A GUIDE TO MARKETING YOUR ORTHODONTIC PRACTICE BROUGHT TO YOU BY OREC. A Targeted Approach to Attracting Patients in an Increasingly Competitive Marketplace INTERNAL and EXTERNAL DATABASE MARKETING DATABASE MARKETING – A LONG TERM STRATEGY FOR PRACTICE SUCCESS HOW TO PROTECT YOUR MARKET AREA AND DEVELOP A NEW SOURCE OF PATIENTS HOW TO MINE YOUR INTERNAL DATABASE OF PENDING/WILL-CALL-BACK PATIENTS THIS LIST COULD BE WORTH $1,000,000 ANALYZE & DEFINE YOUR MARKET AREA WHERE IS YOUR GREATEST POTENTIAL? RETURN ON MARKETING INVESTMENT WHAT IS REALISTIC?
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A GUIDE TO MARKETING YOUR ORTHODONTIC PRACTICE BROUGHT TO YOU BY OREC.
A Targeted Approach toAttracting Patients in anIncreasingly Competitive
Marketplace
INTERNALandEXTERNALDATABASE MARKETINGDATABASE MARKETING – A LONG TERM STRATEGY FOR PRACTICE SUCCESSHOW TO PROTECT YOUR MARKET AREA AND DEVELOP A NEW SOURCE OF PATIENTS
HOW TO MINE YOURINTERNAL DATABASEOF PENDING/WILL-CALL-BACKPATIENTSTHIS LIST COULD BEWORTH $1,000,000
ANALYZE & DEFINE YOURMARKET AREAWHERE IS YOUR GREATESTPOTENTIAL?
RETURN ON MARKETINGINVESTMENTWHAT IS REALISTIC?
ORE C professional marketing systems
™ ORE C professional marketing systems
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CONTENTS3 DATABASE MARKETING – A LONG TERM STRATEGY FOR PRACTICE SUCCESS Themostimportantthingtounderstandaboutdatabase marketingisthatitisastrategy,notatactic.
6 HOW TO MINE YOUR INTERNAL DATABASE Orthodontistsneedacarefullycraftedplantovalue andaccesslistsofPending/Will-Call-Backpatients.
7 ANALYZE & DEFINE YOUR MARKET AREA Yourmarketareaconsistsofdentiststhatarecurrent orpotentialreferralsources,currentandformer patientsandthegeneralpopulation.Learnwhere thegreatestpotentialis.
8 RETURN ON MARKETING INVESTMENT BecauseDatabaseMarketingissomeasurable, thinkingofitasafinancialinvestmentinyour futuresuccessisanappropriatemindset.
9 MARKETING VERSUS SALES Bothmarketingandsalesareneededtoinsure consistentinflowofnewpatients.
10 THREE KEY MARKETING TACTICS Effectivewaystohelpimplementthemarketing strategyandachievepracticeobjectives.
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Orthodontists have to take care of themselves.6
ORE C professional marketing systems
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Today many orthodontic practices are operatingsubstantiallybelowcapacitydespitethefactthattheycouldandwouldliketostartmorepatients.Thepastfewyearshaveseenanincreaseincom-
petition from orthodontists, from general dentists, frompediatric dentists and from producers of goods and ser-vicessuchasappliancestoresandautomobiledealershipsthatareaggressivelychasingtheconsumers’shrinkingdis-cretionarydollar.
Onethinghasbecomemoreandmoreapparent:bothin-ternal and external marketing have become increasinglyimportantinbuildingandsustainingasuccessfulpractice.InternalMarketinghasbeenaround forever andhas tra-ditionallyinvolvedrelationshipbuildingwithpatientsandreferralsourcesinthecommunity.ExternalMarketinghasconsisted primarily of print advertising with some radioandTV.Todaycomputersandnewdigitalprinting tech-nologymakeitpossibletopromoteorthodontictreatmenttoprospectivepatientsselectedbydoctorordemographiccriteria.
ThirtyyearsagopracticesreliedonInternalMarketingandforthemostparttheonlytypeofExternalMarketingbe-ingdonewasYellowPageAdsandPatientT-shirts.Asthemarketplace grew more competitive that all changed andthereisnowanincreasedemphasisonExternalMarketing.Thereisatremendouspotentialforamoretargetedanddis-ciplinedapproachtoExternalMarketingoverthenextfewyears,asmanypeoplewhoneedtreatmentarenotgettingit.Atargetedapproachtomarketingismoreefficientandgivesyouagreaterreturnonyourpromotionaldollar.
EveryorthodontistishisorherpracticesCMO,ChiefMar-ketingOfficer.Theemphasisonmarketinganditsnecessi-tyintoday’scompetitivemarketplacecansometimesseemoverwhelming as practices are evolving into somethingsimilar toasmallcorporationwhereit isnotuncommonfortheCEO,CFOandCMOtobethesameperson.Buttheorthodontistisalsoresponsibleforproductionandtreatingthepatients.Sohowdoesoneeffectivelymarketorthodon-
Database Marketing – A New Patient SourceDatabaseMarketingisacombinationoftraditionaladver-tisingandDirectMarketing.Itcanbeanincrediblesourceofnewpatients-newpatientsfromexistingsources,newpatientsfromnewsourcesandnewpatientsfromreferralsofbothofthosesources.
The most important thing to understand about Data-base Marketing is that it is a strategy, not a tactic. It’s not a yellow page add, a mailing, a web site or a news-letter. It’s a commitment to capturing new patients and staying in relationship with them and current and for-mer patients to insure future referrals. By definition strategy is large scale long range planning and tactics deal with specific use of activities that support the strategy.
Database marketing is most effective when used as partofamarketingplanoroverallpracticeplan.Thereareanumberofclevermarketerswhoknowhowtodevelopindi-vidualtacticsthatbringinpatients.Whatisrarearepeoplewhocanput anumberof these tactics into a long rangecoherentstrategy.Amarketingplanorapracticeplanwithamarketingsectionwillhelpyoudothat.
OnlyyoucanchooseOBJECTIVES,STRATEGIES,TAC-TICS,aMARKETINGBUDGETanddeterminewhetherornottoincorporateDatabaseMarketingintoyourprac-tice. However, merely defending your market area fromintrusionbyadatabasewisecompetitorisagoodreasontolearnaboutthepowerofdatabasemarketing.
Changing rules and temporary windows of opportunity make now a compelling time to review and revise marketing strategies.
Effective Orthodontic PromotionDatabase Marketing allows you tocreate an advertising curriculum thatteaches as it sells. A curriculum is alearningsystemthatteachesonebitofinformationatatime.Eachadvertisingmessage can be built on the learningofthepreviousone.Thisapproachnotonlyallowsyoutostayinfrontoftheprospect, itgivesyou theopportunitytoprovidethemmoreinformationthantheyhadbefore.
What is the desired end result? Abeautifulsmile.IncreasedSelf-Esteem.Youmustcreateaneedforit!
What is your offer? You have to putsomething into a prospects hand thatheor shemustdo somethingwith.Adeadline,adiscount,arewardforact-ingrightaway.Todayallproductsandserviceshavereachedparityintheeyesoftheconsumer-theyarealljustasboredastherestofus.Soofferthemsomething-givethemapay-backorareasontoatleastpickupthephoneandcallyou.
In tough economic times marketing response rates andorthodonticconversionratestypicallydecline.Toimprovetreatment acceptance rates practices must begin to offerlowerdownpayments,nointerestpaymentplansandflex-ible payment arrangements such as automatic credit cardchargesorbankdrafts.Giveprospectivepatientsareasontoactnow,notlater.Considerpatientincentivessuchascre-ativefinancing,bonusesandgifts.
Multiple Exposures and the Domino EffectIt is now generally accepted that it takes multiple expo-suresbeforesomeoneisreadytocommittoanexpensiveorsophisticatedproductorservice.
Addingothermarketing tactics to themixcanalsohelp.EverythingyoudofromanInternalandExternalmarketingstandpointhelpstheeffectivenessofyourDatabaseMarket-ingprogramandDatabaseMarketingcomplementsallofyourotherinternalandexternalmarketingactivities.
Ifyouhaven’tbeendoingalotofExternalMarketingandyourcaseisa textbookexample,yourfirstexposurewillbeyourleastsuccessful.That’snottosayitwon’tatleastbreakevenormakemoney.Thesecondexposurewillbemore successful than thefirst, the thirdmore successfulthanthesecondandsoon.Whenoneconsidersthelagtime
Itcandoallthesewonderfulthingsplusloweryourcostofmarketing andofferproduct line extensions and revenuegeneratingopportunitiessuchasalignertreatment.
As we have discussed there are two types of DatabaseMarketingfortheorthodontist.Youhavetoanalyzeyourstrengths and weaknesses. If you are a high energy ex-trovert the interpersonal aspectof InternalMarketing isanatural.Ifnot,youmaywanttodomoreexternalmar-ketingutilizingyourinternaldatabase,acombinationap-proach.However,InternalMarketingthathastodowithprovidingthepatientwithagreatresultandgreatexperi-enceshouldbedonebyeveryone.Itisbyfarthemostim-portantthingyoucandoandshouldresultinmanyfuturepatientreferrals.
InternalMarketingshouldbedonefirstand is importantbecauseitenablesyoutobuildapracticefoundation.You
Thenyoucanadddemographicallydetermineddatabasedrivenexternalmarketingwhichwillworkon it’sownaswellascomplementeverythingyoudointernally.See example on page 7.
Practice ObjectiveWhat isyourobjective?Youcanhaveoneormultipleobjectives.Theyarethemostimportantpartofaprac-ticeplan,ormarketingplan.Once theobjective isde-finedyoucanthendeterminethestrategiesthatmustbeimplemented toachieve them.Eachstrategyshouldbesupportedbytactics.
Let’s look at some typical orthodontic marketingstrategies • Maintain/expandexistingreferralbase • Capturepotentialpatientsthathavebeenexposed toyourpractice • Accessnewpatientsthroughnon-traditionalsources • Generatefuturereferrals
Do you know your conversion rate? If it’s not 70% orhigher you have room for improvement. Why aren’t ahighpercentageofpotentialpatientsstarting?Isyourre-ceptionistconvertingphoneinquirestoconsults?IsyourTCconvertingtheconsultstostarts?Areyouattractingtherightpatients?If improvingyourconversionrate isastrategyitshouldbesupportedbytacticssuchasstafftraining,scriptingandlanguaging.
Examples of easy to implement and proven DatabaseMarketingtacticssuchasdirectmail,personalizedorth-odonticbooksandpatientpersonalizedcalendarscanbeseenonpages10and11.
What Will Database Marketing Do for Me?
• Make practice less • Increase awareness of who dependent on referring needs orthodontics dentists • Increase name recognition • Provide a new source of patients • Help communicate with current and former patients • Activate dormant referrals
Types of Database Marketing
• Internal - Pending, “Will-Call- Back” and Recall Patients.
• External - Marketing to prospects selected by demographic criteria.
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ORE C professional marketing systems
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How to Mine Your Internal DatabaseWithmanyorthodonticpracticesoperatingbelowcapacityit’ssmarttoreconsidervaluationandmanagementof“pending/will-call-backpatient”lists.Plusbettermanagementofrecalllists.
The 2007 JCO Practice Study again reported the number of additional patients that could be handled without increasing the size of staff or facility stayed at 50, as in every survey to date.1
Orthodontists have to take care of themselves, like anybody else.A disciplined approach to internal data mining is very important.
Since it is common for orthodontists to offercomplimentary consultations many practiceshave listsof“potentialpatients” thathave takenthetimetocometotheofficeforaconsultation,
are in need of treatment, but for some reason have notstarted treatment. An established practice could easilyhave200to400ormoreofthesepatients.Toplaceavalueonthese“potentialpatients” takeanaveragefee($5000)and multiply by the total number of “potential patients”(400)400x$5000=$2,000,000.
Obviously,theprobabilityofthesepatientsstartingtreat-mentandtheirvaluedependuponhoweffectivelyyoustayincontactandwhatkindof incentivesyouoffer themtostart treatment. One thing is certain, better managementof“potentialpatients”resultsinahighernumberofpatientstartsandpracticerevenue.
Somepracticesmakephonecallsand/orsend3followuplet-ters over 18months and thenpurge thesepotential patientsfromthecomputer.Activelymaintainyourdatabaseandneverpurgeapotentialpatientunlessyoucanconfirmthattheyhavestartedtreatmentelsewhereormovedoutofthearea.
graphiccriteria)withinternaltargetedmailings(postcardscontaining a special offer and message sent to potentialpatients in the practice pending/will-call-back database).ThisinvolvessendingORECnamesandaddressinanEx-celfile.Wethendedupethetwodatabasesormailingliststoinsurethatnohouseholdreceivesmorethanoneofyourmailings.
Personalizedbooksandcalendarssentwithacoverletterarealsoexcellentways tostay infrontof thesepotentialpatients.Afteralltheyhavetakenthetimetocometoyouroffice for a consultation and you have an investment oftimeinthem.Thetimingmayormaynotberightforthemtostarttreatmentnow,butifyoustayinconsistentcontactandoffergood incentivesyouhaveahighprobabilityofmakingthemtherightofferattherighttimesometimeinthefuture.
Analyze and Define Your Market AreaMarketAreaisdefinedbygeographiclocationandwherepatientscomefrom.MarketAreascontainanumberofdentists,activepatientsandpeopleinthegeneralpopulation.
First of all you must look at the dentists in yourarea.Howmanyofthemrefertoyou?Isthereahigh probability these referrals will continue inthe future?Howmanymorecould refer toyou?
Secondly,iftheaveragepractice(250startsperyear)re-ceives30%ofannualstartsfrompatientreferralstheyieldis75patientsperyear. In thisexample referringdentistsandpatientsaccountfor200ofthe250annualcasestarts.Theremaining50patientstartscomefrom“othersourc-
es.” That being the case the greatest potential is in thegeneralpopulationof190,000.BydoingaDemographicAnalysisusingcriteriasuchasgeographiclocation,drivetimetoyouroffice,householdincomeandactualpresenceofchildreninthehouseholdbetweenspecificageswecantypicallyidentifythousandsofpatientswithahighprob-abilityofneedingyourservice.OncetheAnalysisisfinal-izedthedatabasebecomesyourlistofpotentialpatients.2Thesepotentialpatientscanthenbeeasilyaccessedusingatacticsuchasdirectmail.
Return on Marketing InvestmentAmethodologymustbedevisedtodetermineReturnOnInvestment.
Priortoinitiatingmarketingprogramsanobjectiveshould be established and each program resultshouldbecomparedtoprogramobjectivesaswellascosts.Resultsshouldincludenewpatientcalls
generatedaswellasstarts.Ifamarketingprogramgener-ates30callsbutonly8startsitiscertainlyworthwhilebuttheconversionrateislow.Ifthishappenstwoareasshouldbereviewed:1.Checktobesurethecriteriausedinbuild-ing the database is congruent with the practice objectiveandmarketingstrategyand2.ReviewreceptionistandTCtraining.
Once the number ofstartsandstartrevenuefrom a marketing pro-gramisdetermineditisimportanttobeabletomeasuretheincremen-talprofitpercentageorReturnOnInvestment.Incremental profitsare higher than aver-ageprofitsbecausethecalculationforaverageprofit takes into con-siderationalloverheadverses just the cost ofeach marketing pro-gram. In performingROIcalculationstrytothinklikeavisionaryormarketerasopposedtoacostaccountant.Ifamarketingprogramisburdenedwithallpracticeexpenseasopposedtotheincre-mentalexpenseandprofititbringsin,nobusinesswouldeverdoanymarketing.
DeanC.Bellavia,Ph.D.,M.S.usesfixedandvariableover-head calculations when figuring Return On Investment.“On average, for a typical practice grossing $500,000 to$1,000,000peryear,theaveragenetisabout45%ofcol-
lections. Studies have shown that this 55% overhead is85% (80% to 90%) fixed (occupancy, staffing, services,etc.)and15%variable(clinical/clericalsuppliesandlab).Thismeansthatforeveryextra$1,000,thedoctorgetstokeep$850becauseforeveryextrastarthe/sheisonlypay-ing for the supplies and laboverhead; the rest is alreadypaidfor.”3
ofmarketingprogramsalso be considered? Iftheaverageorthodonticpractice receives 30%of referrals from pa-tients,chancesare thatthemarketingprogramin this example wouldnet an additional 1.2patient startsor an ad-ditional $6,000 in rev-enue. If your patientreferral rate is higherso are the Incremen-tal Profit and FutureValue.Attheveryleastyoushouldhaveagoodchance of starting the
A practicecanhaveatopnotchreceptionistand treatmentcoordinator(salespeople)butifthey aren’treceivinglargenumbersofnewpatient calls and qualified prospective patients theirexpertiseisunderutilized.
OnewaytoviewthedifferencebetweenSalesandMarket-ing is in terms of the difference between seeding a fieldandharvesting thecrops.Agoodmixtureof InternalandExternal Marketing is like planting seeds; without plant-ingtherewouldbenofuturecrops.Goodsalesworkisthe
ORE C professional marketing systems
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Three Key Database Marketing TacticsPersonalization(variabledata)canincreaseresponseratesbyupto40%
The example below is a personalized postcard utilizing“variable data.”Thismeans every cardprinted is uniqueandcontainstherecipientsurnameinthetaglineand/orthecoupon.AllORECmailingsaredoneonageographicallyexclusivebasisandincludeaDemographicAnalysis,mail-inglist,copywriting,artworkandgraphiclayout,printing,sorting,bundling,deliverytothePostOfficeandpostage.
Efficiency.Youknoweverydollar you spend is directedatpeoplewhoaregenuineprospectsforyourservice.Youdon’tpayforcirculationtoprospectsthathavelowornoprobabilityofneedingyourservice.
Keith Hilliard, D.M.D., P.A.Orthodontic Specialist330 East Highland Drive 6430 Pearce Road
Lakeland, FL 33813Lakeland, FL 33809
(863) 644-0430(863) 859-3581Rest assured that when you and your family see Dr. Keith Hilliard,
you’ll get the most advanced, most caring orthodontic treat-
ment possible. He has helped Lakeland area residents achieve their
goals of better oral health, improved facial appearance and higher
self-esteem for over 20 years.A native Floridian, Dr. Hilliard graduated from the University of
South Florida. He graduated with honors from the University
of Kentucky College of Dentistry and received his Certificate in
Orthodontics from the Orthodontic Specialist graduate program
at the University of Alabama in Birmingham (UAB).Dr. Hilliard is a nationally recognized lecturer, an inventor of orth-
odontic products and a leader in his local, state and regional dental
and orthodontic specialty organizations. He is an active member
of the American Association of Orthodontists, the Southern
Association of Orthodontists and a past President of Polk County
Dental Association.
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Visit us at: www.drhilliard.com
2.SmileswithStyleBooksThe Smiles with Style book is a hit with patients andreferringdoctors.Thebooksareavailableinpersonalizedform and usually contain a doctor photo, biographicalsketch,andorthodonticandpracticeinformation.Theyareagreateducationalpiecetosendtothepending/will-call-backdatabasewithacoverletterremindingtheprospectivepatient about the benefits of orthodontics. Personalizedbooksalsofunctionaselaboratebusinesscardswhengivento top referring dentists.The dentists feel better handingthe patient a high quality and educational booklet and itmakesamuchgreaterimpactonthepatient(andparents)beingreferred.
Dr. Henry S. Zaytoun Dr. Mary Paula Zaytoun Dr. Henry S. Zaytoun, Jr.A family practice with three board certified orthodontistsRaleigh5041 Six Forks Road
Cary100 Preston Executive Drive
(919) 782-6911
Garner611 Benson Road
Over 40 years of outstanding resultsVisit us at www.zaytounorthodontics.com
Raleigh5041 Six Forks Road
Cary100 Preston Executive Drive
(919) 782-6911
Garner611 Benson Road
A family practice with three board certifi ed orthodontists,and over 40 years of outstanding result
Dr. Henry S. Zaytoun, Jr.
Dr. Henry S. Zaytoun
Dr. Mary Paula Zaytoun
Please accept this “Mouse Pad” Calendarwith our best wishes for a Healthy and Happy 2008.
Visitwww.orec.comtoviewbookpdf’s.
Visitwww.orec.comtoview12monthcalendarpdf.
IS IT TIME TO PROMOTE YOUR PRACTICE? Choosing the best marketing strategies and tactics can be confusing but here’s what clears things up: good, dependable, objective advice from OREC. We have been serving the orthodontic profession for over 28 years and our motivation is to do what’s right for you. Visit www.orec.com or call 800-624-5517.