American Association for Physician Leadership

A Healthcare Entrepreneur’s Guide: Sales and Marketing for the Medical Practice

Michael B. Spellman, PhD


Aug 8, 2023


Healthcare Administration Leadership & Management Journal


Volume 1, Issue 3, Pages 129-131


https://doi.org/10.55834/halmj.1431886850


Abstract

Becoming a successful healthcare entrepreneur requires objectivity and clear thinking. Sometimes, this means revisiting and reconsidering ideas that influence our behaviors but to which we haven’t given much thought. Marketing is one element of medical practice management that must be done well. Unfortunately, many professionals confuse marketing and sales and end up doing both ineffectively or not doing them at all.




In this age of aggressive online sales (witness the pop-up ads we get the day after we search for a product), and aggressive marketing (candidates can’t successfully run for office without using robocalls), the terms “sales,” “marketing,” and “branding” have taken on negative connotations.

In fact, each is a key element of any successful economy, and each is an important tool for a prosperous business. Each can and should be implemented in ways that are professional, respectful, and effective. It’s important to keep an open, objective mind.

Marketing is Not Sales

Although they are sometimes paired, marketing and sales are two separate and distinct functions. Marketing is the process of promoting awareness of a product, service, or brand. An example is the banners a sports medicine group hangs on the fence at every Little League and high school playing field in their region. Selling is the process of convincing someone to actually buy a product or service. Often, this comes in the form of addressing the prospective patient’s concerns about the treatment or service they are considering. An example of selling is the cosmetic surgeon’s recounting of how quickly their patients are back to their daily routines.
Each function obviously influences the other, and for this reason, they are sometimes housed together in an organization. Unfortunately, many professionals confuse the two functions and end up doing both ineffectively or not doing them at all.

Marketing Activities

Marketing activities are designed to raise awareness of a specific service, treatment, brand, or type of product or service, such as holistic medicine. Marketing campaigns capture the consumer’s attention through a marketing medium such as the Internet, newspaper ads, church bulletins, banners, and sponsorships at charity events.

The most effective professional healthcare marketing efforts are educational in nature and are focused on services or treatments. Examples include marketing campaigns extolling the benefits of robotic surgery, ocular lens implants, or psychotherapy. In professional marketing, you are not competing with your colleagues, because you are promoting services they also promote. Marketing yourself is the unavoidable and desirable side effect of having your business, your name, and your image associated with the educational piece.

Educational marketing stands in contrast to marketing efforts from other non-healthcare professions in which marketing efforts, sometimes of necessity, focus on convincing potential consumers they should employ a particular professional or company. These are “branding” campaigns. The legal profession uses branding and, less often, general marketing.

Healthcare entrepreneurs always stay ahead of the game by simply keeping abreast of the latest research, technologies, and methodologies for their specialty.

It is relatively rare for attorneys to be able to use educational marketing to promote a new service, because relatively few new services emerge in law. An exception was the emergence of “collaborative family law,” in which attorneys help marital partners negotiate the terms of their divorce without resorting to litigation. Practitioners who trained in and offered this service were able to switch from branding campaigns with themes like “hire me, I am better than the rest” to marketing campaigns focused on messages such as “you can have divorce without war.” Those that made the marketing shift immediately gained prominence by demonstrating their knowledge of a new and desirable service.

Healthcare entrepreneurs always stay ahead of the game by simply keeping abreast of the latest research, technologies, and methodologies for their specialty. After learning about something new that has clinical value, the successful healthcare entrepreneur also considers how to market what they have learned.

When done thoughtfully and well, marketing can have a rapid impact, because most consumers base their decisions on impressions and subjective reactions rather than facts.

Most marketing campaigns require repeated exposure of their message over time. Rarely is a single exposure enough to imprint a brand or service in a consumer or referral source’s mind. So, when a novice healthcare entrepreneur drops off brochures at a potential referral source’s office, that marketing effort is unlikely to bear much fruit without repeat visits and other reminders necessary to prime the pump with that referral source.

When done thoughtfully and well, marketing can have a rapid impact, because most consumers base their decisions on impressions and subjective reactions rather than facts. The more your marketing campaign saturates its target audience, the more likely a prospective patient will think of you if and when they need services. That’s why swag—items like pens and T-shirts bearing your practice’s logo—are effective marketing tools.

Marketing for Healthcare Entrepreneurs

Some professional marketing lends itself better to one-to-one marketing rather than marketing to groups or communities. Successful personal marketing by a healthcare entrepreneur involves building enough of a relationship with referral sources and patients that they become justifiably comfortable with you. The feeling may arise from personal qualities you display, your impressive credentials, your outstanding achievements, things you and another person have in common, or simply getting to know each other over time. Building relationships at this level is a key to successful marketing.

When marketing, it is essential to take time to visit with your prospective referral source or other business associate. Learn about the other person, and let the other person learn about you. Although it is important for you to carry your share of the conversation, let the other person lead the way. When other people feel heard by you, they will be more attentive to what you have to say. Ideally, they have shared information that allows you to make the points you want to make in ways that tie into the prospect’s interests and needs.

Learn about the prospect’s needs, interests, goals, and preferences. Some of this information can be gleaned from an Internet search prior to the meeting; most can be determined by asking the right questions and listening to your prospect’s answers. This is an important step in both marketing and sales.

Some of your marketing efforts will benefit your competitors, because as you market your own services, you are marketing those of your entire profession. For this reason, it is essential to know what differentiates you from your competitors. As soon as your prospect shows signs of being sold on the service in general, you, as an effective salesperson, should guide their attention to your own unique features.

For example, once an occupational therapist has interested a gerontologist in the benefits of occupational therapy for homebound patients, the occupational therapist should highlight features that make their practice unique, such as specialization in the needs of the elderly, ease of scheduling, the convenience of location, and so on.

Sales Activities

Sales activities are targeted toward getting people to buy what you are selling. The focus here is on completing a business transaction between a business owner or representative and a customer. Consider, for example, two chiropractors who often recommend yoga and muscle stretching to their patients, emphasizing the health benefits of such activities. Their recommendation is a marketing activity designed to increase patient awareness of a beneficial service.

But if one of the chiropractors offers yoga classes as part of their practice and encourages their patients to sign up for the classes, this is a sales activity that comes on the heels of the marketing effort inherent in recommending the health benefits of the service.

One component of the sales process involves what salespeople call “overcoming objections.” A potential buyer or referral source may not have voiced any objections aloud; however, by our nature, people are always screening information for “the catch” or problem with whatever is being proposed or discussed. Even when your prospect is intrigued by what you have to say, their internal voice may warn them against moving too quickly or deviating from their current way of doing things. One of the many ways that salespeople help overcome objections is by anticipating likely objections and addressing them before they are even spoken.

Anyone who has purchased a car has likely heard a salesperson say, “Excuse me for a moment. I am going to talk to my finance manager to see if I can get you a better deal.” The salesperson might even “sweeten the deal” by not charging for an accessory that the customer previously said he or she would like to have. With either of those simple statements, the salesperson attempts to overcome and preempt the buyer’s objections to pricing.

For the most part, car sales techniques are not recommended for those attempting to sell professional services. For example, using financial incentives to entice a professional prospect can be illegal and is likely to backfire. On the other hand, many of the principles underlying commodities sales can also play a role in professional marketing. One example is changing the prospect’s perception of the risk-to-reward ratio. In many businesses, this can be accomplished by reducing the perceived risk by putting items on sale. In professional marketing, this is ill advised. Instead, the risk-to-reward ratio is managed by adding to the reward. A dietician might accomplish this by co-hosting cooking classes with a local restaurateur at their co-host’s restaurant, for example.

As you talk to prospects, listen for what they see as the potential risks and rewards of working with you. Make it a point to address the risks and enhance the rewards. For example, a healthcare entrepreneur who does not accept insurance should make that fact clear, all while emphasizing advantages such as more time with each patient that comes with a fee-for-service practice model.

“Closing the sale” is used to describe the successful culmination of a sales effort. It involves a clearly stated agreement as to what each person will do and when. Broad, general agreements bode poorly for future business transactions. Consider the difference between the prospect who says, “I will be happy to send a few patients your way,” and the prospect who says, “Let’s do this. I will send you the next two cases I see. After that, we can look at how things went with those cases.”

Professional sales rarely involve a “hard” sell or any form of pressure tactic. The exception is when a healthcare entrepreneur is competing for a contract with a large corporation or other business entity. In virtually all other circumstances, healthcare entrepreneurs rely on the merits of what they are offering, combined with frequent reminders that their services are available and have value.

Michael B. Spellman, PhD

Michael B. Spellman, PhD, is a healthcare practice consultant with more than 30 years of experience in a wide range of healthcare practice types and settings. drspellman@swflpsychology.com

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