Open any newspaper or watch any newscast and there it is, a constant reminder of the recessionary time in which we are living. Many companies as well as medical practices are making some hard decisions to insure they survive this economic downturn. One area that may seem to be easy to cut in economic hard times is marketing, but that may be a mistake.

 

“The smart business, including the smart medical practice, will continue to market its business or practice when the economy is tight,” said Mary Reed, owner of Reed and Associates Marketing Inc., and who has had her own marketing company for almost 20 years. “Even in a downturn, people need healthcare. Marketing keeps your name in front of your patients and your community. People assume that you are doing well. And, as the economy improves and people start to spend more or decide they can afford a medical treatment, your clinic’s name will be at the top of their mind.”

 

The amount businesses or clinics spend on marketing should not be a percentage of revenues, Reed explained. When that happens, marketing dollars, of course, will shrink when revenues shrink. “Instead,” she said, “marketing – whether it be ads in the media, a patient newsletter or a marketed Web site – should be considered an investment in your practice and in its future success.”

 

Clinical practices certainly have felt the pinch of the economy. According to a survey by the Medical Group Management Association, clinics across the country report reduced revenues and that the economy has dealt them a major blow. The Wall Street Journal surveyed 75 physician practices in 2008 and found that average revenue was down 3.5 percent in October of that year, while another national survey of medical practices across specialties found that 54 percent faced significantly decreased revenues. 

 

Studies have shown that reducing marketing in a recession can actually have a negative impact in both the short and long run. Experts believe that marketing should be viewed as an investment in the future growth of a practice. An economic assessment survey conducted by Practice Builders in December 2008 showed that for practices that reported an increase in revenue during the economic downturn, the top factor listed for that increase was increasing their marketing. These practices also listed increasing marketing as one of the actions they took to protect their practice during the economic downturn.

 

According to a study by McGraw Hill Research of 600 companies, those that raised or at least maintained their marketing efforts during the 1981-1982 recession had significantly greater revenue after the recession. Here’s another example: In 1990, Nike and Reebok were neck and neck in sales. During the 1990-1991 recession, Nike tripled its advertising budget while Reebok cut back. When the country emerged from that recession, Nike’s profits were nine times higher than going in. Cutting your marketing when your competition is not could leave you lagging way behind.

 

Patient-focused marketing is even more important at recessionary times to retain the patient base already established and make an even greater effort to show them you value them. These patients represent an important and inexpensive marketing tool; their word-of-mouth recommendation is invaluable for your practice, Reed said. “You must keep marketing to maintain your patient base, not only to keep your current patients, but also to attract new patients.”

 

Reducing marketing efforts during a slow economy can lead to lost patients as well as no new patients. Marketing efforts, even on the most basic level, such as appointment reminders, are an integral part of maintaining business.

 

Marketing has many hats, Reed explained. “It’s as simple as speaking at a civic club about a new medical procedure or the way your receptionist answers the phone and schedules an appointment. It may include patient newsletters or helping to sponsor a local health event. Another important part of marketing is advertising, whether in the local or regional media or putting your clinic’s ad on popular community Web sites. Online ads, by the way, are excellent vehicles to drive people to your Web site.”

 

“Marketing maintains public awareness about your clinic, your specialty and your services,” Reed added. It is an excellent way in which to inform current and potential patients of a clinic’s services, hours, staff members and procedures. 

 

Although the recession has put a damper on many business practices, online activity has mushroomed. Having a Web site and advertising that Web site is becoming more and more of a necessity, Reed explained. 

 

“Web sites have become an integral part of marketing for any practice,” said Reed. “The Internet is becoming the standard method of finding information.”

 

One study showed that 80 percent of Internet users search for medical information online; it is the third most popular activity behind email or researching a product or service.

 

“A Web site gives a practice important visibility, as well as credibility with potential patients and professionals,” Reed said. “A good Web site, developed by a professional, does not need to be costly. Helping clients with their Web sites has become an important part of my marketing business.”

 

Newsletters – both the printed and the electronic versions – are also great tools to disseminate information about a practice. “I have a couple of medical clients that print a newsletter and then put it online or send it out as an e-newsletter,” Reed said. “The effort that went into the newsletter is now reaching people who prefer seeing their information in print or who prefer online news.”

 

Whenever you market, she said, be efficient and smart with your marketing dollars. “Pick the right medium for your audience. Consider the difference between a rifle, which shoots a bullet at a target, and a shotgun, which sprays its pellets over an area.”

 

Reed explained: “If a lot of your patients come from referring physicians, for example, then use the rifle approach with a direct mail piece or in a publication that targets physicians, such as the West Tennessee Medical News, rather than a general newspaper or radio station. If your patients are women, then find a medium with a high female readership, listeners or viewers. On the other hand, if you are a walk-in clinic or general practice then a general publication like your local newspaper might be your best use of your marketing dollars.”

 

The economy may be tough, but this is not the time to cut back on marketing, Reed repeated. “The smart business or clinic continues to budget money for marketing and then makes smart decisions on how to best target their customers with those marketing dollars.”