Who is your competition...REALLY???

It is a question I ask groups nearly every week. Who is your competition? If you are in dentistry for example, you might make the mistake of saying that your competition is the dentist down the street. That kind of thinking might be seriously limiting your success.

Think about it:

· Over 50% of the people in any market do not go to the dentist on a regular basis.

· 80% of the population has some type of periodontal disease.

· You’re not everybody’s “cup of tea.” Not everyone is going to like your personal style or your way of doing business. They will go somewhere else. That is the bad news. The good news is that other people are not going to like the dentist down the street and would rather come to you.

“Competition” in a healthy sense of the word may be the best thing that can happen to any business for several reasons:

· To one extent, the more competitors there are, the more educated the market becomes and the more likely more people are to buy.

· Healthy “competition” creates the opportunity to differentiate and tailor your service to a more specific clientele that will be more satisfied because you are more closely serving their needs.

· “Competition” makes everybody better because you have to stay on top of your game to stay relevant.

I have always thought how much better dentistry would be if dentists, especially in the same market, were willing to share their clinical data. If they would compare and help each other improve clinically, the entire market would benefit as well as the patients in it. Besides, patients rarely make the decision about their dentist based on clinical quality. Unfortunately, they are not very good judges of clinical quality of care. Quality is the moral and ethical responsibility of the dentist.

So think of the vast untapped market of patients that are waiting to be served. In most markets, there is plenty to go around for everyone if you are properly positioned and move forward with a defined purpose instead of being threatened by the “competition.”

How referrable are you?

In the never-ending quest for continual improvement and search for great ideas, I am constantly reaching out into every possible corner of the world. That journey led me this week to speak to 300 of the leading home remodelers in the country that were holed up in a 4 day retreat in a remote part of Wisconsin to reinvent their businesses.

As an industry, this group has had it rough for the last two years. They got hit HARD by all the financial turmoil in the country so it was interesting to hear them talk about what they had done to adapt, stay nimble, survive, and in many cases THRIVE while the competition has been going under.

I worked the room thoroughly before and after my presentation to ASK and find out what they had done that was working. I got quite a list so I thought I would share one that was common sense and very revealing.

One home remodeler said to me, "Steve, the change in the economy has been the best thing that has ever happened to our business. The first change that we made was to get jobs done NOW! We used to string our jobs out as we juggled multiple deadlines. Now, we get in, get the job done quickly in a quality way, and get out. As a result of our improved timing and service:

• Our customer satisfaction has sky rocketed,
• We now have raving fans,
• And we are getting more referrals today than we have ever received from our customers in the history of our business."

He then confessed, "It was never a problem with our quality. We always did great work. It was our personal service that needed a serious upgrade. The change in the economy forced us to do that and it has been a HUGE benefit to our business."

Nothing new I suppose, but the reinforcement of the lesson is invaluable. Rarely is it the quality of the work that is the problem. It is the way we go about the work and the personal service that is attached to it that makes or breaks the deal.

His comment reminded me of a statement by Crown Council (www.CrownCouncil.com) member Dr. Trevor Murray (www.allure-dental.com) at our recent ToPS Total Immersion course (www.TotalPatientService.com) in Chicago when he said that if your practice is not getting a healthy flow of referrals from your patients, there is something wrong with what you are doing. Patients naturally want to refer when the product is sound and the service is spectacular. If they don't refer it is probably because you are terrible instead of referrable!

So, if you want more referrals, be more referrable! A powerful reminder of a lesson for any business.

Your Market Position

If there is one thing that the last year and a half as taught us in dentistry, it’s that position matters. Where you decide to position your practice in the market can determine the degree of success you experience. Overwhelmingly, those who bought into the “boutique,” high-end, cosmetic practice model have learned by painful experience that the first thing to go when people shift into economic panic mode is elective, cosmetic procedures.

There is no question that things have changed in the market place. The biggest issue we see today is with practices that have a tough position in the market that are waiting for things to come back like they were 3, 4 and 5 years ago. Well, here’s a news flash: it’s not coming back. The demographics of five years ago are not the demographics of today. America is getting older. And as it does, the perceived needs and desires change along with it. The Baby Boom generation which fueled the rapid growth of elective dentistry for the last 15 years has changed as it has aged. It is common sense. What many in dentistry are failing to recognize is that the individuals in the target market have not changed over the last few years, it is just that what the people in that market want is changing. So is your practice changing with it or are you operating like you operated five years ago like nothing has changed?

Here’s an example: in meeting with a marketing team recently that had designed a direct mail campaign for dental practices, the topic of the mailing list came up. “Who are we mailing to?” The response was typical for the target market of the past: 35 to 50 year olds with higher household incomes. But wait a minute. The biggest segment of the population is now hitting 65. Are they no longer good prospects? As America has aged, we have been getting younger as we have gotten older. “50 is the new 40, 60 is the new 50, and 70 is the new 60.” We’re are staying active longer, working more years, and wanting to stay younger looking the older we get. While marketing to the 60+ group may not have been an attractive target market 15 years ago, it very well may be THE target market of tomorrow. It’s just one example of how things have changed and we have to shift accordingly.

It is time to adjust, change, refocus, redefine your target market, determine what they really want, and move forward. The good news is that there is a HUGE market for dental services today in all parts of the country. The real question is if you are positioned in the right place for potential patients to find you because you are offering what they are looking for AND if you are approaching your current patients in a way that makes sense to them. Are you giving them what they want, or are you offering them what you hope they will buy?!

Want more new patients?

If you are looking for more new quality patients, here are two “update” ideas that depend on daily execution to be successful. I call them “update” ideas because they are ideas we have discussed before, but we have some new data that might give you some additional motivation to act or make a greater effort to put them into action. Done correctly on a daily basis, they have the potential to increase new patient flow by 20 to 30%.

Update Idea #1: Ask for another new patient.

As you probably know, we always track the number of potential new patient calls that come into a practice every day. We also track how many of those patients schedule. Our standard goal used to be an 80% success rate until late last year when one of our appointment coordinators changed the game with a 130% success rate. She developed the habit of always asking every new patient who scheduled an appointment who else in the family needed a new dentist that she could schedule today. Roughly 1 out of every 3 new patients responded with another new patient!

Since raising the bar last year, we have had an on-going contest to see who can schedule the most number of new patients out of one phone call. The record to date is held by our own ToPS Practice Advisor, Pam Peterson with a total of 6 new patients from one in-bound call! Another new record was set this week in a slightly different area when Aimee, the business assistant at The Grapevine Dentist scheduled a total of 12 new patients out of 4 new patient, in-bound calls in one day. Congrats Aimee!

So if you are not in the habit of tracking calls and scheduled appointments, start doing it today. Then make sure to ASK each patient who schedules, who else needs to schedule an appointment as well.

Update Idea #2: After hours calls
Again, this is nothing new, but not many offices do it. Done right, it can keep your schedule in tact and increase your new patient flow.

Each day we print out the schedule for the next 5 or so work days. Someone on the team takes home the office after hours cell phone to which all office calls are forwarded. With schedule in hand, the team member is equipped to handle any call that comes in including new patient calls which can be scheduled on the spot. The team member can also personally handle potential cancellations if they call after hours.

The team member responsible also gets $10 for every new patient who schedules after hours and who shows up for their first appointment. Even if it is only 3 or 4 new patients a month that may have otherwise hung up or not left a message, those numbers start adding up over a year’s period of time. Think about it. It could mean 35 to 50 new patients in a year. If your average new patient value is $2,000 for example, that is a potential of $70,000 in production that may or may not have come into the office.

Now those are two very simple, easy to implement ideas that could have a combined result of over $100,000 or more result in a year!

Now that’s something to seriously consider!

Looking for new patients?

Here is one of the most overlooked new patient opportunities that costs nothing and is just sitting there. Here are the exact things you need to do:

1. Track on a daily basis the number of potential new patient calls that come into your office each day. Anyone who answers the phone in your office just keeps a tally of how many calls they answer from anyone who makes and inquiry about the practice.

2. Track how many new patient appointments are scheduled each day. These two numbers should be recorded daily so that the team can see how successful they are at converting “inquiries” into scheduled patients.

In the past, we always thought that if we could convert about 80% of the prospective patients, we were doing OK. After all, you are not everyone’s dentist and you won’t be a good fit for everyone.

That 80% target changed not too long ago, thanks to a very perceptive team member who understands that the purpose of the practice is to always be creating happy, paying patients.

In looking at the statistics of one particular office at the end of a month, I noticed that the calls to scheduled new patients ratio was over 130%. I thought there was a mistake and that the two lines had been switched. Upon further investigation, I discovered that everything was totally correct. Not only was the new patient being scheduled, but each one was being asked, “Who else do we need to get scheduled today who needs to come in and see us?” or something similar. In other words, JUST ASK! If a new patient is calling your office, chances are that someone else in their life needs a dentist as well. So, just ASK who that person is.

So, the next step is:
3. Ask every new patient after he or she schedules a new patient appointment, “Who else do we need to get scheduled today?”

While we used to just shoot for 80% in the past, today we compete to see how many new patients can be scheduled in one call! The record so far…7! 7 new patients scheduled from one phone call. Just because someone asked!

It is a simple idea. But a very powerful and profitable idea to leverage your marketing dollar.