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TODAY’S PRACTICE



         Marketing Mishaps

                 Turn Your Practice
                    “Inside Out”
                   Changing your marketing focus from extensive media campaigns to
                     superior customer service may reverse sinking LASIK volumes.
                                                  BY SHAREEF MAHDAVI




   T
              he US refractive market seems to be caught in a try. This revolutionary growth did not occur without a
              holding pattern. Doctors and industry people      lot of pain. In a dramatic attempt to capitalize on LASIK’s
              are sniffing around for answers as to why proce- popularity, discounters sprang up and then failed, and
              dural volumes are down and consumer interest      patients with poor outcomes found an audience willing
   does not seem to be growing. We tend to point our fin-       to listen. More than one overzealous doctor made news
   gers at big external factors, such as negative publicity and headlines that didn’t “make mama proud.”
   an economic slump, which have reinforced the challenges         Due to the unfortunate events of the past, many insid-
   of marketing. Each month, this column has examined in        ers are now wondering how the industry will move for-
   detail a different aspect of                                                                  ward: What’s it going to
   the marketing process. Like                                                                   take to get procedural vol-
   many of you, I have gained a              “The advertising that focused on                    ume up in my practice?
   real appreciation for the dif-          technology and price unintentionally                  This is perhaps the one
   ficulty in conducting effec-                                                                  question that practitioners
   tive marketing. So why is it                   pushed consumers away.”                        ask every single day. Having
   so hard?                                                                                      spent the past 12 months
                                                                                                 on a tour of duty through
   THE SCIENCE OF M ARKETING                                    the “battlefields” of refractive marketing, I’d summarize
      Marketing is a highly complex process, often mistaken- what I’ve seen as follows:
   ly reduced to a single activity (such as advertising) or a      Providers have largely failed to properly appraise the
   single event (running an ad in the newspaper). Like clini-   benefit received by those undergoing LASIK. The excel-
   cal skill, marketing is a combination of art and science.    lent outcomes have generated tremendous consumer
   Unlike the highly predictable nature of LASIK clinical       awareness and word-of-mouth referrals. Desperate to dif-
   outcomes, human behavior can be highly unpredictable.        ferentiate themselves, however, doctors have mostly
   The function of marketing is to influence human behav-       relied on two weapons: technology and price. Adver-
   ior, and it’s essential to realize that your batting average tisements were seen and heard everywhere. Consumers,
   in this capacity is much lower than what you achieve         who fear blindness more than death, were confused by
   clinically as a refractive surgeon. With consumer purchas- all the different messages. The advertising that focused
   ing behavior, there are infinitely more variables, and you   on technology and price unintentionally pushed con-
   can’t control them all.                                      sumers away. The demand for LASIK and laser vision cor-
      In just 6 years, refractive surgeons have witnessed the   rection seems to have stalled, a problem exacerbated by
   evolution of refractive surgery from a concept tested in     negative news stories.
   clinical trials to a full-blown product category that I term    No one knows for certain how long this trend will con-
   medical retail. This product has returned unaided vision     tinue, but the providers who are most concerned are
   to millions of people (the digital counter would now         those who have approached the marketing challenge
   read, “Over 6 million served worldwide”), and created job from the outside looking in. This “outside-in” approach
   opportunities and wealth for both providers and indus-       relies on tools outside the practice to make it grow, and

76 I CATARACT & REFRACTIVE SURGERY TODAY I SEPTEMBER 2002
TODAY’S PRACTICE




these practitioners hope these tools will compensate for       they spend less and get more. But, these practices are the
the deficiencies on the inside that prevent the practice       minority; others have either given up or simply declared
from becoming successful.                                      that they will “wait and see” in hopes that the stormy
                                                               economy will pass. This is symptomatic of advanced
OUTSIDE LO OKING IN                                            forms of “outside-in” behavior, and their reliance of these
   What are the signs of the “outside-in” approach?            practices on advertising to generate patients has put
Outside-in practitioners advertise before their staff learns   them in a bind as to how to operate in a down market.
how to properly answer the phone and qualify interested        They decry the high cost of advertising and fail to see
callers. Their advertising focuses on the price instead of     options in how to attract patients at a lower cost.
the benefits of LASIK and/or the unique, differentiating          While LASIK seems to have prematurely been turned
aspects of the surgeon and practice. The most willing          into a commodity, the next several years will once again
patients are treated like cream—skimmed off the top—           create opportunity for volume and revenue growth to
while little is done to cultivate relationships with those     rebound for the refractive surgeon. For instance, cus-
individuals who are just beginning their decision-making       tomized LASIK and refractive IOLs are around the corner.
process. Similarly, prospects who don’t have cash in hand      But how they ultimately affect the growth in the refrac-
are deemed less worthy because of the extra effort that        tive market depends largely on the ability of doctors to
practices must put forth to help them obtain financing.        change the way they’ve been communicating with
A high procedural volume may allow the practice to             patients and the media.
compensate with “new technology” as the centerpiece of
its offering. Consequently, it fails to deliver a LASIK ver-   CHANGE THE PERCEPTI ON
sion of the “Nordstrom Experience” that has defined               Largely due to negative press, many consumers believe
superior customer service. When a competing provider           that, although it is effective, LASIK may not be safe for
makes a move, those “outside-in” practitioners spend a         them (the thought of seeing halos and glare at night stops
great deal of energy figuring out how to react or respond.     any further consideration). Here is where the saying “per-
                                                               ception is reality” will be put to the test. Let’s eliminate all
INSIDE LO OKING OUT                                            the confusing messages in the marketplace and focus on a
   Over time, providers who take the opposite ap-              single topic: safety. As surgeons, you know that cus-
proach—working from the inside looking out—will fare           tomized ablations may increase safety by a few percentage
much better in refractive surgery. The “inside-out”            points. However, through a series of messages focused on
approach looks at LASIK from the patient’s point of view       how new technology works to enhance patient safety,
and builds an offering around that perspective. It recog-      consistently told by all, the industry can dramatically
nizes that fear, not price, is the main deterrent to accept-   improve the public’s perception of laser vision correction.
ance, and it trains the entire staff to become “fear man-         This will not happen overnight; it will take time and a
agers.” Before engaging in expensive external marketing,       concerted effort by each and every provider to recognize
the “inside-out” approach focuses first on internal issues     that his fortune is tied to a greater good. The message
that affect the patient’s experience and continuously          relayed to each interested patient affects whether or not
looks for ways to improve. It creates opportunities to         they choose to undergo the procedure, and every proce-
build relationships with prospective customers and takes       dure performed has the potential to impact many proce-
into account that there is a high degree of consideration      dures in the future. With that in mind, the future is
in deciding on this procedure. This approach focuses on        brighter than it might currently seem. You can stop wor-
meeting emotional needs rather than simply rational            rying about what’s happening on the outside and take a
concerns (such as price), and it strives to create a safe      look at what’s going on inside your practice, inside your
and trustworthy environment. The attitude of the               prospective patients, and inside your own approach to
“inside-out” practice is not to take its role for granted,     refractive surgery. ■
and to work constantly to improve the way it offers this
miraculous procedure.                                             Each month, industry veteran Shareef Mahdavi looks at
   The halt in procedural growth that began in fiscal year     a different topic relating to the business of refractive surgery
2000 caused many practices to examine their marketing          and explores how mistakes from the past can be used by all
approaches. Those that have adopted much of the                providers for effective marketing. He was formerly the head
“inside-out” approach have held their own ground, by           of marketing for VISX and is based in Pleasanton, Cal-
shifting resources from expensive media campaigns to           ifornia. Mr. Mahdavi may be reached at (925) 425-9963;
more affordable guerrilla-marketing tactics. In essence,       shareef@sm2consulting.com.

                                                                      SEPTEMBER 2002 I CATARACT & REFRACTIVE SURGERY TODAY I 77

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Turn your practice inside out

  • 1. TODAY’S PRACTICE Marketing Mishaps Turn Your Practice “Inside Out” Changing your marketing focus from extensive media campaigns to superior customer service may reverse sinking LASIK volumes. BY SHAREEF MAHDAVI T he US refractive market seems to be caught in a try. This revolutionary growth did not occur without a holding pattern. Doctors and industry people lot of pain. In a dramatic attempt to capitalize on LASIK’s are sniffing around for answers as to why proce- popularity, discounters sprang up and then failed, and dural volumes are down and consumer interest patients with poor outcomes found an audience willing does not seem to be growing. We tend to point our fin- to listen. More than one overzealous doctor made news gers at big external factors, such as negative publicity and headlines that didn’t “make mama proud.” an economic slump, which have reinforced the challenges Due to the unfortunate events of the past, many insid- of marketing. Each month, this column has examined in ers are now wondering how the industry will move for- detail a different aspect of ward: What’s it going to the marketing process. Like take to get procedural vol- many of you, I have gained a “The advertising that focused on ume up in my practice? real appreciation for the dif- technology and price unintentionally This is perhaps the one ficulty in conducting effec- question that practitioners tive marketing. So why is it pushed consumers away.” ask every single day. Having so hard? spent the past 12 months on a tour of duty through THE SCIENCE OF M ARKETING the “battlefields” of refractive marketing, I’d summarize Marketing is a highly complex process, often mistaken- what I’ve seen as follows: ly reduced to a single activity (such as advertising) or a Providers have largely failed to properly appraise the single event (running an ad in the newspaper). Like clini- benefit received by those undergoing LASIK. The excel- cal skill, marketing is a combination of art and science. lent outcomes have generated tremendous consumer Unlike the highly predictable nature of LASIK clinical awareness and word-of-mouth referrals. Desperate to dif- outcomes, human behavior can be highly unpredictable. ferentiate themselves, however, doctors have mostly The function of marketing is to influence human behav- relied on two weapons: technology and price. Adver- ior, and it’s essential to realize that your batting average tisements were seen and heard everywhere. Consumers, in this capacity is much lower than what you achieve who fear blindness more than death, were confused by clinically as a refractive surgeon. With consumer purchas- all the different messages. The advertising that focused ing behavior, there are infinitely more variables, and you on technology and price unintentionally pushed con- can’t control them all. sumers away. The demand for LASIK and laser vision cor- In just 6 years, refractive surgeons have witnessed the rection seems to have stalled, a problem exacerbated by evolution of refractive surgery from a concept tested in negative news stories. clinical trials to a full-blown product category that I term No one knows for certain how long this trend will con- medical retail. This product has returned unaided vision tinue, but the providers who are most concerned are to millions of people (the digital counter would now those who have approached the marketing challenge read, “Over 6 million served worldwide”), and created job from the outside looking in. This “outside-in” approach opportunities and wealth for both providers and indus- relies on tools outside the practice to make it grow, and 76 I CATARACT & REFRACTIVE SURGERY TODAY I SEPTEMBER 2002
  • 2. TODAY’S PRACTICE these practitioners hope these tools will compensate for they spend less and get more. But, these practices are the the deficiencies on the inside that prevent the practice minority; others have either given up or simply declared from becoming successful. that they will “wait and see” in hopes that the stormy economy will pass. This is symptomatic of advanced OUTSIDE LO OKING IN forms of “outside-in” behavior, and their reliance of these What are the signs of the “outside-in” approach? practices on advertising to generate patients has put Outside-in practitioners advertise before their staff learns them in a bind as to how to operate in a down market. how to properly answer the phone and qualify interested They decry the high cost of advertising and fail to see callers. Their advertising focuses on the price instead of options in how to attract patients at a lower cost. the benefits of LASIK and/or the unique, differentiating While LASIK seems to have prematurely been turned aspects of the surgeon and practice. The most willing into a commodity, the next several years will once again patients are treated like cream—skimmed off the top— create opportunity for volume and revenue growth to while little is done to cultivate relationships with those rebound for the refractive surgeon. For instance, cus- individuals who are just beginning their decision-making tomized LASIK and refractive IOLs are around the corner. process. Similarly, prospects who don’t have cash in hand But how they ultimately affect the growth in the refrac- are deemed less worthy because of the extra effort that tive market depends largely on the ability of doctors to practices must put forth to help them obtain financing. change the way they’ve been communicating with A high procedural volume may allow the practice to patients and the media. compensate with “new technology” as the centerpiece of its offering. Consequently, it fails to deliver a LASIK ver- CHANGE THE PERCEPTI ON sion of the “Nordstrom Experience” that has defined Largely due to negative press, many consumers believe superior customer service. When a competing provider that, although it is effective, LASIK may not be safe for makes a move, those “outside-in” practitioners spend a them (the thought of seeing halos and glare at night stops great deal of energy figuring out how to react or respond. any further consideration). Here is where the saying “per- ception is reality” will be put to the test. Let’s eliminate all INSIDE LO OKING OUT the confusing messages in the marketplace and focus on a Over time, providers who take the opposite ap- single topic: safety. As surgeons, you know that cus- proach—working from the inside looking out—will fare tomized ablations may increase safety by a few percentage much better in refractive surgery. The “inside-out” points. However, through a series of messages focused on approach looks at LASIK from the patient’s point of view how new technology works to enhance patient safety, and builds an offering around that perspective. It recog- consistently told by all, the industry can dramatically nizes that fear, not price, is the main deterrent to accept- improve the public’s perception of laser vision correction. ance, and it trains the entire staff to become “fear man- This will not happen overnight; it will take time and a agers.” Before engaging in expensive external marketing, concerted effort by each and every provider to recognize the “inside-out” approach focuses first on internal issues that his fortune is tied to a greater good. The message that affect the patient’s experience and continuously relayed to each interested patient affects whether or not looks for ways to improve. It creates opportunities to they choose to undergo the procedure, and every proce- build relationships with prospective customers and takes dure performed has the potential to impact many proce- into account that there is a high degree of consideration dures in the future. With that in mind, the future is in deciding on this procedure. This approach focuses on brighter than it might currently seem. You can stop wor- meeting emotional needs rather than simply rational rying about what’s happening on the outside and take a concerns (such as price), and it strives to create a safe look at what’s going on inside your practice, inside your and trustworthy environment. The attitude of the prospective patients, and inside your own approach to “inside-out” practice is not to take its role for granted, refractive surgery. ■ and to work constantly to improve the way it offers this miraculous procedure. Each month, industry veteran Shareef Mahdavi looks at The halt in procedural growth that began in fiscal year a different topic relating to the business of refractive surgery 2000 caused many practices to examine their marketing and explores how mistakes from the past can be used by all approaches. Those that have adopted much of the providers for effective marketing. He was formerly the head “inside-out” approach have held their own ground, by of marketing for VISX and is based in Pleasanton, Cal- shifting resources from expensive media campaigns to ifornia. Mr. Mahdavi may be reached at (925) 425-9963; more affordable guerrilla-marketing tactics. In essence, shareef@sm2consulting.com. SEPTEMBER 2002 I CATARACT & REFRACTIVE SURGERY TODAY I 77