Orthodontic Referral-Based Marketing
By Roger P. Levin, DDS
To keep practices strong, orthodontists must have a continual flow of new patients and referral sources. A powerful and consistent referral-based marketing program offers a steady stream of patients and tremendous income potential.
Yet, some dental practitioners react to referral-based marketing with about the same level of enthusiasm as a patient when told he or she must have multiple extractions before braces can be placed. I know because I see it first hand. At a recent seminar that I was presenting, I encountered a doctor who was skeptical about the importance of referral-based marketing. He wasn't convinced it was worth his time, thinking it involved a lot of work without much of a return on investment. When I told him that directing more attention to referral-based marketing could mean millions of dollars in additional revenue, he paused. His demeanor changed entirely and he said, "OK, you have my attention."
Effective referral-based marketing adds to the bottom line by accomplishing three vital tasks:
Creates the opportunity for frequent
contact with referring sources
Enhances the relationship with existing referral sources
Develops a pipeline of new potential referral sources
When this occurs, it makes a tremendous difference in the profitability of the orthodontic practice.
Reasons for Resistance
Many doctors do not realize the high-income potential that is available from a powerful and consistent referral-based marketing program. The doctor I encountered at the seminar and others like him often shy away from fully embracing referral-based marketing for a variety of reasons, including:
They Wish to Stick With What They Know
Some orthodontists do not want to take the time to aggressively pursue referral sources because they tend to follow the time-honored tradition of relying heavily on patient referrals. Unfortunately, Levin Group has observed that this results in many practices reaching an unnecessary plateau. While the orthodontist may find his or her income to be satisfactory, the practice is not reaching its true potential.
They Have Limited Knowledge of the Subject
Many practices also do not fully understand referral-based marketing. It is not simply attending a few lunches once in a while with referring doctors. An effective approach to marketing requires multiple strategies consistently implemented on an ongoing basis. Referral-based marketing is based on the quantity of contacts as well as the quality. Networking, pursuit of new referral sources, maintenance of existing referral sources and customer service to the referring offices are preeminent in referral-based marketing. If practices expect superior results, none of these activities can be done once in a while or inconsistently.
Their Resources are Limited
Orthodontists are simply too busy to manage and implement referral-based marketing programs themselves. In addition, few orthodontic practices have a staff member partially dedicated to the referral-based marketing effort. Levin Group recommends having an individual dedicated 12-16 hours per week to effectively carry out the referral-based marketing program. The investment in staffing and execution of the referral-based marketing program allows practices to increase lifetime revenue by millions of dollars over a 25- to 30-year period. Hiring a Professional Relations Coordinator is a way to take stress off the orthodontist and allow the marketing program to run most efficiently and consistently.
The ABCs of Referral-Based Marketing
The key to an excellent referral-based marketing program is consistency. Levin Group recommends that orthodontic practices design a one-year marketing plan that consists of at least 15-30 ongoing strategies. Quality alone in the marketing effort is not sufficient. You need five areas of focus. These include:
Maintaining your relationship with top-level referrers. Turning mid-level referrers into top-level referrers. Determining which low-level referrers are prospects for greater referrals and which are not. Developing referral sources from non-referring doctors who have the potential to begin referring.
Each practice should carefully devise a marketing plan that will be rolled out over the course of a year. Your marketing plan will likely include the following:
Doctor Lunches
Shared Hobbies (golf, sailing, etc.)
Full-Day Seminar
Other Personal Contact
Doctor Visit/Phone Contact
Lunch and Learns
Community Activities
Profession Relations Coordinator Visit/Lunch for referring office
Evening Seminars
Correspondence
Fact Sheets
Gifts
Food Deliveries
To be completely successful, each of these contacts involves a strategy and well-produced support materials, including training scripts and professionally printed materials.
As you implement each of your strategies, keep in mind that other doctors are aggressively marketing their practices as well. Consequently, your referral-based marketing needs to be consistent and of the highest quality to ensure the greatest return on investment. Depending on the economy, you may find that competition can increase faster than anticipated. In the competitive world of orthodontic practices, where comparison-shopping abounds, it's necessary to solidify your referral base and expand it continuously. Referral-based marketing is the answer to maintaining momentum with an ongoing flow of referrals to compensate for the fact that many of your referral sources may be aging and have fewer children to send to your practice.
Conclusion
To guarantee a successful practice, a strong referral-based marketing program is a necessity, not an option. Practices that consistently and effectively engage in referral-based marketing will become the production and profitability leaders in their area.
You owe it to yourself, your staff and your families to help your orthodontic practice perform in the most efficient and effective manner. Every day that you do not take steps to grow and protect your practice, opportunities for increased profitability and referrals are lost. Referral-based marketing is the key to making your practice stronger and ensure continued growth.
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Roger P. Levin, DDS, is founder and CEO of Levin Group, a leading dental practice management consulting firm that is dedicated to improving the lives of dentists through a diverse portfolio of lifetime services and solutions. Since the company's inception in 1985, Dr. Levin has worked to bring the business world to dentistry. A popular lecturer, Dr. Levin addresses thousands of dentists and staff worldwide each year in 100-plus seminars and at the dental industry's most prestigious meetings. |