Transcript Document

Dental Marketing Ethics,
Strategy & Tactics and
Patient Compliance & Retention
Curt Hamann, MD
Loma Linda University
February 2009
“Direct Marketing is the interactive use
of advertising media to stimulate a
behavior modification in such a way this
behavior can be tracked, recorded,
analyzed and stored on a database for
future retrieval and use.”
Bob Stone
The reason healthcare providers fail
despite implementation of a welldeveloped marketing plan is because
they do not provide consistent clinical
experience and results which meets or
exceeds the patient’s expectation.
A Terrific Marketing Plan
will not solve:
•
Rude Staff
•
Long wait times
•
Uncomfortable reception area
•
Confusing fees
•
Poor location
•
Limited office hours
•
Distant parking
•
Inflexible payment options
•
Poor listening skills
•
Inadequate discussion of risks/benefits
•
Nominal follow-up
The reason most healthcare providers
are not successful in sustained marketing
of their practice is the absence of a plan
which defines the collection of metrics
that describe success or failure.
Biggest stumbling blocks are
unreasonable short-term goals,
inadequate systems to accurately
track source of new patients and
lack of commitment to sustained
direct marketing investment.
You need a marketing plan, even if it is
simple! If you do not have an office
branding strategy (logo & mission
statement) take the time to develop them
and then consistently leverage your
unique identity in all future marketing
media.
Marketing Plan – Internal & External
Internal Marketing focuses on strategies to communicate with and
educate current patients of record and can include the following:
1.
Office décor which creates context
for the cosmetic & restorative
procedures you offer.
before and after photos.
7.
Mailed appointment reminders
8.
Patient reactivation for
E.g.
professional cleaning visit with
cosmetic procedure featured.
9.
Birthday cards
2.
Brochures explaining procedures
3.
DVD in reception describing services
4.
Web site
10. Patients who refer patients thank
you strategy
5.
Newsletters
11. Welcome to practice
6.
Email: appointment reminders
Marketing Plan – Internal & External
External Marketing:
1. Magazine
6.
Screenings
2. Newspaper
7.
Community lecturing
3. Yellow pages
8.
Direct Mail
4. TV/radio
 Solo letter or postcard
5. Web site
 Card pack
 newsletters
What does market research show as
the best cosmetic procedure/service
which has the greatest economic
potential among a targetable
demographic within reasonable
distance of your office(s)?
Direct Mail
“The humble postcard, so small, yet so
commanding, is perhaps the most
effective, written marketing tool. It is
the fastest, easiest, most economical
way to market.”
Scott Vogel
“Prospects can’t hang up, they can’t click DELETE, they
can’t use caller ID and let the answering machine pick it
up. But they can throw it away. But not before they at
least take a quick look at the billboard, the postcard’s
picture. That picture grabs the attention of any prospect
in only a few seconds. They don’t have to open a letter
(9 seconds). With a postcard, there is no guessing, no
surprises, no competing with the bills, personal junk mail
or junk stuff she gets.”
John Files
Postcard Objectives
A postcard must first visually capture the attention of the
prospective patient with graphics and compelling headline.
Secondly sustain interest by talking about their needs and
wants, the benefits and advantages of what you are offering.
Create desire with an offer. Preferably an irresistible offer they
cannot refuse.
There must be a call to action. Call for an appointment.
Elements of Promotion
Taken from Successful Direct Marketing Methods by Bob Stone & Ron Jacobs
Consumer Compiled List Segments
Demographic:
•Age
•Occupation
•Gender
•Credit & Savings
•Household Income
•Education
•Marital Status
•Mail/Phone Responsive
•Family Composition
•Telephone Number
•Home Value
•Auto Registration
•Dwelling Unit Type (Single vs. Multiple)
Taken from Successful Direct Marketing Methods by Bob Stone & Ron Jacobs
Consumer Compiled List Segments
Lifestyle Interests:
•Brand/Category Usage
•Travel
•Ailments
•Sports
•Financial/Stocks
•Books
•Presence of Children
•Wine
•Pet Ownership
•Gourmet Food/Cooking
•Mail Order Shopping
•Fine Dining
•Household Income/Home Ownership
Taken from Successful Direct Marketing Methods by Bob Stone & Ron Jacobs
Better off creating a lower cost piece(s)
such as a postcard and send it to the
target audience at a higher frequency.
3 postcards to same target at 2 month
intervals will outpull one letter to the
same audience.
Ingredients to increase
postcard effectiveness
1.
Be sure the goal is clear (e.g.
new whitening patients…)
7.
Emphasize your Brand
(logo, clinic use?)
2.
Visually hard to throw away
by intended target
8.
Don’t be afraid of FREE
9.
Clear call to action: Call for
your appointment now. 602225-0595.
3.
Compelling headline
4.
Clear offer
5.
Premium
6.
Consider overcoming known
common objectives

Location

Hours

Financing options
10. Mail to correct list
11. Return address
12. Seed the list
13. MEASURE
Set Reasonable Objectives
• Break Even
• Profit
• Life Time Value
Direct Mail Break Even Calculation
Assumption #1
Direct mail piece cost including postage:
$.60/ea or $600/1000
Gross profit for procedure performed: $500
600
= 1.2 customers/1000 mailed to break even
500
Direct Mail Break Even Calculation
Assumption #2
Direct mail piece including postage of $1 or
$1000/1000
Gross profit for procedure performed: $1200
1000
= .83 customers/1000 mailed to break even
1200
Setting Unreasonable Short-term
Profit Objectives
•
$600/1,000
•
$600/1,000
•
2% response rate
•
.5% response rate
•
20 patients
•
5 patients
•
@ $750ea = $15,000
•
@ $750ea = $3,750
•
COGS/pt = $200 = $4,000
•
COGS/pt = $200 = $1,000
•
11,000 in operating profit!
•
2,750 in operating profit
Lifetime value of a cosmetic patient ranges from
2,500-15,000 depending on your procedure mix and
practice location.
If practice growth is the objective…stick to
reasonable short-term roi goals on direct marketing
campaigns and reap tremendous dividends with new
patient future referrals and the combined Life Time
Value.