- Email: [email protected]
Integrating “Experience Economy” into Orthodontic Practice Management: A current perspective on internal marketing
Author’s Accepted Manuscript Integrating “Experience Economy” into Orthodontic Practice Management: A Current Perspective on Internal Marketing Vandekar Meghna, Vaid Nikhilesh, Fadia Dhaval, Sharma Meetali www.elsevier.com/locate/ysodo
PII: DOI: Reference:
S1073-8746(16)30052-4 http://dx.doi.org/10.1053/j.sodo.2016.08.011 YSODO475
To appear in: Seminars in Orthodontics Cite this article as: Vandekar Meghna, Vaid Nikhilesh, Fadia Dhaval and Sharma Meetali, Integrating “Experience Economy” into Orthodontic Practice Management: A Current Perspective on Internal Marketing, Seminars in Orthodontics, http://dx.doi.org/10.1053/j.sodo.2016.08.011 This is a PDF file of an unedited manuscript that has been accepted for publication. As a service to our customers we are providing this early version of the manuscript. The manuscript will undergo copyediting, typesetting, and review of the resulting galley proof before it is published in its final citable form. Please note that during the production process errors may be discovered which could affect the content, and all legal disclaimers that apply to the journal pertain.
Integrating “Experience Economy” into Orthodontic Practice Management: A Current Perspective on Internal Marketing Vandekar Meghna MDS, Vaid Nikhilesh MDS, Fadia Dhaval MDS & Sharma Meetali MDS.
Vandekar Meghna, MDS Professor & Chair: Orthodontics & Dentofacial Orthopedics YMT Dental College & Hospital, Navi Mumbai, India. E-Mail: [email protected]
Vaid Nikhilesh, MDS (corresponding author) Former Professor: Orthodontics, YMT Dental College & Hospital,India. Editor in Chief: APOS Trends in Orthodontics Only Orthodontics, New Blue Gardenia Hsg Society, Peddar Road, Mumbai, India. E-Mail : [email protected]
Fadia Dhaval ,MDS 3D Future Technologies Ltd,Ador House,Kala Ghoda,Mumbai, India. E-Mail : [email protected]
Sharma Meetali,MDS Lecturer: Orthodontics & Dentofacial Orthopedics, PDY Patil Dental College & Hospital,Navi Mumbai,India. E-Mail : [email protected]
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Abstract: Marketing as a word conjures up different visions for the Orthodontic Profession. It encompasses so many things and so much variety that it’s difficult to discuss it with others in our field. The connotations are so varied that there is so much confusion when you throw in the association of marketing with advertising. Infact, even without knowing about the science of marketing, Successful orthodontic practices do incorporate tenets that generate greater patient recall and referrals. The uniqueness, impact and memorability of patient interaction are critical to generating a consistent referral base. A concept that is making the industry at large, change its practice is the concept of the “Experience Economy”. In a survey of orthodontic patients, who were asked to rate the best and worst memories of their orthodontic treatment by the Q sort methodology, the best and the worst memories were experience and not therapy based. This article highlights the “Experience Economy Tools” for Internal marketing. With changing times, orthodontic practices that are able to implement these Internal marketing strategies in their day-to-day practice protocols will see improved patient satisfaction outcomes and financially successful practice models that will grow in any economy. Keywords: Experience economy, Internal Marketing, Referral based practice, Orthodontic Practice Management.
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Introduction: The healthcare industry has undergone transformation in the past few decades. Orthodontic care is now considered a “wellness science”, where professionally managed care programs are beginning to attract patients, forcing healthcare providers to view “customers/patient satisfaction” more seriously1. Orthodontic treatment as a commodity has reached parity in the eyes of the consumer. In this environment, focus on service can be a distinct advantage. Practices over the year have evolved by incorporating technological infusions and conceptual shifts in what could be deemed to be appropriate methods of reaching out to potential “service seekers”. One aspect however has remained constant, the value of the existing patients and their experience while in office2, 3. Focusing on this aspect of care is a strategy that defines a successful orthodontic practice. Orthodontic practice management manuals refer to this strategic conduct as Internal Marketing, which is a confluence of “Clinical expertise and Treatment Experience” .It can be defined as “Targeted approach to attracting patients in an increasingly competitive market place by including a range of strategies and tactics that tap into the power of established patient base within the in office setup”.
3
Internal Marketing Practitioners need to answer a few trivia i.e., Are kids talking about you at school? Are they excited and looking forward to visit your office? Does your practice stand out in community? Does your name come to the mind when people talk about referring patients to Orthodontists? It is a known fact that the majority of potential patients prefer to get treated at a practice that their friends or neighbors endorse and are typically willing to pay more to do so. External marketing like newspaper ads, hoardings, pamphlets are expensive tools of marketing with minimal predictability4. Internal marketing is less expensive and has more predictable results. It helps to fundamentally generate a referral-based practice. The predictability of this depends on (1) Quality of internal marketing i.e., positive relationships with the patients, positive environment in the office, high energy and trained team. (2) Quantity i.e., the number of different strategies needed to be practiced daily in office. Internal marketing cannot be a one off thing. It should be repetitive, consistent and positive. Internal marketing works on the principle that the people are always priority and every bit of experience that they have in your office should be memorable. Mary Kay beautifully puts it, “ I look at everyone as if they had a sign on their forehead that said, “ Make me feel special.” If any business employs this concept, the business can’t do anything but explode
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with success. It’s important to understand the conceptual basis of such strategic planning, which the industry refers to as the “Experience Economy” model. The “Experience Economy” model Pine & Gilmore published a book in 1999 titled “The Experience Economy”. They analyzed developments in society and argued for the fact that commodities and services are no longer enough to satisfy consumers, realize revenue growth & increase businesses; it is the experience that matters. The philosophy here is “work is a theatre & every business is a stage.5” Thus staging of experiences must be pressed as a distinct form of economic output. For decades the mantra for marketing was show the product or someone famous with it. Today the product takes a backseat with respect to the “experience “associated with it. Fig 1. A core argument is that because of technology, increasing competition and the increasing expectation of consumer, services today are starting to look like commodities. Products can be placed on a continuum from undifferentiated (referred to as commodity) to highly differentiate. Evolution of the commodity market to a commoditized series is based on the concept of transformation and experience. It transcends from the agrarian economy to the industrial economy and the most recently, i.e. the service economy. Businesses must orchestrate
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memorable events for their customers, and that memory itself becomes a product called “the experience”. The experience provider here can set a frame for the experience but it is the consumer that creates the experience for oneself, as reactions to the frame are individual. The ultimate state is achieved when customers experience transformation by the use of these offerings. Orthodontists have limited exposure to classical corporate concepts & business models and rely on continuing education exposure for these critical aspects of patient care, despite orthodontic literature comprehensively stating that classical models of business management apply to orthodontic practices as well. Alvine Toffler6, in his book “Future Shock” talks about the upcoming “Experiential Industry” in which people in the future would be willing to allocate a huge percentage of their earnings to “living amazing experiences”. Can Orthodontic treatment be that Experience ? Fig 2. The Orthodontic Experience We decided to assess the recall value of Orthodontic Treatment amongst young adults who had undergone Fixed Appliance treatment at least five years from the date of assesment. Ethical approval was obtained from the IRB of the Y.M.T Dental College & Hospital, Navi Mumbai, India. Patients, who had completed multi-banded fixed orthodontic treatment and were debonded between five and eight years ago, were interviewed in various Junior and
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Degree colleges of Mumbai. In all, 2436 subjects who had orthodontic treatment at different orthodontic offices in Urban India (Mumbai & Pune) were evaluated. The first part of our study was the interview questionnaire presented in Figure 3. Three researchers (V.D, D.F. and M.S.) were trained in the process of in-depth interviewing. These interviews generated a list of reasons that made the subjects remember their orthodontic treatment experience favorably and unfavorably. These interviews were tape recorded and transcribed verbatim, immediately afterward. The transcripts were then analyzed to identify a list of statements (replicate items were removed) .The items were then worded appropriately so that they could be tabulated. Fig 3. A table was then constructed for the thirty-two most popular statements generated from all the interviews, and the items were listed on individual tables. Table . 1 The second part of the study involved recruitment of 567 new patients from the same aforementioned places in the first part (with the same inclusion criteria). Those who were a part of the sample in the first part were excluded now. The minimum numbers of recruited subjects were in accordance with the study of Shine Bourne7. The participants were asked to complete the column by choosing the statements that were most and least relevant to their
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experience of orthodontics. They had to place all 32 statements (given to them as cards) in a positive (green, +1 to +5) or negative (orange, -1 to -5) colored zone on the color chart provided. This process was repeated until all statements that were neither positive nor negative, were placed in the yellow or neutral zone of the board, which included columns headed with a 0, indicating a neutral experience. (Fig 4). This method of evaluation is known as the Q sort methodology8,9. This is a research method used in psychology and in social sciences to study people's "subjectivity" i.e., their viewpoint. Q was developed by psychologist William Stephenson10. A Q sort is a ranking of variables; typically presented as statements printed on small card according to some "condition of instruction." This technique been used as a research tool in a wide variety of disciplines including veterinary medicine, public health, transportation, education, rural sociology, hydrology and mobile communication11-15. The methodology is particularly useful when researchers wish to understand and describe the variety of subjective viewpoints on an issue16. The data of this survey was collected, recorded and entered into an SPSS spreadsheet and analyzed with SPSS software (version 17.0; SPSS, Chicago, Ill). In this study, Average distribution grids were created for both cohorts (Favorable and Unfavorable) by calculating the average score that each statement received, ordering the statements from the one with the highest score to the one with the lowest score, and placing
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them into the grid in that order (i.e., the statement with the highest positive score was placed in the far right column and the one with the highest negative score in the far left column). Of the 567 subjects recruited for the second part, 74.3 % of the responses in the top 3 favorable and unfavorable experiences were related to “Patient Experience”. The most favorable experience was that the “doctor was pleasing” was rated the highest at +5, where as at +4 was “personal attention” and “events in the office” .At +3 was “office ambience and decor”, “courteous office staff”, “good communication regarding treatment”. The most unfavorable experience was “pain” at -5; -4 were “ulcers” and “food restriction”, at -3 was “treatment was too long”, “retainers” and “cumbersome oral hygiene”. Factors generally concerned critical by orthodontists, were unexpectedly scored by patients with a 0, +1 or -1 score. These factors were “lengthy appointments”, “no follow up”, “treatment charges”, “breakages”, “extraction”, “braces make me look ugly”. Of course the reasons for these scores can be subject to analysis, but the larger picture they convey are: Patients most remember the “experiential aspects” of Orthodontic treatment. Quality of treatment is a given factor, but the recall factor of the so-called orthodontic variables (type of appliance, choice of extraction, kind of finish) is minimal compared to the experience variables (courtesy, staff grooming, personal attention, office décor etc.) in patients.
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If Experience has to an integral part of Orthodontic treatment delivery, a strategic plan needs to be prepared by an Orthodontic office for it. Internal marketing in orthodontic office needs precise planning, of which an internal marketing audit is a very critical step. Marketing Audit A marketing audit is a comprehensive, systematic, independent, and periodic examination of a unit's marketing environment, objectives, strategies, and activities, with a view to determining problem areas and opportunities and recommending a plan of action to improve performance17. In the current economic climate, it is advised to “ramp up” the marketing budget as opposed to looking for ways to save and/or reduce overheads through a reduction in marketing efforts18. Dr. Levin’s practice analysis states that if practice growth is less than 4% then a practice is at an ‘Inflection Point’. It’s a point is where the business needs a strategic change to stay in business. In a well-run practice, Business systems are broken down into discrete limits and written, brought & reviewed with the staff on a regular basis. A change is required in all business systems every 5 to 7 years to stay relevant. Newer systems, décor, treatment mechanics are all contributors to this change21.
Marketing and practice management both have utility and should work together. Marketing should not be used as a bandage to avoid addressing practice management challenges, nor
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should practice management be used to avoid marketing as a critical part of any practice’s business plan. Practices that spend money on external marketing efforts but fail to see a positive return on investment often erroneously come to the conclusion that marketing is a waste of time. The truth is that it may not be the marketing that is failing. Before spending on marketing, it is worthwhile to invest time in reviewing the following internal processes to determine how to improve practice processes that are inextricably related to experience, and can ultimately make or break a practice’s marketing efforts19. Every orthodontic practice should be budgeting between 2% and 4% of their annual collections for effective internal marketing practices20. The percent is determined by the developmental stage of one’s practice, the rate of practice growth, and a plethora of factors. Current trends globally indicate that this figure could be as high as 10-14% in some economies. The Experience Economy (EE) Toolkit for Internal Marketing Alan Haffey (CEO of Proctor and Gamble) states, “Mass marketing is dead”. Advertising can no longer exist by blasting messages to people. Before the Internet, the world connected on a person-to-person interaction. Times did change, but people now are back from passive consumption to active participation. The Digital world today, is also about forming relationships. While all the other management tools could constitute the “heart” of a strategy, the Experience Economy tools discussed here are integrally the “soul” of a practice. The tools are described as a checklist in Table 2 and discussed as under: 11
Table 2
1.Practice Profile & Location: Selection of practice location also plays a very important role in deciding the profile of a practice. It is important to decide on a target population, especially in economies when diversity can play a part in orthodontic delivery systems. i.e. A practice could be close to a particular social group, or a geographic location (downtown, countryside, etc., close to referring dental professionals, pediatricians, or in proximity to school, spa’s or gymnasiums). It is always preferred “to be in the right place at the right time.” 2. Logo and branding : They not only help in standardization of a theme that connects, but also promotes instant public recognition. Logo and taglines used for branding should be easily recognizable and relate to the vision statement of the practice. They can be either totally graphic or have a name and tagline too. Hiring a brand consultant for advise in this field is a good idea for a practice. Multiple exposures to the same target helps
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create Brand Recognition. Commitment to an expensive or sophisticated service does need multiple exposures. Table no 3 3.Practice Ambience: A positive practice ambience forms an important tool of Internal Marketing. One must keep in mind that it is important to co-ordinate the office décor with the theme, logo, branding colors and the concept. They have to all speak one language and deliver an uncluttered message. Music, Patient Activity areas, Refreshment zones are becoming integral parts of modern day practices globally. Software and 3D aids for counseling, which bear the office’s logo, are also non-negotiable tools. 4.In office Protocols: Staging of experiences is essential part of internal marketing, thus SOP’s in office protocols need to be followed for patient interaction. Scripted protocols for all interfaces are a must. Records of similar cases, Scheduling soft wares that can send Patients appointment reminders through text messages are important tools that can be employed. Simple methods like flavored chewies, impression materials, can serve to be procedures that
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add to the experiential aspect of treatment. Intra Oral Scanning is another experiential tool that hold promise in the near future. 5.Communication Methods: Good communication is the key to success of any organization. This also is applicable to an orthodontic practice, whether it’s at the telephonic or digital interfaces. Adequate personalized attention is a must. Tools that can be used in offices are: (i)
A Welcome and a Thank you note.
(ii)
Braces care instruction booklets or videos
(iii)
Instruction sheets or Do’s & Don’ts given to the patients after bonding.
(iv)
“Lets get back on track” letters for non compliant patients
(v)
Practice policy, vision, mission and information booklets
(vi)
Braces Recipe Books
(vii)
Personalized Montages with notes to showcase treatment progress at various stages
(viii) Practice E Newsletters This tool has endless possibilities and creativity does prove to be a distinct advantage in making a communication strategy.
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6. Events: An event forms an important component of the experience economy toolkit. The office should always be a fun and cool place to be in. A festive atmosphere in the office can be created when important milestones are celebrated. Events like Debonding Parties, Halloween Parties, Children day events, Clinic carnivals, Seasonal gifts, Mother’s day parties, Karaoke parties can serve to be important tools for informal interaction with patients in the office, and help forge connections. We conducted an event titled the “Braces Fashion Show where patients with braces walked the ramp. In attendance were past patients, the families of existing patients and friends, creating a community buzz and a lifetime experience for patients in treatment and potential referrals! 7. Community Networking: To be seen at Community Events (i.e. School Fetes, Sporting and Fund Raisers etc.) is a subtle method of brand reinforcement. Loyalty schemes for patients who refer other patients are important methods of maintaining the “connect’. 8. Feedback: EE Tools may involve either a video testimonial or a written one. It not only motivates the team after listening to positive comments but also helping us to know where to improvise. Testimonials recorded on Smart Phones and on video formats can be played in the waiting area and be use on websites for online marketing.
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Conclusion: Orthodontics is a unique specialty that engages a patient for an important time frame of their life. While a lot of therapists might perceive the time taken for Orthodontic treatment as a concern for treatment delivery, the optimist can strategize this reality into an opportunity to create lasting impressions, which translate into patient experiences that can transform orthodontic practices. Internal marketing with the experience economy tools works on building relations with patients, understanding them better and make their time in Orthodontic office a memorable one. It is a science, which is based on generating referrals. Traditionally, investing in doctorpatient relationships in a systematic manner is a policy that has seldom failed. Factors that matter to a patient in their recall of orthodontic treatment are Experience related. The EE concept and the toolkit are as important to orthodontic care as the treatment itself. Conceptually, Smiles are only a part of what patients eventually take home!
Acknowledgement
The authors would like to thank Dr Viraj Doshi for his immense help in preparation of the manuscript.
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5.B. Joseph Pine II and James H. Gilmore. Welcome to the Experience Economy. Harvard business review July–August 1998, 97 - 105
6.Alvin Toffler. Future Shock. A Bantam Book. ISBN 978-0-553-27737-1.
7.Shinebourne P. Using Q method in qualitative research. Int J Qualitat Method 2009; 8: 937.
8.Joy Coogan and Neil Herrington, Q methodology: an overview. Research in secondary teacher education. Vol.1, No.2. October 2011 pp. 24–28. 9.Rema Prabakaran, Shiri Seymour, David R. Moles,c and Susan J. Cunninghamd.
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Motivation for orthodontic treatment investigated with Q-methodology: Patients’ and parents’ perspectives. Am J Orthod Dentofacial Orthop 2012;142:213-20 10.Stephenson, William, 'Tribute to Melanie Klein' ''Psychoanalysis and History 12.2 (2010) pp. 245-271. See also James M.M. Good, 'Introduction to William Stephenson's Quest for a Science of Subjectivity' Psychoanalysis and History 12.2. (2010) pp. 211-43.
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15.Liu, Chung-Chu. "Mobile phone user types by Q methodology: an exploratory research". Retrieved 20 September 2008. 16.Van Exel NJA, G de Graaf. Q methodology: A sneak preview. 2005
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17.Abdullah Al Fahad, Abdur Rahman Al Mahmud, Robel Miah, Ummay Hani Islam Marketing Audit: A Systematic And Comprehensive Marketing Examination. International journal of scientific & technology research volume 4, issue 07, july 2015. 18.Darling JR, Bergiel BJ. A longitudinal analysis of dentists attitudes toward advertising their fees and services. J Dent Educ. 1987; 46: 703-706 19.Naomi Cooper. Stop wasting your marketing budget. Inside Dentistry. June 2014, Vol. 10 issue 6. 20.Earl Clarkson, Sanjeev Bhatia, Management and Marketing for the general practice dental office. Dent Clin N Am 52 (2008) 495-505.
21.Roger P. Levin. Achieving Total Orthodontic Success in a Down Economy. PCSO Bulletin, Summer 2010, 40 - 43.
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Figure 1. The experience economy concept: The experience economy concept (Pine and Gillmore 2011) categorizes economic functions as commodities, goods, services and experiences. The Y-axis demonstrates how a product differentiates itself when it is centered around experiences. The X-axis describes the relevant economic offering based on this classification. Clients who are transformed by a positive experience are likely to find the interaction transforming and of greater value compared to a commodity, good or a service. Figure 2: The progression of economic value (the coffee bean example): The Y-axis demonstrates the margin or positioning of a brand on the experience hierarchy. The X-axis represents the level of differentiation. While a coffee bean and coffee powder are more likely to be differentiated on pricing alone, a cup of coffee and the coffee shop experience are premium offerings that result in the progression of value of the same product through the staging of an experience. The coffee bean is the commodity, the powder is a good. Brewed coffee is a service while the coffee shop is the experience. Figure 3: The part 1 Questionaire used in the survey. Figure 4: Q-methodology grid for Orthodontic Experience Economy study: The patient’s orthodontic office experiences as plotted on the Q Sort grid are presented in a colored zone pattern. The most favorable experience was rated at +5 with (The green zone) with a reduced scoring towards the neutral (yellow zones). The most unfavorable experience was scored as -5 in the red zone. The most positive and negative variables were “experience driven”.
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Table 1 Opinion statements about Orthodontic Office experience: collated after Part 1 of the Survey. Sr. No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32.
Initial Responses Aesthetics Better smile post treatment. Doctor was pleasing. Food Restriction during treatment with braces. Invisible treatment options available. Cumbersome Oral hygiene regimen. Braces are Painful. Choice of Colourful O-rings to be worn to look cool. Braces Makes me look ugly. Clinic location is favourable. Impression making procedure is uncomfortable No regular follow up. Uncomfortable. Courteous office staff and greeting each time you visit. Braces lead to ulceration. Music in the office is soothing. Treatment charges vary. Long waiting hours. Personal attention is given. Office Ambiance and décor is homely. Retainers to be worn post treatment. Events in the office on special occasions. Breakages. Lengthy appointments. Good communication regarding treatment. Treatment duration was too long. Ceramic braces make teeth look less ugly. Extraction is a nightmare. Staining of rings make teeth look yellow. Irregular appointments due to various procedures. White spots on teeth after treatment look ugly. Relapse.
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Table 2. The Experience Economy (EE) Toolkit for Internal Marketing. This is a proposed guideline for the clinician desirous of incorporating EE methods in an orthodontic practice. The table indicates the rationale, the possible activities and their outcomes (as observed by authors in their practices).
Sr. no .
1.
EE Tools
Rationale
Activities
Practice profile/ Location
Target Groups Community Based Referrals
Logo & Branding
Distinguishes one experience from another
2.
Practice ambience
3.
Patient has “me” time in the office. Comfort Zone for patients Reflects the Organization’s culture
In-office protocols
Work is a stage
Communicatio n methods
Good communication at every interface from the first phone
4.
5.
Outcomes
Community Events InfoAdvertorials in community media. Multiple exposures to the same target. At least 15 in office branding of products.
Co-ordinate interiors with theme. Time engaging activities. Distinct areas for patient experience
Scripting of staff interactions and SOPs for a consistent Experience Well-connected human and digital interface. Intelligent use of technology.
Pleasant Interpersonal Relationships & an enhanced connect.
Patients feel connected to the office at every stage. 22 Improved
Word of mouth enhanced Right profiling, specific to a location Standardization A positive Image for practice created “Commitment to a vision” established Patient looks forward to visiting a practice. The “Feel good “ and “wow “factor in a practice, resulting in improved referral.
Events
6.
Community networking.
call to the end of treatment. Informal interaction with patients. Office should be a cool & fun place to be connected with.
Presenting a Humane face Maintaining the connect.
7.
perception of care.
Feedback
8.
Helps to work on the Experience element in the practice Captures emotions.
Debonding parties. Halloween parties. Braces fashion shows.
To be seen at community events. Loyalty schemes. Participating as Sponsors in an Interschool/ College Competitions Video or written feedback.
Community Buzz. Shared experiences in a dedicated target group increase referrals.
Helps learn patient outlook. Great Marketing and Referral generating tool
Makes the patient feel a part of the “practice family”. Helps the team understand the patient better and create a lasting bond.
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Table 3. Possible scope of items where logo and branding can be used in a practice List of Interfaces that can have a Logo and Tagline to create multiple exposures Practice Boards & Hoardings Envelopes /Letterhead, Files Gift Vouchers - gift a product or service Thank you note for being treated and been a good patient referral source Welcome note with a brief of profile Brochure when patient walks in for consultation Bags to carry home, oral hygiene products Cups and glasses in which beverages are served. i.e. water, tea, coffee ,slush etc. Badges to welcome patients that are pinned on the/ Practice T Shirts Tooth boxes given after extraction to take home Vaseline sticks Retainer Boxes Gifts like calendar, photo frames, magnets, T-shirts, water bottles, caps, pens, etc.,- it is a great way of staying in front of your clients all year long Membership cards assuring client loyalty and giving the patient a sense of belonging to your office Napkins, drapes and tissues Doctor and staff uniform Miscellaneous Stationary
24
25
26
27
28
PII: DOI: Reference:
S1073-8746(16)30052-4 http://dx.doi.org/10.1053/j.sodo.2016.08.011 YSODO475
To appear in: Seminars in Orthodontics Cite this article as: Vandekar Meghna, Vaid Nikhilesh, Fadia Dhaval and Sharma Meetali, Integrating “Experience Economy” into Orthodontic Practice Management: A Current Perspective on Internal Marketing, Seminars in Orthodontics, http://dx.doi.org/10.1053/j.sodo.2016.08.011 This is a PDF file of an unedited manuscript that has been accepted for publication. As a service to our customers we are providing this early version of the manuscript. The manuscript will undergo copyediting, typesetting, and review of the resulting galley proof before it is published in its final citable form. Please note that during the production process errors may be discovered which could affect the content, and all legal disclaimers that apply to the journal pertain.
Integrating “Experience Economy” into Orthodontic Practice Management: A Current Perspective on Internal Marketing Vandekar Meghna MDS, Vaid Nikhilesh MDS, Fadia Dhaval MDS & Sharma Meetali MDS.
Vandekar Meghna, MDS Professor & Chair: Orthodontics & Dentofacial Orthopedics YMT Dental College & Hospital, Navi Mumbai, India. E-Mail: [email protected]
Vaid Nikhilesh, MDS (corresponding author) Former Professor: Orthodontics, YMT Dental College & Hospital,India. Editor in Chief: APOS Trends in Orthodontics Only Orthodontics, New Blue Gardenia Hsg Society, Peddar Road, Mumbai, India. E-Mail : [email protected]
Fadia Dhaval ,MDS 3D Future Technologies Ltd,Ador House,Kala Ghoda,Mumbai, India. E-Mail : [email protected]
Sharma Meetali,MDS Lecturer: Orthodontics & Dentofacial Orthopedics, PDY Patil Dental College & Hospital,Navi Mumbai,India. E-Mail : [email protected]
1
Abstract: Marketing as a word conjures up different visions for the Orthodontic Profession. It encompasses so many things and so much variety that it’s difficult to discuss it with others in our field. The connotations are so varied that there is so much confusion when you throw in the association of marketing with advertising. Infact, even without knowing about the science of marketing, Successful orthodontic practices do incorporate tenets that generate greater patient recall and referrals. The uniqueness, impact and memorability of patient interaction are critical to generating a consistent referral base. A concept that is making the industry at large, change its practice is the concept of the “Experience Economy”. In a survey of orthodontic patients, who were asked to rate the best and worst memories of their orthodontic treatment by the Q sort methodology, the best and the worst memories were experience and not therapy based. This article highlights the “Experience Economy Tools” for Internal marketing. With changing times, orthodontic practices that are able to implement these Internal marketing strategies in their day-to-day practice protocols will see improved patient satisfaction outcomes and financially successful practice models that will grow in any economy. Keywords: Experience economy, Internal Marketing, Referral based practice, Orthodontic Practice Management.
2
Introduction: The healthcare industry has undergone transformation in the past few decades. Orthodontic care is now considered a “wellness science”, where professionally managed care programs are beginning to attract patients, forcing healthcare providers to view “customers/patient satisfaction” more seriously1. Orthodontic treatment as a commodity has reached parity in the eyes of the consumer. In this environment, focus on service can be a distinct advantage. Practices over the year have evolved by incorporating technological infusions and conceptual shifts in what could be deemed to be appropriate methods of reaching out to potential “service seekers”. One aspect however has remained constant, the value of the existing patients and their experience while in office2, 3. Focusing on this aspect of care is a strategy that defines a successful orthodontic practice. Orthodontic practice management manuals refer to this strategic conduct as Internal Marketing, which is a confluence of “Clinical expertise and Treatment Experience” .It can be defined as “Targeted approach to attracting patients in an increasingly competitive market place by including a range of strategies and tactics that tap into the power of established patient base within the in office setup”.
3
Internal Marketing Practitioners need to answer a few trivia i.e., Are kids talking about you at school? Are they excited and looking forward to visit your office? Does your practice stand out in community? Does your name come to the mind when people talk about referring patients to Orthodontists? It is a known fact that the majority of potential patients prefer to get treated at a practice that their friends or neighbors endorse and are typically willing to pay more to do so. External marketing like newspaper ads, hoardings, pamphlets are expensive tools of marketing with minimal predictability4. Internal marketing is less expensive and has more predictable results. It helps to fundamentally generate a referral-based practice. The predictability of this depends on (1) Quality of internal marketing i.e., positive relationships with the patients, positive environment in the office, high energy and trained team. (2) Quantity i.e., the number of different strategies needed to be practiced daily in office. Internal marketing cannot be a one off thing. It should be repetitive, consistent and positive. Internal marketing works on the principle that the people are always priority and every bit of experience that they have in your office should be memorable. Mary Kay beautifully puts it, “ I look at everyone as if they had a sign on their forehead that said, “ Make me feel special.” If any business employs this concept, the business can’t do anything but explode
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with success. It’s important to understand the conceptual basis of such strategic planning, which the industry refers to as the “Experience Economy” model. The “Experience Economy” model Pine & Gilmore published a book in 1999 titled “The Experience Economy”. They analyzed developments in society and argued for the fact that commodities and services are no longer enough to satisfy consumers, realize revenue growth & increase businesses; it is the experience that matters. The philosophy here is “work is a theatre & every business is a stage.5” Thus staging of experiences must be pressed as a distinct form of economic output. For decades the mantra for marketing was show the product or someone famous with it. Today the product takes a backseat with respect to the “experience “associated with it. Fig 1. A core argument is that because of technology, increasing competition and the increasing expectation of consumer, services today are starting to look like commodities. Products can be placed on a continuum from undifferentiated (referred to as commodity) to highly differentiate. Evolution of the commodity market to a commoditized series is based on the concept of transformation and experience. It transcends from the agrarian economy to the industrial economy and the most recently, i.e. the service economy. Businesses must orchestrate
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memorable events for their customers, and that memory itself becomes a product called “the experience”. The experience provider here can set a frame for the experience but it is the consumer that creates the experience for oneself, as reactions to the frame are individual. The ultimate state is achieved when customers experience transformation by the use of these offerings. Orthodontists have limited exposure to classical corporate concepts & business models and rely on continuing education exposure for these critical aspects of patient care, despite orthodontic literature comprehensively stating that classical models of business management apply to orthodontic practices as well. Alvine Toffler6, in his book “Future Shock” talks about the upcoming “Experiential Industry” in which people in the future would be willing to allocate a huge percentage of their earnings to “living amazing experiences”. Can Orthodontic treatment be that Experience ? Fig 2. The Orthodontic Experience We decided to assess the recall value of Orthodontic Treatment amongst young adults who had undergone Fixed Appliance treatment at least five years from the date of assesment. Ethical approval was obtained from the IRB of the Y.M.T Dental College & Hospital, Navi Mumbai, India. Patients, who had completed multi-banded fixed orthodontic treatment and were debonded between five and eight years ago, were interviewed in various Junior and
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Degree colleges of Mumbai. In all, 2436 subjects who had orthodontic treatment at different orthodontic offices in Urban India (Mumbai & Pune) were evaluated. The first part of our study was the interview questionnaire presented in Figure 3. Three researchers (V.D, D.F. and M.S.) were trained in the process of in-depth interviewing. These interviews generated a list of reasons that made the subjects remember their orthodontic treatment experience favorably and unfavorably. These interviews were tape recorded and transcribed verbatim, immediately afterward. The transcripts were then analyzed to identify a list of statements (replicate items were removed) .The items were then worded appropriately so that they could be tabulated. Fig 3. A table was then constructed for the thirty-two most popular statements generated from all the interviews, and the items were listed on individual tables. Table . 1 The second part of the study involved recruitment of 567 new patients from the same aforementioned places in the first part (with the same inclusion criteria). Those who were a part of the sample in the first part were excluded now. The minimum numbers of recruited subjects were in accordance with the study of Shine Bourne7. The participants were asked to complete the column by choosing the statements that were most and least relevant to their
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experience of orthodontics. They had to place all 32 statements (given to them as cards) in a positive (green, +1 to +5) or negative (orange, -1 to -5) colored zone on the color chart provided. This process was repeated until all statements that were neither positive nor negative, were placed in the yellow or neutral zone of the board, which included columns headed with a 0, indicating a neutral experience. (Fig 4). This method of evaluation is known as the Q sort methodology8,9. This is a research method used in psychology and in social sciences to study people's "subjectivity" i.e., their viewpoint. Q was developed by psychologist William Stephenson10. A Q sort is a ranking of variables; typically presented as statements printed on small card according to some "condition of instruction." This technique been used as a research tool in a wide variety of disciplines including veterinary medicine, public health, transportation, education, rural sociology, hydrology and mobile communication11-15. The methodology is particularly useful when researchers wish to understand and describe the variety of subjective viewpoints on an issue16. The data of this survey was collected, recorded and entered into an SPSS spreadsheet and analyzed with SPSS software (version 17.0; SPSS, Chicago, Ill). In this study, Average distribution grids were created for both cohorts (Favorable and Unfavorable) by calculating the average score that each statement received, ordering the statements from the one with the highest score to the one with the lowest score, and placing
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them into the grid in that order (i.e., the statement with the highest positive score was placed in the far right column and the one with the highest negative score in the far left column). Of the 567 subjects recruited for the second part, 74.3 % of the responses in the top 3 favorable and unfavorable experiences were related to “Patient Experience”. The most favorable experience was that the “doctor was pleasing” was rated the highest at +5, where as at +4 was “personal attention” and “events in the office” .At +3 was “office ambience and decor”, “courteous office staff”, “good communication regarding treatment”. The most unfavorable experience was “pain” at -5; -4 were “ulcers” and “food restriction”, at -3 was “treatment was too long”, “retainers” and “cumbersome oral hygiene”. Factors generally concerned critical by orthodontists, were unexpectedly scored by patients with a 0, +1 or -1 score. These factors were “lengthy appointments”, “no follow up”, “treatment charges”, “breakages”, “extraction”, “braces make me look ugly”. Of course the reasons for these scores can be subject to analysis, but the larger picture they convey are: Patients most remember the “experiential aspects” of Orthodontic treatment. Quality of treatment is a given factor, but the recall factor of the so-called orthodontic variables (type of appliance, choice of extraction, kind of finish) is minimal compared to the experience variables (courtesy, staff grooming, personal attention, office décor etc.) in patients.
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If Experience has to an integral part of Orthodontic treatment delivery, a strategic plan needs to be prepared by an Orthodontic office for it. Internal marketing in orthodontic office needs precise planning, of which an internal marketing audit is a very critical step. Marketing Audit A marketing audit is a comprehensive, systematic, independent, and periodic examination of a unit's marketing environment, objectives, strategies, and activities, with a view to determining problem areas and opportunities and recommending a plan of action to improve performance17. In the current economic climate, it is advised to “ramp up” the marketing budget as opposed to looking for ways to save and/or reduce overheads through a reduction in marketing efforts18. Dr. Levin’s practice analysis states that if practice growth is less than 4% then a practice is at an ‘Inflection Point’. It’s a point is where the business needs a strategic change to stay in business. In a well-run practice, Business systems are broken down into discrete limits and written, brought & reviewed with the staff on a regular basis. A change is required in all business systems every 5 to 7 years to stay relevant. Newer systems, décor, treatment mechanics are all contributors to this change21.
Marketing and practice management both have utility and should work together. Marketing should not be used as a bandage to avoid addressing practice management challenges, nor
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should practice management be used to avoid marketing as a critical part of any practice’s business plan. Practices that spend money on external marketing efforts but fail to see a positive return on investment often erroneously come to the conclusion that marketing is a waste of time. The truth is that it may not be the marketing that is failing. Before spending on marketing, it is worthwhile to invest time in reviewing the following internal processes to determine how to improve practice processes that are inextricably related to experience, and can ultimately make or break a practice’s marketing efforts19. Every orthodontic practice should be budgeting between 2% and 4% of their annual collections for effective internal marketing practices20. The percent is determined by the developmental stage of one’s practice, the rate of practice growth, and a plethora of factors. Current trends globally indicate that this figure could be as high as 10-14% in some economies. The Experience Economy (EE) Toolkit for Internal Marketing Alan Haffey (CEO of Proctor and Gamble) states, “Mass marketing is dead”. Advertising can no longer exist by blasting messages to people. Before the Internet, the world connected on a person-to-person interaction. Times did change, but people now are back from passive consumption to active participation. The Digital world today, is also about forming relationships. While all the other management tools could constitute the “heart” of a strategy, the Experience Economy tools discussed here are integrally the “soul” of a practice. The tools are described as a checklist in Table 2 and discussed as under: 11
Table 2
1.Practice Profile & Location: Selection of practice location also plays a very important role in deciding the profile of a practice. It is important to decide on a target population, especially in economies when diversity can play a part in orthodontic delivery systems. i.e. A practice could be close to a particular social group, or a geographic location (downtown, countryside, etc., close to referring dental professionals, pediatricians, or in proximity to school, spa’s or gymnasiums). It is always preferred “to be in the right place at the right time.” 2. Logo and branding : They not only help in standardization of a theme that connects, but also promotes instant public recognition. Logo and taglines used for branding should be easily recognizable and relate to the vision statement of the practice. They can be either totally graphic or have a name and tagline too. Hiring a brand consultant for advise in this field is a good idea for a practice. Multiple exposures to the same target helps
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create Brand Recognition. Commitment to an expensive or sophisticated service does need multiple exposures. Table no 3 3.Practice Ambience: A positive practice ambience forms an important tool of Internal Marketing. One must keep in mind that it is important to co-ordinate the office décor with the theme, logo, branding colors and the concept. They have to all speak one language and deliver an uncluttered message. Music, Patient Activity areas, Refreshment zones are becoming integral parts of modern day practices globally. Software and 3D aids for counseling, which bear the office’s logo, are also non-negotiable tools. 4.In office Protocols: Staging of experiences is essential part of internal marketing, thus SOP’s in office protocols need to be followed for patient interaction. Scripted protocols for all interfaces are a must. Records of similar cases, Scheduling soft wares that can send Patients appointment reminders through text messages are important tools that can be employed. Simple methods like flavored chewies, impression materials, can serve to be procedures that
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add to the experiential aspect of treatment. Intra Oral Scanning is another experiential tool that hold promise in the near future. 5.Communication Methods: Good communication is the key to success of any organization. This also is applicable to an orthodontic practice, whether it’s at the telephonic or digital interfaces. Adequate personalized attention is a must. Tools that can be used in offices are: (i)
A Welcome and a Thank you note.
(ii)
Braces care instruction booklets or videos
(iii)
Instruction sheets or Do’s & Don’ts given to the patients after bonding.
(iv)
“Lets get back on track” letters for non compliant patients
(v)
Practice policy, vision, mission and information booklets
(vi)
Braces Recipe Books
(vii)
Personalized Montages with notes to showcase treatment progress at various stages
(viii) Practice E Newsletters This tool has endless possibilities and creativity does prove to be a distinct advantage in making a communication strategy.
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6. Events: An event forms an important component of the experience economy toolkit. The office should always be a fun and cool place to be in. A festive atmosphere in the office can be created when important milestones are celebrated. Events like Debonding Parties, Halloween Parties, Children day events, Clinic carnivals, Seasonal gifts, Mother’s day parties, Karaoke parties can serve to be important tools for informal interaction with patients in the office, and help forge connections. We conducted an event titled the “Braces Fashion Show where patients with braces walked the ramp. In attendance were past patients, the families of existing patients and friends, creating a community buzz and a lifetime experience for patients in treatment and potential referrals! 7. Community Networking: To be seen at Community Events (i.e. School Fetes, Sporting and Fund Raisers etc.) is a subtle method of brand reinforcement. Loyalty schemes for patients who refer other patients are important methods of maintaining the “connect’. 8. Feedback: EE Tools may involve either a video testimonial or a written one. It not only motivates the team after listening to positive comments but also helping us to know where to improvise. Testimonials recorded on Smart Phones and on video formats can be played in the waiting area and be use on websites for online marketing.
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Conclusion: Orthodontics is a unique specialty that engages a patient for an important time frame of their life. While a lot of therapists might perceive the time taken for Orthodontic treatment as a concern for treatment delivery, the optimist can strategize this reality into an opportunity to create lasting impressions, which translate into patient experiences that can transform orthodontic practices. Internal marketing with the experience economy tools works on building relations with patients, understanding them better and make their time in Orthodontic office a memorable one. It is a science, which is based on generating referrals. Traditionally, investing in doctorpatient relationships in a systematic manner is a policy that has seldom failed. Factors that matter to a patient in their recall of orthodontic treatment are Experience related. The EE concept and the toolkit are as important to orthodontic care as the treatment itself. Conceptually, Smiles are only a part of what patients eventually take home!
Acknowledgement
The authors would like to thank Dr Viraj Doshi for his immense help in preparation of the manuscript.
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References: 1.Diane Hughes, Merwyn Landay, Sorin Straja, Orhan Tuncay. Application of a classical model of competitive business strategy to orthodontic practice. Am J Orthod Dentofac Orthop 1996;110:405-9 .
2.Pramod K. Sinha, Ram S. Nanda, Daniel W. McNeil. Perceived orthodontist behaviours that predict patient satisfaction, orthodontist-patient relationship, and patient adherence in orthodontic treatment. Am J Orthod Dentofac Orthop 1996;110:370-7.
3. Vaid NR. Yes we can!. APOS Trends Orthod 2013;3:169-70.
4.Daenya T. Edwards; Bhavna Shroff; Steven J. Lindauer; Chad E. Fowler; Eser Tufekci. Media Advertising Effects on Consumer Perception of Orthodontic Treatment Quality. Angle Orthodontist, Vol 78, No 5, 2008, 771 - 777.
5.B. Joseph Pine II and James H. Gilmore. Welcome to the Experience Economy. Harvard business review July–August 1998, 97 - 105
6.Alvin Toffler. Future Shock. A Bantam Book. ISBN 978-0-553-27737-1.
7.Shinebourne P. Using Q method in qualitative research. Int J Qualitat Method 2009; 8: 937.
8.Joy Coogan and Neil Herrington, Q methodology: an overview. Research in secondary teacher education. Vol.1, No.2. October 2011 pp. 24–28. 9.Rema Prabakaran, Shiri Seymour, David R. Moles,c and Susan J. Cunninghamd.
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Motivation for orthodontic treatment investigated with Q-methodology: Patients’ and parents’ perspectives. Am J Orthod Dentofacial Orthop 2012;142:213-20 10.Stephenson, William, 'Tribute to Melanie Klein' ''Psychoanalysis and History 12.2 (2010) pp. 245-271. See also James M.M. Good, 'Introduction to William Stephenson's Quest for a Science of Subjectivity' Psychoanalysis and History 12.2. (2010) pp. 211-43.
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17.Abdullah Al Fahad, Abdur Rahman Al Mahmud, Robel Miah, Ummay Hani Islam Marketing Audit: A Systematic And Comprehensive Marketing Examination. International journal of scientific & technology research volume 4, issue 07, july 2015. 18.Darling JR, Bergiel BJ. A longitudinal analysis of dentists attitudes toward advertising their fees and services. J Dent Educ. 1987; 46: 703-706 19.Naomi Cooper. Stop wasting your marketing budget. Inside Dentistry. June 2014, Vol. 10 issue 6. 20.Earl Clarkson, Sanjeev Bhatia, Management and Marketing for the general practice dental office. Dent Clin N Am 52 (2008) 495-505.
21.Roger P. Levin. Achieving Total Orthodontic Success in a Down Economy. PCSO Bulletin, Summer 2010, 40 - 43.
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Figure 1. The experience economy concept: The experience economy concept (Pine and Gillmore 2011) categorizes economic functions as commodities, goods, services and experiences. The Y-axis demonstrates how a product differentiates itself when it is centered around experiences. The X-axis describes the relevant economic offering based on this classification. Clients who are transformed by a positive experience are likely to find the interaction transforming and of greater value compared to a commodity, good or a service. Figure 2: The progression of economic value (the coffee bean example): The Y-axis demonstrates the margin or positioning of a brand on the experience hierarchy. The X-axis represents the level of differentiation. While a coffee bean and coffee powder are more likely to be differentiated on pricing alone, a cup of coffee and the coffee shop experience are premium offerings that result in the progression of value of the same product through the staging of an experience. The coffee bean is the commodity, the powder is a good. Brewed coffee is a service while the coffee shop is the experience. Figure 3: The part 1 Questionaire used in the survey. Figure 4: Q-methodology grid for Orthodontic Experience Economy study: The patient’s orthodontic office experiences as plotted on the Q Sort grid are presented in a colored zone pattern. The most favorable experience was rated at +5 with (The green zone) with a reduced scoring towards the neutral (yellow zones). The most unfavorable experience was scored as -5 in the red zone. The most positive and negative variables were “experience driven”.
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Table 1 Opinion statements about Orthodontic Office experience: collated after Part 1 of the Survey. Sr. No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32.
Initial Responses Aesthetics Better smile post treatment. Doctor was pleasing. Food Restriction during treatment with braces. Invisible treatment options available. Cumbersome Oral hygiene regimen. Braces are Painful. Choice of Colourful O-rings to be worn to look cool. Braces Makes me look ugly. Clinic location is favourable. Impression making procedure is uncomfortable No regular follow up. Uncomfortable. Courteous office staff and greeting each time you visit. Braces lead to ulceration. Music in the office is soothing. Treatment charges vary. Long waiting hours. Personal attention is given. Office Ambiance and décor is homely. Retainers to be worn post treatment. Events in the office on special occasions. Breakages. Lengthy appointments. Good communication regarding treatment. Treatment duration was too long. Ceramic braces make teeth look less ugly. Extraction is a nightmare. Staining of rings make teeth look yellow. Irregular appointments due to various procedures. White spots on teeth after treatment look ugly. Relapse.
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Table 2. The Experience Economy (EE) Toolkit for Internal Marketing. This is a proposed guideline for the clinician desirous of incorporating EE methods in an orthodontic practice. The table indicates the rationale, the possible activities and their outcomes (as observed by authors in their practices).
Sr. no .
1.
EE Tools
Rationale
Activities
Practice profile/ Location
Target Groups Community Based Referrals
Logo & Branding
Distinguishes one experience from another
2.
Practice ambience
3.
Patient has “me” time in the office. Comfort Zone for patients Reflects the Organization’s culture
In-office protocols
Work is a stage
Communicatio n methods
Good communication at every interface from the first phone
4.
5.
Outcomes
Community Events InfoAdvertorials in community media. Multiple exposures to the same target. At least 15 in office branding of products.
Co-ordinate interiors with theme. Time engaging activities. Distinct areas for patient experience
Scripting of staff interactions and SOPs for a consistent Experience Well-connected human and digital interface. Intelligent use of technology.
Pleasant Interpersonal Relationships & an enhanced connect.
Patients feel connected to the office at every stage. 22 Improved
Word of mouth enhanced Right profiling, specific to a location Standardization A positive Image for practice created “Commitment to a vision” established Patient looks forward to visiting a practice. The “Feel good “ and “wow “factor in a practice, resulting in improved referral.
Events
6.
Community networking.
call to the end of treatment. Informal interaction with patients. Office should be a cool & fun place to be connected with.
Presenting a Humane face Maintaining the connect.
7.
perception of care.
Feedback
8.
Helps to work on the Experience element in the practice Captures emotions.
Debonding parties. Halloween parties. Braces fashion shows.
To be seen at community events. Loyalty schemes. Participating as Sponsors in an Interschool/ College Competitions Video or written feedback.
Community Buzz. Shared experiences in a dedicated target group increase referrals.
Helps learn patient outlook. Great Marketing and Referral generating tool
Makes the patient feel a part of the “practice family”. Helps the team understand the patient better and create a lasting bond.
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Table 3. Possible scope of items where logo and branding can be used in a practice List of Interfaces that can have a Logo and Tagline to create multiple exposures Practice Boards & Hoardings Envelopes /Letterhead, Files Gift Vouchers - gift a product or service Thank you note for being treated and been a good patient referral source Welcome note with a brief of profile Brochure when patient walks in for consultation Bags to carry home, oral hygiene products Cups and glasses in which beverages are served. i.e. water, tea, coffee ,slush etc. Badges to welcome patients that are pinned on the/ Practice T Shirts Tooth boxes given after extraction to take home Vaseline sticks Retainer Boxes Gifts like calendar, photo frames, magnets, T-shirts, water bottles, caps, pens, etc.,- it is a great way of staying in front of your clients all year long Membership cards assuring client loyalty and giving the patient a sense of belonging to your office Napkins, drapes and tissues Doctor and staff uniform Miscellaneous Stationary
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26
27
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