increasing practice profitability through internal

Increasing Practice Profitability through Internal Marketing

Mark Wright, OD, FCOVD

Mark Wright, OD, FCOVD

• President: Pathways to Success

• Editor: Review of Optometric Business

• Author: Coding, Reimbursement and Contracting for Optometry

• Director: OSU College of Optometry Business Management Program

• 2006 Benedict Professor: University of Houston

• 1980 – 2007 founder: Professional VisionCare, Westerville, Ohio

FINANCIAL DISCLOSURE STATEMENT

• Mark R. Wright, OD, FCOVD is a paid speaker for the following companies:– Alcon– CIBA– ESSILOR– Jobson– Vistakon– VSP

• He is an officer of:– Pathways to Success– Progressive Publishing Company.

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• Internal marketing is the primary driver for every successful practice. This course will show you how to increasing practice profitability through internal marketing.

Course Objectives

• The attendee will be able to …

1. Apply the Marketing Mix to the practice

2. Create Loyal patients

3. Apply marketing Strategy and Tactics

• 05 minutes Introduction

• 15 minutes Apply the Marketing Mix to the practice

• 15 minutes Create Loyal patients

• 15 minutes Apply marketing Strategy and Tactics

• 05 minutes Questions and Answers

• 05 minutes Conclusion

Marketing MixMarketing P’s

Product = What are you selling

Price = How much are you charging

Place = Where can the product be purchased

Promotion = How will people find out about what you are selling

Personnel = Who is doing the selling

Performance = Satisfying patients through customer service

Physical environment = Ambiance/mood/tone

Process = How do people obtain your product

Packaging = How will the product be delivered

Understand your target marketSurvey to find out what the patient thought about care

What did you like best about your eyecare experience today?What change would have made your eyecare experience better?

Would you refer someone to our practice?

How likely are you to refer a family member or a friend to our practice?

Answers you need to know

• Family & Friends

• Specialty practice

• Proximity

• Times open

• Selection

• Staff

Why do patients come to see you?

Answers you need to know

• Services

– Vision

– Medical

– Specialty

• Materials

– Glasses

– CLs

What do patients

purchase in your

office?

Why do they buy what they buy?

Psychographics

• The use of demographics to study and measure attitudes, values, lifestyles, and opinions for marketing purposes.

• Used to aid in developing promotion strategies designed to appeal to specific psychographic segments of the market for services or products.

What does your practice look likeClassification of patients

Generation DescriptionBaby BoomersBorn between 1946 and 1955

WW 2 ended 1945, associated with privilege, Woodstock, Anti-Vietnam, dropouts from formal religion, rock and roll, experimental, individualism, free spirited, social cause oriented

Generation Jones Born between 1954 and 1965

Keeping up with the Jones, Jonesing = yearning or craving, swing voters, less optimistic, distrust of government, general cynicism

Gen XBorn between 1961 and 1981

Characteristics are pragmatic and perceptive, savvy but amoral, more focused on money than on art, very protective of their own children, Dot.coms, MTV, Grunge music, Hip hop, AIDS, Security moms

Gen YBorn between 1980 and 1985

Defining characteristics are tech-savviness, family-centric, achievement-oriented, team-oriented and attention-craving

Millennials / Echo BoomersBorn between 1982 and 2001

Born to America's largest and wealthiest market segment, baby boomers, expected to create new surges of change in markets, attitudes and society

Marketing0.6-2.3% of Gross Collections, Median = 1.6%

Internal marketing

• Strategy

– Get current patients to return

– Get current patients to refer

– Increase revenue / patient

Internal marketing

Get current patients to return

MAJOR driver in all practices:

REPEAT BUSINESS

Internal marketingSTRATEGY: Get current patients to returnTACTIC: Pre-appoint

• TODAY: Set the day and time

• 1 MONTH: Send postcard – confirmation

• 2 WEEKS: Phone call – confirmation

• 1 WEEK: Phone call – confirmation

APPOINTMENT REMINDER: Dr. Wright’s office, Monday 8 am. Looking forward to seeing you!

Create LOYAL patientsSatisfied is not enough

Create ways to consistently provide extraordinary service

Create ways to consistently provide extraordinary service

• Interpersonal interactions

• Willingness to accommodate

• Speed

• Cost

• Unexpected enhancements

Internal marketingGet current patients to refer

Reward positive behavior

to get more positive behavior

Reward Current Patients for Sending New Patients

Share the care

Increase the # of new patientsQuickest methods

In-office seminars

Trunk shows

Target alpha dogs (connectors)

Ask for family members

Current patients recruit new patients

Create in-office seminars

You are invited to a discussion about

Wednesday evening 12-16-2014 from 6-8 pm

Please feel free to bring a friend

Night driving solutions

Internal marketingIncrease revenue / patient

Lens packages

Individualized

Customized

StandardizedGood

Better

BestState of

the Art

Premium

Standard

We prescribe the best for your needs

Best

Better

Good

Packages

• Packages increase value

• Add-ons are viewed as more expensive

Prescribe a year’s supply of CLs

• Dr: “I’m authorizing a year’s supply of CLs for you.”

• Staff: “I see the doctor authorized a year’s supply of CLs for you.”

Compliance

Adoption Cycle

Purchase Cycle

• Awareness

• Interest

• Internalization– “It will work for me”

• Trial

• Repeat purchase

The hardest

step

Utilize Success StoriesTell the story you want told

On the walls

In notebooks in the reception area

On monitors in the office

In patient conversations

Don’t forget …

• To get the HIPAA marketing

form signed

Pre-setting patients to purchase

Utilize Moments of Truth messages to pre-set patients

Reception area

Hallways

Pretest area

Exam rooms

Auxiliary test areas

Dispensary

Bathroom

Utilize moments of truth messages to pre-set patients

• Traumatic eye injuries related to ball sports

– 45% of ocular injuries occur under age 14

– 90% of eye injuries are preventable

• Children receive 3X the UV exposure as adults

– Clear lens of a child transmits more UV rays

80% of all ultraviolet damage happens before a

child’s 18th birthday. Protect your children’s

eyes the way the doctors protect their own kids.

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Utilize moments of truth messages to pre-set patients

PROBLEMS

• Glare

• Photophobia

• Harmful UV

• Impact and Injury

• Occupation/Hobby/Sports

• Fashion

SOLUTIONS

• AR Treatment

• Transitions® lenses

• UV protective lenses

• Safety lenses

• Specialty Eyewear

• No-line lenses

• Thinner Cosmetic Lens

Marketing0.6-2.3% of Gross Collections, Median = 1.6%

Internal marketing• Strategy

– Get patients to return

– Get referrals

– Increase revenue / patient

• Tactics– Get patients to return

• Pre-appoint

• Create extraordinary moments

– Get referrals• Referral programs

– Increase revenue / patient• Moments of Truth

• Bundling