How is it that in the industry of used cars it’s OK to openly talk about money and sales, but when it comes to the business of providing healthcare, such discussions can feel dirty?
Managing commercialism ethically for the modern health professional is a tricky balancing act, but is something business-owner optical dispensers, optometrists, ophthalmologists and other health professionals shouldn’t be ashamed of. Afterall, they have facilities to run, technology to purchase and staff to pay.
History shows us healthcare was birthed in the marketplace – take the Code of Hammurabi; a collection of rules from ancient Mesopotamia that, amongst other commercial matters, set fees for surgeons. And Socrates, who said: “tell me, your physician … is he a moneymaker, an earner of fees, or a healer of the sick?”
“The lifetime value of a customer is always higher than a one-off patient, regardless of how much they might spend in any given moment.”
I remember as a child I went with my father to purchase a second hand car from an elderly lady. Upon giving her the cheque, she said once it had cleared with the bank, we could return and take it away. My father, a practising psychiatrist at the time, gave her his business card, and upon learning he was a doctor, she let us take the car on the spot.
It comes down to trust. And therein lies the difference between health professionals, and those who sell used cars who have no duty to the public or to put the customer first, no need to be competent, and are commercially and competition driven. Ultimately, no one trusts them.
Customer service is a crucial element of any business, but is especially important in caring pursuits where the public is reliant on professional knowledge and skills. When we become health professionals, we enter a social contract where society expects us to treat disease, act with altruism, self-regulate, adopt a higher standard of behaviour and ensure access to care.
The inherent high social and moral status is sacred and something that should not be exploited through things like overservicing.
So how do you run a profitable health business in the 21st century, while staying true to the social contract? This question become even more pertinent when we see the phenomenon of corporatisation in optometry where the principles of hyper-rationality (efficiency, calculability, control and predictability) fit quite nicely with providing health services.
Across the board, we are seeing a shift away from the idea of getting all you can out of a customer, to thinking about: how can one generate more profit through a relationship built over a longer period of time, enshrined by giving clients real value that keeps them engaged and returning as customers. It’s about playing the long game, which may occasionally be at a short-term cost.
Some of the biggest corporations in the world, like Amazon, adopt this approach. In fact, companies who focus on consumer delight are twice as likely to out-perform their competitors, and experience a 20% reduction in consumer attrition. They’ve also eliminated ‘bad profits’ from their business models, such as those irritating fees when changing your plane ticket, or late fees from banks.
So how might this look in an optical practice? It’s about championing consumer-focused innovation (such as giving a taxi voucher for a patient feeling unwell after their consult), identifying and managing sources of bad profits, and acknowledging you cannot have delighted patients without delighted employees.
It boils down to whether you’re seeking one-off value or lifetime value from your patients. That means you need to make careful considerations around the upselling of products and services, a common tactic in eyewear. Is it something you believe the customer would truly benefit from, and is it attainable for them? Or are you risking a breach of that trust?
The lifetime value of a customer is always higher than a one-off patient, regardless of how much they might spend in any given moment. It’s important to remember that trust equals a willingness to return for their care and, in turn, spend. They will recommend you to their friends and family; nothing is more powerful than word-of-mouth marketing.
Next time there’s a patient looking at the most expensive frames on the rack, think how they might respond if you show them a similar pair at half the price that you think will equally suit their look. The ‘capitalist’ would say you’re cheating yourself out of profit, but the ‘consumer capitalists’ would say that’s a wise move because when it’s time for a new pair they will return because they trust you. You put them at the centre of the experience.
Today, people are less tolerant of a power imbalance between the health provider and themselves. They want to feel empowered, a feeling that can only come from a trusted advisor – you.
ABOUT THE AUTHOR
Name: Clinical Professor Alexander Holden
Qualifications: BDS LLM MDPH MComDent PhD MRACDS(DPH) FACLM FCGDent
Affiliations: University of Sydney, Specialist in Public Health Dentistry, Director of Karaden Dental Group, Director of Australasian College of Legal Medicine
Location: Sydney
Years in industry: 12
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