Monday Dental Practice Optimization

Perform Your Benefit/Cost Calculations
Now that you are armed with your budget, you’ll next want to perform your benefit/cost and return on investment calculations.  This is perhaps the most often overlooked step, which is unfortunate, because this exercise can show you what you can reasonably expect by way of return on investment (ROI) from any tactic you may be considering, which provides you with greater control over your dental marketing plan, permitting you to tweak, expand, or eliminate a given tactic based on fact, not conjecture. 

The exercise involves first determining the annual value to your practice of an average patient, then multiplying that value by your average patient lifetime to arrive at your practice’s average patient lifetime value.  Armed with this, you next divide your Program Cost by your Patient Value, which yields your Breakeven Quantity (B.E.Q.).  Any results that exceed your B.E.Q. means a profitable program.

Implementing Your Direct Mail Strategy

Now that you have a clear picture of your Objectives and Budget, and have chosen, based upon the results of your benefit/cost analysis, to proceed with the program, it’s time to choose who will receive your mailings, and how often to send them (frequency).

Build Your Mailing List

If you’ve tried direct mail in the past and didn’t see the results you hoped for, there’s a good chance your mailing list was to blame.

Building your optimal mailing list entails identifying your target audience(s), then finding the best ways to secure as many mailing addresses for these people and families as possible.  Utilize mailing data compilers to create a targeted list.  Look for companies that focus in the health care space, and are willing to provide you with sample records for review prior to committing to rental (lists are rented based on a certain number of mailings per order).

Some of the demographic variables available from data compilers include:

• Income
• Carrier and Rural Route
• Length of residence  
• Renter, Homeowner, and Temporary Resident
• Single and Multi-Family Dwelling
• Marital status
• Expectant Moms
• Age of Resident(s)
• Presence of Children, including their Ages
• Wealth Index
• Demand for Dental Services
  and
• Credit Rating

A relatively new development, which permits you to supplement your mailing list with visitors to your website is sometimes called digital direct mail, whereby a visitor to your website can have their physical mailing address added to your mailing list.  Just be sure your service provider does not inadvertently target retail establishments (for example, a prospective patient may be visiting your dental website from their local Starbucks, which means your mailing will go to the store instead of the prospective dental patient’s home), and that the distance the prospective patient is from your dental practice is not too great (for example, from out of state).

Segment and win

Your current and prospective patients are not, and should not be, considered as one monolithic mass. As shared above individuals respond to different messages as a function of the group to which they belong, as well as where they are along their learning and motivation curve, so be sure your list contains people and families who represent a good fit for your practice e.g. residents living reasonably close to your office if you are a general dentist, families with children if you are a pediatric dentist, and older individuals with a minimum level of household wealth for big case dentistry.  Do not try to talk about family dental services to Generation Alphas* and, because Baby Boomers (those born between 1946 and 1964) are more responsive to direct mail, this group should comprise a significant component of your ‘marketing mix’ because this group has greater wealth and disposable income and is, therefore, more likely to want and need big case dentistry.

It is also important to recognize that the majority of people who receive your first mailing may not be ready to schedule a dental appointment.  Various studies place the number of ‘touchpoints’ required to elicit a response at seven.  Fortunately, the larger is your mailing list to qualified prospective patients, the more likely it is that you will present your message and offer to someone who is ready to respond upon receipt of the first, second, or third mailer.

The art and science of correctly segmenting your target audience can mean the difference between dental marketing success and failure.

Stay tuned for part 3.

Daniel A. 'Danny' Bobrow (BOB roe) is President of AIM Dental Marketing which, since 1989, has served clients
throughout North America, making it the oldest full service dental marketing firm in existence.

He is also the Founding Executive Committee Chair and Treasurer of The American Academy for Oral Systemic
Health (AAOSH).

Danny is the executive director of Climb For A Cause™, and The SmileTree™ the former organizing and promoting
participation in outdoor events, the latter allowing practices to ‘adopt’ one or more dental education and treatment projects overseas.

He is host of the acclaimed web based educational Series PracticePerfection.™ and the LinkedIn oral systemic
health group (Keyword: AAOSH).

Mr. Bobrow lectures nationwide, and has been published in: DPR World (as The Marketing Insider), New Dentist,
Dental Angle, CDS Review, Dental Compare (Compare Networks), Dental Practice Management, My Dental
Channel, Strategies For Success, Modern Hygienist, New Docs, Office Magic, Pink Tooth, Solutions Quarterly,
Dentistry Today, AGD Impact, DentalEDU.tv, and as the What's Working in Dental Marketing Today columnist for
Dental Economics.

He is one of 12 Charter Members of the Speaking Consulting Network (SCN).

In 2020, Daniel received the Distinguished Toastmaster (DTM) Award from Toastmasters International. Fewer than
1% of Toastmasters Members received this prestigious Award.

Daniel is also a Certified Dental Practice Consultant, and chaired the Website Committee of The Academy of Dental
Management Consultants

In 2010 he was inducted into the American Academy of Dental Practice Administrators (AADPA) for whom he has
delivered numerous presentations and, in 2011 the American Academy of Private Physicians and Academy of
General Dentistry where to date he has delivered presentations on telephone skills mastery.

He is a certified personal trainer, health coach, outdoor emergency care technician, Alpine Patroller r in the National
Ski Patrol, patrols for the National Mountain Bike Association, and is a certified Level I Instructor with the Professional Ski Instructors of America (PSIA).

Mr. Bobrow holds a Bachelor of Science degree in Economics from The University of Illinois, and Masters of Business Administration Degrees (MBAs) in finance and marketing from The University of Chicago and The Katholieke Universiteit Leuven, Belgium, respectively. He also holds various Certifications ranging from Insurance and Real Estate to Wilderness First Aid.

He is author of The State of The Art In Dentistry Marketing and contributing author to Powerful Practice Vol. II. He
is also the creator, in collaboration with Dr. Bill Blatchford, of The Art of First Impressions (TAFI)©.

Mr. Bobrow has a passion for rock and ice climbing, alpine and nordic skiing, mountaineering, and adventure racing. His mountaineering and racing exploits have been chronicled by Windy City Sports (now Competitor), Private Clubs, Red Book, Vertical Jones, Daily Herald, The Chicago Tribune, and other publications.

By soliciting pledges and corporate sponsorship, he has used many of these climbs as vehicles to raise both awareness and funds for a number of philanthropic organizations.

Mr. Bobrow is also a Certified mediator and arbitrator, and has worked pro bono for several agencies including; the Better Business Bureau, Youth Justice Institute, Center For Conflict Resolution, Illinois Department of Human Rights, the Circuit Court System of the City of Chicago, Center For Conflict Resolution, and Loyola University School of Law. He is a certified Professional Selling Skills II sales trainer and coach, and has passed the real estate
professional's licensing exam.. He is also Member of the University of Chicago's Graduate School of Business (Booth School) CEO Roundtable.

Danny resides with his wife Virginia near Chicago. 

💡 Answer to Trivia Question:

Practice transition or practice sale.