Pulse - September 2022 - 22

TOOLS FOR SUCCESS
FOR SUCCESS
Getting Back to Basics
If your hospital is underperforming, define your value proposition,
diagnose any other problems and make the necessary fixes.
Karen E. Felsted, CPA, MS, DVM, CVPM, CVA
S
wamped with patients during the pandemic, many
veterinary practices weren't interested in drumming
up additional business. However, that wasn't the case
everywhere, and when the next recession comes, boosting
revenue might become a more significant issue, even
at busy hospitals. So, how to bring in more business? By
first analyzing where the problem really lies.
Ask yourself what's happening that you think can be fixed
with more business. If your profitability is lower than you'd like,
more patient visits might not be the only or best solution. Are the
declining profits due to higher expenses? If so, what's driving the
costs higher? Is it inflation or poor management? Areas to review
include your inventory, the efficiency and productivity of your
doctors and other team members, and the return on marketing.
If the desire for more business is due to fewer transactions,
declines in revenue and new clients, or poor client retention, the
reasons might include:
* A negative value proposition.
* High prices.
* Not enough doctors and other staff.
* Poor communication of recommendations.
* Substandard client service.
* Bad marketing.
Why Us?
Your value proposition summarizes why a pet owner should pick
your practice over another. If your management team can't succinctly
define the value proposition and explain it to pet owners in
person and through marketing, then clients certainly won't see it.
One way to define your value proposition is to compare your
practice against local competitors. Most people deciding where to
take their pet can't judge the quality of the medical care, so they
look at convenience and services.
Consider what is unique about your practice. For example, are
you accredited by the American Animal Hospital Association? Do
you offer services that the others don't, such as acupuncture or
homeopathy? Do you have pay-by-the-month wellness plans? All
those factors might be points of difference. The more uniqueness,
the more likely pet owners will choose your practice, assuming
you have what they want.
What Makes You Special?
In addition, review how your practice and the others are similar. These
are points of parity. It's vital to understand points of difference and
parity when defining your value proposition. For example, if every
practice in your community is open until 5 p.m. Saturday, promoting
that fact has limited value because a potential client can go anywhere.
Instead, focus on what is truly different about your practice.
If nothing's unique, do something about it. What new services
could you provide? How can you make a client's visit more
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convenient and distinctive? If your practice isn't special, pet owners
might simply search for the lowest prices.
Next, honestly evaluate your practice from the client's viewpoint.
For example, do pet owners enjoy the experience? If they
regularly must wait after arriving for a scheduled appointment,
or their calls aren't returned, or they find errors in their invoices
every time they check out, no wonder your business isn't growing.
Finally, think about getting rid of toxic employees and fixing
your systems. There's no point in trying to attract new clients if
their first visit is destined to be terrible.
The Fee Factor
Understand that prices can't be separated from value. It's not enough
to say, " The average practice charges $350 for an abdominal ultrasound,
so we will, too. " Some practices can charge $400 because
they communicate well, show a lot of empathy for pets and their
owners, see clients on time, and follow up promptly. Other practices
have trouble charging $200 because the service experience is poor.
Clients don't care what a service costs you, so don't use inflation
as an excuse for price increases that aren't accompanied by value.
Value and price must correlate.
If a core issue is staffing, are your transactions declining because
you don't have enough doctors? While almost every U.S. business
has a hiring problem, some deal with it better than others. Those
that continue to find and keep employees enjoy a great culture,
pay well, and demonstrate genuine concern and respect for their
team members. How does your practice stack up?
Words Matter
Communication is critical in conveying value and encouraging
pet owners to accept your recommendations. It's not enough to
tell a client what a pet needs. The advice needs to be clear and
focused on the benefits of importance to the pet owner. Words
matter. What will the owner of an itchy dog think if a veterinarian
says, " There is allergy testing if you really want to do that, " or
a technician says to the owner of a pet with bad teeth, " At some
point, you might want to get this dental done; it's just a suggestion " ?
The client probably won't follow the recommendation
because its importance to the pet's health isn't crystal clear.
If business is slow, marketing might be part of the problem.
Posting a few things on Facebook and hoping that's enough isn't
sufficient. Communication to current and potential clients needs
to target the audience you want to attract and emphasize your
practice's unique aspects. Spending a lot of money on marketing
and not getting the desired results is easy. Instead, work with an
expert who can help you design an outstanding marketing plan
and measure the results.
A practice can do many things to increase business, but not all
will be right for every hospital. Identify what is holding back your
clinic, fix the internal problems and reach out to the clients you
want to see. P
SEPTEMBER 2022
PULSE
Pulse - September 2022

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