1: Generating New Patients

Part 1:
Generating New Patients

So you think that advertising doesn’t pay? We understand there are 25 mountains in Colorado higher than Pike’s Peak. Can you name one of them?

The American Salesman

Dentists use many methods to help attract new patients to the practice, retain existing patients, and convince patients to purchase services. Every management decision that dentists make in the practice has implications for patient generation. These efforts are marketing. External marketing looks at generating new patients for the practice, whereas internal marketing aims to retain existing patients. Both are necessary for a successful practice. The hours that dentists keep, the fees they charge, insurance plan participation, and the types of services that dentists do all affect patient generation and retention. Together, these are marketing efforts.

Depending on the competitiveness of the practice area, dentists will need to put more effort into marketing. If the practice is as busy as it wants to be (or busier) with the right kind and mix of patients, there is less need for marketing expenditures. Even practices that have a full complement of patients and do not advertise continue to market the practice through their communications and management of the office.

DEFINING MARKETING

Marketing is a managerial process that focuses a practice’s activities on the benefits sought by a target group of clients, thereby satisfying their needs and desires more effectively. Notice that marketing looks to satisfy the needs of a group of patients. The primary task is to learn clients’ needs, wants, and preferences, and then to develop services and products that satisfy those needs. This affects how dentists deliver their services and even how they organize the practice. It means listening to people and providing goods and services that they demand (or want). Marketing means that dentists view the practice through the patients’ eyes, thereby generating and retaining patients in the practice (at a profit).

It is as instructive to say what marketing is not as to start to define marketing. Marketing is not advertising, although advertising can be a part of marketing. Marketing is not the sales technique of a used car salesperson, although sales technique is a component of marketing. Marketing does not mean high‐pressure techniques, convincing people to buy what they do not need, or slick four‐color ads.

Marketing looks at dental consumers’ desires (not dentists’ professional assessment of their needs). Those desires fall into three broad categories:

  • To avoid something, such as pain, disfigurement, noise, odors, x‐rays, or cost.
  • To gain something, such as health, a pretty smile, or relief from pain.
  • To prevent something, such as pain, disfigurement, or embarrassment.

Consumers do not want amalgams, composite restorations, partial dentures, or bridges. Instead, from their perspective, they are avoiding, gaining, or preventing something from happening to them. Dentists can provide a service that helps a patient achieve their goals. That service may be a prophylaxis, tooth whitening, or orthodontics. If it solves the patient’s wants, the dentist has acted with a marketing orientation. Part of the marketing orientation is to provide information to patients so that they know the available procedures and techniques. This education process makes consumers more aware of their needs, raising their level of wants and, therefore, their desire for dental services.

WHY DENTISTS MARKET

Dentists market to gain patients for the practice. Dentists have marketed their services since the first dental practice. In recent years, dental marketing has become much more sophisticated as dentists have brought business techniques to bear on professional practices. Several factors have fostered this.

The increased competition among dentists for the available patient pool has stimulated marketing. As described in Chapter 12, this is a question of the relative supply of practitioners and the relative demand for patients. Factors such as the number and age of dentists, auxiliary use patterns, technology, and practice patterns influence the supply of practitioners. The number of patients, usage patterns, disease patterns, third‐party reimbursement, and efficiency of preventive measures influence the demand for services. When dentists see gaps in their appointment book, they first try to encourage more patients to come to the office. In other words, they market their services.

Dentists have two kinds of competition. The first is to gain the potential patient’s attention and to have the patient patronize them instead of another nearby dentist. In this sense, dentists compete against each other for their share of the available patient pool. A dentist’s internal operational policies (such as the hours the office is open) and external marketing strategies (such as advertising campaigns) help attract new patients. Once the patient comes to the office, then the dentist faces a second, equally important marketing problem. That is to educate and convince the patient that their dental needs are important enough to spend (often large amounts of) money to meet. Because most dental procedures are discretionary in nature, dentists compete against other forms of discretionary spending for the consumer’s dollar. In this sense, dentists do not compete against other dentists but against travel agents, home remodelers, big‐screen television sales agents, and fine‐dining restaurants. Convincing the patient to come to a dentist involves external marketing plans. Once the patient is in the chair, internal marketing and sales techniques become more important.

The changing nature of third‐party contracts has encouraged many dentists to market their services. Various contract organizations (capitation plans and referral plans) may limit where patients can go for reimbursed dental care. Deciding whether to participate in one of these plans is a marketing decision because it addresses the patients’ desires for reimbursed dental care. Beyond that, a practitioner may see patients who sign up with a given plan leave the practice. The dentist then feels that they need to generate additional traditional fee‐for‐service patients to compensate for the managed care patients who have left. A practice’s insurance plan participation becomes one of its most critical marketing decisions.

The rise of consumerism and a revised legal and ethical climate in the profession have increased marketing in dentistry. In years past, the profession considered any advertising to be unethical. The American Dental Association (ADA) Code of Ethics and many state Dental Practice Acts described advertising as illegal. In 1977, a court decision (Bates and O’Steen v. Arizona) effectively ended professional prohibitions against advertising. This case stated that a professional must be allowed to advertise their services if the advertisements are not false or misleading. Simultaneously, consumerism was beginning to become an underlying trend in the United States. This trend advocates for more information for consumers to use while making informed decisions. According to this tenet, a consumer should differentiate among dentists. Dentists must tell the public how they are different from others. Some professionals have a problem with this notion. The public agrees with it.

Changing technologies have brought many new services to the arsenals of practicing dentists. These address consumer desires by fulfilling the benefits sought. Patients want to know about these services. Dentists who provide them want patients to know about them. Marketing answers both desires.

WHAT DENTISTS MARKET

Before a practice begins a marketing policy, the dentist needs to understand the characteristics of dental services to develop appropriate marketing strategies.

DENTISTS MARKET A SERVICE, NOT A PRODUCT

A product is a tangible object. Services, on the other hand, are intangible. Consumers can see the results of the service and feel or hear the service. However, they cannot pick it up and examine it. So services are, by nature, different from products. These differences also lead to a significant difference in how dentists market products and services.

Services Are Inseparable from the Provider of the Service

Retailers or other third parties can buy, repackage, and resell a product. They can put a different label on it and move it across the country or the world, but the product remains unchanged. On the other hand, services cannot be separated from the service provider. The delivery of service is the service. If someone else delivers the service, it becomes a new service.

Services Are Variable

Because services show low standardization, the providers of the service and the service itself are inseparable. Food preparation is a tremendously variable service. Virtually every restaurant prepares food differently. Fast‐food franchises have decreased variability through strict standard operating procedures. Someone knows that a “quarter‐pound burger” from a favorite fast‐food franchise will be the same whether they buy it in New York, Atlanta, or San Francisco. This standardization essentially turns a service into a product.

Services Are Perishable

A service is perishable. The producer cannot put it into a warehouse or inventory as they can a product. This means that timing is critical. Because there are only a given number of hours in a day, one person can only provide a given amount of service. Once time is lost (through a “no show” or cancelation), it is lost for ever. Production cannot make up for the lost time.

Services Are Intangible

Services are intangible. A marketing maxim is to “tangibilize the intangible, and intangibilize the tangible.” This means that dentists should try to provide an intangible service as a reminder of a tangible product and give a tangible reminder of an intangible service. Whether it is a little sign in a yard from the lawn service company, a mint on a motel bed pillow, or a toothbrush after a dental prophylaxis appointment, tangible gifts serve as reminders that someone provided an intangible service.

Services Are Intestable

Consumers are unable to test services before they purchase them. They cannot pick them up, examine them, take them for a test drive, or kick their tires to check for soundness. Instead, they use surrogates to test the service before they purchase it. Patients are similarly unable to test dental services before they purchase them. Instead, they use surrogate measures for testing the quality of the services. Those surrogates include reputation, recommendations from trusted others, cost (as a reverse measure), and familiarity. The inability to test the service beforehand leads to more post‐purchase testing and dissonance.

DENTISTS MARKET BASED ON THE “FOUR Ps” OF MARKETING

Marketers often speak of the four Ps of marketing. Nearly all marketing efforts involve these four major concerns:

  • Product is the good or service that the producer provides. It involves both the core product and all product extensions in the bundled services purchased.
  • Price is the money that the consumer pays for the good or service. It includes not only the price for the core product but also all extensions. For example, the total price of a veneer includes the fee charged, how much work time the patient missed, the payment plan offered, and how much the insurance pays.
  • Place is where the producer delivers the good or service. Generally, for dentists the core place is the dental office. The extended place includes parking and public transportation availability, disabled accessibility, office decor, and cleanliness.
  • Promotion involves all the efforts someone makes to make people aware of their good or service. For the dentist, it includes the core advertising efforts and extended promotions such as signs, community service, and health promotion efforts by the dentist and office staff members.

WHY CONSUMERS BUY

The consumer buys to satisfy their wants and needs. People want their purchases to solve a problem for them. In that sense, they buy benefits, not features of the good or service. The expected outcome is generally not simply to own the good or service but instead to use it for some end. Consumers do not really purchase aspirin; they purchase relief from a headache. If another product (acetaminophen or ibuprofen) offers a better benefit at a reasonable cost, they will purchase the other product. They do not care about how the producer makes the product or delivers the service. Box 23.1 summarizes these differences for implant services.

DEFINITION OF FEATURES

A feature is a characteristic of the good or service that the producer sells. Patients do not need to know the features, such as the type of metal, the characteristics of the material, and the method of making the product. That is vitally important when fabricating a dental restoration or appliance. However, consumers do not care about the features of the product. In the example, an implant has the features that it is made of titanium and osseointegrates with the bone, and a porcelain crown is placed on top of the implant.

DEFINITION OF ADVANTAGES

Advantages are the characteristics of one feature over another that make a product or service different. They help the consumer to differentiate among choices, but the advantages do not cause the consumer to buy. An implant has the advantage that there are no clasps or wires to look unnatural, and dentists do not have to cut on adjacent teeth to replace a missing tooth. Advantages compare the features of one solution with the features of another.

DEFINITION OF BENEFITS

A benefit is the expected outcome of a purchase. Consumers do not purchase a filling, a partial denture, or cosmetic bleaching. They purchase the benefit of a more attractive, youthful smile or the ability to chew food effectively. The more consumers see the benefit as solving their problem, the more they are willing to pay for the solution (Box 23.2).

Most dentists sell services based on the features of those services, not the benefits the consumer wants. When dentists talk “to” patients about their proposed treatment plan, they discuss the features of the bridge (what materials it contains, what steps the procedure requires) rather than the benefit that the patient can expect (a better smile and improved chewing). Any given patient will weigh the alternative solutions (partial vs. bridge vs. implant vs. no treatment) and determine, in their mind and their case, the best solution to their problem. Patient education is vital in helping people understand their dental problems and the benefits of the various treatment choices. In the end, it is the patient’s perception of a solution to their problem that they buy.

PATIENTS BUY A “BUNDLE OF SERVICES”

People do not buy a simple good or service. Instead, they buy a bundle of goods and services combined to make the purchase decision. When someone buys a car, they buy the core product, which is the automobile. However, they also buy the reputation and location of the service facility, the car’s delivery date, and financing options. These all make up the extended product that they purchase. Likewise, patients buy more than the core dental service. They purchase not only a veneer, but the time that the office is open, the date they can have the procedure completed, payment plans, and the dentist’s reputation. The simple price of the service often will be one of many determining purchase factors.

MARKETING PLAN DEVELOPMENT

When dentists are ready to begin marketing their practice, they must develop a marketing plan. Developing this plan makes the dentist look at the people they will serve to meet their needs. It also makes the dentist consider what they are doing well, what they need to improve, what competitors are doing, and how they will tell their story. It should fit with the dentist’s strategic plan and vision for the practice. The desired marketing outputs (e.g. additional new patients) are a function of these marketing inputs. The marketing plan consists of several discrete steps.

DEFINING THE MARKET

The first step is to define who the patient base will be. This defines the market. The location of a practice is one of the most important marketing decisions the dentist makes because it is crucial in defining their market. Most patients live within five miles of a dental practice (in urban areas). If a dentist intends to develop an upper‐class “white‐collar” practice, but their practice is on a “blue‐collar” side of town, they need to appraise their goals and possibilities honestly.

SEGMENTING AND TARGETING THE MARKET

Segmentation of the market refers to dividing the population into smaller groups of similar individuals. Dentists may assign these groups on several bases. Geographic segmentation groups people by where they live or work. People who use direct mail will probably look at zip codes to decide where to send mailings. Demographic segmentation groups people by some outward characteristic, such as age, gender, race, or income level. Many dentists aim marketing efforts at people who subscribe to a particular insurance plan. When someone advertises in a senior citizen’s newsletter, they employ demographic segmentation in the marketing effort. Psychographic segmentation does not care about someone’s outward characteristics. Instead, this form of segmentation groups people by how they think or feel about a particular issue. If someone develops a fear reduction program to attract fearful dental patients, they have used psychographic market segmentation. Behavioristic segmentation groups people by how they act. It is well known that people who display high general preventive health behaviors also have higher dental usage rates. When someone places flyers in the local fitness center or health foods store, they employ behavioristic market segmentation.

Market segmentation is the true art of successful marketing. Segmentation tries to group people so that the marketer can appeal to a particular group more effectively, with less wasted advertising effort and money. This is target marketing (as opposed to mass marketing). The target marketer is much more efficient because more of the marketing message reaches the person for whom they intend it. There are no fixed rules about market segmentation. A dentist can set and develop their own target groups (Box 23.3).

DEVELOPING THE MARKETING MIX

Dental office marketing consists of a mix of procedures and techniques for getting the word out about an office. The key is to decide who the target market is and then develop strategies that appeal to that target group. The office is likely to need several strategies to deliver the message. Even a well‐defined target group uses several channels to find information.

TRACKING THE EFFECTIVENESS OF MARKETING EFFORTS

Marketing efforts are expensive and time‐consuming for the practice. Therefore, the dentist should track how many patients each marketing effort generates so that they can decide if the marketing has been worth the cost and time spent. The best way to establish how a patient found out about the office is obvious: ask. When the patient first calls the office, the receptionist who takes the call should ask “And how did you hear about our office?” The patient may respond with one specific method (“Doris Smith referred me”) or may mention several methods (“A friend told me about you and looked up your web page online”). All modern dental management computer software has fields for entering this information. At the end of the month (or quarter), the practice then generates a report that lists all the patients who listed each marketing source (e.g. website) and the amount of dentistry treatment planned and completed for the source. By comparing the cost with the amount generated, the practice can decide if a particular marketing program is worth continuing.

When looking at this relationship in more depth, the cost to generate a patient needs to be allocated by type. For example, assume that the practice spent $1500 per month on Yellow Pages ads, generating three patients, each with $400 worth of dentistry. It also spent $3000 per month on a direct‐mail program, generating 15 patients with an average of $400 per month. The Yellow Pages ad patients “cost” $500 each, losing $100 each. The direct mail patients cost $200 each, earning the dentist $200 each per patient. The direct‐mail campaign, although more expensive, is more profitable given these numbers.

MARKETING STRATEGIES

Marketing strategies are the methods that dentists use to get their message to their target group. These efforts are grouped into two types, internal and external (Box 23.4). Internal efforts focus the attention on the existing patients of the practice, whereas external efforts focus on people who are not current patients.

INTERNAL MARKETING STRATEGIES

Internal marketing efforts are those that dentists have traditionally called “professionalism.” These efforts cater to the existing patients, hoping they will stay with the practice and bring in additional new patients.

Branding

Branding is an internal function with enormous external implications. A dentist’s brand is the image of their product in the marketplace. It is how consumers perceive the dentist to be different from similar providers in the area. A patient’s information and expectations about their dental experience should be the same as their actual experience. If so, they will see a particular dentist as both relevant to solving their problem and unique in that ability. Branding involves all the intangibles that drive consumer perception of a business. These include logo, stationery, advertising, office decor and ambiance, staff training and attire, and website. These should all be consistent and offer the same messages about the value of the service provided. If the practice can establish a strong brand image, it will have more freedom in pricing and other management decisions, leading to increased profitability.

Performance

The most critical trait of a dentist (according to public opinion surveys) is the quality of care they deliver. Quality care is the basis of the “product” that a dentist provides. Quality dentistry is necessary for a successful practice. But quality dentistry alone is insufficient to guarantee a successful practice. A dentist’s performance on the technical side of dentistry is an assumed trait by the public. If a dentist violates that assumption, the patient will be dissatisfied and probably leave the practice. It is not even the dentist’s actual performance that the patient judges, but rather the patient’s perception of the performance compared to the patient’s expectation of the performance. The patient’s expectations then become crucial to their satisfaction. If the dentist does not meet the patient’s expectations, the patient will be dissatisfied with the service, even if their expectations were unrealistic in the first place. (To their mind, the expectations were realistic!) Even if a dentist does the most technically perfect procedure, the patient will be dissatisfied if they do not like it (or how it was delivered). If a dentist builds patients’ expectations with slogans such as “special care,” “painless,” “low fees,” or “cowards welcome,” then they need to deliver what they promise. The worst thing a dentist can do is to gain someone’s trust to come to the office and not deliver the promised services. Patients are concerned with the total time of treatment. From the dentist’s perspective, time is the chair time in treatment. From the patient’s perspective, time is the total time involved in the dental visit: travel time, waiting time, return‐to‐work time, and additional time to go to the babysitter, school, or other places. Other examples of influencing patients’ expectations include promptness, pain control, availability, and the amount of health information provided.

Nov 9, 2024 | Posted by in General Dentistry | Comments Off on 1: Generating New Patients

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