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Promoting your dental practice when the economy slows
by Howie Horrocks and Mark Dilatush
This is our first in a series
of articles for TPD. The main objective will always be to help you
effectively and professionally promote your dental practice. The
topic today is how to promote your practice when the economy slows.
Our firm has been working with dentists exclusively since 1990. We
have managed client marketing budgets through multiple economic
downturns, so - this isn’t new to us. Our goal with this article is
to communicate the reality of a slowed economy, its potential impact
on different “kinds” of dental practices, and provide general
guidance as to where you might look for improvement.
Economic reality
We do understand that certain areas of the country have been
impacted more than others. Michigan, Ohio, the Buffalo/Rochester New
York corridor, Las Vegas, parts of southern California, and other
parts of the country have been hit harder than most. If you practice
in one of these areas, just take what we are about to say and add
even more importance to it.
The biggest overriding economic reality that is directly affecting
your dental practices is the 2.3 trillion dollars of home equity
that basically vanished. The entire US economy is balanced around 60
trillion dollars (to put it into perspective). So, 2.3 trillion
dollars is quite a “chunk” to pull out of the economy in a very
short amount of time. Do not underestimate the importance of how
quickly that money vanished.
Who (which dental practice type) will get hit first and
hardest?
The cosmetic/full mouth rehab focused practice, in even a moderately
competitive market area, will be the first to get hit and the
hardest hit. There is a necessity vs. elective mindset in the
market. The farther away you go from family dentistry toward
cosmetic/full mouth dentistry – the more “elective” the market
perceives the dentistry. The real killer though is the 2.3 trillion
in unavailable funding. Between 2001 and the latter part of 2005,
those extreme makeovers you were doing were largely funded by home
equity lines or loans. Well, that home equity has all but vanished
for the vast majority of the population. If you combine an elective
perception and lack of available funding, you get a slowdown. In
some markets, like the markets mentioned above, a drastic slowdown.
What to do?
The first thing we recommend is to pay more attention to your
existing patient base. There is likely a tremendous opportunity for
practice growth within your own patient base. Between 2001 and 2005,
you were all pretty “fat and happy”. Many times, promoting the
practice within the existing patient base becomes complacent during
“fat and happy” times. Now is definitely the time to pay more
attention to your re-care system, communicate with your existing
patients, and promote services to your existing patients.
The next thing we do with clients is allocate marketing dollars to
what we KNOW works best in their particular market area. You should
do the same. If you have been successful promoting your own practice
in your market area before, over-allocate your marketing budget into
the medium that has historically worked and stick with it until the
economy picks up.
However you promote your practice (yellow pages, direct mail, print
ads, radio, tv), start to change the design and message to be more
“all inclusive”, or more family oriented. We will give you an
example. We see this mistake all the time. Let’s say you are
currently advertising your practice on the radio. And, it’s been
successful in the past. The focus/message of your ad is sedation
dentistry. Sedation dentistry is one very small aspect of what you
do every day. Do you give every patient a pill before you recline
them in your dental chairs? No, of course you don’t. So, your
marketing dollars are paying for radio ads that only communicate one
small aspect of what you offer the community. What if you had the
same ad budget with the radio station but you had 4 different
scripts that were rotated throughout the airtime? You certainly
might have one script for sedation, but how about one for
emergencies, one for family dentistry, and one for metal-free
dentistry. The public at large will begin to know you as the “all
inclusive” dentist, rather than the dentist that “just does”
sedation. Your practice will be attractive to MORE PEOPLE for the
same marketing expense! Take special note of that last sentence. We
can’t tell you how many times a new client has told us that their
previous marketing made people believe that they “only” provide
sedation dentistry (or “just” cosmetic dentistry). Be honest with
yourselves, have any of your patients ever asked you if you do
“regular” dentistry? If so, there should be alarms going off in your
head right now.
Be patient
Of everything we just wrote, this one is likely going to be the
toughest for you to apply. Effectively and professionally promoting
a dental practice is NOT a short term endeavor. Proper promotion IS
“a careful application of budget resources over the life cycle of a
dental practice”. When the overall economy slows, that means we just
came out of a period of time when things were easier. Patients were
easier to attract to dental practices between 2001 and the latter
part of 2005. If you weren’t impatient then, now is no time to start
being impatient! Impatience will cause you to make terrible
decisions on where to apply your marketing budget. You will bounce
around with a “try this and try that” approach that is never the
right thing to do.
We are both very excited to provide this content for the TPD
readers. Our goal is to share what we’ve learned over all these
years so you can perhaps take a 1,000 foot elevation view of how you
promote your dental practice, and make it more effective and more
rewarding.
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