Refractive Marketing: The Right Way
Make an investment out of your biggest expense.
BY MICHAEL W. MALLEY

To spend or not to spend?

That's the question many refractive surgeons are asking themselves today when it comes to one of their biggest expenses: marketing.

The correct answer is this: If done properly, spending on marketing your refractive practice can be one of your wisest investments. In this article, I'll explain how, even with a modest marketing budget, using the right messages and conveying them to your target audience through the appropriate media can significantly increase your refractive procedure volume.

When it comes to investments, one of the wisest pieces of advice ever shared with me was actually imparted by an ophthalmologist. Uncertain whether to invest in new equipment and employees for my company or put my money into what then seemed like a never-ending bull market on Wall Street, the wise doctor told me to never hesitate investing in myself if I truly had confidence in my abilities.

And the same mantra applies today in refractive surgery. Without question, there has never been a better time in the history of refractive surgery than right now. The precision and accuracy of today's technology is light years ahead of where we began with RK just a decade or two ago. Results from custom laser procedures are now pushing the quality of vision beyond 20/20. And thanks to new lens implant technology and radio frequency energy, substantial inroads are being made in the pursuit of treating presbyopia.

So, if there's never been a better time to be a refractive surgeon -- or a refractive patient -- why aren't we seeing a more positive impact in the overall penetration rate by the public and in monthly surgical volume? Why do the "lean times" linger?

The main reasons some practices may still be experiencing lean times are twofold: It's the combination of a still-sputtering economy and ineffective or inadequate marketing.

Get in the Game

But for some practices the lean times are definitely over. To the dismay of many a solo ophthalmologist, most of the larger practices doing the highest volume are engaged in substantial marketing and advertising campaigns. Some higher-volume practices have avoided traditional advertising costs by engaging in heavy optometric co-management. But when you look at the cost-per-eye scenario, the $400+ they're paying to the O.D.s is probably more than the average cost-per-surgical lead from advertising. In either case, there's a cost to doing business in refractive surgery, and it's simply not going to go away anytime soon.

More practices performing LASIK means more competition. More competition means more overall advertising and marketing. But here's the good news: Just because your practice isn't the biggest spender in the market doesn't mean you can't benefit from all the increased advertising going on. But you've got to be in the game to benefit. Let me explain.

Increased overall refractive advertising means increased awareness. Increased awareness leads to increased familiarity -- which eventually leads to increased acceptance. Once the public has accepted a particular product -- in our case, LASIK -- then it's simply a matter of deciding where to purchase. If you're not somewhere in the wave of advertising taking place in the market, your chance of being chosen as a LASIK provider is greatly diminished.

Just like fear and finances keep many potential patients from having LASIK, the cost and guilt associated with advertising keeps many surgeons from building a successful refractive practice. And that's unfortunate because the technology and surgical results from procedures like custom LASIK are simply too good to keep from the public. And that's basically what you're doing if you're not making your products and services known.

Use Messages that Work

Marketing campaigns conducted during the past 18 months (since the first custom procedure was approved) confirm that the public is not only accepting custom LASIK as the procedure they've been waiting for, they're also willing to pay a premium for it. In markets ranging from New York to San Diego to Shreveport, La., technology-based advertising is helping drive up surgical volume and surgical fees. But there's more to it than just talking technology.

Sure, custom procedures represented a breakthrough in individualized treatment regimens and enhanced surgical results, but the public was still a little skeptical. After all, most of the advertising they heard for 2 years prior to the approval of custom involved deep discounting for LASIK. And that confused them.

What the public needed was proof that this new custom technology worked. Therefore, live seminars became effective again. Patient testimonials and doctor endorsements also proved to be effective ways of communicating this message. But because the economy continued to sputter, the public also wanted custom LASIK to be more affordable. And that's where financing options have fit so comfortably into the equation. They've allowed surgeons to actually raise their fees for custom LASIK while making it more affordable to patients with interest-free financing, patient pre-approvals and other attractive offers.

Today, the message of improved technology, enhanced results and affordability is getting through. The sheer volume of advertising is raising the public's awareness. And increased awareness is leading to greater familiarity, which in turn is leading to greater acceptance. You'll notice that this is the second time I make reference to this formula. Because that is the true essence of advertising. Advertising is about frequency of a message. And right now the message is good.

Answer Two Key Questions

You don't need a ton of money to get started. The beauty of advertising is you can invest as little or as much as you like. You can start off with a modest investment with a particular message and see what kind of response you get. You'll soon be able to answer two key questions: Is the message strong enough to get responses? Is the medium right for your message? That -- combining the right message with the right medium -- is one key to successful advertising. And that's easier said than done. The other key to successful advertising is frequency.

Your goal in getting started with advertising shouldn't necessarily be to make an immediate profit. If you can simply cover your marketing costs while increasing your target audience's overall awareness, advertising eventually pays dividends. If you're paying attention to inquiries, conversion and media tracking, sooner rather than later you actually start making money on your advertising investment.

There's no question advertising is a bit of a gamble, but as we recently found out in New York, even in the most expensive of markets placing the right message with the appropriate media continues to be an effective and affordable method of growing your refractive practice. Unlike smaller markets, finding the right media in New York can be challenging because of the vast number of outlets available. But by not investing too much too soon, it's possible to make a few mistakes along the way and still grow your refractive practice.

Ads Drive the Market

Such was the case with a client in northern Louisiana who was contemplating whether to invest in custom LASIK technology. Would his small market be able to support the major investment in technology he was about to make? Would the public embrace his new LASIK technology even though a competitor had already beaten him to the custom punch with another laser manufacturer? Was it worth it to build a new laser center? Could he even afford to advertise after all of his other investments?

Happily, the combination of his new technology, new laser center and attractive grand opening celebration enabled him to surpass his entire 2002 LASIK surgical volume in less than 4 months. His increased advertising led his competitors to increase their advertising, which has led to increased familiarity, and by now you know the rest of this story.

And no, he's not yet done enough custom LASIK to pay for his overall initial investment. But he is making a tidy monthly profit and is well on his way to building a successful and profitable refractive practice by simply making the public aware of what he has to offer. And that's the power of advertising dollars properly invested.

Michael W. Malley is president/founder of the CRM Group, which assists ophthalmology practices in developing effecting marketing strategies. He can be reached by phone at (713) 839-0202, via e-mail at mike@refractivemarketing.com, or on the Web at www.refractivemarketing.com.