The
Company
A large medical practice.
The
Problem
We were initially engaged to do market research for a large, profitable
medical practice providing mostly elective procedures, in order
to evaluate possible geographic expansion plans. The research
showed that the practice was essentially unknown in its market
area, having succeeded as the pure result of outstanding medical
results, none of which had been effectively communicated to its
potential market, or even to its large patient group.
The
Trade Center attacks resulted in the withdrawal of potential patients'
discretionary funds, which immediately exposed a vulnerability
of the practice: there was no effective, distinguishing marketing
plan and employees needed better sales skills. Revenues dropped
almost 40% within a month and further over succeeding months,
interrupted only by one month of a seasonal boost.
Moderate profits turned into substantial losses just as quickly,
with only one month that went slightly above breakeven during
the same seasonal bump. By the time our marketing program began,
the practice had six months of losses interrupted by one artificial
breakeven.
The
Solution
The client and competitors were "mystery shopped" in
person and by telephone. Employees were interviewed and processes
were experienced by our experts. All print pieces, advertising
and the company's web site were reviewed for message and conflicts.
Financial statements were reviewed for information and usefulness.
Consistent with the market research findings, employees were retrained
in marketing-related functions; new print advertising was designed
and placed; radio advertising messages were changed; on-hold messages
were implemented; the old web site was temporarily "fixed"
for embarrassing problems and a new site was developed; measurement
procedures were designed and implemented to track marketing results
by media; financial statements were reformatted to provide easily
understandable and useful information; new services were added
along with a price increase; mailings were begun to all past patients.
The
Result
After only one month from the beginning of retraining and new
advertising, and before the benefits of the new web site and past
patient mailing, practice revenues jumped forty percent, producing
marginal profits for the next two months. Within the next three
months it is expected that revenues and profits will recover to
pre-9/11 levels. Within six more months the evidence indicates
our client will emerge as the market leader with revenues 20%
above previous recurring levels.
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