Dental Marketing - 19 - How Do I Get a Marketing Plan from NPI?

July 2013 Newsletter - Let's talk about barriers - Dental Marketing

Let's talk about barriers

In the last issue of this newsletter, we discussed call tracking and calculating/projecting forward return on investment. Barriers have an awful lot to do with the number of calls you receive from your advertising, and in turn, your return on investment. Our objective with the next several issues of this newsletter is to enlighten you on how the public views the barriers, and how you might be able to mitigate the barriers to get a better result.

Price as a barrier

Price is the #1 consumer concern when choosing a dentist. We know this from testing. We know this from investing in completely independent consumer research. We doubt this is a surprise to any of you.

Is it price or ignorance?

We contend, and have proven for the past quarter century, that you can effectively promote a dental practice WITHOUT focusing (visually) on price incentives. As a matter of fact, in 99% of our work, you would have to search for or listen really hard to find any price incentive.

Females choose healthcare providers for their family. Half of those females are turned off by price incentives offered by healthcare providers as the primary focus of their advertising. These females make up the top half of the dental market.

If you look at the subject of price, one can flip it around and begin to wonder if the market truly understands the value and benefit of what dental practices offer. If they did realize and understand the value and benefit of what the dental practice offers, wouldn't price be less important? Yes, of course, especially with the top half of the dental market.

With the top half of the dental market, what you have is almost pure ignorance. Price is the only known concern. They don't understand the benefits of today's dentistry. The only thing they do know to ask about is either the price, or if their insurance will cover their visit/treatment. Fill their minds with the value and benefit of today's dentistry (in your advertising and during the first phone call to your practice), and the importance of price fades very quickly.

How to mitigate the importance of price in your advertising

In your advertising, you first mitigate the importance of price by talking about it! But, you don't have to make a big deal about some new patient special. You mitigate price by letting your audience know other things about price. You are affordable for the whole family. You offer payment plans. You offer patient friendly financing. You are their advocates, and will do everything you can to maximize their dental insurance benefits. You invest in technology that allows you to find cavities earlier, to help them save money. You provide same day dentistry to save them time and money. There are literally dozens of ways to talk about price with the consumer, without being perceived as the bargain basement dentist, and in turn, turning off exactly the market segment you are going after - the top half.

Don't avoid talking about price. Just talk about price positively without coming across as the low cost provider in your market.

The next thing you do in your advertising to mitigate the importance of price, is to talk about the benefits of the dentistry you provide! Refocus the consumer. They simply do not know what you do. They really do think the dentistry performed today, is the same as the dentistry done 30 years ago. Fill the value void. If you fill the value void, the importance of price is replaced with the importance of the services, conveniences, and technologies you provide.

 

Why does everyone ask about price or insurance during their first phone call to your office?

The bottom half of the market is asking about price or insurance because that's all they really care about. Your chances of flipping them into a good quality new patient are slim. Many frogs, and the occasional prince.

The top half is asking you about price or their insurance coverage because that's all they know to ask. They don't know anything about the dentist, services, technology, or conveniences your practice offers - they ask about the only thing they know. A properly trained staff person answering that phone call will immediately begin talking up the dentist, the quality of the services, the technology, and the conveniences your practice offers.

Your advertising primes the pump. If your advertising is filling the value void (talking about reasons to choose you other than price), and your staff is also talking about the value of seeing you - you will attract more than your fair share of the top half of the dental market. When that happens, you begin moving toward your objective.

Let everyone else compete to be the cheapest dentist

There are 75,000,000 females in the US who are not going to choose the overt, lowest cost provider anyway (the top half of the market). It's funny, the more overt and cheaper the advertising appears, the more the top half of the market moves away from those dentists.

Mitigate their initial concern about price and their ignorance about the benefits of today's dentistry by proactively talking about how your practice helps them afford and save money. Then fill the value void with the benefits of choosing you as their dentist.

Watch what happens.

Next month we talk about the barrier of convenience. Too many of you "think" you are a convenient dental practice to choose. The barrier of convenience is typically a fairly easy one to mitigate. So, pay attention next month.

If any of you need us, just call 866.336.8237. We will be here for you.

Got questions? Want to learn more?   

You can reach Mark & Howie at:

Howie: mailto:whh@newpatientsinc.com

Mark: markd@newpatientsinc.com

Check out our latest dental marketing book

Dental Marketing - 18 - What If I Don't "Like" My Promotions?

Dental Marketing - 17 - How Do I Promote Dentistry Over the Internet?

Dental Marketing - 16 How Do I Measure ROI?

New Patients, Inc. 
5935 Edmond Street Suite 105
Las Vegas, NV 89118
Telephone: 866-336-8237   
Email:  info@newpatientsinc.com
Website: NewPatientsInc.com

Dental Marketing - 15 How Do I Track the Results of My Promotions?

June 13, 2013: News You Can Use from New Patients, Inc.

Let's talk about call tracking and calculating forward ROI

In the last issue of this newsletter, we discussed what we are seeing across the board; a slow and steady growth in our response numbers. We also discussed where the revenue growth is coming from (elective) and recommended that it may be a good time to re-balance your promotion budget from 100% core staples of dentistry to perhaps an 80/20 mix of core staples and elective dental services.

Call Tracking & Calculating forward ROI

ROI = Return on Investment. If you are a client of NPI, you already know what call 

tracking is. We strongly encourage all of our clients to use tracking numbers on any promotion effort that consumes more than 10% of their annual promotion budget. 

For this e-newsletter, let's dig deeper. The goal of this newsletter is to give you monthly control of how your promotion is paying off. Maybe not this particular month, but most certainly down the line.

To provide clarity and consistency among the readership, we will focus on 

NPI direct mail, call tracking, and forward ROI calculation.

By now you know that NPI works in all promotion mediums (internal, web, SEO, 

web video, social media, direct mail, all forms of print advertising, radio, TV, etc). 

Each of these promotion mediums has a different future ROI projection. To keep 

things consistent and applicable to most of the reading audience, we are going to 

focus on one specific promotion medium - NPI direct mail. This makes sense for two reasons. The first reason is most of you are mailing through NPI. The second reason 

is, among all of our clients in 5 countries and all of their various promotions, the way  NPI does mail always generates the highest average revenue per patient.

The secret formula revealed!

Total monthly call volume x 40% x $1,400 = Projected first year return

Projected first year return x 2 = Projected 3rd year return

Projected third year return x 2 = Projected 6th year return

So let's put this to practical use.

Your homework will be to look at your own call tracking (if you forgot your login 

& password just call us at 702.221.2184 and we will get you back on track).

Let's say last month your mail generated 18 total phone calls. We all know there were some clunker phone calls in there, maybe a solicitation, maybe a repeat caller or two,  but that call volume should have generated about 7 new patients in your schedule  (total call volume x .40). Now multiply 7 new patients times the global average first  year revenue per patient (from mail) of $1,400. You get a projected first year return of $9,800.

We can now move onto projecting a 3 year return by multiplying the $9,800 x 2. 

That gives us $19,600.

One more step to project a 6 year return ($19,600 x 2), and we get $39,200.

What if I'm in a grossly competitive area and not getting 18 inquiries a month?

You don't have to have high call volume to generate a robust forward ROI. Take a look  at the math.

Example: 8 phone calls per month x 40% = about 3 new patients that month. 3 x $1,400 after they are in your practice for a year = $4,200 first year return. $4,200 x 2 = $8,400 three year return. $8,400 x 2 = $16,800 for a six year return. Your mail costs run about $2k/month. Even at 8 calls a month and 3 new patients a month, it is still generating a very solid ROI.

Don't be fooled by trading quality for volume.

The business of dentistry is not a one and done business. Patients take time to get necessary work done. Patients take time to choose elective dentistry. People take time to feel comfortable referring their friends and co-workers to you. They, in turn, take time to get their necessary and elective dentistry done. Not to mention the recurring revenue generated out of hygiene.

The key to driving solid forward ROI in a dental practice has a lot more to do with 

average revenue per patient, than it does with increasing patient volume. Anyone can generate additional new patient volume. Start promoting free exams and cleanings.  You will get new patients in the door. The problem is, their average first year revenue will range between $380 and $610, will NOT double in three or six years, and might double in 12 years.

You have homework!

We are hearing through our client services department that very few of you are looking at your call tracking numbers. If you do not look at them and listen to the calls, now would be a great time to get reacquainted.

Next month we are going to talk about barriers. Too many of you create your own. 

We are going to isolate and discuss a few of the most common in our next newsletter.

If any of you need us, just call 866.336.8237. We will be here for you.

Got questions? Want to learn more?   

You can reach Mark & Howie at:

Howie: whh@newpatientsinc.com

Mark: markd@newpatientsinc.com

Check out our latest dental marketing book