Question

Topic: Strategy

Marketing To Physicians

Posted by Anonymous on 5/7/2006 at 10:29 PM ET 250 Points
Owner of medical transcription company wants to offer superior quality services to physicians at a higher rate than most companies. We believe our product is the best and want to be paid for that service. How do we market to physicians who are penny pinchers? We would like to use "exclusivity" and appeal to their snobbism. Is that wise? If so, what buzz words should we use in our direct mail and face to face sales meetings?
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RESPONSES

  • Posted by wnelson on 5/7/2006 at 10:54 PM Member
    Just like with any consumer, you can only charge more if you offer something of value. "Market" all you want, but you aren't going to spin it into something it's not or by wishing it so or worse yet, by you believing it is and the docs not seeing it your way. Exclusivity may sell in real estate for neighborhoods, but how does that serve a need for docs? Buzz word it all you want, but without substance, you don't really have much. I'm not saying you don't have something real - I'm recommending you identify it and make sure that it's something the docs want and are willing to pay more for it.

    So, back to "doing marketing" versus "marketing it." First step is the analysis. Take a look at what physicians really need in a transcriptionist service. Review the competition and how they satisfy those needs. Figure out what your core competencies are and your unique selling points. How do you satisfy the docs' needs better than the competition? What services do you offer that they need that warrants a premium that they are willing to pay?

    I hope this helps.

    Wayde
  • Posted by wnelson on 5/8/2006 at 7:30 AM Member
    For "Business to Business," the "buzz words" evolve from three areas:

    1) More revenue - how can you help the docs increase their revenue (more so than the comp)?

    2) More profit/time - how can you save money or time for the docs (more so than the comp)?

    3) Government regulations - how can you help the docs meet government regs (better than the comp)?

    If you can put together a value proposition in clear concise words, then you can get their attention when you speak money. You are indeed right about needing to get to the docs. The office manager gate keepers are very protective about the docs' time. And they are not, in many cases, very business savvy. You can present a fancy ad to them and you won't get them. It's about relationships. You know who gets through to the docs regularly? Pharma reps. You know how? LUNCHES! Wine and dine the office managers and get a relationship. Show them your material in a clear and concise way.

    By the way, if you are after the business already held by your competition, you are after the wrong end of the market. 85% to 95% of the small practice (10 physicians or less) do not use electronic records. I would venture that most of these also don't use med trans. Go where your competition isn't. The value proposition between med trans and hand records is tremendous - like several new Beamers per year or a halfa house for a doc! And then there's discounts on insurance for using electronic records for them. Your comp is mostly looking at hospitals and big practices - the proverbal golden gooses. So you have tons of competitors trying to show how each other are better and fighting and scrapping. Tough to unseat an incombant! It's about relationships and the cost of switching is VERY HIGH in the mind of the office manager - who is the one who has to see to all the headaches of switching. Sure, the cost of marketing is higher to the small practices because it means more "sales calls." But I believe the "hit rate" for getting new business would be much higher and the return on the investment would be better.

    Wayde
  • Posted by wnelson on 5/8/2006 at 10:29 PM Member
    I agree with Theresa on the charging more because of value and giving gifts - it looks like you are "making up for your price." And in the overall scheme of things, this degrades your profits. Might it be better to price competitively out of the shoot? Certainly simpler.

    As far as "building relationship" with a survey, I am interpretting what you said to mean you are trying to find out what is important to them via the survey and build the relationship on that? At least that's what I hope you are doing. As Theresa said, you can't build a relationship via a survey. You build that by being in front of them and showing them your value - and by asking genuine questions on their needs and being willing to act on what they say.

    Wayde
  • Posted by darcy.moen on 5/9/2006 at 5:36 AM Accepted
    I'm going to jump in on this one as the debate is one of the finest I've seen in a long time on this forum.

    Tmtrans said: 'physicians want to practice medicine and do not want to make management decisions.' and wants to sell a higher priced service than that of the competition. The comp or 'gift' may be used to get to the doctors.

    The psychological aspects of this entire process is truly amazing!!!! Like chess, but with business, more plot twists than a Shakespearean play!

    None the less, I suspect that the question asker had best consider that there will be fewer clients for the more money.

    It's tough to sell 'value' in a market that does not place a value on it. Like the proverbial ugly guy trying to get a date with the most beautiful woman in the school....he could be the nicest, sweetest, richest person....odds are it ain't gonna happen because the girl isn't attracted to the ugly guy. Point is: the customer's value sets determine where the sale goes.

    You can get past the office manager.
    You can entice the Doctor with the ethical bribe (Please consider setting up the comps as an ethical bribe...its not only more palatable, but it also goes to the value/judgement points I'm getting into).
    You can position yourself all you want...in the end, it comes down to someone at sometime making a decision. And ladies and gentlemen, at that time, price is going to come into the equation in a big way. As tmtrans pointed out, Doctors are penny pinchers. BIG RED FLAG!

    Right off the bat this tells me that one had better expect lower market penetration as price is going to put off a lot of the market from the get go.

    Using spiffs, premiums and other ethical bribes may sway some clients to come on board (or help the client assuage their egos or help them rationalize their purchase mentally in some way), but at the end of the day its an added marketing expense to the service provider (becomes just a cost of doing business) and a band aid for the client. As much as I believe that when given the choice between cutting price, or giving something away, you should give something away...its not a long term solution.

    If you want mass penetration in a mass market, you'd best have a popular price. In a market known for pinching pennies, you'd better decide if your premium price is worth the business you won't get.

    Ask yourself a couple real hard questions....Are you set on getting a premium price because you are worth it, or are you set on getting a premium price because you have decided to charge it?

    If you are worth it, that will determine your true marketing strategy (as well as help you find the features and benefits to properly market your service).

    If you are set on getting a premium price because you can charge it, you'd better also accept that that attitude will cost you customers and sales.

    Look, I'm fine with either way. I'll take less clients, less work, for more money any day too, as long as I have enough other business to pay the rent and I can earn a profit. But if you have your heart set on more customers, more work, and more sales....you'd better consider putting price on the table as a selling point at some time. The spiffs only work on SOME of the market, SOME of the time.

    Revisit your positioning statement and think long and hard about where and how you want to sell your service and how you price it. The survey is a good market research tool, but your statement about penny pinching clientele already tells me that the mental values of the market are already skewed against you.

    I hope I've helped clarify the real issues at work, and caused even more question for you. Thank you for the great food for thought for the forum.

    Darcy Moen
    Customer Loyalty Network
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