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TODAY’S PRACTICE




The Power of a Patient Base
                         Your LASIK alumni are critical to relationship marketing.
                                                 BY SHAREEF MAHDAVI


                  After years of refractive surgeons’ com-            is stated best by my colleague, advertising expert Kim Tietz:
                  plaining about the high cost of marketing           “We’re in the funeral business.” With refractive surgery, there
                  to attract patients, I am amazed at the lack        is no repeat business. It’s a one-time purchase, and that fact
                  of attention paid to those patients who             makes it difficult to invest in and develop a long-term rela-
                  have already had refractive surgery. I think        tionship with your customers.
                  of them as the “alumni” of your refractive
                  surgery program, primarily because they             USE ALUMNI TO YOUR ADVANTAGE
have gone through the emotional trials and tribulations                  In spite of this reality, there are things that LASIK pro-
leading up to their decision to undergo refractive surgery.           viders can and should do for customer relationship manage-
After completing a decision process that can last months or           ment. It helps to organize these activities by the order in
even years, these refractive alumni emerge from the proce-            which they are experienced by the patient.
dure much like new graduates: a smile from ear to ear and                Prior to surgery: If your practice doesn’t have a large
intense joy at their accomplishment (sans the cap and                 advertising budget and is largely dependent on patient refer-
gown).                                                                rals, you should communicate this fact to your patients so
                                                                      they are aware of their role in helping you build your prac-
REWARDS AND CHALLENGES                                                tice. When done sincerely and with an emphasis on creating
   Your refractive alumni present a special marketing chal-           a remarkable customer experience, your patients will go out
lenge. On the one hand, they are full of exuberance about             of their way to help you. Try to set this expectation even
their new and improved vision. Friends and family members             before your patients undergo refractive surgery.
get to vicariously experience the thrills, both small and large,         Within the first week/month: By now, you should have
that come with being a refractive surgery patient. The bene-          thanked the patient for his patronage at least as many times
fit to you is a strong word-of-mouth endorsement of the               as he has thanked you for his improved vision. There are
procedure and the provider. Those of you who track the                numerous ways to express gratitude to your customers.
source of your inquiries see this effect reflected in the data,       Small gifts are appropriate, as are handwritten notes, phone
and referrals from other patients are often the number-one            calls, and other personal touches. (Speaking of personal
source of new refractive patients.                                    touches, my airport’s parking lot attendants leave a bottle of
   On the other hand, that initial burst of excitement from           water labeled with the company’s logo waiting on the seat
those who have had LASIK eventually wanes as life goes                of my car upon my return. That’s a great example!) Your
on. They get used to their                                                                                  patients need to know that
new vision. It’s no longer                                                                                  you are truly grateful for
exciting for them, and they                                                                                 their business and don’t
don’t talk about it as                                                                                      take it for granted.
much. And what hap-                                                                                            Within the first 3
pened to all those people                                                                                   months: You should sur-
they told about the experi-                                                                                 vey (by phone or by mail)
ence? Typically, only a                                                                                     each and every customer
handful of a patient’s                                                                                      to find out how refractive
friends and family will call                                                                                surgery has changed their
the practice and begin                                                                                      daily lives. Ask if they recall
their own active considera-                                                                                 whether any part of the
tion of refractive surgery.                                                                                 experience you delivered
   When it comes to mar-                                                                                    stands out as particularly
keting LASIK, the problem                                                                                   excellent or poor. Ask these

                                                                   NOVEMBER/DECEMBER 2004 I CATARACT & REFRACTIVE SURGERY TODAY I 83
TODAY’S PRACTICE




   alumni if they’d be willing to accept phone calls or
   e-mails from potential patients considering refrac-
   tive surgery.
      Ongoing: You should strive to make every
   patient a part of an ever expanding list of satisfied




                                                                                                                                           (Chart Courtesy of SM2 Consulting.)
   customers from your practice. Once your alumni
   have completed their postoperative visits, you need
   to continue to stay in touch to show that you care.
   A periodic newsletter (I suggest twice per year) that
   highlights some of the latest surgical news is a great
   way to reach out to alumni. I also like the idea of
   mailing anniversary cards and holding special
   events (ie, parties or a block of seats at the ball-       Figure 1. Every consumer moves along a continuum that defines his
   game) just for your customers. These touches are           purchase decision process, including refractive surgery. Refractive
   another way to say thank you without being out-            alumni—patients treated in your practice—have the power to help
   wardly promotional (nothing to sell, everything to         move future patients directly into active consideration, bypassing the
   celebrate). The key point here is that you can create      route of expensive advertising and “shopping” phone calls. Thus, refer-
   a long-term relationship with one-time-purchase            rals are a more effective means of attracting future patients.
   customers.
                                                                       he encountered at the practice. Indeed, the outstanding
   CAVEAT                                                              experience is what can forever cement you in the mind of
      I am not a fan of formal referral programs with incentives.      your customer, and that is what you will need if you want
   They can be successful and are a nice way to reward those           alumni to talk about where they had their procedure with
   patients who refer above and beyond the norm, but anec-             the same fervor that they describe their freedom from glass-
   dotally, every surgeon has a few patients who ask for some-         es and contacts.
   thing in return for referring all their friends. The provider
   makes a deal, and the referrals fail to meet expectations or        AN UNTAPPED ASSET
   often don’t materialize at all. There is something personal            Successful companies that gain repeat business from their
   and magical about the refractive experience that can’t be           customers have long known that it is far less expensive to
   sold in bulk to others, even friends of patients. It all comes      increase business with a current customer than to obtain a
   back to how each of us holds eyesight sacred and why low-           new one. Applied to refractive surgery, this business princi-
   priced LASIK has failed to expand the refractive surgery            ple drives home the importance of your alumni. They are
   market. That tactic backfired, and I suspect that formal            your network and can be far more effective at selling you
   referral programs create a similar allergic reaction. These         than anyone on your payroll. They follow the four major
   types of programs just don’t feel right to most of us and           steps in the consumer decision process (Figure 1)—aware-
   somehow cheapen the overall experience by putting it in             ness, interest, consideration, purchase—and proceed to the
   the same category as all the other consumer product refer-          important fifth step, called recommendation. This fifth step
   ral opportunities out there (“Earn 12,500 miles,” “Get one          in the decision-making process is critical, because it has the
   month free,” etc.). The extreme version of incentive-based          power to help future patients move quickly through the
   referral programs is multilevel marketing, a concept that           continuum right into active consideration. In helping other
   always sounds much better than it really is. Legal issues           prospective patients form a bypass route directly to your
   aside, I just wouldn’t go there.                                    telephone, your alumni are far more influential than any
                                                                       paid advertising or promotional campaign.
   THE SUBTLE TOUCH                                                       Because alumni represent the single largest untapped
      How do you tactfully broach the subject of referrals with        asset in the marketing of refractive surgery, their relation-
   patients? Properly timed, the presentation of business cards        ships should be managed carefully. Do this well, and your
   or the question, “Whom do you know who could benefit                alumni will become your allies in building future business. ■
   from refractive surgery?” can work well as direct tactics to
   attract future patients. Ideally, of course, the best referral is     Shareef Mahdavi draws on 20 years of medical device mar-
   the one that you didn’t have to ask for or coerce but that          keting experience to help companies and providers become
   came as the result of the outstanding experience you pro-           more effective and creative in their marketing and sales efforts.
   vided. The experience was so great that the patient’s WOW           Mr. Mahdavi welcomes comments at (925) 425-9963 or
   factor applied equally to how he was treated by everyone            shareef@sm2consulting.com.

84 I CATARACT & REFRACTIVE SURGERY TODAY I NOVEMBER/DECEMBER 2004

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The power of a patient base

  • 1. TODAY’S PRACTICE The Power of a Patient Base Your LASIK alumni are critical to relationship marketing. BY SHAREEF MAHDAVI After years of refractive surgeons’ com- is stated best by my colleague, advertising expert Kim Tietz: plaining about the high cost of marketing “We’re in the funeral business.” With refractive surgery, there to attract patients, I am amazed at the lack is no repeat business. It’s a one-time purchase, and that fact of attention paid to those patients who makes it difficult to invest in and develop a long-term rela- have already had refractive surgery. I think tionship with your customers. of them as the “alumni” of your refractive surgery program, primarily because they USE ALUMNI TO YOUR ADVANTAGE have gone through the emotional trials and tribulations In spite of this reality, there are things that LASIK pro- leading up to their decision to undergo refractive surgery. viders can and should do for customer relationship manage- After completing a decision process that can last months or ment. It helps to organize these activities by the order in even years, these refractive alumni emerge from the proce- which they are experienced by the patient. dure much like new graduates: a smile from ear to ear and Prior to surgery: If your practice doesn’t have a large intense joy at their accomplishment (sans the cap and advertising budget and is largely dependent on patient refer- gown). rals, you should communicate this fact to your patients so they are aware of their role in helping you build your prac- REWARDS AND CHALLENGES tice. When done sincerely and with an emphasis on creating Your refractive alumni present a special marketing chal- a remarkable customer experience, your patients will go out lenge. On the one hand, they are full of exuberance about of their way to help you. Try to set this expectation even their new and improved vision. Friends and family members before your patients undergo refractive surgery. get to vicariously experience the thrills, both small and large, Within the first week/month: By now, you should have that come with being a refractive surgery patient. The bene- thanked the patient for his patronage at least as many times fit to you is a strong word-of-mouth endorsement of the as he has thanked you for his improved vision. There are procedure and the provider. Those of you who track the numerous ways to express gratitude to your customers. source of your inquiries see this effect reflected in the data, Small gifts are appropriate, as are handwritten notes, phone and referrals from other patients are often the number-one calls, and other personal touches. (Speaking of personal source of new refractive patients. touches, my airport’s parking lot attendants leave a bottle of On the other hand, that initial burst of excitement from water labeled with the company’s logo waiting on the seat those who have had LASIK eventually wanes as life goes of my car upon my return. That’s a great example!) Your on. They get used to their patients need to know that new vision. It’s no longer you are truly grateful for exciting for them, and they their business and don’t don’t talk about it as take it for granted. much. And what hap- Within the first 3 pened to all those people months: You should sur- they told about the experi- vey (by phone or by mail) ence? Typically, only a each and every customer handful of a patient’s to find out how refractive friends and family will call surgery has changed their the practice and begin daily lives. Ask if they recall their own active considera- whether any part of the tion of refractive surgery. experience you delivered When it comes to mar- stands out as particularly keting LASIK, the problem excellent or poor. Ask these NOVEMBER/DECEMBER 2004 I CATARACT & REFRACTIVE SURGERY TODAY I 83
  • 2. TODAY’S PRACTICE alumni if they’d be willing to accept phone calls or e-mails from potential patients considering refrac- tive surgery. Ongoing: You should strive to make every patient a part of an ever expanding list of satisfied (Chart Courtesy of SM2 Consulting.) customers from your practice. Once your alumni have completed their postoperative visits, you need to continue to stay in touch to show that you care. A periodic newsletter (I suggest twice per year) that highlights some of the latest surgical news is a great way to reach out to alumni. I also like the idea of mailing anniversary cards and holding special events (ie, parties or a block of seats at the ball- Figure 1. Every consumer moves along a continuum that defines his game) just for your customers. These touches are purchase decision process, including refractive surgery. Refractive another way to say thank you without being out- alumni—patients treated in your practice—have the power to help wardly promotional (nothing to sell, everything to move future patients directly into active consideration, bypassing the celebrate). The key point here is that you can create route of expensive advertising and “shopping” phone calls. Thus, refer- a long-term relationship with one-time-purchase rals are a more effective means of attracting future patients. customers. he encountered at the practice. Indeed, the outstanding CAVEAT experience is what can forever cement you in the mind of I am not a fan of formal referral programs with incentives. your customer, and that is what you will need if you want They can be successful and are a nice way to reward those alumni to talk about where they had their procedure with patients who refer above and beyond the norm, but anec- the same fervor that they describe their freedom from glass- dotally, every surgeon has a few patients who ask for some- es and contacts. thing in return for referring all their friends. The provider makes a deal, and the referrals fail to meet expectations or AN UNTAPPED ASSET often don’t materialize at all. There is something personal Successful companies that gain repeat business from their and magical about the refractive experience that can’t be customers have long known that it is far less expensive to sold in bulk to others, even friends of patients. It all comes increase business with a current customer than to obtain a back to how each of us holds eyesight sacred and why low- new one. Applied to refractive surgery, this business princi- priced LASIK has failed to expand the refractive surgery ple drives home the importance of your alumni. They are market. That tactic backfired, and I suspect that formal your network and can be far more effective at selling you referral programs create a similar allergic reaction. These than anyone on your payroll. They follow the four major types of programs just don’t feel right to most of us and steps in the consumer decision process (Figure 1)—aware- somehow cheapen the overall experience by putting it in ness, interest, consideration, purchase—and proceed to the the same category as all the other consumer product refer- important fifth step, called recommendation. This fifth step ral opportunities out there (“Earn 12,500 miles,” “Get one in the decision-making process is critical, because it has the month free,” etc.). The extreme version of incentive-based power to help future patients move quickly through the referral programs is multilevel marketing, a concept that continuum right into active consideration. In helping other always sounds much better than it really is. Legal issues prospective patients form a bypass route directly to your aside, I just wouldn’t go there. telephone, your alumni are far more influential than any paid advertising or promotional campaign. THE SUBTLE TOUCH Because alumni represent the single largest untapped How do you tactfully broach the subject of referrals with asset in the marketing of refractive surgery, their relation- patients? Properly timed, the presentation of business cards ships should be managed carefully. Do this well, and your or the question, “Whom do you know who could benefit alumni will become your allies in building future business. ■ from refractive surgery?” can work well as direct tactics to attract future patients. Ideally, of course, the best referral is Shareef Mahdavi draws on 20 years of medical device mar- the one that you didn’t have to ask for or coerce but that keting experience to help companies and providers become came as the result of the outstanding experience you pro- more effective and creative in their marketing and sales efforts. vided. The experience was so great that the patient’s WOW Mr. Mahdavi welcomes comments at (925) 425-9963 or factor applied equally to how he was treated by everyone shareef@sm2consulting.com. 84 I CATARACT & REFRACTIVE SURGERY TODAY I NOVEMBER/DECEMBER 2004