The Problem With External Marketing 2

And How Internal Marketing Can Skyrocket Your Profits (part 2 of 2)

by Tyson Steele

In our May issue, we began looking at the problem with external marketing. We discussed the four components of marketing (prospecting, closing, initial value, residual value) and how external marketing can be inefficient when it addresses only the "prospecting" component.

This month, we will discuss the power of internal marketing. But first, we need to look at why internal marketing works . . .

Who Do You Trust?

What is it that makes internal marketing so effective? Why is it that internal marketing has such a pronounced effect on bottom line profitability?

The real magic of internal marketing is the way it addresses the main reason patients accept treatment, stay in your practice and refer their friends.

You see, patients do all of these things for one primary reason . . . because they trust you.

Trust is the key. It's the basis for everything. Often, staff members will offer various reasons that patients don't accept treatment. "They don't have the money. They don't have insurance. They're afraid. They want to wait. They don't think they need it. They don't care." And, to a certain extent, these are valid objections. However, although the patient may not be consciously aware of it, the underlying issue is often "trust." After all, if a patient has a high degree of trust for you and your staff, many objections are overcome. Trust helps a patient prioritize treatment, find the money, ignore the insurance issue, overcome their fear and understand their need. It's all based on trust.

But trust is a complex thing. It's hard to develop trust in an ad or mailing. That's why internal marketing works so well -- it directly enhances patient and prospect trust.

And Now for Something Completely Different

So, we are finally ready to talk about internal marketing tactics. But, before we start, I'm going to ask just one thing. I want you to read this like you've never heard any of this stuff before. I want you to think about how each internal tactic relates to the four components of marketing. I want you to consider the effect each tactic might have on patient trust. And, I want you to consider the value of improving each of these items by just ten percent.

So, here they are -- the top three internal marketing strategies of all time.

1.QUIT ASKING FOR

REFERRALS

Some dentists and staff members are great at asking for referrals, but most aren't. In fact, asking for referrals is the most vehemently rejected internal marketing technique ever.

"We've already got a sign out front that says we appreciate patient referrals," they say. "Patients will think we're begging." "I always forget to ask." "What if we ask the same person twice?" "Maybe we could ask in a letter."

Of course, all of these excuses are just "brain damage." Asking for referrals is simply outside the comfort zone of 95% of all people. But that's okay -- because I don't want you to ask for referrals. Here's why...

Most patients fail to actively refer their friends to you for one reason -- they assume you are not taking new patients. In fact, on average, more than half of the patients in your practice assume your practice may be "closed" to new patients.

Don't believe it? Just ask your scheduler how many prospects call and ask, "Are you taking any new patients?"

Think about it. A patient talks to a friend who is looking for a dentist. Patient, "My dentist is great. I love her." Prospect, "Is she taking new patients." Patient, "I'm not really sure. Maybe you should call to find out."

Not really a strong referral is it? Often, the prospect won't even bother to call. After all, if you're that good of a dentist, they assume you must be full.

So, here's the deal. Don't ask for referrals. Just let your patients know that you are currently taking new patients. Say this, "Jenny, you're a great patient. I really appreciate having people like you in my practice. And I wanted to let you know that we're currently taking new patients, just in case you have any friends who are looking for a dentist. Please make certain they mention your name when they call, however, so we'll know to get them in as soon as possible."

This, of course, is much more powerful languaging than saying, "Please send us some of your friends."

In fact, this approach changes everything. Your patients are informed -- you do currently take new patients. Your patients are praised -- you must like them or you wouldn't have told them. Your patients are empowered -- they now hold the elusive key to the practice.

And best of all, you don't have to beg. Just inform.

So, start informing your patients, and quit asking for referrals.

2.QUIT SENDING

"THANKS FOR THE

REFERRAL" LETTERS

I'm constantly amazed that the same people who are willing to pay $200 or more for a random quality prospect from the yellow pages, fail to properly reward their patients for a high quality referral.

In fact, most practices send the same "thank you" letter to a referring patient every time they send in a new patient. It's like the movie "Groundhog Day" -- the same thing, over and over.

An effective "referral ladder" solves this problem. Essentially, a referral ladder is designed to reward referring patients in various ways. Ultimately, it's more than a prospecting tool -- no one's going to refer to you just to get the reward. The referral ladder serves to remind patients to continue to refer, builds our relationship with the patient, and even increases the odds that the patient will reinforce value to the person they already referred. In other words, it helps get patients talking about you.

A sample referral ladder could look something like this:

First Referral -- Referring patient gets hand-written "thank you" note and a $10 gift certificate to the local coffee bar.

Second Referral -- Referring patient gets note and $15 gift certificate to a bookstore.

Third Referral -- Referring patient gets note and $25 - $50 gift certificate to a restaurant.

Fourth Referral -- Gift could be hand selected for the referring patient, based on their interests, quality of patients referred and the quality of your relationship with the patient. Value could range from $25 -$200.

Fifth Referral -- Referring patient gifts rotate back to level one, the note and $10 certificate.

Of course, the gift certificates could be replaced with actual gifts, but gift certificates are easy to inventory and mail. You could even buy your gift certificates from other patients.

By the way, we generally count the referral of a family as one referral (i.e. "Thanks for referring the Johnson's.")

Keep in mind that even at the $200 level, these gifts are an excellent marketing value when compared to external marketing. Of course, you have to track who refers, how many patients they refer and how you reward them -- but that's a small price to pay.

So, start acknowledging your referral sources, and quit sending those generic "Thank you for the referral letters."

3.START TELEMARKETING

No, I don't mean telemarketing like "I'm calling to let you in on an incredible opportunity in the soybean futures market."

I'm talking about "after care calls." You know, the ones where you, the dentist, call personally just to see how the patient is doing.

After care calls are the ultimate marketing tool. They take only a few minutes, but they have an incredible impact on patient trust. These calls indirectly increase prospecting and closing (because patients you call are more likely to refer their friends.) The calls also have a huge impact on the initial value and the residual value of a patient (because the extra contact increases the patient's likelihood of accepting treatment, paying their bill and referring others.) In other words, after care calls are "da bomb!"

And, as if that isn't enough, care calls can make you feel great. You know this of course, because, even if you don't currently make these calls, you did make them at some point in your career.

So, what's the problem? If these calls are so good, why doesn't everyone make them?

I think the answer stems from several issues. First, many dentists think they need to call everyone. Obviously, this is unrealistic (at least until you've developed a habit.) In other words, you shouldn't set your initial goal too high. Overly high goals lead to disappointment and attrition -- "after all, who could call all those patients every day?" The truth is that for most dentists, even a few daily calls would be an improvement over what they're doing now.

Second, many dentists think they should call only patients who have had "major" treatment. This can lead to attrition when the dentist decides to have the staff make the calls -- "it's almost as good." The truth is that you should focus on calling patients you like, whether they had major treatment or not. This will keep you calling for the rest of your career.

Third, most dentists lack daily accountability regarding the calls. They say they're going to make the calls from home -- "but after the kid's ball game and a late dinner, it's too late to call." Then the next morning is packed with patients and, by evening, it seems too late to call a patient from yesterday. The moment has passed. The truth, of course, is that it's never too late to call. But, most of all, you need daily accountability. The truth is that every morning you could simply have your assistant say, "Did you make those two calls?" If you didn't, you could still make them by lunch time.

So, start telemarketing now.

Did Someone Say "Caviar?"

I recently received a mailer regarding the "Super Practice Marketing System." According to the story, this marketing system generated more than 100 new patients per month in a practice located in a town with a population of just 12 people. Now, they're licensing the rights to the "unique television and newspaper ad campaign" for just $12,000. (You still have to buy the ad space in your local market.) It must work well, though, because the dentist who developed it now serves caviar in the reception area.

Of course, by now you know better than to fall for this stuff. You know that just three internal marketing techniques can address all four components of marketing and skyrocket your profits -- all with a minimal investment of time and money. So, what are you waiting for? Get to work.