This being said, some accountants that I’ve worked with make a very common mistake as relates to marketing expenses.  It’s not only very important for you to work closely with your accountant to understand the financial health for your practice but it’s also important to ensure that neither you nor your accountant make this very common mistake when looking at your marketing expenses.

Unfortunately, many accountants look at marketing as a cost center, similar to the way they look at other overhead expenses such as rent and utilities.  Marketing is not a cost center, but rather, a revenue center.  Every dollar you spend on marketing your practice should generate a return-on-investment (ROI), preferably higher than the dollar you spent.  The key to understanding what your ROI is and whether you make a 2:1 or 10:1 return is effective tracking.

Don’t look at marketing as a cost center.  Yes, if you reduce your overhead expenses you can improve your profitability as long as you don’t compromise the level of patient care you provide.  However, marketing is not a cost center – it is a revenue center.  If you reduce your overall marketing expenses, you most likely will not improve your over all profitability.  It simply doesn’t work like overhead.  I suggest that you determine a marketing budget that’s appropriate for your individual practice.  Your budget should be based on your type of healthcare specialty, your goals, your competition, and the costs associated with your individual market.

The percentage of revenue that is appropriate for a marketing budget varies significantly among healthcare specialties.  The range can be between 3 and 15%.  Practices that tend to marketing directly to the patient typically are on the upper end of this range due to the costly external advertising media that are necessary.  Medical practices that tend to marketing primarily within the medical community to generate referrals are typically on the lower end of the range, around 3 to 5%. Practices that market directly to the patient, especially where large media budgets are necessary, can be 10 to 15% of revenue.

If you’re not sure whether or not you are spending the necessary amount on your marketing budget, feel that you may be spending too much, or you would like help getting a greater return on your existing marketing budget, call Rich:  561-477-6348.

Proven Strategies for a Strong, Profitable Practice!

Rich Hachenburg

Founder of Competitive Edge Healthcare Marketing
P.S. Let’s connect on Facebook, Twitter, LinkedIn, and Plaxo.

Park City’s local newspaper, The Park Record, is a favorite among locals for staying informed of the many events that go on in Park City during the summer, for local news, and for ads among local businesses. It’s published twice a week, on Wednesday and Saturday. I found it very interesting that Wednesday’s issue had so many healthcare related ads from among local practices and in a variety of different healthcare specialties. I’ve found that local newspapers can still be effective marketing tools. It appears that the 7 ads in yesterday’s Park Record (quite a few for a small paper) reinforces that this medium is still viable. Although I saw a couple of very well designed and well-placed ads, I also saw a few that could learn from the basics of print advertising.

Here are the ads in yesterday’s issue:
1.    Vein Center and Medspa
2.    Dental practice that’s positioned as a “Dental spa”
3.    The same dental spa, with another ad as an “advertorial”
4.    Orthodontist
5.    Periodontist
6.    Chiropractor focusing on back pain and spinal decompression
7.    Wellness festival

Among the ads I read, I was only surprised to see the Periodontist, as this specialty tends to get most of their patient volume from referrals from general dentists. Nevertheless, if you’re investing in print advertising, there are a few basics I suggest you consider:

What section? – Although the main section of any newspaper is the most widely read, other sections are effective depending on your intended target. The Chiropractor, for example, should consider the sports section to target athletes with back pain. Women tend to read the Lifestyle section and they are typically the family healthcare decision maker.

Which page? – The closest to the 1st page is best but odd number pages (the right hand side) tend to pull better than even numbered. If you’re running a ¼ page ad, upper right on an odd number page is best.

Get their attention! – In the newspaper, you have to stand out to capture the reader’s attention. Use a compelling headline and a photo of your target audience enjoying life after they’ve received the benefits of your services. Communicate their problem (ex: back pain keeping you indoors) and your solution to their problem (spinal decompression instead of surgery).

Why You? – Don’t just inform readers about what you do. Reinforce your strengths and the reasons they should choose you over a competitor.

Why Now? – Give them a reason to contact you now. Provide an offer, such as a consultation or a free brochure.

Don’t create your own ad, leave it to a professional. The investment you make in media placement is substantial, so I recommend spending a little more to ensure you have a professional, visually appealing, and emotionally compelling ad, in order to maximize your results.

If you need to improve the effectiveness of your print advertising or would like to know if this is a viable option for your practice, call Rich at 561-477-6348.

Proven Strategies for a Strong, Profitable Practice!

Rich Hachenburg

Founder of Competitive Edge Healthcare Marketing
P.S. Let’s connect on Facebook, Twitter, LinkedIn, and Plaxo.

Facebook allows you to not only create a personal page to connect to friends and family, but also allows businesses, such as your medical practice, to create a “fan-page” so that they can connect with their “fans” on Facebook.  These fan-pages allow you to provide valuable and timely information to those interested in your services, as well as to get feedback directly from your fans.  More and more healthcare practices are creating fan-pages to provide information for their patients.  Patients that become fans, in turn, can promote your services to all of their friends within their network.

I want to personally thank all of you who are reading and following along with my blog and those that have also followed me on Facebook!  For those of you who haven’t heard yet, I’ve recently launched my new Competitive Edge Facebook fan-page and encourage all of you to not only become fans of Competitive Edge on Facebook, but to provide me your personal feedback so that I can continue to provide you with the valuable information you need to take you practice to the next level.

Click here to visit my Facebook fan-page:

http://www.healthcaremarketingtools.com/facebook

Proven Strategies for a Strong, Profitable Practice!

Rich Hachenburg

Founder of Competitive Edge Healthcare Marketing
P.S. Let’s connect on Facebook, Twitter, LinkedIn, and Plaxo.

Today’s blog will include the metrics typically associated with direct mail campaigns and how you can maximize your response rates and return-on-investment.

I would suggest not mailing the entire list all at once.  This is especially true for a small practice. For example, if your direct mail campaign intends to reach 10,000 people, break it up into approximately 2,500 per week.  This enables you to book appointments more efficiently throughout the entire month from those that respond.

Understand that direct mail is a numbers game. The average response rate for a direct mail campaign to an outside list is 1%. If you mail 2,500 pieces, you’ll typically average about 25 responses.  How many new patients you get will depend on your conversion rate from calls to your office into booked appointments. This may seem like very few, but let’s look at some numbers:  If a 10,000 piece direct mail campaign costs $10,000, for example, a 1% response rate means that it will generate 100 calls.  If you are successful in converting 50% or 50 calls into new patients and the average value of a new patient for your practice is $1,000, then your $10,000 campaign will generate $50,000 of  revenue, giving you a 500% or 5:1 return-on-investment. Remember that every direct mail campaign varies and that every practice is different.  The bottom line is that direct mail can be a very profitable marketing option.

Consider direct mail to your existing patients to get them to self-refer back for additional services, if that’s an opportunity for your practice.  Response rates to existing patients tend to be much higher than 1% (often times 3-5% or more) because you are targeting people who already know and trust you and are therefore more likely to return for additional services.

Always have a strong “call-to-action” in you direct mail piece.  Consider a free consultation or assessment as your call-to-action.  Patients want information about their problems and their needs, so providing them the chance to get this information directly from you during a consultation is very appealing.  You in turn, now have the opportunity to build your credibility with this potential patient and convince them that you are the best provider for the services they need.  Even a written or e-mailed informational marketing piece can be a strong call-to-action.  For example: Call today to receive the “10 Commandments for Successful Lasik Surgery Absolutely Free”. I tried this with a client once and the phone was ringing off the hook!  Someone looking at potentially having Lasik surgery should certainly be interested in these “10 Commandments”, and by providing this for the prospective patients, my client provided them 10 valuable reasons to choose him.

Most importantly, don’t create your own direct mail piece.  Leave it to an expert.  The difference between success and failure for most direct mail campaigns may be a fraction of 1% in your direct response rate.  Don’t leave this to chance; place yourself in the hands of a professional who has a proven track record of success.

If you would like assistance integrating direct mail into your practice or you would like help improving the effectiveness of your current direct mail call Rich at 561-477-6348.

Proven Strategies for a Strong, Profitable Practice!

Rich Hachenburg

Founder of Competitive Edge Healthcare Marketing
P.S. Let’s connect on Facebook, Twitter, LinkedIn, and Plaxo.

For example, a dental practice can obtain new residents lists, which contain families who have just recently moved into a new home.   This is very lucrative for dentists because people who have just moved into a new home have a high likelihood of looking for a new dentist.  You can also break the list down to include specific “selects” including household income level or home value, to gain more affluent patients.  Searching geographically, such as by zip-code or within a certain distance from your office (referred to as “rooftop radius”) enables you to target only prospects within your marketing area that represent a higher likelihood of coming to you.

Any practice providing elective cosmetic services such as a plastic surgeon or a cosmetic dermatologist should consider a list targeting female heads-of-household that are geographically close to your office with an income select. Practices trying to reach senior patients, such as an audiologist dispensing hearing aids, can obtain a list of seniors where one or more members of the household are over the age of 65. There are even “response lists” available, information obtained from those responding to surveys, for those with ailments such as obesity or arthritis.

I’m often asked, “How far away from my office should I try to reach new patients?” The rule of thumb should be “20 minutes or 20 miles” depending on how densely populated your market is. In large cities, patients will rarely be willing to drive more than five miles, which may take them 20 minutes.  In rural markets, where people are used to driving great distances to get to larger towns where healthcare providers are located, I would recommend reaching further than 20 minutes or 20 miles.

Make sure you always use a reputable list compiler, preferably one that’s a member of the Direct Marketing Association (DMA), so they subscribe to the DMA’s ethical standards for list hygiene. This assures you the cleanest lists with the most up-to-date data. I recommend using a very well-established list compiler here in my home town of Boca Raton, Dunhill International List Co. (www.dunhills.com).

Keep a look out on Tuesday, August 24th for my next blog “Direct mail isn’t dead: Part 2”. If you would like assistance using direct mail to reach new patients for your practice or need to improve the effectiveness of your current direct mail, call Rich at 561-477-6348.

Proven Strategies for a Strong, Profitable Practice!

Rich Hachenburg

Founder of Competitive Edge Healthcare Marketing
P.S. Let’s connect on Facebook, Twitter, LinkedIn, and Plaxo.

If your medical specialty depends on marketing directly to patients, as opposed to marketing within the medical community to generate referrals, there are certain dos and don’ts for print advertising that you should follow in order to maximize your potential for success and return-on-investment.

Advertising Options
Your best print advertising options largely include daily or weekly newspapers as well as magazines, both general and specialized.

Section
When advertising in a newspaper, the main section is the most widely read and subsequently the most costly.  Other sections can be more cost-effective if you’re targeting a specific demographic, for example, if you’re trying to reach athletes (competitive athletes, or “weekend warriors”) choose the sports section.  Women tend to read the lifestyle section, which provides good returns since the female head-of-household is typical the family healthcare decision maker.  If your practice targets seniors age 65 and over, such as an audiology or hearing aid practice, I recommend placing your ad near the obituaries.

Day-of-the-Week
If you’re advertising in a daily newspaper, Mondays and Tuesdays tend to bring the best returns.

The day of the week where there is a special food section, “Food Day” which is typically a Wednesday or Thursday, is often widely read by women and is highly suggested for ad placement.   Avoid Fridays, because “no show” rates tend to be high, even if you book them for first thing on Monday.  Never advertise on a Saturday or Sunday, because there won’t be anyone to answer the call at your office, if the reader wants to book an appointment immediately. Although Sunday’s newspaper has the largest circulation, it also has the most content so you compete with a lot of other ads just to be seen.

Page and Placement
The closest to the front of your chosen section is the best, but also the most expensive.  Odd numbered pages (right-hand side) typically pull better than even numbered pages.  If your ad is less than a full page, try to position it on the top half of the page.  A quarter page ad should ideally be placed in the upper right of an odd numbered page.

Color or Black & White
When using newspapers, if placing a color ad is an option, as opposed to only black & white, I suggest using spot color instead.  Spot color is an option in printing that uses black ink plus one additional color such as red.  This can be less expensive than full color, yet gets a similar result to those that use full color to stand out on a page.

Obtaining Remnant Space
Also referred to as “stand-by” rates, remnant space is space that is available just before the deadline to place an ad on a given day.  It can usually be obtained for 40-50% off regular rates.  Always ask your ad-rep if this is an option, but only accept if you can place an ad using the parameters described above.

Call-to-Action
Always have a call-to-action in your print ad.  In other words, give them a reason to contact you now.  Create a sense of urgency, or provide them something extra if they act by a deadline.  Information can be a powerful call-to-action, so ads with something as simple as a “free consultation” can work well.

One Last Tip
Don’t create your own print ad.  Have it designed and written by a professional.  The majority of your investment in print advertising will be placing it in the newspaper or magazine.  I suggest you spend a little more to have a visually appealing and emotionally compelling ad so that you can maximize your potential return on investment.

If you would like help developing effective print advertising or would like guidance on how to increase your print advertising ROI, call Rich: 561-477-6348.

Proven Strategies for a Strong, Profitable Practice!

Rich Hachenburg

Founder of Competitive Edge Healthcare Marketing
P.S. Let’s connect on Facebook, Twitter, LinkedIn, and Plaxo.

Statistics show that there are many benefits to having an “on-hold” message in your telephone system.  This includes a significant reduction in the “abandonment rate” (the percentage of people that hang-up before someone comes back on the line).  Research also shows that a patient will stay on the phone longer, before they abandon a call, when they are listening to specific information detailing your practice.

Customized, professionally produced “on-hold” messages are powerful and affordable.  The investment to produce one is a non-recurring expense. Once it is integrated into your phone system, there are typically no additional costs that will be incurred, unless, of course, you need to update the message.

On-hold messages should not only communicate all of your services, but also emphasize the strengths that your practice provides, so that you stand apart from your competition.  Make sure that you communicate any unique services, equipment, or technology that your medical practice has available.  Your qualifications and commitment to providing the highest quality care should also be communicated in this message.

If you would like an on-hold message for your practice, Competitive Edge can help.  We will write a customized script describing your practice and emphasizing your strengths.  Once you approve the script, we will record the message using a professional voice-over (typically a local radio personality), edit it, and provide the recording on a CD to be integrated within your phone system.  If you would like to develop an on-hold message or if you’d like more information, contact Rich: 561-477-6348.

Proven Strategies for a Strong, Profitable Practice!

Rich Hachenburg

Founder of Competitive Edge Healthcare Marketing
P.S. Let’s connect on Facebook, Twitter, LinkedIn, and Plaxo.

Certainly every practice should have both a comprehensive, informative, and compelling printed brochure and website; but are there other ways to provide prospective patients information about your practice?  I’m often asked this question right before I’m asked if printed brochures are still viable marketing tools in this electronic age that we live in; my answer is that besides printed collateral materials, a practice can inform and compel patients with the newest marketing tool, called an e-Brochure.

Electronic brochures, or e-Brochures, are one of the newest state-of-the-art marketing tools.  Different than a website, an electronic brochure is just like a booklet in electronic format.  This means that the patient can easily flip (or click) through the pages to read.  It’s extremely cost effective since you can e-mail it directly to a new or prospective patient.  Patients can receive an e-Brochure as an attachment to an e-mail, a link for download within an e-mail, or by visiting your site where you have a link to download.

Both printed and e-Brochures need to not only be informative, but also be compelling. Make sure that they are both educational as well as influential. Having an e-Brochure reinforces that you are a state-of-the-art, leading-edge practice.  Although we’re in an electronic age, don’t discount the effectiveness of printed materials and collateral.  Every practice should have a comprehensive, professionally created, practice brochure.  In addition, you should consider additional brochures on your most popular services and procedures, as well as any state-of-the-art technology or unique services you may provide.

Printed brochures can be used in a lot of ways.  They can be mailed to prospective patients, but they an also be given out to patients when they’re in your office to reinforce the need for certain procedures as well as to pass along to others they know to generate referrals.  Someone on your staff can hand present a brochure if asked about a specific topic, making it an interactive tool.  Make sure you have all of your printed collateral materials displayed in your reception area as well as in treatment rooms so that they are readily available for patients to read and take with them.   Encouraging your patients to take your brochures with them to pass along to others is one of the easiest ways to generate referrals.

If you need assistance updating your current brochures or developing an e-Brochure, call Rich: 561-477-6348.

Proven Strategies for a Strong, Profitable Practice!

Rich Hachenburg

Founder of Competitive Edge Healthcare Marketing
P.S. Let’s connect on Facebook, Twitter, LinkedIn, and Plaxo.