Marketing to Referral Sources: Strategies That Work
By Joe Sansone  In the "good old days," there were
just a few O&P providers in each market. One simply had to hang
a shingle on the wall, and patients would come. Today, however,
O&P providers are discovering that they must work harder simply
to keep their heads above water and maintain their current
revenues. The competitive nature of O&P business is
changing.
As the industry evolves, more entrepreneurial and dynamic
practitioners are branching out on their own and opening
facilities. Quite simply, new and more aggressive practitioners are
entering into the O&P arena, and they are vying for your
customers. If you sit back, hoping your reputation will carry you
rather than instituting change, you could find yourself in for a
rude awakening.
Marketing may be your answer. A practitioner must find a way to
make his presence known to referral sources, or business will
deteriorate.
Are You Doing ‘Same Old, Same Old'?
In today's environment, physicians and hospitals quickly become
confused when inundated with sales calls from several different
companies. A provider absolutely must find a way to differentiate
himself from the competition. Most sales calls and marketing
brochures offer nothing new to the customer. You are likely
giving your customers the same sales pitch as your competitors if
you find yourself repeating these statements to your referral
sources:
1. Our practitioners are accredited by (ABC/BOC) and
therefore a step above (ABC/BOC) accredited
practitioners.
While many in the industry perceive certification by one
accrediting body as more valuable than that of another, often the
customers do not differentiate between the two. Obviously a
practitioner can help educate customers to understand the
difference, but quite frankly, physicians do not want to become
involved in our profession's arguments. If this is the only reason
you can give customers as to why they should use your facility
instead of another, then you are not doing much to differentiate
yourself from others in the industry.
2. We have the best practitioners.
Please remember that even the absolute worst practitioner in
your market is going to profess his experience and expertise to the
customer. These types of statements are self-serving and do not
tend to impress customers.
3. We offer the finest-quality bracing in
town.
This statement is also self-serving, plus it is difficult to
prove.
4. We offer 24-hour service, seven days a
week.
When was the last time you got out of bed at 2 AM to deliver a
wrist splint, and who in his right mind would turn down a 2 AM call
for a halo? The fact is that nearly everyone professes 24-hour
service, seven days per week.
What Makes You Different?
Let's face it: the sales pitches described above are the ones
most often mentioned in O&P sales calls. You must take the time
to analyze your business and identify what makes you different. A
practitioner should offer something to customers that they can sink
their teeth into—that differentiates him/her from other
providers—because everyone thinks their company gives the
best service, has the best practitioners, and works harder than
anyone else.
Here are just a few examples of what you can say that may work
for you:
1. We make house calls.
"While most practitioners frown on making house calls, we would
be happy to go to a patient's home for a brace.We realize that some
patients are not ambulatory or may have difficulty coming to our
location. As a matter of fact, it is not uncommon for us to be
called onto a football field an hour before game time to install an
extension stop on a functional knee brace."
2. We are preferred providers for more managed care
plans than our competitors.
"We have identified the largest 30 plans for this area, and
we are preferred providers for 24 of these 30 plans. Our largest
competitor is a preferred provider for only 14 of these plans."
3. We have more locations than any other providers in
our market.
"We have four convenient locations to serve you, each
geographically located near a large medical complex."
4. We have more practitioners than any of our
competitors.
"This enables us to accommodate your patient's needs with
quicker and better service."
5. We have the largest fabrication staff of anyone in
our market.
"This enables us to provide quicker service for your
patients."
6. We offer the quickest turnaround time in the
city.
"Our average turnaround for an AFO is two days compared to our
competitor's seven to ten days."
7. Our growth substantiates our claims.
"We have grown from one facility to four facilities in the last
four years, and this growth is proof positive that we are providing
superior services. Otherwise, we would not be enjoying such growth
at the expense of our competitors."
Who Should Do Your Marketing?
Most practitioners know all they should know about their
profession, but are somewhat naive when it comes to marketing their
services. Therefore, practitioners may be destined for failure in
the marketing arena. In today's times, outsourcing has become the
corporate "buzz word." Many companies prefer to focus on their area
of expertise (providing O&P products) and outsource other
services, such as marketing. Often when referrals decrease, O&P
facilities recognize the need to hire marketing assistance. One of
two scenarios typically ensues:
1. A business owner decides that he is going
to market his services, and after a few weeks' worth of preparation
(procrastination), the practitioner wipes the plaster off his
shoes, dons a tie that has been hanging in his fabrication shop,
and hits the streets. The practitioner soon finds that the lukewarm
reception he gets from so-called friendly referral sources pales in
comparison to the doors that are slammed in his face when he
attempts to get past a receptionist at the next office. The sulking
practitioner/sales rep then runs back to his office, promising to
try again when he is not so busy.
2. A business owner realizes the need to hire
a marketing representative, so he decides to bite the bullet and
budget $3,000-4,000/month for a sales person. Upon placing an ad in
the newspaper, he soon discovers that $3,000-4,000/month will
enable him to hire only one of two types of people: a) the washed
up has-been who works 20-30 hours a week and is faking his way
through a sales career, or b) the entry-level sales person.
Typically, neither of these types succeeds at O&P marketing,
and they may often be less productive than practitioners
themselves. Both of these sales nightmares result from the same
traits in the marketing representative:
1. They do not understand the O&P
industry.
2. They are not trained in the idiosyncrasies of an
O&P business.
3. They can answer very few questions about clinical
problems or reimbursement issues.
4. Once again, they do nothing to differentiate
their facility from any of the competitors.
The most effective way to market your services is to hire a
sales professional. A good manager will not expect a practitioner
to build a KAFO in the morning and then become a sales
representative in the afternoon. Often what inhibits practitioners
or management from hiring sales reps is the salary or commission
requirements of qualified candidates.
Of course, not every O&P facility needs to hire marketing
professionals. It is possible in many markets for practitioners to
market their services themselves. If, however, you are planning on
growing your practice and becoming a major provider in your market,
then in most instances, hiring a seasoned sales professional will
help you get there more quickly.
Really knowing what makes you different from your
competitors—what you offer that they don't—and
effectively getting this across to referral sources—will help
make you the outstanding company in your marketing area. Joe Sansone is CEO of TMC Orthopedic, Houston, Texas. 
Table Of Contents - September 2002
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