Senior Moments

By Brian P. Dunleavy

lensfocusHistorically, dispensing premium spectacle lenses to senior citizens has presented opticians with many unique challenges but eyecare professionals with the right approach and mindset can find success up-selling premium lenses to this unique demographic. Here are some things to consider:

1.     Think progressive, even with long-time standard bifocal wearers. In the past, standard bifocal wearers switching to progressives have often ended up being non-adapts; the two lens types are just too different. However, today’s free-form technology has reduced problematic peripheral distortion in progressive lenses and enabled the creation of prescription lenses that match exactly with wearers’ visual needs – as a result, fewer non-adapts. “Nothing drives me more crazy than hearing someone say they can’t switch older bifocal wearers to progressives,” says Gisele Klein, optician and owner of Impressive Eyewear in Surrey, B.C. “It’s just not true.” If you can convince older patients that the visual benefits of free-form progressives are worth the extra cost – not always an easy thing to do – you’ve done the heavy lifting, she adds.

2.     Talk treatments. As seniors are often plagued with ocular health issues such as cataracts, dry eye and/or allergies, glare protection is important in this patient population. Gray and/or pink tint treatments for spectacle lenses were once popular among elderly patients for this reason. Now, however, seniors are more interested in photochromic lenses, both for their convenience and glare-reducing capabilities outdoors. Anti-reflective coating is obviously a must for older eyeglass wearers, to soften glare and halos, particularly at night. In addition, ultraviolet coatings eliminate the danger of damaging sun exposure to the eyes, which has been linked to the growth of cataracts and the incidence of eye diseases such as macular degeneration and glaucoma.

3.     Take it light. Older patients can be bothered by heavier specs, either because they tend to slide down their noses more or irritate their thin, sensitive skin. High-index plastic and polycarbonate lenses address these issues, and improve wearers’ overall look as well.

4.      Explain yourself. When fitting older patients, it’s important to be polite and respectful without being condescending. Not all senior patients are going to understand free-form and other state-of-the-art lens technologies. However, given that you will need to take several measurements in order to fit the newer lenses – a process that may be taxing for some older patients – it is important to explain what you are doing and why. Keep them engaged.

5.      Measure up – or, in some cases, down. Many older people slouch when seated, or are hunched over due to arthritis or other physical ailments; still others are wheelchair-bound or use walkers. All of these scenarios make fitting at a conventional dispensing table difficult. Opticians should not ask or expect these patients to conform to the dispensing table; rather, they should seek to fit according to how their elderly patients sit and/or position their heads (and eyes) when reading, watching TV or engaging in other activities (such as playing card or board games).

“You need to get down to their level,” Klein explains. “If that means crouching down to them and moving my tools to accommodate them, I do it and I ask them a lot of questions to make sure I’m fitting them according to their needs. For example, I ask, ‘Is this how you sit when you read?’ I don’t try to change their posture; I want them to see in my shop like they’ll see at home in their new eyewear.”

Fitting elderly patients with premium spectacle lenses may take a little extra time and effort, but in the end you’ll reap the benefits of happier patients – and healthier sales.

Argus II Retinal Prosthesis

By Netan Choudhry, M.D, FRCSC and Jennifer George

EyeOnHealthMore than two decades ago, development began on a technology that would revolutionize treatment for those suffering from age-related eye diseases like macular degeneration and retinitis pigmentosa (RP). In the ’80s and early ’90s, researchers at Johns Hopkins and DukeUniversities began testing the use of electrical stimulation of the retina to produce vision. This rudimentary work spearheaded the development of the bionic eye, finally removing it from the realm of science fiction and making it another exciting reality of cutting-edge medicine. The Argus® II retinal prosthesis system, developed by Second Sight, received FDA approval to restore limited vision to those blinded by retinitis pigmentosa, becoming the first-ever approved therapy for patients severely affected by RP.

Retinitis pigmentosa is a class of genetic disorders resulting in the progressive degeneration of the light-sensitive cells lining the region in the back of the eye known as the retina. These cells, called rods and cones, work like the film in a camera, capturing light images which are then translated into neural signals. These signals are sent to the brain for interpretation through the optic nerve. Affecting nearly 1.5 million people worldwide, RP, in its advanced stages, results in a total loss of vision. As the disease progresses, patients with RP experience a gradual loss of photoreceptor cells. In most cases, patients first develop the decay of rods. Rods, which are located primarily around the outer regions of the retina, are responsible for both peripheral vision and night vision. Night blindness (the inability to visually adjust to darkness) and subsequent tunnel vision are the two most common signs that one is suffering from retinitis pigmentosa. One might experience difficulty driving at night or lose one’s footing in dark rooms. The second most common form of the disease, cone-rod dystrophy, manifests in the loss of cones, the photoreceptors responsible for central vision and colour perception. Whether the decay begins with the rods or cones, patients suffering from RP will ultimately experience both central and peripheral vision loss.

Prosthesis utilizes electrical stimulation to replace the role of degenerated photoreceptors in the retina. Retinal prosthesis is similar to the cochlear implant technology that restores hearing to the hearing-impaired by stimulating the cochlea. The Argus II stimulates the retina, thereby restoring vision. This stimulation triggers the response of other neurons within the retina that have remained functional. The system works by using a video camera attached to a pair of glasses. This camera communicates wirelessly with a chip located on the retina. The camera within the glasses captures an image – a stop sign, for example – in the form of light and dark pixels. The image captured by the video is then processed by a portable unit and translated into instructions indicating “light” and “dark” that are sent back to the glasses. These instructions are sent wirelessly to the implant on the eye.

The image captured by the video is not immediately seen. Subjects require a degree of training in order to actually see the image. They begin by seeing dark and light spots, but gradually learn to interpret them. The system offers immense benefits for people who are suffering from blindness caused by RP, for whom therapy is currently unavailable. Second Sight will eventually adapt its technology to help those suffering with age-related macular degeneration. Candidates for the Argus II must have light perception vision in the better-seeing eye in order to qualify for the procedure.

Hong Kong Optical Fair Offers a World of Opportunity

By Nicky Fambios

Event

From eyewear parades to buyer forums, seminars to networking receptions, the 21st edition of the Hong Kong Optical Fair, held November 6 – 8, 2013 at the Hong Kong Convention and Exhibition Centre, certainly had it all.

The Hong Kong Optometric Conference, with Advanced Optometry Care as its theme, took place during the first two days; it included seminars on optometric care for pediatric patients, vision requirements for drivers, and protective measures against blue light damage – a topic of growing interest, given the proliferation of electronic devices.

As a case in point, demand for eyewear technology like low blue light and 3D glasses is on the rise. 3D Global (Holdings) Limited showcased their innovative products, as well as the French brand SHINA, and the company welcomed the opportunity to meet international buyers. “We met buyers from the U.S., Canada and the Middle East… the response has been positive,” says the company Director Bonnie Chan.

A record 700 exhibitors, including newcomers from Israel, Macau, the Netherlands, New Zealand and Thailand, were on hand to show off their finest to the nearly 14,000 buyers from approximately 100 countries and regions who attended.

Show organizers and exhibitors alike were pleased with attendance levels, which rose eight per cent over the previous year.

Zig Eyewear, exhibiting for the second consecutive year in the VOS (Visionaries of Style) area, deemed the event successful. According to a company statement, their primary goals were to present the Jean Reno and Ziggy lines to the Asian market, gain insight into the specifics of this segment, adapt accordingly and then implement distribution networks. Success was evidenced by the increased number of visitors to the booth and the exciting new agreements undertaken.

To what does Deputy Executive Director Benjamin Chau of the Hong Kong Trade Development Council attribute this achievement?

“Buyers from a number of emerging markets increased significantly, including Egypt, South Africa, Indonesia, Vietnam and Mexico, showing their huge development potential. On the other hand, buyers from mature markets like the U.S., the Netherlands and Spain also had a considerable increase,” said Chau. “It is also a testament to the Optical Fair’s position as a major sourcing platform for the global optical industry.”

The event built on the popularity of last year’s Brand Name Gallery area by introducing two new zones in 2013. The 3D & Kids Eyewear and Reading Glasses sections were launched in order to facilitate product sourcing.

Michael Suliteanu, president of WestGroupe, confirmed that the company’s booth in the Brand Name Gallery was hopping. “This was our fourth year exhibiting and it was better than ever. We had a team of four working the show and they were consistently busy – there were no lulls.”

He goes on to explain, “In the past, we would attend the fair to source suppliers but we’ve reached a point where we’ve developed solid, quality relationships with our core group of manufacturers. Now our goal is to meet distributors and buyers, in order to expand into foreign markets.”

So was the high traffic a sign of success for WestGroupe? Says Suliteanu: “It was a very good show for us. In fact, we’ve already signed up for next year.”

The next Hong Kong Optical Fair is scheduled for November 5 – 7,  2014.

Eyecare’s New Reality: We Need Professional Marketing Help

By Grant Larsen

DigitalMarketing
Did you know that by the time a consumer enters your practice or store, they have already decided whether or not they are going to buy? So what do you say to a patient or consumer who wants to walk out the door without buying? Nothing – it’s too late! Your staff has been reduced to frustrated order-takers because your competition is talking to customers all the time through multiple media channels.

So how do you compete with the deep pockets and savvy marketing tactics of big chains and online retailers? How do you turn ‘just lookers’ into buyers?

• You talk to them more than once every two years.

• You invite them back through existing great clients.

• You tell friends, relatives and like professionals your “great story” every day.

And you do this for a fraction of the cost of online listings, brochures and direct mailers!

3 Social Marketing Musts

1.     Create a Great First Impression for New Patients

Think of your website landing page as a digital receptionist that overcomes new customers’ apprehension when they meet a health care provider for the first time. A welcome video, a friendly photo of your staff, lists of credentials, expertise, passions and specialties can build trust and communicate to people why you deserve their business. The decision of where they will get an eye exam or where they will be fitted for fashion frames is driven by emotion. Be local, be personal and be yourself.

2.     Formalize Your Referral Process

If you haven’t formalized your patient and professional process, you’ve missed the number one small business marketing tool. Signs, websites and the Yellow Pages don’t create traffic or produce buyers; the key to growth lies with having a network of happy patients. A recent eyecare survey shows that almost 80 per cent of patients select their eyecare professional based on referrals, with friends and family at the top of the list.

Start by telling happy client stories. Create a priority list of stories that you and your staff can share with local networking partners. Technology, personalized fittings, unique products and brands add credibility and increase a story’s repeatability to others. And finally (and most importantly) create a detailed process for inviting clients back and recalling patients for professional services.

3.     Social Media for Business

Forget what you know about social media. What started out as a pastime for kids and young adults to connect with friends has developed into an essential business tool that drives targeted networking and consumer purchase decisions. Simple set-ups for Facebook, Twitter and Google+ can be done in mere hours and managed with free resources from suppliers and industry. Eyecare content combined with your business brand and managed with Hootsuite (a social media organizer) reduces your staff time to just minutes each week or month. Listen to competitors in your area, promote your services to targeted groups, and make your business easy to find. Finally, make referrals to your business easy, so happy customers can share the word.

Not all marketing spending is linked directly to sales. Creating a great first impression will turn your walk-outs into planned buyers. Your referral process and community networking will target your best potential customers, using the most trusted source of information: friends, family and believers. And social media can allow you to connect, grow and maintain business value for years to come.

Seniors and Low Vision: Confronting the Challenge

By JoAnne Sommers

SeniorFeature
As an eyecare professional (ECP), what do you say to an elderly patient whose vision is compromised by age-related macular degeneration (AMD), diabetic retinopathy or some other serious eye condition? Are you prepared to discuss low vision assistive devices and rehab services with them? Or are you stymied when lenses are no longer an option for correcting vision problems?

If you haven’t thought much about it, it’s time to start. CNIB estimates that 1.15 million Canadians currently live with blindness or significant vision loss. By 2033, that number is expected to double.

CNIB defines low vision as visual acuity of less than 20/60 but better than 20/200, or a field of vision that is less than 20° across, in the better eye with the best possible correction.

One major reason for the increase in low vision (LV) problems is the “graying” of the population. About 4.9 million Canadians are 65-plus and 460,000 of them have some vision loss. After 40, the incidence of vision loss doubles roughly every decade, reflecting the fact that the risk of vision-impairing conditions such as cataract and AMD rises exponentially with age. Statistics Canada says that by 2026, 20 per cent of Canadians will be seniors, which means the incidence of LV will almost certainly rise dramatically.

Given the health challenges associated with aging, ECPs should watch for conditions that can result in low vision, says Dr. Morrie Sher, an optometrist and LV practitioner with Innisfil Eye Care in Innisfil, ON. When medical treatment isn’t required, ECPs can refer patients to a rehabilitation or LV specialist, or suggest low vision aids such as magnifiers, telescopic devices or special glasses. Electronic aids such as closed-circuit television (CCTV) systems with built-in magnification, and computerized reading devices can also help.

Sher is certified as an authorizer and vendor of LV devices. He refers people to CNIB for high tech devices like computer systems but sells lower tech devices through his practice.

“Many tools are available to help maximize a person’s remaining vision,” he says. “Unfortunately, most ECPs probably don’t know much about them and when a lens can’t FeatureSidebarhelp, they often say there’s nothing more they can do.”

Optometrists and ophthalmologists tend to stick to lens options because it’s what they know best, says Bruce MacKenzie, western region manager for Canadialog, a Toronto-based provider of LV solutions. “Many are reluctant to get into LV because they think too much time and effort is required. As a result, they miss a good opportunity.”

Sher suggests practitioners invite reps from LV companies to demonstrate their products, ask about their most commonly used devices and start testing them out.

Companies like Canadialog, Eschenbach Optik of America, as well as Cecitech and HumanWare, both based in Quebec, welcome the opportunity to work with ECPs. HumanWare, which is owned by Essilor, is focused on working more closely with ECPs, says Canada Sales Director Steven Philips. Eschenbach’s Low Vision Rehabilitation Program for ECPs and rehab professionals consists of product information, training, and ongoing consultative support.

“Essentially it’s a turn-key program for aspiring low vision practitioners looking to add LV services to their practice,” says Ryan Heeney, national sales manager, Canada, for Eschenbach Optik of America, Inc.

While there are many devices on the market you don’t need to stock everything, says Sher. “The technology may seem intimidating but it’s well within an ECP’s scope of understanding. You can also take continuing education courses to learn more.”

Sher says that while working with seniors can take more time than with other patients, it’s very rewarding. “You need patience because it may take longer for them to figure things out. But it’s so satisfying when you can help people to participate again in activities they enjoy and improve their quality of life.”

Here’s What’s New in Low Vision Devices

There is an ever-expanding array of LV solutions on the market, ranging from $50 handheld magnifiers to closed-circuit TVs (CCTVs) that run from $600 and up. The correct choice of device depends largely on the task being performed and the type and degree of vision loss of the patient, says Tim Gels, marketing manager, Eschenbach Optik of America.

“Low vision aids are like a tool kit and different devices are needed for different tasks. For a short-term task like reading a prescription pill bottle, a hand-held magnifier is ideal. For a longer-term task such as reading a book, a stand or spectacle magnifier or a CTTV is better. To help read ticker-tape news at the bottom of a TV screen, a telescopic device is best. A telescopic vision aid can also help with intermediate distance tasks, such as computer work or playing cards.”

Many LV patients purchase three to five devices for various tasks, depending on their activities, says Gels.

Here’s a look at some of the latest LV solutions.

Company: 20/20 Accessory Source
Product: Cocoons Low Vision

Improving sensitivity to contrast is important for people with low vision and requires the use of special optical filters. Low Vision Cocoons are available in four of the most commonly prescribed tints – Boysenberry (plum), Lemon (yellow), Hazelnut (amber) and Orange. Each tint is specifically designed to absorb different amounts of the visible light spectrum. For example, a patient may respond best to the reduction or elimination of scattered blue light, which creates distortion by making the definition of objects less crisp; Hazelnut and Orange lenses from 20/20 Accessory Source are extremely effective for blocking blue light.

The Low Vision Hazelnut lens provides 18 per cent light transmission and 100 per cent UV and infrared protection. It blocks 98 per cent of blue light and all visible light up to 400 nm. These are good general purpose glasses, providing good visual acuity and excellent glare protection. They are very useful for those with retinitis pigmentosa, diabetic retinopathy, pre-cataract and glaucoma.

Low Vision Cocoons with Orange filters have 34 per cent light transmission and block 100 per cent of blue light and all visible light up to 520 nm.The lenses enhance contrast and provide protection from glare. They are helpful to individuals with macular degeneration.

The Lemon lens provides moderate blue light filtering, which is ideal for reading and watching television. Lemon provides 82 per cent light transmission and blocks 100 per cent of UVA/UVB light and all visible light up to 450 nm. It helps increase contrast indoors, but should not really be used in direct sunlight. The tint is better for low light conditions, unless specifically ordered for outdoor use by a low vision specialist.

The Boysenberry lens is ideal for reading and watching television. Boysenberry has 15 per cent light transmission and provides 100 per cent UVA/UVB protection, while blocking all visible light up to 521nm.

Company: Canadialog
Product: MAGic Screen Magnifier

MAGic screen magnification software helps people with low vision view text and images on a computer screen in large size, while hearing the content spoken through a speech synthesizer, if purchased with the speech option.

MAGic lets you magnify a computer screen from 1 to 36 times its usual size. Mouse and cursor enhancements help track the location of the mouse pointer and cursor on the screen. MAGic lets you change the colour of these enhancements, apply transparency effects, adjust their size, and more.

Other magnification features include the Quick View Frame for monitoring important areas of the screen, a Locator feature to help find items, keyboard panning controls, tracking and synchronized highlighting.

Product: RUBY

The RUBY video magnifier is Canadialog’s smallest, most portable handheld magnification solution. The 4.3-inch, full-colour, high brightness video screen makes it outstanding for reading bills, mail and cheques. It fits easily in a pocket or purse.

RUBY XL HD is the new version of RUBY. It has a 5-inch colour HD display that highlights the finest details. You can zoom from 2x to 14x in books, photographs, newspapers and more. 20 high-contrast colour modes allow you to adjust text to your vision.

RUBY XL HD is easy to learn and use. It is equipped with a built-in stand to hold the screen at a natural angle, sliding effortlessly across a document as you read. The command buttons have contrasting colours and tactile cues that make the controls easy to operate. The convenient fold-out handle has two positions for a firm, balanced grip while reading cans and bottles or when reaching to read items on shelves.

With the ability to save 80 images and USB transfer capability, the Ruby XL HD offers clients more features to make their reading experience easier, more useful, and more enjoyable.

The small size allows it to fit in your pocket, making it an ideal travel companion.

Company: Cecitech
Product: VOICEYE™ 

VOICEYE™ is a smartphone application that enables those who are visually impaired or dyslexic to access printed information using a two-dimensional bar code that is implanted on each printed page.

Users can download the free VOICEYE app from the App Store or Google Play. Once a document is produced with a VOICEYE code, the user can access it with a smartphone, tablet or computer by scanning the code at the top right corner of the page. The text contained in the code is then available on the device. There is no need for a data or Internet connection to decode a VOICEYE code, since the code itself stores the data.

Text can be displayed on the device’s screen in five high-contrast text viewing modes and read aloud with TTS (text-to-speech) software. The scanned information is also retained in the device’s history for easy access later.

In South Korea, the VOICEYE solution has been successfully used in schools for the blind, universities, publishing companies, newspapers and elsewhere. The Korean government uses VOICEYE on official documents, such as social security information and tax bills.

In 2012, VOICEYE won the Bett Award in the ICT Special Educational Needs Solutions category. Bett is an annual trade show in the U.K. that showcases the use of information technology in education.

Product: Zoomax Snow

Zoomax Snow is a pocket-sized, handheld video magnifier that combines quality and low price. It is the lightest device of its kind and easy to use, with only three buttons (for magnifying levels, changing colour and font).

Snow offers a high-quality image and up to 16x magnification in a compact and stylish design. It features 10 viewing modes and smooth magnification adjustment. Freeze frame captures images for comfortable viewing and the user can zoom in/out or change the viewing mode of the still image. It is possible to view images on a TV screen by connecting Snow to the television with a cable. Snow’s rechargeable battery lasts 3.5 hours with continuous use.

Company: Eschenbach
Product: Smartlux Digital

The SmartLux Digital is a revolutionary, portable video magnifier that features a 5″ LCD thin-film transistor (TFT) display. It provides 5x, 7x, 9x, or 12x magnification (even less when used in hand-held mode), along with five different viewing modes: full colour, black on white, white on black, black on yellow, and yellow on black.

Illumination is provided by two hi-tech, surface-mounted-design (SMD) LEDs that last up to 50,000 hours. Three different illumination settings are available (100 per cent, 75 per cent and 50 per cent) and the LEDs can be turned off to avoid screen glare while looking at mobile phones, etc.

Images can be captured on the device and up to 20 can be stored with the ability to change the viewing mode and magnification of those images.

SmartLux Digital features a generous depth of focus and includes a stand that, in its fully extended position, is ideal for reading. In its half-extended position it is ideal for writing. When folded down, the SmartLux Digital is perfect for spotting objects a few feet away like posted restaurant menus, supermarket shelf prices, etc.

The screen is hard-coated for protection and made with an additional anti-glare layer of film. The device is completely portable and fits in a purse or large pocket. The automatic shut-off feature will activate between two and five minutes of non-use to save battery life. The SmartLux Digital comes with a two-year warranty.

Product: Diffractive lens

Eschenbach’s ultra-thin diffractive lens was designed to use in certain of its optical magnifying devices such as eyewear and telescopes. The lens is up to one-quarter the thickness of a comparably powered refractive lens, which makes it lighter and thinner, thereby improving cosmesis – the cosmetic look of the device. Because the new lenses are the same thickness as regular reading glasses, people are more likely to wear them than traditional refractive lenses.

Product: Cera-tec©

Eschenbach has also developed the cera-tec scratch-resistant lens coating. The patented coating minimizes scratches by up to 50 per cent and extends the life of the magnifier.

Company: eSight Corporation
Product: eSight Eyewear 

eSight Corporation has launched eSight eyewear, a device that enables some patients with low vision or legal blindness to see. eSight eyewear, which looks like a pair of fit-over sunglasses, uses a high-resolution video camera to capture what the wearer is looking at and deliver the images to a computer. Those images are processed and then projected, in real time, onto two LED screens inside the eyewear, allowing eSight to provide as near-normal vision as the wearer’s conditions permits.

Even in damaged or diseased eyes, eSight can digitally optimize video in a way that awakens the residual function of the remaining, functioning neurons or cones. The eSight-enhanced image causes the remaining photoreceptors to send an improved signal to the brain.

Unlike other assistive technology, eSight is mobile, hands-free and it auto-adapts to work effectively with near, far and mid-range tasks.

eSight has been shown to help people with macular degeneration, diabetic retinopathy, Stargardt’s Disease, ocular albinism, Leber’s Hereditary Optic Neuropathy, cone-rod dystrophy and other low vision conditions. It is best suited for visual acuity between 20/60 and 20/400.

eSight eyewear includes the patient’s prescription lenses and is custom fit for maximum vision and comfort. It is available in select low vision clinics in Canada and the U.S.

Features:

• Magnification from 1.5x to 14x

• Auto-focus enables wearers to quickly change their view

• Separate contrast and brightness features accommodate different lighting

• Freeze capability allows wearers to capture a still shot of an image

• Six custom colour modes make reading easier

• Software is easily updated via computer to keep eSight current

• Unique tilt feature enables wearers to alternate between walking and stationary activities like reading or watching TV

Company: HumanWare
Product: Prodigi™

The new Prodigi personal vision assistant won the Silmo d’Or Award for innovation and creativity in Low Vision technology at Silmo 2013. The Prodigi product line consists of three models: the Prodigi Duo, the Prodigi Tablet, and the Prodigi Desktop.

The Prodigi Duo is a 2-in-1 desktop HD digital electronic magnifier that incorporates a tablet docking station and a screen device (either 20” or 24”). This allows the user to have both a big-screen desktop device, and a go-anywhere magnifier at about the same cost as a traditional desktop system.

Both devices use Touch and Tap technology, and HumanWare’s unique Diamond-Edge Text™ format, which can be magnified up to 80x with no loss of text quality. Several different reading formats can be customized, and there is the choice to turn on the speech capabilities, if the user prefers to listen. Prodigi can also store documents and recall them for reading or listening at home or away. Start-up and training time is simplified with Prodigi’s built-in tutorial wizard, which also sets preferences for the user’s specific reading requirements when it is first plugged in and turned on.

The Prodigi Tablet is a handheld magnifier capable of the same functions as the Prodigi Duo, but in a portable, 5-inch touch screen LCD package that weighs about eight oz. The Tablet is capable of magnification, optical character recognition (OCR), text-to-speech, storage and more, inside a sleek, portable device.

The format of the Prodigi Desktop is similar to the Duo, but it is streamlined and doesn’t offer the tablet. The starting price is one-third less than traditional CCTVs.

Sharpening the Sensory Edge

By JoAnne Sommers

featureWith colourful paintings adorning the walls, Persian rugs carpeting the floor, the scent of incense wafting through the air and Billy Holiday crooning in the background, Envision Optical Designs in Vancouver’s trendy Kitsilano neighborhood offers a feast for the senses.

Owner Monny Nahoum’s store is a great place to find the latest in designer frames from Europe, Asia and North America. It is also an excellent example of sensory marketing in action.

Sensory marketing, whereby multiple senses are stimulated in order to heighten a product’s appeal, is an increasingly popular technique for enhancing consumer experience. Many well-known companies have leapt aboard the sensory marketing bandwagon: Singapore Airlines has a signature scent which makes frequent flyers feel more at home and enhances their flying experience; Starbucks has soundtracks to complement the smell and flavour of its coffee; and Westin Hotels and Resorts feature warm lighting, beautiful botanical arrangements, signature music and scents, all designed to create an emotional connection with guests.

Traditionally, most marketing efforts were directed at the eyes and ears, while the other senses were largely neglected. Today, with the competition for consumers’ attention so intense, there’s a growing belief that no sense should be left unstimulated.

“Whether it is the colours one sees, the packaging one opens or the music in the store, each experience draws, engages, and leaves behind an indelible trace,” says Aradhna Krishna, professor of marketing at the Ross School of Business, University of Michigan, and author of Customer Sense: How the 5 Senses Influence Buying Behavior (Palgrave Macmillan, 2013).

At a time when online eyewear dispensing poses a significant challenge to bricks and mortar dispensers, sensory marketing offers the latter a valuable opportunity to distinguish themselves by creating truly memorable in-store shopping experiences.

As the 2011 Customer Experience Impact (CEI) Report from RightNow Technologies noted, “Today it is nearly impossible for companies to sustain differentiation based on price or product. That leaves only one option – the customer experience. Customers want personal and engaging experiences that develop into relationships.”

They’re willing to pay for it, too: 86 per cent of consumers surveyed for the report said they would pay more for a better customer experience.

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feature2Nahoum, who was a fashion photographer and style consultant, before opening Envision Optical Designs in 1988, says his store’s sensory elements help to create a warm, inviting atmosphere, which his customers savour. Everything – from the lavender and geranium incense to the lush jazz soundtrack to the paintings by talented local artists – is designed to contribute to a stimulating and enjoyable shopping experience for his customers.

“It’s about more than just trying on a pair of frames,” says Nahoum. “I get very positive feedback from people who tell me they look forward to visiting and seeing what’s new in the art gallery.”

The art gallery ties in with Nahoum’s approach to eyewear, which he calls, “art for the face.” And the environment puts customers in a positive, relaxed frame of mind, which is important, “because it takes about an hour when I work with someone new.”

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The atmosphere at the 165 IRIS eyecare locations across Canada is also designed to put customers at ease so staff can discuss their needs and determine which products will best fill them.

“Patients are seated in a living room-like setting and offered a beverage,” says Dr. Daryan Angle, vice president of Professional Relations with IRIS the Visual Group. “The atmosphere is warm and homey because we want to establish a level of trust with them.”

Angle says the company tries to engage the senses as a way to enhance the customer experience from the first contact right through the fitting process.

All of the company’s stores are recognizably IRIS locations, he adds. “The look is high-end with dark oak finishes combined with rock faces. Our soundtrack is classic light pop, designed to appeal to our target demographic, which is women 35+. And we’re working on perfecting a scent for our locations. The challenge is that some people have allergies and we want to be sensitive to that.”

It’s important to strike a balance when it comes to the senses, however. “To engage the sense of touch, for instance, we shake hands and take their arm if it’s appropriate. But we’re always careful to respect the customer’s space.”

Angle sees the sensory approach, “as one way to differentiate ourselves. With the rise of online dispensing the experience must be better than it was a few years ago. To achieve our average eyewear transaction of more than $700, you need to create a special atmosphere without going over the line.”

In the long term, IRIS believes its approach will result in a higher average customer purchase.

“We also think it will lead to more frequent purchases so it will contribute to sales growth. Despite the current pressures on the industry, we’ve maintained market share and grown a little. Our focus on customer experience has been crucial to that. When things improve, we will have maintained our loyal customer base and created a much stronger connection to them, which will position us for further growth.”

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Marie-Sophie Dion has created a unique minimalist experience for customers who visit her four Bar à Lunettes locations in Quebec.

The walls are white and each room is large and airy, with ultra-high ceilings and curved feature3walls. Large windows admit plenty of natural light, and big LED spots on the ceiling direct a “natural” light colour onto the walls, creating a reflection and brightening the room. Dark wooden floors add warmth to the decor.

Acrylic rods suspended from the ceiling showcase frames and sunglasses. In the centre of the showroom is the bar, with dark wood counters and 10 stools made of white leather and stainless steel.

“I want our decor to please customers who appreciate modern, avant-garde design,” says Dion, whose locations include Montreal, Saint-Lambert, Laval and Sherbrooke. “And I want people to feel they are not in Canada, but on a journey somewhere, with no country or period attached to the moment.”

Music is very important to Dion, since the stores are so large. “Without it, they would feel cold and empty. We have an itunes music radio channel and the style is electronic lounge.”

Dion says she is developing a personalized fragrance to complement the customer experience. “It is a citrus scent because the lemon is part of our concept’s image: the eyewear “bar”. And lemons are the only fruit you need when opening a bar.”

*****

Three optical businesses – three different approaches to sensory marketing – and each as unique as the clientele they are designed to attract. The lesson is simple – appealing to the senses pays off. How do you stack up?

Putting the “Pop” in POP

Point-of-purchase materials (POP) play an important role in creating a stimulating sensory environment for consumers. Appealing window treatments draw people into your optical store, while attractive display systems, pleasing images and engaging educational tools all contribute to making it a memorable experience.

“POP is an excellent way to attract, educate and inform consumers,” says Glen Eisenberg, president of Montreal-based Precision Advertising, whose clients include WestGroupe and IRIS, the Visual Group.

In general, POP enhances the presence of a brand or product line, says Eisenberg. The challenge is ensuring that the messaging is relevant to consumers and communicating it in a way that resonates with them.

“If there are 1,000 frames on your board representing 60-70 brands, anything that brings a brand forward will make it stand out,” he explains. “If you add strong, relevant messaging about the brand proposition, it creates an additional impression beyond the product itself.”

Many manufacturers are developing innovative POP displays, including window units that help to create an interesting merchandising story, says Eisenberg. For all of the WestGroupe brands, Precision Advertising has developed a suite of materials, including banners, counter cards and ancillary products, which sales reps can use to create such a story, either in windows or inside the store.

“This is a core part of WestGroupe’s marketing strategy,” says Eisenberg. “They want to impact customers who visit the store at a sensory level.”

WestGroupe also provides its customers with behind-the-scenes video from fashion photo shoots, says Bev Suliteanu, vice-president of product development. “Many of them use it, along with our campaign video, on their in-store video monitors.”

IRIS, the Visual Group uses LCD screens to explain the features of its digital lens products to customers, says Dr. Daryan Angle, vice-president of professional relations.

“It’s difficult to communicate the benefits verbally,” he says. “Using programs from Zeiss and Nikon we can show the higher contrast, sharper colours and wider fields of view available with these products.”

The systems can be programmed to change as new promotions become available, Angle adds. “It’s cheaper than printed materials and the high-resolution images are more eye-catching.”

Transitions Optical’s Marketing Manager Isabelle Tremblay-Dawson believes that it’s more important than ever for optical customers to have the best possible shopping experience, since those who do are more likely to recommend the store to family and friends and to return themselves.

“We need to differentiate our brands based on the customer experience, as well as the products we’re selling,” she says.

To facilitate that, Transitions offers a wide range of POP materials and patient education tools that demonstrate the benefits of its products. For instance, the company provides clients with UV demo light units and lens cards, which demonstrate the benefits of photochromic technology in-office.

“It can be difficult for patients to understand the technology if they get only a verbal explanation. With our tools, the ECP can place the lens card, which holds a regular, semi-finished lens, in a UV unit to show it activating and then fading.”

Other POP materials include window clings that tie into the look and feel of Transitons’ “Life Well Lit” ad campaign. “They help patients make the connection between our mass media campaign and the product in-store,” says Tremblay-Dawson.

Marchon has an innovative way of keeping its clients up to date with fresh POP material. “Each season, select accounts receive a USB key that activates Lacoste’s 4-piece integrated video display,” says Marketing Manager Kristina Simeone. “It’s a great display, featuring music as well as images, that started with Lacoste’s Magnetic Frame collection in 2012. This year, accounts received a key to access the video celebrating Lacoste’s 80th anniversary.”

The window displays, counter cards, cubes and window clings for Marchon’s brands are especially popular with optical stores in Canada, says Simeone. “Accounts are realizing the benefits of improved communication and are seeking materials with an added benefit or “wow factor”. The video display educates the audience on the brand while creating a stronger relationship with each consumer.”

Tura, Inc. reflects the quirky, playful nature of the Ted Baker Eyewear and LuLu Guinness eyewear brands with dynamic POP, says Marketing Director Lidia Parisi.

Ted Baker is positioned as a brand with attitude, appealing to a broad target audience of men and women, both young and the young at heart. Its “out of the ordinary” philosophy is reflected in the POP, which includes a small suitcase and trunks that are, “very quirky, just like Ted Baker,” says Parisi.

The iconic image of LuLu Guinness is a large pair of red lips, which reflects the designer’s individual style and glamour. The red lips are incorporated in a three-piece display and logo ID for the brand.

“We want our POP to have standout value,” Parisi says. “It’s more interesting than traditional merchandising stands and people love it.”

Sàfilo’s POP reflects the company’s position as the purveyor of exclusive luxury brands and helps to create a positive first impression of optical stores that carry them, says Wendy Bertrand, the company’s Toronto-based in-store visual merchandising specialist. “Our products, their packaging and the store environment all reflect that position,” she says.

Sàfilo creates a marketing plan for each account annually, which specifies how the various visual elements will be used. Says Bertrand: “We show clients what’s available for premium displays as well as what’s upcoming and we change it seasonally. For key accounts, windows are changed four to five times a year, using different brands.”

Lighting and movement provide important visual appeal, she adds. “Movement, either in windows or in-store, catches the customer’s attention. Lenticular displays can be used in the front window so the store attracts passers-by, even when it’s closed. Lighted sign holders and Illuminated light box posters are important to accounts, as are videos specific to our brands: our trend video, which talked about the different brands and eyewear trends for summer, was very popular. All of these elements enhance the customer experience and impact the bottom line positively.”

Engaging the Senses

Paco Underhill is president of New York-based Envirosell, an international marketing company that specializes in analyzing the interaction between people and products in commercial spaces. Underhill, who has worked with optical retailers around the world, including Canada, is also the author of Why We Buy: The Science of Shopping (by Simon and Schuster, 1999).

“Every merchant in 2013 is trying to think about all the senses,” he says. “They recognize that managing the customer’s sensory experience can be a powerful subliminal tool. But it often takes a very light hand.”

Here is Underhill’s advice for creating a positive sensory experience for your customers:

Sight

Lighting is among the easiest and cheapest ways to improve the quality of the customer experience, he says. Pay attention to the quality of the lighting and match the colour “temperature” to the environment and your customer mix: generally, the more pink-skinned your clients, the warmer the lighting should be, and the more olive-skinned they are, the cooler it should be.

“It’s a matter of making people look as good as possible while they’re wearing your frames,” he says.

Touch 

Having patients try on frames of different weights is one way to involve their feeling sense, says Underhill. Another is to physically adjust the glasses on the patient’s face.

“Explain that the more money they spend on frames, the lighter they will feel on their face,” he advises. “The time and care you take at this point will earn you customer loyalty.”

Sound

There are two elements to this. The first is to eliminate unpleasant sounds. Carpeting can help to absorb sound in a noisy showroom and white noise units also absorb noise and contribute to a peaceful atmosphere.

The second element is music, “A sound track of some kind adds to the pleasure of being in a space and it can be customized to the time and the day,” Underhill notes. “For instance, you might want to play the Beach Boys or Death Cab for Cutie on a Monday morning but Sinatra on Saturday night.”

Smell

This can be important in an optical setting where machines are operated, notes Underhill. “You may be oblivious to it but others will notice,” he says.

The underlying smell should always be clean, he adds. “Make sure that any scent you introduce is subtle. You don’t want to overwhelm people. And remember that some people are allergic to scents so ensure that it’s gentle.”

• Taste

You can appeal to your customers’ sense of taste by offering them tea, coffee or a soft drink as part of the welcome process. This helps to put people at ease and gets them talking about their work, lifestyle, etc., all of which has a bearing on their vision needs and challenges.

“When the saliva glands are working, the wallet is looser,” says Underhill.

Untangling the Web of Online Eyewear Stores

By Evra Taylor

This is the second installment in a series that explores online eyewear retailers, how they operate and what they have to offer.

specialonlineretailersDespite resistance from the professional eyecare community, online optical sales have reached critical mass in North America.

In February 2012, CBC’s Marketplace reported that many Canadians are overpaying for prescription glasses due, in part, to weak competition in the market. According to the report, a pair of glasses can cost upwards of $1,000, with the most expensive part being the lenses. But this report also stated quality generic lenses that will serve most people are mass-produced and can cost as little as $2 to $10 to make.

In light of the high cost of eyewear, a sluggish economy and continuing high unemployment, it’s no wonder that dollar-conscious consumers are turning to the Internet for significant cost savings in optical wear.

Eyeglasses Online Review 2013 compared consumer reviews of online eyewear providers and identified the top 10, starting with the most highly rated, as: FramesDirect.com, Coastal.com, Eyeglasses.com, GlassesUSA.com, Glasses.com, Zenni Optical, GlobalEyeglasses.com, EyeBuyDirect.com, GlassesShop.com and 39DollarGlasses.com. Reviewers commented on frame selection, lens options, value, shipping, and help and support.

While the convenience of online shopping is not lost on those in the optical sector who oppose e-retail, problems relating to frame fit and return policies are often raised by opticians who contend that a hands-on experience cannot be replaced by a virtual try-on. Try-on features are now the point of entry for any online eyewear store serious about competing in an increasingly cluttered marketplace, but even the ability to visualize how an eyeglass frame will look on a person’s face is no guarantee of a perfect aesthetic – or fit.

Home try-on, however, is a feature offered by some online eyewear retailers such as Warby Parker. While the company does ship to Canada, it doesn’t offer its home try-on program outside of the U.S. The website’s virtual try-on service works from any location, but purchasers in the U.S. can order up to five pairs of glasses to try on at home for five days. Once they’ve made their choice – even if they decide not to buy any of them – they can return them at no cost.

To dispel the pure cynicism that is hard to resist in this era of price-driven expediency, it’s not all about the money all the time. Warby Parker appears to be as good as it is hip and it wears its heart on its virtual sleeve. Front and centre on the company’s website home page is the “buy a pair, give a pair” option, the company’s expression of good citizenship, whereby, for every pair of eyeglasses purchased, a pair is donated to someone in need.

Coastal.com, which claims to be the largest online contact lens and eyewear retailer in the U.S., and to have the biggest selection of designer and brand name eyewear at the most affordable prices anywhere on the web, has its Change the View Project, although it doesn’t give the impression of being as essential a part of the company’s DNA as Warby Parker’s charitable works.

While giving is good business, at the end of the day the bottom line is the most important feature of all. Will online retail replace bricks and mortar stores? It seems doubtful, as many shoppers still prefer the face-to-face service provided by the traditional shopping model. Only time will tell.

The Power of Two

By JoAnne Sommers

designerBorn of an entrepreneurial spirit combined with native artistic vision, AYA eyewear and accessories is a unique Canadian eyewear brand that reflects a collaboration between two dynamic women: Vancouver entrepreneur Carla D’Angelo and award-winning First Nations artist Corrine Hunt. AYA is the brainchild of D’Angelo, founder and president of Claudia Alan Inc., a 10-year-old company whose products have garnered rave reviews for their artistic quality as well as the money they’ve raised for charity.

D’Angelo comes by her gifts naturally. Her father, Antony D’Angelo, was a guest conductor with the Vancouver Symphony Orchestra, and a successful entrepreneur who created private label footwear for Eaton’s and Woodward’s stores. Her mother, also a musician, was a partner in the family business.

Carla D’Angelo studied fashion merchandising at Ryerson Polytechnic (now Ryerson University) in Toronto, graduating in the early ‘90s with a degree and, “lots of creative ideas, plus marketing and business skills.” She worked for Future Shop/Best Buy, doing layout, planning and store design, then moved to Vancouver-based Suntech Optics, where she was quickly promoted to VP, purchasing and marketing. While she loved her first foray into the eyewear industry, D’Angelo wanted a family. So she took a hiatus, moving to St. Louis in 2002 with her husband, Peter, a software engineer. Her daughter, Chloe, was born later that year.

Even then, D’Angelo was looking to the future. In 2003, she formed Claudia Alan – her middle name combined with Peter’s – and began planning the initial collections. And while visiting Vancouver that year, D’Angelo met Hunt at a One-of-a-Kind craft show.

“I loved her design aesthetic, her passion and her integrity. When Peter and I moved back to Vancouver in 2004, she and I discussed my idea for AYA Eyewear and I commissioned some artwork from her.”

D’Angelo’s idea was for “wearable art” that integrates the aesthetic of the Pacific Northwest. She admits that she wasn’t sure of the market for such a collection, “but I like to take chances so I decided to go ahead with it anyway.”

Launched in 2007, the AYA collection is inspired by D’Angelo’s love of aboriginal art. Each frame features First Nations-inspired artwork etched on the temples; the nature-inspired designs include Sun, Eagle, Hummingbird, Raven, Wolf and Killer Whale. Each has a deeper meaning: Sun, for instance, symbolizes nourishment, truth, honesty and clarity, while Wolf represents family togetherness and communication.

The design process is a joint effort between the two women. “I know the type of collection I want, based on trends and the direction of the eyewear industry,” says D’Angelo, who is responsible for the colour development and construction of the frames. “Corrine does preliminary drawings, we review them and then work together to integrate her artwork.”

Hunt, who co-created the medals for the 2010 Olympic and Paralympic games in Vancouver, is a member of B.C.’s Komoyue Nation. Inspired by her uncle, engraver Norman Brotchie, she began designing jewelry at 24. Her work, which includes furnishings in carved stainless steel and reclaimed wood, modern totem poles and sculptural installations, is collected around the world and appears in the Smithsonian in Washington and the Canadian Museum of Civilization.

“When Carla approached me about creating eyewear with native motifs I loved the idea,” says Hunt. “I want people to look at these west coast designs and see the world I live in. Our culture is a living thing – adaptable, modern and fresh.”

Hunt is inspired by the natural world and her First Nations Komoyue and Tingit heritage. “I also want to create something new that people will see, wear and enjoy.”

D’Angelo says that AYA’s market is about 60 per cent female with an age range of 35-55, although the collection also appeals to younger people. While Canada remains the primary market, the frames also sell well in the U.S., Germany and Australia.

The next AYA collection will be a bit of a departure, says D’Angelo. “It will have a social theme – “community” – and we plan to interview children to see what that means to them. I don’t want to give away too much, but it should be very interesting and I’ll share more when we’re further along.”

The new collection is motivated in part by the Reconciliation movement, whose purpose is to build new relationships among Aboriginal peoples and all Canadians, she adds.

Partial proceeds from the sale of all AYA eyewear and accessory items are donated to ONE X ONE, a First Nations breakfast program. To date, the company has raised almost $100,000 for the program.

As D’Angelo, who was recently nominated for an RBC Canadian Women Entrepreneur Award, explains: “Our mission is to create beautiful products that make a difference. I believe strongly in the importance of integrity in relationships and of giving back. It’s essential for me to feel good about what I do and to create products that I’m proud of.”

Diabetes and Eye Health

By Caroline Breton, B.Sc, Registered Dietitian

nutritionNovember is Diabetes Awareness Month, shining a spotlight on the more than nine million Canadians who live with diabetes or prediabetes. Canada has one of the world’s highest rates of diabetes and diabetes-related mortality per capita, with costs to our health-care system of almost $12 billion annually.

Diabetes is also Canada’s leading cause of blindness. If blood sugar is not well controlled, people with the condition may be at greater risk of developing glaucoma, cataracts, retinopathy, AMD, blurred vision and vision loss. Other health complications include heart disease, stroke and kidney disease. Diabetes can affect various parts of the body, including blood vessels and the eyes. With some eye diseases such as retinopathy, high levels of blood sugar weaken the walls of small blood vessels, like those in the retina, making them more prone to damage. The damaged retinal blood vessels leak blood and plasma into the retina and over time, the changes that occur as a result of diabetes lead to vision loss.

Although no specific foods or nutrients can lower the risk of developing glaucoma, cataracts or retinopathy, people with diabetes should manage their blood sugar, blood pressure and lipid profiles. When someone with diabetes has stable blood sugar levels, they are less likely to experience eye problems.

People with diabetes should get routine eye examinations from their eyecare specialist. They will also benefit from consulting a registered dietitian, who will develop an eating plan to keep blood sugar levels in check.

Learning how to manage diabetes involves lifestyle changes that require long-term commitment and personal motivation. The first step is to consult a healthcare professional to become better informed about the condition and its possible complications. The second step is to manage diabetes by following three rules: being active, eating a well-balanced diet and achieving and maintaining a healthy weight. Physical activity benefits everyone but for those with diabetes, it is especially important because it helps the body lower blood glucose levels and improves sensitivity to insulin.

Meal planning and making healthier choices can make a substantial difference in helping the body control blood sugar levels. People with diabetes need to have regular meals, follow recommended portion sizes, limit sugars and sweets, limit high-fat foods, include more high-fibre foods, make lower-fat food choices and drink plenty of water. Achieving a healthy weight is worth the effort as it will improve blood sugar levels and may significantly reduce the need for medication. By taking these steps, a person with diabetes can gain control over their blood sugar levels and keep their eyes healthy.

Nutrients for Eye Health

Since eye diseases are more common in diabetics, it is important to do everything possible to maintain eye health. Research has shown that certain nutrients are beneficial to the eyes and may reduce the risk of some eye diseases. To protect the eyes, choose foods that contain vitamin A and carotenoids, such as lutein, zeaxanthin and beta-carotene. These nutrients can be found in a wide variety of fruits and vegetables.

  • Vitamin A or beta-carotene: beta-carotene is converted to vitamin A in the body and is one of several kinds of carotenoids. Found mainly in plants, carotenoids are commonly bright yellow, orange and red pigments, which give foods their colour. Rich sources include carrots, sweet potatoes, squash, cantaloupe, peaches, broccoli and kale;
  • Lutein and zeaxanthin: these carotenoids are present in the macula segment of the retina and are believed to play a role in eye health by improving macular pigment density. The best food sources of lutein and zeaxanthin are kale, spinach, sweet potatoes, squashes, carrots, cantaloupe, corn, egg yolks and eggs enriched with lutein.

Vitamins C and E and the minerals zinc and selenium are also eye-friendly nutrients.

  • Vitamin C: mainly found in the fruits and vegetables food group, sources include citrus fruits (oranges, grapefruit and lemons), strawberries, sweet peppers, broccoli, cabbage and tomatoes;
  • Vitamin E: is a very efficient, natural antioxidant and a fat-soluble vitamin that can be stored in the liver. It is mainly found in almonds, sunflower seeds, wheat germ, vegetable oils, margarines, fish and leafy greens;
  •  Zinc: is found in a wide variety of food groups, such as meat, milk products and  grains. Sources include lean meats, oysters, fish, beans, pumpkin seeds and wheat germ.
  • Selenium: is found in nuts and seeds, fish and seafood.

All of these foods help to provide a balanced diet rich in fruits and vegetables that can promote eye health. Several eye health supplement formulations containing these nutrients are also widely available.

In order to recommend appropriate nutritional supplements and supervise their use, healthcare professionals must be aware of a patient’s medical condition, including diseases such as diabetes and hypertension, and whether a patient is a smoker or is taking medications.

For more information on diabetes or additional resources, contact the Canadian Diabetes Association at http://www.diabetes.ca. For information on food and nutrition or to find a dietitian, contact Dietitians of Canada at http://www.dietitians.ca.

Employee Fraud: What You Don’t Know Can Hurt You

By JoAnne Sommers

(This is the second in a two-part series dealing with fraud in the small business workplace.)

managingyourbusinessNo employer wants to think employees might be untrustworthy. Yet statistics show that employee fraud is a fairly common problem, particularly among smaller businesses.

The Certified General Accountants Association of Canada (CGA-Canada) estimates that $3.2 billion is lost to small and medium-sized (SMEs) Canadian enterprises annually from occupational fraud, defined as fraud committed by employees, managers and owners, where the victim is the organization itself. The figure comes from a 2011 CGA-Canada survey, which found that 26 per cent of SMEs surveyed (290,000 companies) reported experiencing occupational fraud in 2010.

The report cited misappropriation of inventory or assets, misappropriation of cash and misrepresentation of employment credentials as some of the most common types of occupational fraud.

Beyond the financial losses incurred as a result of occupational fraud, there is a significant non-financial cost to the companies involved. Nearly two-thirds of survey respondents said it had impacted staff morale and one-quarter said it affected the company’s reputation. Other negative consequences included the impact on the company’s ability to attract and retain employees and its ability to develop its business.

Small and medium-sized enterprises are more vulnerable to fraud than other types of businesses because they often have limited ability to allocate financial and human resources to fraud prevention and detection, says the report. As well, companies with fewer employees tend to have less segregation of duties and fewer internal accounting and auditing controls, according to Sage 50, a supplier of accounting and business management software to start-up, small, and midsized businesses.

Despite these challenges, it is possible for small businesses to protect themselves by making employee fraud prevention a priority. Here are some steps you can take:

• Know Your Employees

To reduce the risk of employee fraud, it’s important to hire good people. Check the references of prospective employees, along with their employment and educational history for any previous incidents of fraud or illegal activity.

This is particularly important when hiring for positions involving inventory and money. In such cases, BMO Bank of Montreal says you should also scrutinize date and time gaps in candidates’ resumes. Obtain written permission before conducting a deeper background check – such as a criminal record investigation or credit check – which can be done by a third-party firm.

• Educate Your Employees

Employees serve as the eyes and ears of a company, says Sage 50, and by ensuring that staff members are knowledgeable about basic fraud prevention techniques, you’ll establish a first line of anti-fraud defence.

Educate your staff on basic security measures, such as how to recognize potential threats and why it’s important to take precautions. Enforce the training by instituting policies that guide employees on the proper use and handling of confidential information, including financial data, personnel and customer information.

• Segregate Key Responsibilities

In a smaller business, employees often wear several hats, which can make the company more vulnerable to fraud. When possible, segregate financial responsibilities for budgeting, purchasing and payment approvals, says Mohit Veoli, assistant vice president, Fraud Management, TD Canada Trust.

Ensure that one employee isn’t both writing cheques and reconciling bank statements or initiating purchase orders and approving the payment, says Barkin Sayiner, commercial banking area manager, BMO Bank of Montreal. “If you don’t have enough staff to divide these key roles, consider requiring a second approval – from a supervisor or manager – to check that these financial actions are valid.”

• Limit Employee Access to Bank Account Data

Ensure that you have rigorous internal processes to manage functions like payroll accounts and bank transfers. All it takes is your account number and bank transit information to initiate fraudulent bank transfers from unauthorized sources.

• Review Financials

Regular reviews of bank statements, accounts receivable and payable, invoices, purchase orders and payments can eliminate many types of fraud.

• Track Inventory

Can you account for all of your company’s computers, including laptops and tablets? Does all your sales stock end up in the hands of paying customers? To ensure you can answer, “yes,” to these questions, establish a written inventory policy and make sure all employees receive a copy. The policy should outline procedures for ordering and keeping track of stock and equipment at every stage. Also, take inventory regularly and rotate the responsibility for it.

• Limit Administrative Access

Make sure that all sensitive business information is password-protected, and assign access to company business data, website and email accounts to different individuals, if possible. Change passwords regularly and monitor when business files – especially financial material – are being worked on. If there is a pattern of someone logging in after hours, that could be a red flag.

• Develop a Fraud Policy

By developing a code of ethics for your company and communicating it to all employees you signal not only that you take these activities seriously but also that there will be consequences. “If employees understand the negative consequences of fraud they may think twice,” says Sayiner.

• Take action When Fraud is Discovered

Having a fraud policy is useless if you are unwilling to enforce it. Treat all employees equally regardless of tenure, says Veoli.  “It should be about the process, not the individual.”