The Four "R's" = Reputation + Revenue = Retirement ROI
July 15, 2010 | Cyndi Miller | CEO, Miller Public Relations
Let’s start with a pop quiz: Let me ask you three quick questions about your medical practice:
• How much time have you spent developing a plan for your
exit strategy for your medical practice?
• How much time did you spend planning your last major vacation?
• Which one involves more of your dollars?
As hard as you work, you certainly deserve several great vacations – but if you are like a lot of physicians we work with, you might not have given as much thought to your exit strategy for your practice.
As far off as it may seem, the steps you take today, the plans you make for the next 12 months, can have a huge impact on the valuation of your practice when you want to retire.
Exactly, what is your game plan for your exit strategy – and what can you do today, tomorrow and next month to maximize the ROI of your practice?
The Major Moving Parts
To understand how to maximize your valuation of your practice, you first need to know the major moving parts of the equation:
• Fair Market Value (FMV) of furniture, fixtures and equipment
• Space, aesthetics, systems, processes, personnel
• Receivables, with the value dependent on aging
• Goodwill
• Location
• Payer mix
• Reputation
• Annual revenues
These last two, Goodwill and Revenues, are the key components which can most impact you valuation. Typically, the two are tied directly together with your goodwill valued at 30% to 60% of your annual revenues.
Whether you end up selling your practice to a group, to another physician or to an associate on some kind of earn out approach, you will probably want to do all you can to maximize the valuation of your practice.
The Four “R’s”
All of this adds up to our main equation:
The Four “R’s” = Reputation + Revenues = Retirement ROI.
You heard it here first: Increasing revenues is a good thing. Not only does it improve your cash flow today, it gives you the foundation to build a growing ROI when you retire.
• What can you do today, tomorrow, next week and next month to immediately improve and maximize revenues and reputation?
• What can you do, marketing and PR-wise, to immediately gain market share?
• What is your marketing and PR plan of action?
One idea: Assume every day that you will want to put your practice on the market in one year. What would you do differently?
Your Vision – Your Goals
As you launch your marketing campaign and practice building strategies, start with your exit strategy in mind. When you retire, picture how many patients you have and what your target annual revenues will be. What will be your reputation in the community? How much will you practice be worth?
Think about it. This is your game plan for your practice and your entire career. How successful do you really want to be? Are these goals realistic or just wishful thinking?
“A goal without a plan is just a wish.” Antoine de Saint-Exupery
French writer (1900 - 1944)
Are you wishing – or are you planning? What, exactly, are your marketing plans and practice building strategies to get you to your Point B?
Reputation + Revenues
What is your action plan to both improve your reputation and increase your revenues so that both are maximized and on an ever improving growth curve?
Both your reputation and revenues are going to be directly dependent on your successful implementation of most, if not all, of the following:
• Branding for the Right Prospects
• Market Positioning
• Strategic Planning
• Tactical Planning
• Action Planning
• Creative Ad Concepts
• Advertising Plan of Action
• Collateral Material
• Online Presence: Web Work – Your Site/Blog, Social Media Strategy and Implementation
• Other Reputation Building Strategies and Tactics
How are you going to accomplish all of this - and still only work 30 hours a day?
Miller Medical Marketing
Miller Medical Marketing has the experience and talent to accelerate all these necessary steps for you.
As an award-winning, full service public relations and advertising agency located in the heart of the Dallas / Fort Worth Metroplex, Miller Medical Marketing offers a multitude of services to help your medical practice reach new and exciting heights.
Whether you are looking to expand your advertising efforts, public relations activities, business development opportunities or general marketing endeavors, for your medical practice, we have the talent, experience and resources to help you meet and exceed your company goals.
Don't waste your time and your valuable marketing and ad dollars. Go for proven results.
Contact Us Today
Miller Medical Marketing
1209 Hall Johnson Rd.
Colleyville, Texas 76034
P: (817) 281-3440
F: (817) 281-3442
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How To Deliver What Customers Want
January 18, 2009 | Cyndi Miller | CEO, Miller Public Relations
In today’s tough economy, it is vital to focus your marketing efforts on your customers’ needs. But what are those needs? Do you really know what drives customers to your practice or makes them select your products and services over a competitor’s?
You may think you have the answers based on customer surveys or patient questionnaires. Perhaps you rely on your own experience and judgment. But that’s not enough. The real reasons behind what motivates a customer’s buying decisions may still remain hidden. And that’s because those reasons are primarily emotional.
Customers buy a particular product – and patients often select a particular doctor or practice – based on a response to an emotional trigger or because of an emotional connection that has been established in their mind. Your job is to uncover those emotional drivers. Understanding this concept can mean the difference between your success and failure.
The auto industry has the idea of marketing to an individual’s subliminal desires down to a science. People don’t just buy a car – they buy a symbol of status, success, power and sex. Acquiring the right car may give them a sense of luxury, comfort, social advancement, pride, confidence or an expectation that life will become more fun or adventurous. They are buying a concept of who they think they are or who they would like to be.
There are other emotional factors that encourage customers to buy: greater peace of mind, safety and security – either physically or psychologically, improving their appearance to look and feel younger, and the desire to lead a happier and more fulfilling life.
What are the emotional triggers for your product or service? Or more importantly, how do you position your business or practice so you can appeal to those triggers? Ask the customer, either one-on-one or in focus group sessions. That’s where we can help. You have to ask the right, open-ended questions to solicit the answers you need to hear. If you want our expert advice, call us at (817) 281-3440 or drop us a note by using our Contact Page.
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Who Really Wins with Negative Advertising?
January 15, 2009 | Cyndi Miller | CEO, Miller Public Relations
In the last 15 years, LASIK Surgery has become the number one elective surgical procedure in the world. That’s not surprising given its consistent, predictable and proven outcomes, the increasingly affordability and patients’ appreciation for the life-changing, image-enhancing difference it makes.
As the CEO of one of the nation’s most successful advertising agencies specializing in marketing medical practices, I’ve had the opportunity to see first-hand how rapidly changing technology has advanced the field of laser vision correction and how it has continually raised the bar on every aspect of the procedure, including safety.
I’ve also had the pleasure of interviewing many thousands of LASIK Surgery patients to get their feedback on the procedure. I have to say that I have found more than 98 percent of LASIK Surgery patients to be extremely satisfied – even thrilled – with their results. Patients describe a liberating freedom that comes with no longer having to wear corrective lenses. Many find that LASIK has given them a boost in the competitive job market. Others rave about the difference it has made for them in recreational sports, from golf and tennis, to skiing and volleyball. What resonates the most though is the obvious boost in their self-esteems and the patient's genuine appreciation for the surgeons who have performed their procedures.
So that is why, with patients’ approval rating for LASIK so high these days, I find it particularly disturbing that some LASIK vision care centers are resorting to negative advertising and mud-slinging public relations tactics. This is not only unethical, but it damages the reputation of the LASIK industry at large, a medical specialty that many of us have worked so hard to build.
When prospective patients do an Internet search about LASIK, as most educated consumers do these days, they may often uncover websites and blogs that are not educational or helpful, and that certainly do not foster confidence in the procedure. Instead, the websites are intended to damage the reputation of competing vision care centers by the posting of inaccurate, defamatory content – primarily fabricated complaints from imaginary patients.
The vision care centers resorting to these underhanded tactics are trying to boost their own competitive edge in the marketplace. But in doing so, they are damning all of us.
Reading negative comments about disastrous outcomes can be quite alarming for someone questioning whether LASIK is right for them. In fact, it is likely to be a major deterrent. Patients have to believe that they can place their utmost trust in a surgeon and a LASIK vision center for something as important as their eyesight. But instead, they may come to the conclusion that undergoing LASIK is not the safe, precise, relatively simple and highly effective procedure we know it to be.
So why does this negative practice continue?
The LASIK Surgery market is no different from any other industry that relies on consumers’ purchasing power and buying preferences. It is a matter of building and maintaining brand awareness, differentiating your business from another and securing confidence in your product.
You might be surprised to learn that the greater Dallas/Fort Worth Metroplex is the number one metropolitan area in the U.S. for people undergoing LASIK Surgery. That makes competition for patients’ attention fierce. Just in the Metroplex alone, somewhere between $12 million and $14 million in advertising dollars is spent every year by LASIK centers. With that kind of money being spent, you certainly want it to be worthwhile.
As we say in marketing, all is fair in love and war. Everyone enjoys a little healthy competition. But not at the expense of someone else, especially the patient.
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