Dr. Neil Baum is a nationally recognized urologist, speaker and author. His most recent book, Marketing Your Clinical Practices: Ethically, Effectively, Economically, Fourth Edition, is an
updated and revised edition of the best selling guide to medical practice marketing, including new topics and advanced techniques. Dr. Baum also provides thoughts on various topics through his blog.
Times are tough for doctors. Reimbursements are decreasing and overhead costs are escalating. As a result, doctors’ incomes are declining. There are no signs that the current administration is going to resolve this situation to the benefit of physicians and their practices. So what are doctors to do? I suggest implementing a marketing strategy during these difficult times.
Here’s a little historical perspective:
At the time of the Great Depression two companies dominated the packaged cereal industry: Kellogg and Post. When the market demand for packaged cereals decreased, Post did what most businesses do when demand declines: tightened its belt and reduced its marketing and advertising budgets. What did Kellogg do? It was the contrarian who did the opposite and doubled its ad budget. As a result, even with the economy in the tank, it increased its sales nearly thirty percent and today remains at the top of the packaged cereal industry.
It is of interest that when times are tough, most doctors and medical practices behave more like Post— i.e., cut back on their investments, marketing, and practice promotion —than like Kellogg—i.e., put money into new investments and new procedures, increase office space, add more doctors, add ancillary services, and increase marketing efforts.
Economist Roland Vaile has found that businesses that keep ad spending stable or increase it during recessions see their sales hold up significantly better than those that don’t. A study of advertising during the 1981-1982 recession found that sales at firms that increased advertising, or at least held it steady, grew precipitously in the next three years. In comparison, only slight increases were seen at firms that had slashed their budgets. A McKinsey study of the 1990-1991 recession found that companies that remained market leaders or became serious challengers during the downturn typically had increased their acquisitions, R & D, and ad budgets, while companies at the bottom of the pile had reduced them (Surowiecki J, Hanging tough, New Yorker, April 20, 2009).
Medical practices are similar to other businesses that have a product or service to offer their customers/patients. So, let’s look at some examples of marketing that practices can consider during this economic downturn. Perhaps, as a result, we can be the Kelloggs of the medical profession rather than the Posts. So read on and let’s put a little “snap, crackle, and pop” into our marketing efforts.
Everything about marketing a medical practice can be counterintuitive. It starts with the very basic thought, “Hey, I’m a doctor. I shouldn’t have to market” to “OK, all my colleagues around me are marketing, so I’ll do what they are doing.”
Here’s some food for thought: Promoting your services is not about yelling the loudest to the world that you are brilliant. Or putting an ad together that lists all of your services. We call that the “push” method. You are pushing yourself onto the world hoping it sees what an expert you are.
A much better approach is the subtle “pull” method. This involves strategically educating your preferred, would-be patients so they seek you out because they believe you are the expert they need to solve their problems.
For example, let’s say you know you are very good at treating urinary incontinence. So, how do you let the community know you are good at caring for incontinence? Answer: you educate prospective patients using instructional platforms. This pulls patients toward you, since they now see you as the expert on the one subject they are most passionate about at the moment.
I guarantee that if you help patients with their incontinence, they will trust you so much, they will return to you to help them with their other urologic conditions—and bring their families, friends and colleagues with them.
We in marketing call this, “Riches in the Niches.” Get known for one thing, and customers/patients will keep coming back for more.
Bottom line: Marketing and practice promotion is an effective way to attract new patients to your practice. It is reasonably inexpensive and it does generate results. Ready, aim, market!
