The 5 Deadly Sins of Medical Marketing for 2015

Nine years ago, at the request of The American Society of Plastic Surgeons, I wrote A Brand Apart– a no-holds-barred, how-to book that detailed the challenges and solutions common to our very complex aesthetics industry. One of the most important chapters “The 5 Deadly Sins of Medical Marketing” could not be more relevant than today. The 2015 sins await.

Having worked with over 1,500 practices over 25 years, I knew firsthand what was plaguing cosmetic specialists and how to help them get out of the quagmire. I am proud to say that my book became a sort of marketing bible for many physicians, helping them understand the fundamentals of medical marketing to thrive in an increasingly competitive marketplace.

However, today there are a staggering number of physicians giving up their practices due to insurance reimbursement issues, the Affordable Care Act, and the wave of overwhelming competition. In 2000, 57% of doctors had an independent practice. In 2012, that number had dropped to 39% -- and so it continues to hemorrhage. And those who remain are looking for different business models to pay the rent. As many have discovered, aesthetic medicine is the only way they can survive.

The “New Sins”

For those resourceful and brave enough to weather the storm, I offer an updated set of “Sins” for you to consider (and overcome) as you look for ways to grow your practice.

Sin 1:Not having a focused, written marketing plan with actionable goals and a clearly defined process to accomplish your financial aspirations. All successful businesses must have projections and targets they are trying to meet; aesthetic medical practices are no exception. Before you can hit a target, you have to know what you're aiming for. Determine a budget and assign or hire marketing resources. Understanding internet marketing (and the whims of Google) is not for the faint of heart. You need a pro to guide you so you can attract the right patients and maintain a strong reputation. Assigning a staff member who has little or no knowledge about the workings of the web will not serve you well. Likewise, make sure you have a designer and writer who you look and sound contemporary. Do-it-yourself marketing has been the downfall of many a practice.

In an attempt to save money, most practices find they waste their dollars on well-meaning amateurs and the end result is their marketing efforts look like “loving hands at home.”

Sin 2:Not knowing who you are. Ask yourself (and your staff) these questions: Do you know how your patients, prospective patients, and the general public see you? Is your image (graphics, color, messaging, language etc.) consistent from your website to your print materials to your office décor? What do you want to be known for? What procedures are you best at? Which are most profitable? Who are the patients you most want to attract? What is unique and special about your practice?

Having an in-depth discussion with the “stakeholders” in your practice will help you focus your energies in a clear direction. My advice: Be known for something – not a generalist who does everything. Aesthetic patients look for specialists. Carve out a niche that you can most effectively fill. Make sure your staff is clear about the direction you are setting so your messaging over the phone, via email, and in-person is aligned with your long-term goals.

Sin 3:Not hiring the right staff to support you. Your staff communicates your brand in everything they do, which is why every interaction they have with patients is so important. Since you cannot see or hear every communication, hiring the right people for the right position has to be at the very top of the most important things you do, beyond treating patients. If you hire properly, they will be impeccable at customer service; totally aligned with your practice goals; knowledgeable about aesthetic medicine; and ready and willing to help you build a strong practice. They can also help you make great decisions by sharing their thoughts and recommendations should you be considering investing in marketing, new equipment, new employees or expanding your office locations. A strong team approach often sets one practice apart from all others, and frankly, for most practices, this is the defining difference between winning the race and being “the also ran.”

Over the last 25 years I've witnessed embezzling from trusted managers, nurse injectors taking patients and products out the door, and more. Bottom line: hire slowly and let trust be earned over time.

Sin 4: Not understanding how patients have changed over the last few years. What patients know and expect has changed dramatically. They are more knowledgeable, having a multitude of resources available at their fingertips. In general, by the time they visit you for a consultation, they know what procedure or treatment they want and by what method – the only thing they need to decide is: are you the practitioner to do it? If their initial phone call or email was not answered within 60 minutes, you might be crossed off their list. If they come in for a consultation and are kept waiting, you could be out of the running. If your before and after photos are not well lit or well shot, forget it. If you or your staff are not well dressed and groomed (yes, research tells us this is a big one), you might not make the short list. If you don't offer financing options, they could choose another practice that does. One of the most successful practices I work with in Southern California ($10 million in annual revenue) does over a million a year in financing alone. And yet, I have practices that say, “I don't want to pay the fees.” Really? It's not the smartest business decision to leave so much money on the table.

When I work with clients, we often do “secret shopper” calls and consultations to see just what a patient will see. Only then can we help a practice meet patient expectations. When you're dealing with elective medicine, there is no forgiveness for even small disappointments. The practices that get customer service right are far more successful than those who elect to close their eyes. You have only to look at the ratings and reviews on any review site and you'll find 90% of the bad reviews are over a customer service issue that could have easily been overcome or avoided altogether if the physician had been aware of what was happening at the front end of the house. Surveying patients is the only way to get the customer service intelligence you need to address these service issues.

Sin 5: Not sufficiently tracking results. When I ask practices what their conversion rates are from consultation to surgery, they often tell me 75% to 80%. And yet when you compare the number of consultations they have to their OR schedule, you can see they are clearly guilty of wishful thinking. The real number is somewhere around 40% to 50%. Why is this so off?

One of the most important things to note is whether staff has complete control over your schedule. If you, as the owner, do not know what is coming in on a daily basis and what they are closing at the end of every day, every week, and every month, you may miss some red flags.

Tracking is not only essential to making good business and marketing decisions, it is the only way for you to make your staff accountable for their work and thus your revenue. Most practices have a software system from which they can pull reports. The big question is do you and your staff know what to track? For starters, you need to know where your leads are coming from and what demographics they represent. You also need to know what procedures you have the most success at closing and who on your staff has the best closing rate on the phone and in person, as it may vary from one person to another.

Lastly, on the subject of tracking, if you know what the current score card is, you have somewhere to go with the information, and generally it's up. So don't just leave this up to your accountant. This is your practice and the more information you have and can act on, the better you'll sleep at night.

A Closing Thought

Aesthetic medicine is a luxury purchase and in any other luxury industry, the sales team is responsible for closing business and being accountable for the follow-up and tracking of potential business. I remember the first time at a national medical meeting in 1994, I brought up the subject of profitability and closing the sale at consultation. You would have thought I had just told the Spanish Inquisition Squad I was a witch. There was a shock heard round the building that sounded something like this, “This is medicine, after all, we're not attorneys, we shouldn't be advertising and sure as heck should not be talking about money as it relates to patients.”

My have times changed! I wasn't burned at the stake and practices have come to the understand that to succeed in the aesthetic market, they need to be savvy marketers and employ good business skills along with producing great results.

Dana Fox is President of Strategic Edge Partners, Inc., a consulting firm focused on aesthetic medical practices. www.yourstrategicedge.com