set of frames when this option is
available. With the major success of Sam’s Club and similar warehouse stores, the financial
feasibility of continuing these major discounts are reasonable. LensCrafters should consider this
a threat in the industry.
Over the past few years, much of LensCrafters brick and mortar competition has
developed improved websites, while LensCrafters’ site made few improvements. A significant
difference between LensCrafters and its main brick and mortar competition is actually the design
of each company’s website. Each store has a different level of online e-tailing and selection for
their respective sites. Pearle Vision’s many helpful features help the consumer learn about their
product by viewing a catalog, as well as virtually trying on those frames on personal photos
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(PrealeVision, 2004). Other features include finding stores, other eyewear products (contact
lenses) and insurance possibilities. LensCrafters, however, lacks in most of those areas. Although
the website does offer store locations, it does not give a detailed description or image of the
possible products that can be bought at their stores.
Additionally, over the past few years, online e-tailing has exploded. Many small
independent e-tailing sites offer purchases for dozens of brands of eyeglasses, contacts, and other
eyewear. These sites often provide severely discounted rates (such as the $39 glasses online
store) and direct mailing, as well as toll free assistance numbers. These companies, although
mostly small and unheard of at this time, could provide a large amount of competition in the
future, as customers would be unwilling to purchase their actual eyewear with LensCrafters after
getting an eye exam at a store location.
Some of the companies that pose the largest threat at this time are eyeglass.com and 1800-contacts.com. Eyeglass.com is one of the oldest eyeglass e-tailors, started in 1995. (Braga,
2003) Hundreds of frames and prescription lenses can be viewed and ordered online. Although
many companies do this today on the Internet, eyeglass.com has become profitable since 2001.
This shows that pure play eyewear companies can succeed in today’s market. Additionally,
eyeglass.com has created a partnership with both WalMart and Costco to fill prescriptions. If a
customer does not feel comfortable having the company put in the lenses, the two brick and
mortar stores can do it. Finally, eyeglass.com has created a phone-based ordering system to
compensate for those uncomfortable giving away credit card information online.
(www.eyeglass.com) This type of company poses a major threat to LensCrafters for its
innovation and ability to create partnerships.
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1-800-contacts.com is another e-tailor that has taken away significant revenue away from
LensCrafters. Devoted entirely to contact lenses, the company has created a simple ordering
process and guaranteed delivery promise. Sales in 2002 increased to over $150 million,
(www.1800contacts.com) solely through online and phone ordering, a process that LensCrafters
does not use at all.
Much in the same way that several book stores are having a hard time staying in business,
LensCrafters may have to faze out their direct glasses store ordering if they are unable to
compete with the online retailers. Some could argue that the specialized individual attention
given to each customer will not bring about the same fate for LensCrafters, but now online etailors are even able to offer prescription glasses in a wide variety of styles, usually at a far
discounted rate from LensCrafters themselves. LensCrafters focuses solely on their quick instore service, but lower prices can take away from market share, a trend LensCrafters must watch
for. Many consumers go to retailers to do research for further business, and by having almost no
information on the product, consumers may turn elsewhere (Machlis).
Currently, LensCrafters website offers very little to the consumer. Besides a small
amount of information on products and a store locator, LensCrafters offers little more. For a
store of its stature in the industry, the website is quite poor compared to others such as Pearle
Vision. However, there are many improvements that can be made which have been proven
successful by other businesses.
Looking at LensCrafters’ current website, visitors to the site can see what happens in an
eye exam and the exact steps that patients go through. Example steps include filling out an
intensive case history that describes your background and other information that is necessary. A
possible innovation that could assist the company as well as customers would be the ability to do
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these exams online. There could be a survey or questionnaire that you must fill out along with a
necessary photo of your eye that would be stored in a database. With the new technology, there
could be computer programs or a computer camera that could take a picture of your retina. Also,
it could scan your retina and give you a summary as to what your specific case or diagnosis is as
well as give the doctor the ability to look at your file as needed. This would help customers,
especially elder customers and busy customers who will be able to take care of their eye needs
online. Although an idea that has yet to be used online, if LensCrafters is successful in this field,
the company could revolutionize the way eye exams are given and create a tremendous
competitive advantage.
To further gain a competitive advantage and fully satisfy its customers, LensCrafters
must also innovatively use IT. What was once fast, photo processing for example, may now be
slow, and what was once easy, renting movies for instance, may now be a burden. LensCrafters
must upgrade from a brick-and-mortar to a click-and-mortar company in allowing its customers
to shop online. Currently, LensCrafters’ website does not allow its customers to purchase
apparel online; the website is merely information. However, this day in age, it is imperative that
LensCrafters sells to customers via the internet for efficiency, customer satisfaction, and
competitive advantage. Being able to shop from home has proven great success with other
companies, and it is expected that LensCrafters would be no different. Quality, Value,
Convenience (QVC), Inc., for example, sells solely through its own television channel and sells
its products through call-in orders. In 1987, QVC broke the American record for first full-fiscalyear sales by a new public company with over 12 million dollars in revenue (Marsh 2002). With
such success from this home shopping company, it is expected that online shopping would have
similar success with the quick, easy, and efficient method of shopping from home.
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Adding an online store is a necessity. By allowing customers to shop online, it would
attract people to the site knowing they can go online and look at frames and contacts and other
accessories instead of having to go out to a store. It eliminates the physical aspect of shopping
and makes it easier and more convenient for the customer to shop. The idea of not having to
leave the house and shop online is appealing to a customer, which would attract more traffic to
the website. The effects on the company and competitive advantage that could be created from
creating an online store will be discussed later.
Also on the website, there is a section where a visitor can find the closest store to
him/her. However, if the previous advancements were added to the site, then there would need
to be a place where the consumer could order your items and have them shipped to you. The
idea behind the advancements and possible improvements to the site is intended to help the
consumer with more convenient service and an alternative approach to eye care. There would
have to be some kind of adult verification system so that children or unidentified users can’t
tamper with programs, or inappropriate use of the site won’t take place. Using a credit card
number or social security number will be able to protect certain aspects of the site as well as for
online ordering. This type of system should not be that difficult to create.
Along with eye exams there is a section that shows the types of glasses and contacts
available and in what colors and brands. There are charts that help aid the customer in deciding
which contact or frames to go with. The charts help you compare different lenses according to
your complexion. An addition to their site already in use by Pearle Vision that could help
customer service is a “frame fitter” that can be done over the computer. (PearleVision, 2004)
Pictures that are stored on the user’s computer can be uploaded to the website and then frames
can be displayed on the photo to show how a certain user would look in those frames. This
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innovative feature allows the user to get a personalized experience on the website, while
allowing for an amount of time to browse or try on pair after pair of glasses.
Financially this website renovation may seem like a stretch for LensCrafters’ to go to
entertain their customers. However, there are possible ways around it. The addition of scanners
or webcams on a computer wouldn’t be done by LensCrafters’. These advancements would have
to be made by the computer manufacturers or consumers. Initially, LensCrafters may wish to
give away webcams so word can be spread, but eventually consumers interested enough in the
online ordering may purchase add-ons for their computers themselves.
Additionally, LensCrafters’ could have some kind of program installer already on their
website so that if people did have scanners the site would be able to describe the problem with a
person’s eyes and be able to make a prescription for a patient. Also, the program could have a
feature so that if your picture were scanned on the computer, you could be able to pick frames or
contacts to fit your face. These changes to the website would not be too expensive as it is
already in use by Pearle Vision, a company that will be joining with LensCrafters very soon.
With digital cameras and scanners becoming a part of our daily lives, the technology is already
in use by companies and consumers, and should be used by LensCrafters to benefit their website.
Along with additional things to add to the site, the site itself could use some adjusting to
further aid customers by making it more user-friendly and easier to get around. First of all, the
site contains a lot of long paragraphs which can annoy or confuse the customer. A customer
usually is not very interested in going to the site and reading paragraph after paragraph about
how an eye exam is administered. More graphs that are easier to understand or displaying
specific frames and contacts along with other useful information displayed through graphs and
charts would be more beneficial.
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Navigation of the LensCrafters site is not very easy. In fact, our research team had
difficulties at times trying to find exactly what we were looking for. It is very hard to tell exactly
what is and isn’t on the site.
There is a site map, but it doesn’t seem to help as much as it should. A possible addition
to the site that could help navigation would be adding a pop-up or screen built into the site, like
the “help assistant” in Microsoft programs, which shows up and helps the user get around the
site.
Once LensCrafters becomes a part of the online retailing sector, the company will have to
review its supply chain management system. Fortunately, under Luxottica, the company already
has vertical integration and a good supply chain management system; however, there are
improvements that can be made.
Supply chain management is a fundamental aspect to the success and productivity of any
business. Additionally, many companies will struggle with controlling their inventories. For
these reasons it is necessary that companies use supply chain management (SCM) systems to
track inventory and information throughout business processes and across companies. The main
reason behind supply chain management systems is to reduce inventory that a company has on
hand. This helps lead to the efficiency and effectiveness of a company’s practices. Supply chain
management has also become more realistic with the introduction and improvement of
information technology. Supply chain management systems, incorporated either with the
purchase of sophisticated software or the assistance of a third party, allow for document
processing, order validation, inventory validation, inventory shipping, shipping options,
shipment validation, and electronic payments (Haag, 87).
To look at a successful example of the benefits of supply chain management systems, we
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can examine Dell Computers. This leader and innovator of web based sales experienced
enormous growth and decided to implement a supply chain management solution. This system
helped to organize and maintain relationships with suppliers, distributors, transportation
companies and inventory. One executive of Dell stated that “The supply chain solution from i2and the processes we put around i2- is allowing us to move materials so fast around our supply
chain that we’re able to take advantage of lower-cost materials quicker and pass those lower-cost
materials on to our suppliers. And that’s allowing us to fuel our growth” (Dell.com) We want
Lenscrafters to grow as a company. For these reasons we have recommended that we shift the
focus from solely a brick and mortar store to a combination of click and brick stores. With the
transition and focus shifted towards an internet based company, we have the ability to instill a
supply chain management system that will reduce inventory, lower costs, allow for on demand
and personalized orders, as well as guarantee accurate shipping, ordering, and tracking services.
We feel it is in the best interest of the company to form a partnership with i2, a supply chain
management company, in order to enable the most success. “While there are many traditional
consultants who promise results, i2 is in a position to leverage its 15-year heritage of supply
chain management expertise to help deliver on its customer promises. Through a broad range of
diagnostic services, i2 can assess each customer’s operations and develop an improvement plan
that can take the company’s performance to a new level.” (i2.com)
I2 offers business optimization services (BOS) which, once in place, will help
Lenscrafters to function with a highly effect supply chain. Business optimization services include
business consulting, solution delivery, and technology/data services. The BOS methodology
towards creating a successful supply chain for Lenscrafters includes “identifying customers’
eminent business challenges and responding with a plan to help alleviate customer “pain points,”
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building a high-impact solution rapidly, based on best-practice workflows that can effect
improved business processes, and operating at optimal performance levels over the longer term,
creating an environment of continuous improvement, while helping to reduce total cost of
ownership.” (i2.com)
Currently, Lenscrafters is part of a well established vertically integrated supply chain as
part of Luxottica, their parent company. This supply chain includes producers, suppliers, and
means of transportation. This vertical integration allows for Lenscrafters to sufficiently manage
supply chain regarding its brick and mortar stores. However, our recommendation of moving
toward an online retailing strategy requires a more complex, up-to-date, supply chain
management system. The implementation of an i2 system and its business optimization services
is a perfect solution to support a change in the company’s focus. Our plan is not to totally switch
Lenscrafters to solely online retailing, however to integrate a combination of brick and click
stores. Luxotica can successfully replace its current supply chain methods in the hands of i2.
This will allow the company to focus more on the customer rather than making sure the supply
chain is managed properly. Lenscrafters and Luxotica have stated as a company that they expect
creative ideas and solutions to meet customer needs (Lenscrafters.com/companyinfo). We feel
we have met this need with the introduction of an online retailing option, now all this company
needs is the addition of i2 to support their new success and growth with their new supply chain
management system. Recent news has also reported that Luxottica is in the process of taking
over Cole Incorporated, owner of Pearle Vision, the second biggest US optical chain after
Lenscrafters. (news.yahoo.com) With the addition of Pearle Vision, Lenscrafters could really
benefit from i2 supply chain management system. These two moves combined together, the
addition of Pearl and i2, would allow the company to focus on the increased assets and grow,
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while not worrying about the minor details that i2 would handle. "Luxotica has long said it wants
to strengthen its retail presence." (Hall, 2004) The addition of online retailing, i2, and Pearle
Vision will do just that. "'We will carefully monitor results of these pilots and roll out concepts
that are successful with our targeted customer,' Cole added. 'Based on results, we also plan to
identify other partners that can make shopping our store more interesting, exciting and
productive.'" (Scardino, 2003) It is clear that Lenscrafters is in the process of growing from
simply a brick and mortar store. The addition of online retailing with the help of i2 supply chain
management systems is on the way, followed shortly thereafter by success and competitive
advantage.
A subsidiary of the Italy’s Luxottica Group of companies, LensCrafters was acquired in
1995. Founded in 1983 Luxottica Group is the world’s largest retailer of eyewear. Luxottica
designs over 2450 frames for many prominent brands of designer frames for companies such as
Chanel, Ray-Ban and Revo. Luxottica also manufactures its frames in Italy and China and sells
them in about 120 countries. With more than 860 stores, LensCrafters has a difficult supply
chain management situation, especially with produtsc coming from both Europe and Asia.
(Colbert).
The subsidiary, LensCrafters has been an established itself as a dominant force within the
eyewear industry; however this dominance is fractional. LensCrafters power is only felt and
experienced on a partial sector of the world, mainly the Northern sector (US, Canada, and Puerto
Rico). LensCrafters has not taken charge, as their parent company Luxottica Group has, to be
the world dominant eyewear company. Their market scope has seemingly been narrowed to only
provide for a specific area of the world.
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LensCrafters has been known and respected for excellent service, their one-hour eyeglass
guarantee also along with their supply of contacts and sunglasses; but this may not be sufficient.
Unlike its parent company Luxottica, LensCrafters has not been the dominant name within its
classified industry. Luxottica has posed as the leading manufacturer and distributor of eyewear in
the world. It has acquired various merger and acquisition, such as that of LensCrafters in 1995
and Sunglass Hut International in 2001, and has been a prominent force in the fashionable
sunglass industry. Luxottica’s authority is being felt across the sunglass world, they own eight of
the world’s most prominent names Ray-Ban, Vogue, Persol, Arnette, Killer Loop, Revo,
Sferoflex, Luxottica and licenses fifteen of the other existing brands, Anne Klein, Brooks
Brothers, Bulgari, Byblos, Chanel, Ferragamo, Genny, Moschino, Miu Miu, Prada, Tacchini,
Ungaro, Versace, Versus, Web (Colbert). This information is vital, because it shows the possible
products that could be carried around the world in LensCrafters stores.
The inability of LensCrafters to adopt the similar view as their parent company could
prevent further growth for the company. LensCrafters needs to take advantage of the growing
global markets, by extending their supply group to be more inclusive. Currently LensCrafters has
been productive within the US, Canada and Puerto Rico but this success is far less significant to
the levels they could achieve if they venture to satisfy the growing global markets.
The overall Profitability measures of Luxottica has been insurmountable, their profit
margins have increased by half since the acquisition in 1995. Their Return on Asset grew from
7.2% in 1996 to 8.5% in 2000; this industry has met with downfall due to the recession we have
experienced in 2001, resulting in a fall in asset return to 7.6% (Bureau For Workers’ Activities).
This downfall however can be easily overcome if Luxottica take action in making LensCrafters a
more global provider of eyewear and a more efficient and present company online. An example
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of the positive effects going global was shown in an in-depth research by the International Labor
Organization (ILO), showed Shell Corporation (based in the Netherlands) profits rose by 25.1%.
If LensCrafters widens their customer scope, there profit potential and revenue growth could
surmount to great heights.
To widen their customer and profit levels, the use of the Internet could prove to be a vital
path. The web base user face has proven in the past to be an important method of marketing of
various different industries. This is due to the large source of potential customers available via
online means: over 600 million users on an average night (Reuters). This is a large source of
untapped customer groups that if gained or reached by LensCrafters could increase their yearly
revenue and profit potentials. The use of the Internet to reach and inform those potential
customers unaware of the company and development of multilingual user faces thus reaching
customers across language and cultural barriers. These additions to LensCrafters will ultimately
increase awareness of the company and its services thus beginning the chain reaction of
marketing. The Internet has proven in the past to be beneficial to company’s revenues to levels
twice as much as it was at prior to development of their Internet user faces (PR Newswire).
The global expansion of LensCrafters would provide extremely profitable returns to
Luxottica potentially increasing their fourth quarter sale of last year from a reclining 7.6%
(Reuters). This is due to the growing popularity of contacts, and most of all the proficiency of
LensCrafters very own one-hour eyeglass guarantee they give to each customer. The advances in
eyewear, the automatic adjusting lens and the flexible frames, will also significantly assist in this
forward movement of these two interlocking companies.
The need to satisfy the large market gap in the global supply of eyewear is growing, as a
result the change in business practices from its current to a more global approach will be
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beneficial to all. Customers who lacked the chance to have appropriate eye care will be satisfied,
Luxottica will rebound for its past year over year of negative fourth quarter growth and most of
all the available profit potential will be achieved by LensCrafters.
The global foundation that LensCrafters must expand to meet currently exists, due to the
widely known and profitable parent company Luxottica. If the global market is not tapped by this
northern eyewear giant then the overall effect could be devastating to Luxottica, resulting in loss
to the large profit potential and customer market.
This growing customer market has no or little history with LensCrafters, however. It is
thus vital to create strong relationships with customers. In the online and global viewpoint,
introductory offers should be used to create a strong customer base.
One of the most important factors for a business to succeed is achieving the satisfaction
of its customers. Therefore, in order for a company such as LensCrafters to grow and flourish,
customer relationship management is a key factor in every day business. More importantly, with
the ever-changing technology of today’s world, customer relationship management constantly
needs improvements through IT, the internet, and E-commerce.
Through research, it appears as though what customers are looking for most is
convenience. According to an article from Sloan Management Review, “the retailer that spares
its customers hassles and delays wins their business and outperforms its old-fashioned
competitors” (Berry, Gresham, Seiders, 2000). For customers, retail convenience means quickand-easy shopping excursions. While retailers understand this customer perspective, the bestperforming retailers, like LensCrafters, must go above and beyond it through a customer
convenience strategy. In store locations, LensCrafters makes sure that its parent company is easy
to reach, its customers are able to promptly identify and select the products they want, its
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customers can obtain desired products quickly and efficiently, and its company expedites the
purchase and return of products. With this customer relationship management strategy,
LensCrafters is able to compete with other companies in the industry. It has become imperative,
however, that LensCrafters use IT, the internet, and E-commerce in the near future, to advance
its company in the industry and move ahead of its competitors.
In an attempt to attract customers toward LensCrafters and away from its top competitors
such as, Eye Care Centers of America, and National Vision, LensCrafters signed an extensive
advertising contract with CoolSavings in 2000. CoolSavings is a provider of e-marketing
services used by online and offline advertisers to build one-to-one customer relationships.
CoolSavings helps LensCrafters drive customer traffic and sales by targeting consumers who,
based on their demographics and shopping habits, will be most likely to respond to their savings
offers. Chairman and CEO of CoolSavings Steven M. Golden said, “There is tremendous value
in being able to single out consumers who you know are interested in your products”
(BestBuy.com, 2000). This is precisely how CoolSavings helps the customer relationship
management of LensCrafters. In addition to singling out prospective customers, CoolSavings
also provides consumers some of the greatest variety of savings incentives on a single Web site
such as printable coupons, e-coupons, savings notices, rebates, category newsletters and free
samples from national brick-and-mortar retailers, e-commerce merchants, manufacturers, service
providers and local retailers (2000). With the help of CoolSavings, it becomes evident to the
customers that LensCrafters is a company geared toward customer satisfaction.
Retailers can increase the value of their market offer by saving customers time and energy;
however, offering this convenience to customers is not an easy task for it involves staying up-todate with latest technologies. Currently, LensCrafters prides itself in selling fashionable frames,
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designer brands, custom-made lenses, sunglasses, contact lenses, children’s eyewear, safety
eyewear, and accessories. These promotions are designed to help customers find “a look they’ll
absolutely love” (www.LensCrafters.com, 2003). Furthermore, LensCrafters also promotes that
most of its stores have optometrists next door who are highly trained and licensed to examine
each customer’s eyes using the very latest equipment to give each customer the best possible
care quickly and efficiently. With this, LensCrafters is able to successfully attract customers in
proving that customer wants, needs, and satisfaction are a top priority. Even with all of these
perks for customer satisfaction, significantly, these offerings are not the only promotions that
LensCrafters could potentially provide to the customer.
Knowing that there is always room for improvement, we have several recommendations
that should be made to LensCrafters in terms of customer relationship management. Many
customers are attracted to a “good deal.” It is therefore in LensCrafters’ best interest to provide a
frequent buyer program to its customers. This would simply entail after a certain amount of
purchases from LensCrafters by each customer, that customer would be granted free
merchandise. This frequent buyer program would be similar to that of the frequent flyer miles
offered by airlines in that every flight by a certain airline company earns the customer miles
toward a free flight. This program has proven great success since it was first implemented, and
significantly, according to The Lifestyle Analyst Market (2002), over twenty-six million people
worldwide have become “frequent flyers.” By implementing a frequent buyer program,
LensCrafters hopes to not only satisfy customer needs, but also ensure that customers will
repeatedly shop at LensCrafters and thereby gain a competitive advantage.
To further encourage this migration from in-store shopping to online shopping, it is
recommended that LensCrafters offers discounted prices for those items bought on the web, at
21
least as an introductory model, but possibly for an extended period of time. Lower prices would
be offered to those who purchase online to attract customers to the website and entice customers
to buy the products online. Additionally, lower prices on the Internet may pull consumers away
from the competition who are looking specifically only for low price, such as those offered by
wholesalers and discount online retailers.
In addition to selling products via the internet, we recommend that LensCrafters also
provide hyperlinks on its website connecting to email addresses of optometrists to assist
customers in their purchasing of eye wear. Customers could simply click on the link and write
their questions and concerns in an email with a guaranteed fast response. Taking this one step
further, LensCrafters should also offer the option of scheduling appointments with
ophthalmologists and optometrists online. This would allow customers to see all available
appointment times and then set-up or cancel their own appointments accordingly. To ensure that
there is no confusion during this process, an automatic email reminder would then be sent to the
patient. Furthermore, online scheduling is available twenty-four hours a day, seven days a week,
making it the most efficient way to schedule appointments. According to Maggie Biggs, the
director of the InfoWorld Test Center, “online appointment scheduling attracts and keeps
customers while reducing overall customer service cost” (2004). By implementing the online
appointment system in addition to the other recommendations, the customer relationship
management of LensCrafters could be greatly improved. In a time when new customers will be
extremely important using the website, having a good relationship with them is vital. We believe
these recommendations will accomplish that.
LensCrafters first opened in 1983 (LensCrafters.com) and quickly became known as a
place where you could be seen by an optometrist, be given a prescription for glasses and have the
22
glasses made all within a very short period of time. Most establishments were located in or near
retail malls making it very convenient for the consumer. Additionally, customers could bring in
their prescriptions and they could select new frames or use their old ones and the glasses could
be cut in their on site laboratory and fitted on the spot. In most instances the glasses could be
prepared in an hour’s time. Additionally, LensCrafters also sold prescription and nonprescription sun glasses, contact lenses and glass accessories and cleaners. With time, the
competition copied LensCrafters formula for service and many establishments now offer on site
laboratories and optometric services.
In order to regain its competitive edge, LensCrafters once again needs to be able to
provide its customers with something that from the customers perspective differentiates and
distinguishes itself from the competition (findarticles.com). This can be a superior product,
reputation, customer service, convenience or price; anything that would give LensCrafters an
edge over its competitors.
One way that LensCrafters could improve their appeal to customers is by offering them
so much convenience and information that it would be perceived as inconvenient to do business
with anyone else. Customer surveys are a good tool in determining what it is the customer
wants. This could be done by implementing an optional survey administered by a professional to
be able to interpret the data from previous customers. What they liked, what they didn’t like and
other pertinent information that would help a current customer make the best decision for him.
This would allow the customer to get qualitative and quantitative data to help in their decision
making.
Information is extremely important in determining what type of product is right for the
consumer. This system has been used in a variety of applications such as at tirerack.com in
23
which you can select your vehicle and a picture of your vehicle will show up and you can select
a set of rims and it will appear in the picture. Tirerack.com also knows the tire sizes and bolt
patterns of your vehicle, and if you know your size already or want a different size tire/wheel
package, you can do so. If you are unsure about what kind of tires you need (i.e. all terrain, all
season, mud-terrain, high performance, touring, etc..) the decision support system (dss) will let
you input your driving habits and make a suggestion. It also allows you to read other customer
reviews along with a summarized customer survey. This allows a person with minimal
knowledge of their vehicle and their tires to purchase new tires at a discount price. If you apply
this concept to purchasing glasses and especially to first time buyers, information could
distinguish you from the competition. Buying your first pair of glasses is quite confusing as
there are many factors to be considered. Will you be wearing glasses all day or just for reading?
Do you need a light weight frame or a heavy one? Do you want transition or regular lenses? Do
you want bifocals or progressive lenses? By helping the customer to what they want you can
increase their chances of buying. (findarticles.com)
Lastly as icing on the cake, LensCrafters could take your picture and analyze which set
of frames and lenses other customers of similar characteristics (both physical and personal) have
liked and recommend to the customer which frames they might like to buy.
Another way LensCrafters could exploit the picture opportunity is they could use your
personal webcam to take a picture of the customer and send it to the website then they could see
a cropped version of their picture with the glasses or lenses which would allow the customer to
make a better decision for themselves and be happier with their choice.
That is the type of simple easy set up that LensCrafters needs in order to set itself aside
from its competition.
24
Something else that LensCrafters could use in conjunction with the dss system or
exclusively is use a finance tool in which one could control their earnings online. This could be
similar to what General Motors uses with their GM card. They can control the maintenance of
their vehicle along with checking earnings on their credit card from the use of it. Every purchase
with the card would earn credit towards their next purchase and every that you buy from
LensCrafters or any of Luxotticas subsidiaries would carry extra discounts. The discounts in
GM are limited with certain cards. For example the 5% return card is only redeemable up to
$1,500. If you are a business or a GM employee you can get a 1% return with no limits on
earnings.(GM.com) By having this economic incentive you are reasoning with people’s
sensibility because it may be a financially better move to purchase LensCrafters’ products.
Many retail companies offer cards such as these, but by being able to control their earnings
online the customer is constantly aware of their purchases.
LensCrafters would benefit from knowing what other websites and companies the
consumer is looking at. The solution is by using spyware and cookies to track the customer or
potential customers browsing. That way when the potential customer comes to LenCrafters web
site they can have everything prepared to the best of their ability to suit the customer. If the
customer is looking at Britney Spears you can assume that they are younger in age and you can
present them with more modern fashion styles than say if they were looking at Frank Sinatra.
This would give LensCrafters an edge of knowing what the customer is looking for ahead of
time. Once the customer has entered LensCrafters sites, they could use cookies to track what
they do and save their progress if they were in the process of ordering glasses. LensCrafters
should have a time based system that sends out emails or ads directly to the customer once their
contacts are about to run out that way they can update their subscription easy and simple. This
25
would allow LensCrafters to retain the customers that they already have. This may help
LensCrafters contribute to an even higher profit margin than the current 9.65%
(yahoofinance.com).
The key for LensCrafters to be the best and stay the best in the eye care industry relies on
them differentiating themselves in a positive way from the competition. This can be done with
the help of technology. Once LensCrafters differentiates themselves they have to make sure that
they make it easy and beneficial to the customer to remain with LensCrafters. This can be best
achieved by customer profiling which can be done with the use of spyware and cookies. That
allows you to give customers products that are helpful and useful to them (findarticles.com).
Key Recommendations of the Proposal
The business world is constantly growing and expanding these days into new sectors of
the market. Today, a customer can personally order a computer on line without ever leaving the
comfort of their desk chair. Consumers can preorder groceries with the click of the mouse.
Trends show that it is in a business’ best interest to expand into the online retailing sector. Just
the same, we must recommend that it is in the best interest of LensCrafters to modify
LensCrafters.com to handle online retailing. This recommendation is the most important change
we feel the company can make because all other moves will stem off of this innovation.
In order to fuel this move from brick and mortar to click and mortar, LensCrafters will need to
implement a successful marketing plan to get customers interested and excited about the new
online retail store. This marketing plan will include a decision support system to recommend
glasses, spyware to track recent purchases and preferences, “LensCrafters cash,” and the
potential of virtually trying on glasses. The main idea behind the marketing plan is to inform
26
loyal customers about the potential benefits of online retailing and to fuel an excitement in the
new sector of the company.
Finally, we must also recommend with key importance the implementation of an i2 supply chain
management system. This system will enable LensCrafters to efficiently manage their new
orders, both customized and mass produced, new transactions, and additional traffic. We fully
expect the amount of business done to increase impressively with the addition of online retailing,
and the i2 supply chain management system has the capability to handle it.
27
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Convenient Is Your Convenience Strategy? Retrieved April 6,
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E-Marketing Services on coolsavings.com. (2000). Retrieved on April 6, 2004,
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Biggs, Maggie. (2004). Online Appointment Scheduling Services Can Reduce Frustration and
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Braga, Michael. (2003). Dot-com Focuses Efforts on Hard-to-Find Eyewear. Retrieved on April
16, 2004 from, http://search.store.yahoo.com/cgi-bin/nsearch?query=dotcom+focuses+efforts+on+hard-to-find+eyewear&catalog=eyeglasses
Brandweek, Newswire. (Brief Article) Retrieved March 16, 2004 from
http://www.findarticles.com/cf_0/m0BDW/9_42/71559677/p1/article.jhtml
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Bureau for Workers' Activities. International Labor Organization Retrieved March 16, 2004
from http://www.itcilo.it/english/actrav/telearn/global/ilo/multinat/multinat.htm
Business Wire. Luxottica Group to Acquire Sunglass Hut International. 2003 Retrieved March
16, 2004 from
http://www.findarticles.com/cf_0/m0EIN/2001_Feb_22/70732703/p1/article.jhtml
Business Wire. Antitrust Waiting Period Expires On Luxottica Group's Acquisition OF
Sunglass Hut International. March 16, 2004 from
http://www.findarticles.com/cf_0/m0EIN/2001_March_27/72325249/p1/article.jh tml
Business Wire. Vision-Ease Lens and LensCrafters Introduce Polarized Melanin Sun
Lenses; Partnership Produces Latest Innovation in Sunglass Lens Technology.
Retrieved March 16, 2004 from
http://www.findarticles.com/cf_0/m0EIN/2002_August_16/90417528/p1/article.jht ml
Colbert, Catherine. LensCrafters, Inc. Retrieved March 16, 2004 from
http://www.hoovers.com/free/co/factsheet.xhtml?COID=52608
Colbert, Catherine. LensCrafters, Inc. Retrieved March 16, 2004 from
http://www.hoovers.com/luxottica/--ID__44642--/free-co-factsheet.xht
Colbert, Catherine. (2004). U.S. Vision Inc. Retrieved on April 16, 2004 from,
http://www.hoovers.com/u.s.-vision/--ID__54574--/free-co-factsheet.xhtml.
Cole National Corporation Fact Sheet: Hoovers Online http://www.hoovers.com/colenational/--ID__17241--/free-co-factsheet.xhtml 2004.
Costco Wholesale Corporation Fact Sheet (2004). Retrieved on April 16, 2004 from,
http://www.hoovers.com/costco-wholesale-corporation/--ID__17060--/free-cofactsheet.xhtml 2004.
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Cummings, M., Haag, S., & McCubbrey, D. (2004). Management Information Systems for the
Information Age(4th Edition). McGraw Hill: New York.
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http://www.computerworld.com/news/1997/story/0,11280,8750,00.html.
31
Individual Research Summary
Will Aramony : Marketing
LensCrafters, is a subsidiary of Luxottica which is one of the world’s leaders in the eye
care industry. Luxotica dominates the international market with buying popular names like Lens
Crafters which has 882 retail locations throughout the United States, (lenscrafters.com) Canada
and Puerto Rico and Sunglass Hut which operates another 1,914 outlets (yahoofinance.com).
This is apparent with Luxotticas revenues over $3.3 billion annually (reuters)
LensCrafters first opened in 1983 (lenscrafters.com) and quickly became known as a
place where you could be seen by an optometrist, be given a prescription for glasses and have the
glasses made all within a very short period of time. Most establishments were located in or near
retail malls making it very convenient for the consumer. Additionally, customers could bring in
their prescriptions and they could select new frames or use their old ones and the glasses could
be cut in their on site laboratory and fitted on the spot. In most instances the glasses could be
prepared in an hour’s time. Additionally, LensCrafters also sold prescription and nonprescription sun glasses, contact lenses and glass accessories and cleaners. With time, the
competition copied LensCrafters formula for service and many establishments now offer on site
laboratories and optometric services.
In order to regain its competitive edge, LensCrafters once again needs to be able to
provide its customers with something that from the customers perspective differentiates and
distinguishes itself from the competition (findarticles.com). This can be a superior product,
reputation, customer service, convenience or price; anything that would give LensCrafters an
edge over its competitors.
32
One way that LensCrafters could improve their appeal to customers is by offering them
so much convenience and information that it would be perceived as inconvenient to do business
with anyone else. Customer surveys are a good tool in determining what it is the customer
wants. This could be done by implementing an optional survey administered by a professional to
be able to interpret the data from previous customers. What they liked, what they didn’t like and
other pertinent information that would help a current customer make the best decision for him.
This would allow the customer to get qualitative and quantitative data to help in their decision
making.
Information is extremely important in determining what type of product is right for the
consumer. This system has been used in a variety of applications such as at tirerack.com in
which you can select your vehicle and a picture of your vehicle will show up and you can select
a set of rims and it will appear in the picture. Tirerack.com also knows the tire sizes and bolt
patterns of your vehicle, and if you know your size already or want a different size tire/wheel
package, you can do so. If you are unsure about what kind of tires you need (i.e. all terrain, all
season, mud-terrain, high performance, touring, etc..) the decision support system (dss) will let
you input your driving habits and make a suggestion. It also allows you to read other customer
reviews along with a summarized customer survey. This allows a person with minimal
knowledge of their vehicle and their tires to purchase new tires at a discount price. If you apply
this concept to purchasing glasses and especially to first time buyers, information could
distinguish you from the competition. Buying your first pair of glasses is quite confusing as
there are many factors to be considered. Will you be wearing glasses all day or just for reading?
Do you need a light weight frame or a heavy one? Do you want transition or regular lenses? Do
33
you want bifocals or progressive lenses? By helping the customer to what they want you can
increase their chances of buying. (findarticles.com)
Lastly as icing on the cake, LensCrafters could take your picture and analyze which set
of frames and lenses other customers of similar characteristics (both physical and personal) have
liked and recommend to the customer which frames they might like to buy.
Another way LensCrafters could exploit the picture opportunity is they could use your
personal webcam to take a picture of the customer and send it to the website then they could see
a cropped version of their picture with the glasses or lenses which would allow the customer to
make a better decision for themselves and be happier with their choice.
That is the type of simple easy set up that LensCrafters needs in order to set itself aside
from its competition.
Something else that LensCrafters could use in conjunction with the dss system or
exclusively is a finance tool in which one could control their earnings online. This could be
similar to what General Motors uses with their GM card. They can control the maintenance of
their vehicle along with checking earnings on their credit card from the use of it. Every purchase
with the card would earn credit towards their next purchase and every that you buy from
LensCrafters or any of Luxoticas subsidiaries would carry extra discounts. The discounts in GM
are limited with certain cards. For example the 5% return card is only redeemable up to $1,500.
If you are a business or a GM employee you can get a 1% return with no limits on
earnings.(GM.com) By having this economic incentive you are reasoning with people’s
sensibility because it may be a financially better move to purchase LensCrafters’ products.
Many retail companies offer cards such as these, but by being able to control their earnings
online the customer is constantly aware of their purchases.
34
LensCrafters would benefit from knowing what other websites and companies the
consumer is looking at. The solution is by using spyware and cookies to track the customer or
potential customers browsing. That way when the potential customer comes to LenCrafters web
site they can have everything prepared to the best of their ability to suit the customer. If the
customer is looking at Britney Spears you can assume that they are younger in age and you can
present them with more modern fashion styles than say if they were looking at Frank Sinatra.
This would give LensCrafters an edge of knowing what the customer is looking for ahead of
time. Once the customer has entered LensCrafters sites, they could use cookies to track what
they do and save their progress if they were in the process of ordering glasses. LensCrafters
should have a time based system that sends out emails or ads directly to the customer once their
contacts are about to run out that way they can update their subscription easy and simple. This
would allow LensCrafters to retain the customers that they already have. This may help
Lenscrafters contribute to an even higher profit margin than the current 9.65%
(yahoofinance.com).
The key for LensCrafters to be the best and stay the best in the eye care industry relies on
them differentiating themselves in a positive way from the competition. This can be done with
the help of technology. Once LensCrafters differentiates themselves they have to make sure that
they make it easy and beneficial to the customer to remain with LensCrafters. This can be best
achieved by customer profiling which can be done with the use of spyware and cookies. That
allows you to give customers products that are helpful and useful to them (findarticles.com).
35
Bibliography
CNN Financial News Ray-Bans net cool $640 million. 28 APR 1999
Communications Today 3 Gcould spike customer care costs. 30 AUG 2002
<http://www.findarticles.com/cf_0/m0BMD/168_8/90930605/p1/article.jhtml>
Goldstein, Jeff Branding counts, no matter what your business. Enterprise. MAR 2004
Industry week. Good Products that nobody wants?(the importance of customer
relations). 18 JAN 1999
<http://www.findarticles.com/cf_0/m1121/2_248/53638548/p1/article.jhtml>
LensCrafters Company overview at a glance. MAR 2004
LensCrafters Eyewear overview MAR 2004
Luxottica Group Abridged business summary APR 2004
http://finance.yahoo.com/q/pr?s=LUX
Seiders, Kathleen: Berrry, Leonard L.: Gresham, Larry G. Attention, Retailers, Retailers!
How Convenient Is Your Convenience Strategy?.Spring 2000.
<http://www.findarticles.com/cf_0/m4385/3_41/62280559/p1/article.jhtml>
Wilson, Marianne LensCrafters makes a fashion statement. Chain Store Age APR 2003 <
http://proquest.umi.com/pqdweb?index=28&did=000000332002211&SrchMode=
1&sid=2&Fmt=4&VInst=PROD&VType=PQD&RQT=309&VName=PQD&TS
=1081958965&clientId=3739>
Yahoo Finance. Luxottica buys Cole National MAR 2004
36
Andrew Ardini: The Competitors of LensCrafters in the Eyewear industry
The eyewear industry has been developing rapidly over the past decade, as many new
companies move into online sales. LensCrafters, now faces a developing array of competitors,
many of them heavily influenced by online e-tailing. However, while many of the “dot com”
large discount e-tailors will most likely not survive for more than several years, a developing
discount click and mortar sector may call for LensCrafters to take quick action in the IT portion
of its sales. As a subsidiary of Luxottica Inc., there are possible competitive advantages that need
to be capitalized on.
As it has in the past, LensCrafters has continued with a brick and mortar sales strategy.
The major competitors (Pearle Vision, Eye Care Centers of America) have also kept their focus
on a brick and mortar strategy. As seen from recent financial numbers, this strategy has not
worked well. U.S. Vision recorded a loss in 2002 and has had numerous ownership changes.
(Hoovers: U.S. Vision) Emerging Vision lost $3 million with only $14 million in sales in 2002.
(Hoovers: Emerging Vision) Even Cole National Corporation, operating in Sears and Pearle
Vision locations nationwide is projected to lose over $10 million in 2004.
Even with losses, many of these companies are expanding. LensCrafters has struggled to
maintain its market shares, helping to contribute to Luxottica’s 13% reduction in 2003 net
income compared to 2002. (Hoovers: Luxottica) Luxottica is attempting to maintain
LensCrafters’ North American market share by merging with Cole National Corporation,
creating the largest eyewear corporation in the United States. Even with this merger, there are
still many other companies, including the hundreds of independent optical retailers that could
cause sales to continue to fall, although these companies are different from the traditional optical
store competition of the history of the industry.
37
Relying solely on brick and mortar store sales, LensCrafters has faced little competition
in the past from major discount chains. However, the recent boom of stores such as Sam’s Clubs
or BJ’s Wholesale Club pose a threat to LensCrafters as it is currently situated. Costco and
Sam’s Club each grew by over 3% in 2003, compiling over $30 billion in sales each. (Yahoo!
Finance) With the recent addition of eyewear to each of these stores inventory, LensCrafters has
a new competitor with a different sales strategy as compared to optical stores.
Sam’s Club currently sales standard reading glasses selling as low as $5.50 a pair in
hundreds of store locations as well as online. (www.samsclub.com) Although companies such as
Sam’s Club offer no personal service, customers simply looking for a bargain on standard
reading glasses will often turn away from a complicated exam and expensive set of frames when
this option is available. With the major success of Sam’s Club and similar warehouse stores, the
financial feasibility of continuing these major discounts are reasonable. LensCrafters should
consider this a threat in the industry.
Additionally, in the area of Information Technology, LensCrafters faces heavy
competition from many companies on the Internet. Recent trends, specifically E-tailing and
increased customization from competitors show that LensCrafters needs to respond immediately
with an increased online sales view.
Over the past few years, much of LensCrafters brick and mortar competition has
developed improved websites, while LensCrafters’ site made few improvements. A significant
difference between LensCrafters and its main brick and mortar competition is actually the design
of each company’s website. Each store has a different level of online e-tailing and selection for
their respective sites. Pearle Vision’s many helpful features help the consumer learn about their
product by viewing a catalog, as well as virtually trying on those frames on personal photos.
38
(www.pearlevision.com) Other features include finding stores, other eyewear products (contact
lenses) and insurance possibilities. LensCrafters, however, lacks in most of those areas. Although
the website does offer store locations, it does not give a detailed description or image of the
possible products that can be bought at their stores.
Additionally, over the past few years, online e-tailing has exploded. Many small
independent e-tailing sites offer purchases for dozens of brands of eyeglasses, contacts, and other
eyewear. These sites often provide severely discounted rates (such as the $39 glasses online
store) and direct mailing, as well as toll free assistance numbers. These companies, although
mostly small and unheard of at this time, could provide a large amount of competition in the
future, as customers would be unwilling to purchase their actual eyewear with LensCrafters after
getting an eye exam at a store location.
Some of the companies that pose the largest threat at this time are eyeglass.com and 1800-contacts.com. Eyeglass.com is one of the oldest eyeglass e-tailors, started in 1995. (Braga)
Hundreds of frames and prescription lenses can be viewed and ordered online. Although many
companies do this today on the Internet, eyeglass.com has become profitable since 2001. This
shows that pure play eyewear companies can succeed in today’s market. Additionally,
eyeglass.com has created a partnership with both WalMart and Costco to fill prescriptions. If a
customer does not feel comfortable having the company put in the lenses, the two brick and
mortar stores can do it. Finally, eyeglass.com has created a phone-based ordering system to
compensate for those uncomfortable giving away credit card information online.
(www.eyeglass.com) This type of company poses a major threat to LensCrafters for its
innovation and ability to create partnerships.
39
1-800-contacts.com is another e-tailor that has taken away significant revenue away from
LensCrafters. Devoted entirely to contact lenses, the company has created a simple ordering
process and guaranteed delivery promise. Sales in 2002 increased to over $150 million,
(www.1800contacts.com) solely through online and phone ordering, a process that LensCrafters
does not use at all.
Much in the same way that several book stores are having a hard time staying in business,
LensCrafters may have to faze out their direct glasses store ordering if they are unable to
compete with the online retailers. Some could argue that the specialized individual attention
given to each customer will not bring about the same fate for LensCrafters, but now online etailors are even able to offer prescription glasses in a wide variety of styles, usually at a far
discounted rate from LensCrafters themselves. LensCrafters focuses solely on their quick instore service, but lower prices can take away from market share, a trend LensCrafters must watch
for. Many consumers go to retailers to do research for further business, and by having almost no
information on the product, consumers may turn elsewhere. (Machlis)
Additionally, a recent trend that many of the e-tailing sites have taken advantage of that
LensCrafters has yet to is partnerships with search engine websites. Online companies have been
participating in partnerships with different sites for over seven years (Wagner) and with search
engines for several years as well. On the Altavista search engine, when a search for eyeglasses is
typed in, four sites are immediately separated from the thousands of hits and are placed above
them. These sites, ranging from 1-800-Contacts to the site mentioned above selling 39 dollar
glasses to Debby Burk Optical which offers “over 300 name brands” and warehouse clearance
glasses with prices as low as $20 try to persuade online consumers to go immediately to their
sites instead of LensCrafters site. If LensCrafters is to succeed in the e-tailing market, getting the
40
word out among consumers is of the utmost importance. Eighty-five percent of Internet users go
directly to search engines to find information. (Greenberg) By creating a partnership with various
search engines, LensCrafters can efficiently and effectively inform consumers about the
company’s new online sales strategy.
With such radical but helpful ideas as an online eye exam to such ideas already in
practice by soon-to-be partner Pearle Vision as trying on frames online with your own photos,
LensCrafters can attract many consumers to the site if they know about it. In today’s online
retailing world, it is becoming extremely difficult to differentiate between companies and even
harder to find the company that you want to use. Simply by making themselves more available
and findable by these partnerships, LensCrafters could try to build on their already strong brand
name recognition for success over the competition.
Although the FTC has recently ruled that paid sponsorships must be clearly designated on
search engine results (Sullivan), the availability and convenience of being placed at the top of
results cannot be understated. The most successful search engines were those that joined
partnerships first, such as Yahoo! and Altavista seven years ago, (Thibodeau) as search engines
benefited from partnering with successful companies. More importantly, online retailers
benefited from having their names seen by so many people. To be successful today, LensCrafters
should partner with one or more search engines as a marketing tool. With relatively inexpensive
rates compared to a media advertising strategy, savings can be made here as well. For example,
Altavista’s policy (through provider Overture) allows companies to bid on placement. The
highest bid (for one click-through) gets top placement. This strategy not only saves money, but
directly shows how successful the partnership is. (searchenginewatch.com) Finally, by using
41
search engine partnerships, LensCrafters can use the information gathered by the partner to cater
to what the consumer is looking for, and move the website in that direction. (Anthes)
Bibliography
Anthes, Gary “The Future of the Search Engine” April 15, 2002 Computerworld.
Braga, Michael. “Dot-com focuses efforts on hard-to-find eyewear” July 7, 2003 C9
Cole National Corporation Fact Sheet: Hoovers Online http://www.hoovers.com/cole-national/-ID__17241--/free-co-factsheet.xhtml 2004.
Costco Wholesale Corporation Fact Sheet: Hoover’s Online http://www.hoovers.com/costcowholesale-corporation/--ID__17060--/free-co-factsheet.xhtml 2004.
Emerging Vision Inc. Fact Sheet: Hoover’s Online http://www.hoovers.com/emerging-vision/-ID__47408--/free-co-factsheet.xhtml 2004.
Eye Care Centers of America Inc. Fact Sheet: Hoover’s Online http://www.hoovers.com/eyecare-centers-of-america/--ID__56709--/free-co-factsheet.xhtml 2004.
Greenberg, Karl. “Search Patterns.(Search engine optimization firms help drive traffic to web
sites)” Brandweek September 11, 2000.
Samsclub 2004
http://www.samsclub.com/eclub/main_home.jsp?mt=a&bn=0&ts=1082698806910
Sullivan, Brian. “FTC tells search engines to disclose paid results.” Computerworld July 1,
2002.
Sullivan, Danny “Major Search Engines and Directories.”
http://searchenginewatch.com/links/article.php/2156221#Overture 2004.
42
Thibodeau, Patrick “Partnerships on the way for search engines” March 31 1997
Computerworld.
U.S. Vision Inc. Fact Sheet: Hoover’s Online http://www.hoovers.com/u.s.-vision/--ID__54574-/free-co-factsheet.xhtml 2004.
Wagner, Mitch “Online Retailers Buddy Up” September 15, 1997 Computerworld.
43
Kerwin Bailey: The Financial Analysis and International Relations of LensCrafter
A subsidiary of the Italy’s Luxottica Group of companies, LensCrafter was acquired in
1995. Founded in 1983 Luxottica Group is the world’s largest retailer of eyewear. Luxottica
designs over 2450 frames for many prominent brands of designer frames for companies such as
Chanel, Ray-Ban and Revo. It is the parent company to Sunglass Hut International (about 1,900
specialty sunglass stores and about 100 Watch Station and Watch World stores), and the EyeMed
Vision Care group. Luxottica also manufactures its frames in Italy and China and sells them in
about 120 countries. The subsidiary of Italy's Luxottica Group, LensCrafter the company is the
world's largest retailer of eyewear and related services, operates in more than 860 stores in the
US, Canada, and Puerto Rico (http://www.hoovers.com/free/co/factsheet.xhtml?COID=52608).
The subsidiary, LensCrafter has been an established itself as a dominant force within the
eyewear industry; however this dominance is fractional. LensCrafter power is only felt and
experienced on a partial sector of the world, mainly the Northern sector (US, Canada, and Puerto
Rico). LensCrafter has not taken charge, as their parent company Luxottica Group, to be the
world dominant eyewear company. Their market scope has seemingly been narrowed to only
provide for a specific area of the world.
LensCrafter have been known and respected for excellent service, their one-hour eyeglass
guarantee also along with their supply of contacts and sunglasses; but this may not be sufficient.
Unlike its parent company Luxottica, LensCrafter has not been the dominant name within its
classified industry. Luxottica has posed as the leading manufacturer and distributor of eyewear in
the world. It has acquired various merger and acquisition, such as that of LensCrafter in 1995
and Sunglass Hut International in 2001, and has been a prominent force in the fashionable
44
sunglass industry. Luxottica authority is being felt across the sunglass world, they own eight of
the world’s most prominent names Ray-Ban, Vogue, Persol, Arnette, Killer Loop, Revo,
Sferoflex, Luxottica and licenses fifteen of the other existing brands, Anne Klein, Brooks
Brothers, Bulgari, Byblos, Chanel, Ferragamo, Genny, Moschino, Miu Miu, Prada, Tacchini,
Ungaro, Versace, Versus, Web (http://www.hoovers.com/luxottica/--ID__44642--/free-cofactsheet.xht).
The inability of LensCrafter to adopt the similar view as their parent company will be the
downfall to this organization. LensCrafter need to take advantage of the growing global markets,
by extending their supply group to be more inclusive. Currently LensCrafter has been productive
within the US, Canada and Puerto Rico but this success is far less significant to the levels they
could achieve if they venture to satisfy the growing global markets.
The overall Profitability measures of Luxottica has been insurmountable, their profit
margins have increased by half since the acquisition in 1995. Their Return on Asset grew from
7.2% in 1996 to 8.5% in 2000; this industry has met with downfall due to the recession we have
experienced in 2001, resulting in a fall in asset return to 7.6%
(http://www.itcilo.it/english/actrav/telearn/global/ilo/multinat/multinat.htm). This downfall
however can be easily overcome if Luxottica take action in making LensCrafter a more global
provider of eyewear. An example of the positive effects going global was shown in an in-depth
research by the International Labor Organization (ILO), showed Shell Corporation (based in
Nederland) profits rose by 25.1%. If LensCrafter widen their customer scope, there profit
potential and revenue growth could surmount to great heights.
To widen their customer and profit levels, the use of the Internet could prove to be a vital
path. The web base user face has proven in the past to be an important method of marketing of
45
various different industries. This is due to the large source of potential customers available via
online means, such as 605.60 mil users on an average night
(http://www.nua.ie/surveys/how_many_online/). This is a large source of untapped customer
groups that if gained or reached by LensCrafter could increase their yearly revenue and profit
potentials. The use of the Internet to reach and inform those potential customers unaware of the
company and development of multilingual user faces thus reaching customers across language
and cultural barriers. These additions to LensCrafter will ultimately increase awareness of the
company and its services thus beginning the chain reaction of marketing. The Internet has proven
in the past to be beneficial to company’s revenues to levels twice as much as it was at prior to
development of their Internet user faces
(http://www.clickz.com/stats/markets/professional/article.php/5971_354331).
The global expansion of LensCrafter would provide extremely profitable returns to
Luxottica potentially increasing their fourth quarter sale of last year from a reclining 7.6%
(http://finance.yahoo.com/q/ks?s=lux). This is due to the growing popularity of contacts and
most of all the proficiency of LensCrafter very own one-hour eyeglass guarantee they give to
each customer. The advances in eyewear, the automatic adjusting lens and the flexible frames,
will also significantly assist in this forward movement of these two interlocking companies.
The need to satisfy the large market gap in the global supply of eyewear is growing, as a
result the change in business practices from its current to a more global approach will be
beneficial to all. Customers who lacked the chance to have appropriate eye care will be satisfied,
Luxottica will rebound for its past year over year of negative fourth quarter growth and most of
all the available profit potential will be achieved by LensCrafter.
The global foundation that LensCrafter must expand to meet currently exists, due to the
46
widely known and profitable parent company Luxottica. If the global market is not tapped by this
northern eyewear giant then the overall effect could be devastating to Luxottica, resulting in loss
to the large profit potential and customer market.
Bibliography
Brandweek, Newswire. (Brief Article) Retrieved March 16, 2004 from
http://www.findarticles.com/cf_0/m0BDW/9_42/71559677/p1/article.jhtml
Bureau for Workers' Activities. International Labor Organization Retrieved March 16,
from
2004
http://www.itcilo.it/english/actrav/telearn/global/ilo/multinat/multinat.htm
Business Wire. Luxottica Group to Acquire Sunglass Hut International. 2003 Retrieved
March
16, 2004 from
http://www.findarticles.com/cf_0/m0EIN/2001_Feb_22/70732703/p1/article.jhtml
Business Wire. Antitrust Waiting Period Expires On Luxottica Group's Acquisition OF
Sunglass Hut International. March 16, 2004 from
http://www.findarticles.com/cf_0/m0EIN/2001_March_27/72325249/p1/article.jh tml
Business Wire. Vision-Ease Lens and LensCrafters Introduce Polarized Melanin Sun
Lenses; Partnership Produces Latest Innovation in Sunglass Lens Technology.
Retrieved March 16, 2004 from
http://www.findarticles.com/cf_0/m0EIN/2002_August_16/90417528/p1/article.jht ml
Catherine Colbert. LensCrafters, Inc. Retrieved March 16, 2004 from
http://www.hoovers.com/free/co/factsheet.xhtml?COID=52608
Catherine Colbert. LensCrafters, Inc. Retrieved March 16, 2004 from
http://www.hoovers.com/luxottica/--ID__44642--/free-co-factsheet.xht
47
DSN Retailing Today. Sunglass Hut. (Acquired by Luxottica Group)(Brief Article)
Retrieved March 16, 2004 from http://www.hoovers.com/luxottica/--ID__44642-- /freeco-factsheet.xht
PR Newswire. Luxottica Group Announces 2nd Quarter Results; Group highlights for the
first half of 2003 Retrieved March 16, 2004 from
http://www.findarticles.com/cf_0/m4PRN/2003_July_28/105933933/p1/article.jht ml
Reuters. Luxottica Group SpA (LUX) (Key Statistics) March 16, 2004 from
http://finance.yahoo.com/q/ks?s=lux
48
Todd Burach: Supply Chain Management
Supply chain management is a fundamental aspect to the success and productivity of any
business. Additionally, many companies will struggle with controlling their inventories. For
these reasons it is necessary that companies use supply chain management (SCM) systems to
track inventory and information throughout business processes and across companies. The main
reason behind supply chain management systems is to reduce inventory that a company has on
hand. This helps lead to the efficiency and effectiveness of a company’s practices. Supply chain
management has also become more realistic with the introduction and improvement of
information technology. Supply chain management systems, incorporated either with the
purchase of sophisticated software or the assistance of a third party, allow for document
processing, order validation, inventory validation, inventory shipping, shipping options,
shipment validation, and electronic payments (Haag, 87).
To look at a successful example of the benefits of supply chain management systems, we
can examine Dell Computers. This leader and innovator of web based sales experienced
enormous growth and decided to implement a supply chain management solution. This system
helped to organize and maintain relationships with suppliers, distributors, transportation
companies and inventory. One executive of Dell stated that “The supply chain solution from i2and the processes we put around i2- is allowing us to move materials so fast around our supply
chain that we’re able to take advantage of lower-cost materials quicker and pass those lower-cost
materials on to our suppliers. And that’s allowing us to fuel our growth” (Dell.com) We want
Lenscrafters to grow as a company. For these reasons we have recommended that we shift the
focus from solely a brick and mortar store to a combination of click and brick stores. With the
transition and focus shifted towards an internet based company, we have the ability to instill a
49
supply chain management system that will reduce inventory, lower costs, allow for on demand
and personalized orders, as well as guarantee accurate shipping, ordering, and tracking services.
We feel it is in the best interest of the company to form a partnership with i2, a supply chain
management company, in order to enable the most success. “While there are many traditional
consultants who promise results, i2 is in a position to leverage its 15-year heritage of supply
chain management expertise to help deliver on its customer promises. Through a broad range of
diagnostic services, i2 can assess each customer’s operations and develop an improvement plan
that can take the company’s performance to a new level.” (i2.com)
I2 offers business optimization services (BOS) which, once in place, will help
Lenscrafters to function with a highly effect supply chain. Business optimization services include
business consulting, solution delivery, and technology/data services. The BOS methodology
towards creating a successful supply chain for Lenscrafters includes “identifying customers’
eminent business challenges and responding with a plan to help alleviate customer “pain points,”
building a high-impact solution rapidly, based on best-practice workflows that can effect
improved business processes, and operating at optimal performance levels over the longer term,
creating an environment of continuous improvement, while helping to reduce total cost of
ownership.” (i2.com)
Currently, Lenscrafters is part of a well established vertically integrated supply chain as
part of Luxottica, their parent company. This supply chain includes producers, suppliers, and
means of transportation. This vertical integration allows for Lenscrafters to sufficiently manage
supply chain regarding its brick and mortar stores. However, our recommendation of moving
toward an online retailing strategy requires a more complex, up-to-date, supply chain
management system. The implementation of an i2 system and its business optimization services
50
is a perfect solution to support a change in the company’s focus. Our plan is not to totally switch
Lenscrafters to solely online retailing, however to integrate a combination of brick and click
stores. Luxotica can successfully replace its current supply chain methods in the hands of i2.
This will allow the company to focus more on the customer rather than making sure the supply
chain is managed properly. Lenscrafters and Luxotica have stated as a company that they expect
creative ideas and solutions to meet customer needs (Lenscrafters.com/companyinfo). We feel
we have met this need with the introduction of an online retailing option, now all this company
needs is the addition of i2 to support their new success and growth with their new supply chain
management system. Recent news has also reported that Luxottica is in the process of taking
over Cole Incorporated, owner of Pearle Vision, the second biggest US optical chain after
Lenscrafters. (news.yahoo.com) With the addition of Pearle Vision, Lenscrafters could really
benefit from i2 supply chain management system. These two moves combined together, the
addition of Pearl and i2, would allow the company to focus on the increased assets and grow,
while not worrying about the minor details that i2 would handle. "Luxotica has long said it wants
to strengthen its retail presence." (Hall, 2004) The addition of online retailing, i2, and Pearle
Vision will do just that. "'We will carefully monitor results of these pilots and roll out concepts
that are successful with our targeted customer,' Cole added. 'Based on results, we also plan to
identify other partners that can make shopping our store more interesting, exciting and
productive.'" (Scardino, 2003) It is clear that Lenscrafters is in the process of growing from
simply a brick and mortar store. The addition of online retailing with the help of i2 supply chain
management systems is on the way, followed shortly thereafter by success and competitive
advantage.
51
Bibliography
Accenture. (2004). Retreived April 3, 2004 from http://www.accenture.com
Barret, J. & Hall, J. (2004). Battle for Eyewear Retailer Cole in Focus. Retrieved April 25,
2004 from, http:news.yahoo.com.
Cummings, M., Haag, S., & McCubbrey, D. (2004). Management Information Systems
for the
Information Age(4th Edition). McGraw Hill: New York.
i2 Information Systems. Retrieved on April 12, 2004, from http://www.i2.com.
Lenscrafters. (2003). Retrieved on April 6, 2004 from, www.lenscrafters.com.
Lenscrafters, Inc. (2004). Retrieved from http://hoovers.com/lenscrafters/
Logistics/Supply Chain. (2004). Retrieved April 7, 2004 from http://logistics.about.com/
Scardino, Emily. (2003). Federated Boutiques Hint of ‘One-Stop’ Future. Retrieved on April
25, 2004, from http://www.findarticles.com
Supply Chain Management Research Center. (2004). Retrieved April 3, 2004 from
http://www.cio.com/research/scm
Supply Chain Academy. (2004). Retrieved April 3, 2004 from
http://www.supplychainacademy.com/home/home.asp
The Journal of Supply Chain Management. (2004). Retrieved April 7, 2004 from
http://www.napm.org/Pubs/journalscm/index.cfm
52
Leonard Carter, Jr.: Web Communications
With the new advancements in technology and the rapidly growing economy, machines
and the Internet are becoming more and more prevalent in our society. Businesses use the
Internet as an outlet to help benefit their customers and also aide in the prosperity of the
business.
At Lenscrafters’ current website, you can see what happens in an eye exam and the exact
steps that you go through. You have to fill out an intensive case history that describes your
background and other information that is necessary. There are also a number of tests that
measure different aspects of the eye. A possible innovation that could assist the company as well
as customers would be the ability to do these exams online. There could be a survey or
questionnaire that you must fill out along with a necessary photo of your eye that would be
stored in a database. With the new technology, there could be computer programs or a computer
camera that could take a picture of your retina. Also, it could scan your retina and give you a
summary as to what your specific case or diagnosis is as well as give the doctor the ability to
look at your file as needed. This would help customers, especially elder customers and busy
customers who will be able to take care of their eye needs online.
Also, adding an online store could prove to be valuable. By allowing customers to shop
online, it would attract people to the site knowing they can go online and look at frames and
contacts and other accessories instead of having to go out to a store. It eliminates the physical
aspect of shopping and makes it easier and more convenient for the customer to shop. The idea
of not having to leave the house and shop online is very attractive to shoppers.
Along with eye exams there is a section that deals with the types of glasses and contacts
available and in what colors and brands. There are charts that help aide the customer in deciding
53
which contact or frames to go with. The charts help you compare different lenses according to
your complexion. However, these features are scattered throughout the website and it is hard to
navigate. An addition to their site that could help customer service is a “frame fitter” that can be
done over the computer. If there are scanners or photo takers that are added to computers that
will also be able to help scan a retina, they should also be able to take a picture of your face. If
that wouldn’t work there could be a program that would scan in your picture and you could take
frames or contacts from a list of items that are available and fit them on your picture to get a feel
as to how they would look on you.
On the Lenscrafters’ website, there are places where you can find the closest store to you.
However, if the previous advancements were added to the site, then there would need to be a
place where you can order your items and have them shipped to you. The idea behind the
advancements and possible improvements to the site is intended to help the consumer with more
convenient service and an alternative approach to eye care. There would have to be some kind of
adult verification system so that children or unidentified users can’t tamper with programs, or
inappropriate use of the site won’t take place. Using a credit card number or social security
number will be able to protect certain aspects of the site as well as for online ordering.
Financially, this renovation may seem like a stretch for Lenscrafters’ to go to entertain
their customers; however, there are possible ways around it. The addition of scanners or photo
takers on a computer wouldn’t be done by Lenscrafters’. These advancements would have to be
made by the companies that make computers. However, Lenscrafters’ could have some kind of
program installer already on their website so that if people did have scanners the site would be
able to describe the problem with a person’s eyes and be able to make a prescription for a
patient. Also, the program could have a feature so that if your picture were scanned on the
54
computer, you could be able to pick frames or contacts to fit your face. Adding a program to do
all that wouldn’t be too expensive. The only dilemma would be that they wouldn’t be able to
install scanners on computers. The consumer would then have to pay more for a more high-tech
computer; but, we are coming into a new century and technology is becoming more and more a
part of our daily lives. Other companies like Eyeweb.com have similar systems in which you’re
able to do all this over the internet. In order for Lenscrafters’ to compete and keep customers,
they also should invest in a similar program (www.eyeweb.com).
The website could also be an effective way to introduce new product lines to consumers.
For instance, Lenscrafters is introducing a new line of sunglasses, and has entered a partnership
with Vision-Ease lens to have sunglasses with new polarized melanin sun lenses. The website
could post press releases about these issues, and let customers know about new offerings without
having to pay for additional advertising (www.findarticles.com).
Along with additional things to add to the site, the site itself could use some adjusting to
further aide customers. The site could be made more user-friendly and easier to get around.
First of all, the site contains a lot of paragraphs with lots of writing which can annoy the
customer. A customer really isn’t interested in going to the site and reading paragraph after
paragraph about stuff that could after awhile become very boring. More graphs that are easier to
get to displaying specific frames and contacts along with other useful information displayed
through graphs and charts would be more beneficial. Personally, when I tried to navigate
through the site, I had some problems trying to find exactly what it was I wanted. In the site,
there is a site map; however that doesn’t seem to help as much as it should. A possible addition
to the site that could help navigation would be adding a little pop-up “guy” or screen, like the
“help assistant” in Microsoft programs, which shows up and helps the user get around the site.
55
These are some possible innovations that give customers options as to how they want to
take care of their eye business. When customers have the option to do their business in the
comforts of their home, and not have to get up and schedule an appointment or go to the eye
store, it makes it easier for them and motivates them to get it done. Customer service is vital to
successful business, and when customers are happy business will be good. The option to either
go to eye store or do business online adds another dimension to Lenscrafters’ business and
allows them to connect with customers more efficiently.
Bibliography
Becoming a participating retailer; product features. (2002). Retrieved on April 17, 2004 from,
www.eyeweb.com.
Vision-Ease Lens and LensCrafters Introduce Polarized Melanin Sun Lenses; Partnership
Produces Latest Innovation in Sunglass Lens Technology. (2002). Retrieved on April 17,
2004 from,
http://www.findarticles.com/cf_0/m0EIN/2002_August_16/90417528/p1/article.jhtml.
56
Emily Chapman: Customer Relationship Management
One of the most important factors for a business to succeed is achieving the satisfaction
of its customers. Therefore, in order for a company such as Lenscrafters to grow and flourish,
customer relationship management is a key factor in every day business. More importantly, with
the ever-changing technology of today’s world, customer relationship management constantly
needs improvements through IT, the internet, and E-commerce.
Through research, it appears as though what customers are looking for most is
convenience. According to an article from Sloan Management Review, “the retailer that spares
its customers hassles and delays wins their business and outperforms its old-fashioned
competitors” (Berry, Gresham, Seiders, 2000). For customers, retail convenience means quickand-easy shopping excursions. While retailers understand this customer perspective, the bestperforming retailers, like Lenscrafters, must go above and beyond it through a customer
convenience strategy. Lenscrafters makes sure that its company is easy to reach, its customers
are able to promptly identify and select the products they want, its customers can obtain desired
products quickly and efficiently, and its company expedites the purchase and return of products.
With this customer relationship management strategy, Lenscrafters is able to compete with other
companies in the industry. It has become imperative, however, that Lenscrafters use IT, the
internet, and E-commerce in the near future, to advance its company in the industry and move
ahead of its competitors.
In an attempt to attract customers toward Lenscrafters and away from its top competitors
such as Cole National, Eye Care Centers of America, and National Vision, Lenscrafters signed
an extensive advertising contract with CoolSavings in 2000. CoolSavings is a provider of emarketing services used by online and offline advertisers to build one-to-one customer
57
relationships. CoolSavings helps Lenscrafters drive customer traffic and sales by targeting
consumers who, based on their demographics and shopping habits, will be most likely to respond
to their savings offers. Chairman and CEO of CoolSavings Steven M. Golden said, “There is
tremendous value in being able to single out consumers who you know are interested in your
products” (BestBuy.com, 2000). This is precisely how CoolSavings helps the customer
relationship management of Lenscrafters. In addition to singling out prospective customers,
CoolSavings also provides consumers some of the greatest variety of savings incentives on a
single Web site such as printable coupons, e-coupons, savings notices, rebates, category
newsletters and free samples from national brick-and-mortar retailers, e-commerce merchants,
manufacturers, service providers and local retailers (2000). With the help of CoolSavings, it
becomes evident to the customers that Lenscrafters is a company geared toward customer
satisfaction.
Retailers can increase the value of their market offer by saving customers time and
energy; however, offering this convenience to customers is not an easy task for it involves
staying up-to-date with latest technologies. Currently, Lenscrafters prides itself in selling
fashionable frames, designer brands, custom-made lenses, sunglasses, contact lenses, children’s
eyewear, safety eyewear, and accessories. These promotions are designed to help customers find
“a look they’ll absolutely love” (www.lenscrafters.com, 2003). Furthermore, Lenscrafters also
promotes that most of its stores have optometrists next door who are highly trained and licensed
to examine each customer’s eyes using the very latest equipment to give each customer the best
possible care quickly and efficiently. With this, Lenscrafters is able to successfully attract
customers in proving that customer wants, needs, and satisfaction are a top priority. Even with
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all of these perks for customer satisfaction, significantly, these offerings are not the only
promotions that Lenscrafters could potentially provide to the customer.
Knowing that there is always room for improvement, recommendations can be made to
Lenscrafters in terms of customer relationship management. Many customers are attracted to a
“good deal.” It is therefore in Lenscrafters’ best interest to provide a frequent buyer program to
its customers. This would simply entail after a certain amount of purchases from Lenscrafters by
each customer, that customer would be granted free merchandise. This frequent buyer program
would be similar to that of the frequent flyer miles offered by airlines in that every flight by a
certain airline company earns the customer miles toward a free flight. This program has proven
great success since it was first implemented, and significantly, according to The Lifestyle Analyst
Market (2002), over twenty-six million people worldwide have become “frequent flyers.” By
implementing a frequent buyer program, Lenscrafters hopes to not only satisfy customer needs, but
also ensure that customers will repeatedly shop at Lenscrafters and thereby gain a competitive
advantage.
To further gain a competitive advantage and fully satisfy its customers, Lenscrafters must
also innovatively use IT. What was once fast, photo processing for example, may now be slow,
and what was once easy, renting movies for instance, may now be a burden. Knowing this, it is
suggested that Lenscrafters upgrades from a brick-and-mortar to a click-and-mortar company in
allowing its customers to shop online. Currently, Lenscrafters’ website does not allow its
customers to purchase apparel online; the website is merely information. However, this day in
age, it is imperative that Lenscrafters sells to customers via the internet for efficiency, customer
satisfaction, and competitive advantage. Being able to shop from home has proven great success
with other companies, and it is expected that Lenscrafters would be no different. Quality, Value,
Convenience (QVC), Inc., for example, sells solely through its own television channel and sells
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its products through call-in orders. In 1987, QVC broke the American record for first full-fiscalyear sales by a new public company with over 12 million dollars in revenue (Marsh 2002). With
such success from this home shopping company, it is expected that online shopping would have
similar success with the quick, easy, and efficient method of shopping from home. To further
encourage this migration from in-store shopping to online shopping, it is recommended that
Lenscrafters offers discounted prices for those items bought on the web. Lower prices would be
offered to those who purchase online to attract customers to the website and entice customers to
buy the products online.
In addition to selling products via the internet, it is recommended that Lenscrafters also
provide hyperlinks on its website connecting to email addresses of optometrists to assist
customers in their purchasing of eye wear. Customers would simply click on the link and write
their questions and concerns in an email with a guaranteed fast response. Taking this one step
further, Lenscrafters should also offer the option of scheduling appointments with
ophthalmologists and optometrists online. This would allow customers to see all available
appointment times and then set-up or cancel their own appointments accordingly. To ensure that
there is no confusion during this process, an automatic email reminder would then be sent to the
patient. Furthermore, online scheduling is available twenty-four hours a day, seven days a week,
making it the most efficient way to schedule appointments. According to Maggie Biggs, the
director of the InfoWorld Test Center, “online appointment scheduling attracts and keeps
customers while reducing overall customer service cost” (2004). Knowing this, online
appointment scheduling is the last recommendation to upgrade the Lenscrafters website in terms
of customer relationship management.
60
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