HOW TO SUCCESSFULLY MANAGE THE PRACTICE AS IT TRANSITIONS THROUGH: More Patients, More Productivity and More Profit Mark Wright, OD, FCOVD SPEAKER FINANCIAL DISCLOSURE STATEMENT Mark R. Wright, OD, FCOVD is a paid speaker for the following companies: Alcon ESSILOR Jobson Vistakon VSP He is an officer of: Pathways to Success Progressive Publishing Company. Practice Transitions More Patients More Productivity More Profit Action Plan 15 minutes 30 minutes 30 minutes 30 minutes 15 minutes PRACTICE TRANSITIONS 120 minutes Starting Maturing Position your practice Declining Growing 1
High Fees Low Low Volume High High Volume Warehouse SPA SPA Low Low Fees High High Volume Low Low Fees High 2
Business Description Operating Plan Financial Plan Marketing Plan How are you organized What do you sell What are your policies What are your procedures What is your 1 year plan What is your 5 year plan Internal Marketing External Marketing Marketing Strategies Internal Get current patients to send you new patients Increase your per patient Get your patients to return more frequently External Get people who are not your patients to become your patients MORE PATIENTS Starting Maturing Declining Growing More Patients Established patients Pre-appoint Human telephone Automated telephone Postcard Problem based New patients Ask current patients for new patients Create Buzz In-office seminars Trunk shows Target alpha dogs (connectors) 3
EMAIL Opened: 1119 Subject: Big Savings on Frames at the Designer Frame Spectacular Please feel free to bring a friend 21 More Patients Established patients Pre-appoint Human telephone Automated telephone Postcard Problem based New patients Ask current patients for new patients Reward positive behavior Create Buzz In-office seminars Trunk shows Target alpha dogs (connectors) Create buzz 4
Digital Marketing Company Website Company Digital Marketing Strategy Website Social Media Communications Review Sites Yelp Facebook Twitter Blogs Designed to give accurate data on: Income and patients produced by the strategy How to change to improve these numbers Designed to tell you how many people look at your website and for how long Designed to increase your SEO www.visioncenter4kids.com Digital Marketing numbers in first 6 months Measures YTD Target Variance to Target Visits 6,309 3,142 101% Search Visits 4,773 1,146 316% Phone Calls 501 157 219% New VT Appointments 39 36 8% New Eye Care Appointments 45 34 32% New Appointments from website up 20% over expectations Website Helped Drive Existing Patient Revenue Phone Calls Last 12 Months In the first 6 months over 300 existing patients called the practice AFTER visiting the website Revenue for Primary Eye Care YTD for entire practice is up 20% YOY Total website calls averaged over 100/mth Significant calls (3+minutes) averaged ~ 50/mth 30 5
EMAIL Opened: 1161 Subject: Your 3D Vision and An Invitation to a Special Event Patients use other devices 31 Net Promoter Score How likely is it that you would recommend our practice to a friend or colleague? Detractors (0-6) Passives Promoters (9-10) 0 1 2 3 4 5 6 7 8 9 10 Not at all likely Neutral Extremely likely Net Promoter Score How likely is it that you would recommend our practice to a friend or colleague? 100 people surveyed 70 = 9-10 10 = 7-8 20 = 0-6 NPS = % Promoters - %Detractors NPS = 70% - 20% NPS = 50% Starting Growing 6
Maturing Declining Which has a higher ROI MORE PRODUCTIVITY Gain a new patient Increase your per patient Package Add high end frames Prescribe www.reviewob.com Bundle Manage handoff Rx annual CL supplies Preset patients Multiple sales Capture rate Write Rx for each Rx How to increase your per patient 7
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Increase your staff productivity What is the end result of eating candy bars? What is your end product? Objective measurement Receptionist Recall Pre-test Optician Receptionist number of patients seen Pre tester number of patients seen Chairside assistant number of records complete, accurate diagnosis, correct fields entered Optician produced Bookkeeper how many accounts paid over patients seen, collections Office manager - net IT person system up 100% of the time Recall appointments seen Marketing new patients 9
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Starting Growing Maturing Declining MORE PROFIT 11
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$90 / staff hour worked What are your options? More staff $140,000 / FTE staff $500,000 / FTE OD Partners Employee doctors How do you make the decision? Starting Maturing Growing 13
Types of Income Declining Active Income Income derived from work Passive Income Income derived from investments Stock market Real estate Businesses Define Financial Freedom There are three ways to achieve financial freedom Financial Freedom is the point where my 120 exceeds 100 Expenses my 80 60 Active 40 20 Passive 0 #1 Decrease expenses #2 Increase passive 120 120 100 Expenses 100 Expenses 80 60 Active 80 60 Active 40 20 Passive 40 20 Passive 0 0 14
#2 Increase passive #3 Increase passive AND decrease expenses 120 120 100 Expenses 100 Expenses 80 60 Active 80 60 Active 40 20 Passive 40 20 Passive 0 0 140 120 100 80 60 40 20 #3 Increase passive AND decrease expenses Expenses Active Passive Which situation would you prefer? Situation 1 = Gross $120,000 Expenses = $100,000 Active = $100,000 Passive = $ 20,000 Situation 2 = Gross $100,000 Expenses = $ 50,000 Active = $ 50,000 Passive = $ 50,000 0 ACTION PLAN 15