THE ANTIDOTE TO THE STATUS QUO - AADGP · Case Study: Target and Nordstrom THE ANTIDOTE TO THE STATUS QUO. Solution 1: Correct messaging ... Create a marketing plan THE ANTIDOTE TO

THE ANTIDOTE TO THE STATUS QUO

Marketing is the engine that drives growth.

2 main reasons practice marketing fails

THE ANTIDOTE TO THE STATUS QUO

1. Lack of understanding

2. Lack willpower

Acquisition cost and collections

Every new patient has a cost and a value

THE ANTIDOTE TO THE STATUS QUO

1. Cost per patient

2. Collected revenue per patient

Cost per patient

(Avg. external cost)% + (avg. internal cost)% = CPP

THE ANTIDOTE TO THE STATUS QUO

• The more efficient your marketing, the lower the cost.

Collected revenue per patient

total collections / # of unique patients = RPP

THE ANTIDOTE TO THE STATUS QUO

• The more efficient your marketing, the higher the revenue.

The PPO effect

THE ANTIDOTE TO THE STATUS QUO

Per patient revenue

Per patient collections

Per patient acquisition costs

$0

$175

$350

$525

$700

2011 2012 2013 2014 2015

Solutions?

1. Correct messaging

2. Efficient systems

THE ANTIDOTE TO THE STATUS QUO

Solution 1: Correct messaging

Why?

THE ANTIDOTE TO THE STATUS QUO

Solution 1: Correct messaging

Why is correct messaging critical?

THE ANTIDOTE TO THE STATUS QUO

• Perceptions dictate actions

• Messaging determines the “if” and the “why”

Solution 1: Correct messaging

Case Study: Target and Nordstrom

THE ANTIDOTE TO THE STATUS QUO

Solution 1: Correct messaging

Controlling “touch points”

THE ANTIDOTE TO THE STATUS QUO

Aspen vs. Heartland models

THE ANTIDOTE TO THE STATUS QUO

Solution 1: Correct messaging

How?

THE ANTIDOTE TO THE STATUS QUO

Solution 1: Correct messaging

How does a practice define their messaging?

THE ANTIDOTE TO THE STATUS QUO

1. “To thine own self be true”

2. Clearly differentiate your brand

3. Be compelling

Solution 1: Correct messaging

Ask the right questions

THE ANTIDOTE TO THE STATUS QUO

1. Why are you different?

2. What do you do best?

3. Why are you in business?

4. Why are your patients loyal?

5. Who is your audience?

6. Who is your competition?

Solution 2: Efficient systems

Why?

THE ANTIDOTE TO THE STATUS QUO

Solution 2: Efficient systems

Why are efficient systems critical?

THE ANTIDOTE TO THE STATUS QUO

• Systems allow continued improvement

• Systems lead to control & predictability

• Systems equal consistency

• Systems allow correct planning

Solution 2: Efficient systems

Current systems:

THE ANTIDOTE TO THE STATUS QUO

Hygiene

Sterilization

Payroll

Scheduling

Solution 2: Efficient systems

Current systems:

THE ANTIDOTE TO THE STATUS QUO

Hygiene

Sterilization

Payroll

Scheduling

Marketing?

Solution 2: Efficient systems

Four components of a marketing system

THE ANTIDOTE TO THE STATUS QUO

1. Tool

2. Training

3. Consistency & accountability

4. Measurements & improvements

Solution 2: Efficient systems

Focus on the system not the tool.

THE ANTIDOTE TO THE STATUS QUO

Referral system:

• Referral card

• Referral training

• Consistency & accountability

• Measurements & improvements

Solution 2: Efficient systems

Focus on the system not the tool.

THE ANTIDOTE TO THE STATUS QUO

Direct mail system:

• Mailer + Call tracking

• Call conversion training

• Consistency & accountability

• Measurements & improvements

Solution 2: Efficient systems

How?

THE ANTIDOTE TO THE STATUS QUO

Solution 2: Efficient systems

1. Set specific goals

THE ANTIDOTE TO THE STATUS QUO

• # of additional patients

• Amount of additional revenue

THE ANTIDOTE TO THE STATUS QUO

Overview:

• 2 full-time doctors

• 2817 patients seen in 2015

• Averaged 45 new patients a month

• $1,658,000 total collections for 2015

• $589 Average annual value per patient

Goals:

• Increase to 60 new patients per month

• Increase overall revenue to $2 million

Solution 2: Efficient systems

1. Set specific goals (Case study)

1. Set specific goals – Case study

THE ANTIDOTE TO THE STATUS QUO

Goal: 60 - 45 = 15 additional patients/mo.

15 x 12 = 180 additional patients/year

180 patients @ $589 ea. = $106,020 in additional revenue

$106,020 + $1,658,000 = $1,764,020 in total revenue

Goal: $2,000,000 - $1,764,020 = $235,980

To reach $2,000,000:

This practice will either need a goal of 401 additional patients or

need to increase their per patient revenue by $78 per patient to $667 RPP

Solution 2: Efficient systems

2. Evaluate the effectiveness of your foundation

THE ANTIDOTE TO THE STATUS QUO

Foundation

Messaging Logo Website

Solution 2: Efficient systems

3. Evaluate & prioritize your marketing systems

THE ANTIDOTE TO THE STATUS QUO

Internal Systems External Systems

Referral

Loyalty (cross sell)

Case Acceptance

Patient Reactivation

Traditional

Digital

Social Media

Brand Awareness

Tracking System

(Evaluation &

Improvement)

Solution 2: Efficient systems

4. Plan a budget

THE ANTIDOTE TO THE STATUS QUO

Based on:

• Per patient acquisition cost

• Cost to implement systems needed to reach goals

Generally decreases as # of locations increases

Commit to your budget as a long-term business expense

Solution 2: Efficient systems

5. Align your expectations

THE ANTIDOTE TO THE STATUS QUO

If your budget does not align with your goals, you have two options:

1. Change your budget

2. Change your goals

Either way build a long term strategy and build your marketing systems

Expect a slower rate of return at first that grows in effectiveness

(Emotions & feelings vs. goals & principles)

Solution 2: Efficient systems

THE ANTIDOTE TO THE STATUS QUO

$0

$75,000

$150,000

$225,000

$300,000

Year 1 Year 2 Year 3 Year 4 Year 5

Marketing investment ($36,000)

ROI ($70,680 -15% annually)

Cumulative total (5 years: $262,126)

Assumptions:

Per patient acquisition cost = $300

RPP = $589

Solution 2: Efficient systems

6. Create a marketing plan

THE ANTIDOTE TO THE STATUS QUO

Five components of a marketing plan:

1. Specific goals

2. Foundation analysis

3. Prioritized systems

4. Dedicated budget

5. Correct expectations

Conclusion:

1. Correct messaging

2. Efficient systems

THE ANTIDOTE TO THE STATUS QUO

Marketing is the engine that drives growth.

2 main reasons practice marketing fails

THE ANTIDOTE TO THE STATUS QUO

1. Lack of understanding

2. Lack willpower

There is no growth in a comfort zone and no comfort in

a growth zone.

Conclusion:

The bravest are surely those who have the clearest vision of what is before them, glory and danger alike, and yet notwithstanding, go out to meet it.

THE ANTIDOTE TO THE STATUS QUO

Thucydides