2011 Dental Marketing Barometer Survey. Results and Analysis
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- Jayson Osborne
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1 2011
2 1 WPI Communications, Inc. s, new Dental Marketing Barometer Survey for 2011 provides a wealth of information on dental specialty trends and projections. Practices can use the data and analysis in this report to understand where specialists are spending on marketing, and get a clear picture of spending projections for Data has been compiled by marketing tactic and by specialty. This report includes a comparison of 2010 data with WPI s 2009 survey results. Respondents to the current survey were mildly optimistic, with 55% expecting a better year, 4% anticipating a decline and 40% expecting revenue to stay the same. The Respondents A total of 226 dental specialists practicing in the United States and Canada responded to this survey. Of those, there were 53 endodontists, 28 orthodontists, 39 oral surgeons, 49 pediatric dentists, 22 periodontists and 35 prosthodontists. The respondents were a self-selected group who identified themselves as engaging in dental marketing. Modest Improvements in 2010 and Hints of Optimism for 2011 The economy continues to be a challenge for dental specialists, but many note improvements over In 2010, 33% reported higher revenues, an increase from the 31% who reported revenue gains for Also in 2010, 28% reported lower revenues, an improvement over the 37% who reported losses in Respondents to the current survey were mildly optimistic, with 55% expecting a better year, 4% anticipating a decline and 40% expecting revenue to stay the same. The current survey, which covers 2010 marketing spending, finds that pediatric dentists had the highest revenues compared with % reported higher revenue. Oral sur- How do you expect 2011 revenue from your practice will compare with 2010? % 40% 4% 51% 43% 2% 57% 32% Total Endodontists Orthodontists Oral Surgeons 7% 51% 49% 0% 59% 37% 4% Pediatric Dentists 55% 41% 5% Periodontists Higher About the same Lower 69% 26% 6% Prosthodontists page 1
3 2 geons fared most poorly in 2010 compared with 2009, as 38% reported lower revenue. For 2011, periodontists are the least optimistic, with 41% expecting higher revenue than Prosthodontists, by contrast, expect the most growth, with 69% anticipating gains in Most Popular Dental Marketing of 2010 In 2009, Web sites were far and away the most widely used tools in the marketing arsenal of dental specialists. In 2010, Web sites again took the lead in use by 73% of practices. Orthodontists are leveraging Web sites most aggressively, with 93% of specialists using this method in 2010, up from 88% in Next are periodontists, with 86% reporting use of Web sites, followed by prosthodontists at 80%. Oral surgeons least commonly used Web sites as a marketing vehicle in 2010 at 62%, down from 75% in In 2009, Web sites were far and away the most widely used tools in the marketing arsenal of dental specialists. In 2010, Web sites again took the lead in use by 73% of practices. The second most common marketing method in 2010 continued to be yellow page advertising, despite the current downward trend. Last year s respondents reported that 64% used the yellow pages in 2009, but only 55% expected to do so in The current survey results matched these predictions fairly tightly, with 58% reporting actual yellow page usage in A decrease to 50% is projected for Pediatric dentists advertised most commonly in the yellow pages in 2010 at 80%, an increase from 71% the year before, but these specialists plan to cut advertising in 2011 to 63%. Endodontists and prosthodontists used yellow pages the least in 2010 and plan to use this tool even less this year. The third most popular tactic continued to be a practice brochure. It was used by 41% of respondents in 2010, up from 38% in Periodontists (59%) and orthodontists (54%) used practice brochures the most. Message-on-hold was used only slightly less frequently than brochures at 38%, down from 43% in Orthodontists were the most likely to use message-on-hold at 54%, and endodontists were the least likely at 25%. For the second consecutive year, lunch-and-learn and print advertising were tied as the fifth most popular method, again with 30% of respondents using them. Oral surgeons used lunchand-learns most commonly in 2010, at 51%. Only 12% of pediatric dentists used lunch-andlearns, which were also unpopular among prosthodontists at 14% usage. For both of these specialists, these numbers, while low, represent increases over Pediatric dentists and orthodontists were the most likely to use print advertising in 2010, at 47% and 46%, respectively. Only 9% of endodontists used print advertising, making them by far the least likely advertisers page 2
4 3 The next most common tool in 2010 was newsletters sent to referring health care providers, which held steady at 28% of specialists. Periodontists and oral surgeons were the leaders at 41%. A full 38% of endodontists used these newsletters in As with 2009, direct mail was again the seventh most commonly used tactic, with 26% using it. This was a 2% jump from last year. Direct mail was used by a similar number of dentists across specialties, ranging from 21% by oral surgeons to 29% by pediatric dentists and prosthodontists. Periodontists dipped significantly in using direct mail from 42% in 2009 to 27% in Waiting-room videos (19%) and patient newsletters (12%) were the least utilized categories for the second consecutive year. However, 32% of orthodontists used waiting-room videos, up from 23% in And 31% of oral surgeons used these. Periodontists and prosthodontists used patient newsletters most heavily, both at 23% in Dental Web sites will continue to be the most popular marketing tool for specialists, as 84% plan to utilize these, up 3% from 2010 projections. Spending across marketing activities increased modestly from 2009 to 2010 for direct mail, patient newsletters, practice brochures, waiting-room videos and Web sites. There was no increase in use of lunch-and-learns, newsletters to referring providers or print advertisements. Yellow page advertising and message-on-hold decreased in use in Dental Marketing Trends for 2011 Dental Web sites will continue to be the most popular marketing tool for specialists, as 84% plan to utilize these, up 3% from 2010 projections, and up 14% from 2009 actual numbers. Pediatric dentists (90%), periodontists (91%) and orthodontists (89%) will use Web sites most commonly. By comparison, 74% of endodontists and 77% of oral surgeons will use Web sites to market in Practice brochures will unseat yellow pages to become the second most common marketing tactic in 2011, with 55% planning to use brochures. Among orthodontists, 68% will use practice brochures, up from the projected 54% in Prosthodontists plan to dramatically increase brochures from actual use of 34% in 2010 to 66% in Yellow pages will be the third most used tactic but will continue to decline. Respondents indicated that 50% expect to use them in Every specialty area plans to reduce spending here, with pediatric dentists declining the most. Message-on-hold will be the next most popular tactic, increasing 6% to be used by 44% of specialists. Taking the lead here will be orthodontists at 54%. Newsletters to referring health care providers came in a close fifth among projected marketing methods for Referral and patient newsletters are nearly tied as the greatest growth areas, anticipated to increase by 14% and 15%, respectively, over The current survey found that 28% of dental specialists used referral newsletters in 2010, with a full 43% plan page 3
5 4 ning to use them in Among specialists, 64% of periodontists and 56% of oral surgeons plan to use newsletters in Even orthodontists, the lowest in anticipating use of this method at 25%, plan an increase over 14% in At 39%, lunch-and-learns will be the sixth most common technique planned by dental specialists for Oral surgeons will take the lead at 56%. Orthodontists will follow at 50%, a significant increase from 36% in Pediatric dentists will continue to leverage lunch-andlearns least frequently of all doctors. Next will be print advertising at 30%, consistent with 2010 use. Pediatric dentists will continue to engage in print advertising the most, at 45%. Orthodontists plan to cut print advertising significantly, decreasing from 46% to 36%. Only 13% of endodontists will use this medium. Waiting-room videos are projected to be used by 27% of specialists this year, up from 19% in Orthodontists will continue to use them the most, increasing from 32% to 43%. Closely behind waiting-room videos are patient newsletters, with 26% of respondents projecting use in Oral surgeons plan to increase use of patient newsletters dramatically from 0% to 21%, and orthodontists will more than double newsletter use from 21% to 46%. Pediatric dentists also plan to markedly increase use of newsletters from 16% to 33% in Dental specialists are increasingly assigning marketing responsibilities to a staff member. Use of marketing consultants rose slightly from 18% to 20% in Orthodontists placed the greatest value on having a marketing plan or program. Marketing Plans and Programs Specialists responded similarly regarding the importance of having a marketing plan or program. A full 95% reported this was very important or somewhat important, up from 91% last year. Of those, 63% responded it was very important, up from 54% last year. Orthodontists placed the greatest value on having a marketing plan or program, with 86% calling it very important, up significantly from 58% in Oral surgeons reported plans are very important at 64%, compared with 49% in Periodontists found the least value in having a 90 86% plan or program, with only 77% calling it 80 important, a dramatic shift away from last year s findings % Marketing Responsibilities Dental specialists are increasingly assigning marketing responsibilities to a staff member, up from 47% in 2009, to 52%. Endodontists were the most likely to have a staff member responsible for marketing, How important is it to have a marketing plan or program? % 32% 5% 60% 34% 6% 11% 4% 33% Total Endodontists Orthodontists Oral Surgeons 3% 59% 39% 2% Pediatric Dentists 50% 27% 23% Periodontists Very important Somewhat important Not important 60% 40% 0% Prosthodontists page 4
6 5 at 66%. Periodontists were the least likely to have a staff member responsible for marketing, with 59% responding that they do not. Use of marketing consultants rose slightly from 18% to 20% in Prosthodontists are the most likely to have an outside consultant at 34%, up from 21%. Orthodontists and pediatric dentists and were the next most likely, at 29% and 27%, respectively, an increase for both. Key Research Findings and Conclusions Here are some highlights of the Dental Marketing Barometer Survey: 1. Financially, 2010 was a moderate improvement for many specialists, with 33% reporting higher revenues. This was a slight improvement from 2009, when 31% experienced increases. Also in 2010, a more favorable 28% reported losses, compared with 2009, when 37% reported a decline in revenue. Patient newsletters and newsletters to referring health care practitioners are expected to increase most dramatically. Dental specialists recognize the importance of newsletters in marketing their practices. 2. Respondents to the current survey were mildly optimistic, with 55% expecting a more profitable 2011, 4% expecting a decline and 40% expecting to stay the same. 3. Patient newsletters and newsletters to referring health care practitioners are expected to increase most dramatically, at 14% and 15%, respectively. Based on 2009 and 2010 data, dental specialists recognize the importance of newsletters in marketing their practices but procrastinate in implementing them. 4. Dental Web sites will continue to be the most popular marketing tool, as 84% plan to utilize these, up 14% from 2009 actual numbers. 5. Across all marketing tactics in 2009, periodontists and orthodontists were engaged in the greatest volume of marketing activities. Endodontists engaged in the least, followed closely by prosthodontists. In 2010, orthodontists led the way, followed by periodontists. Endodontists were involved in the lowest volume of marketing tactics of all dental specialists. 6. Spending across marketing activities increased modestly from 2009 to 2010 for direct mail, patient newsletters, practice brochures, waiting-room videos and Web sites. Lunchand-learns, newsletters to referring providers and print advertisements remained the same. Yellow page advertising and message-on-hold decreased in use in A full 95% of respondents reported that having a marketing plan or program was very important or somewhat important, up from 91% last year. 8. While use of dedicated staff marketing resources and consultants are on the rise, many dental specialists continue to manage marketing functions. As practices meet growth challenges, dental specialists are likely to increase their use of outside marketing resources and communications firms page 5
7 Key Research Findings Total Endodontists Orthodontists Oral Surgeons Pediatric Dentists Periodontists Prosthodontists Responses How did 2009 revenue compare with 2008? Higher 31% 23% 42% 34% 40% 27% 27% About the same 30% 39% 23% 30% 29% 31% 25% Lower 37% 39% 35% 30% 29% 42% 48% Which of the following marketing methods did you use in 2009? Direct mail 24% 29% 15% 19% 21% 42% 21% Lunch-and-learn 30% 42% 27% 45% 8% 58% 6% Message-on-hold 43% 29% 54% 58% 38% 54% 35% Newsletter to referring health care practitioners 29% 29% 23% 47% 21% 27% 19% Patient newsletter 11% 6% 23% 6% 6% 15% 17% Practice brochure 38% 31% 42% 34% 35% 54% 42% Print advertising 30% 16% 38% 23% 56% 27% 25% Waiting-room video 18% 6% 23% 28% 13% 15% 25% Web site 70% 63% 88% 75% 67% 73% 63% Yellow page advertising 64% 61% 69% 62% 71% 62% 63% How do you expect 2010 revenue from your practice will compare with 2009? Higher 52% 53% 62% 58% 50% 46% 44% About the same 41% 47% 27% 34% 38% 42% 50% Lower 7% 0% 12% 6% 13% 12% 6% Which of the following marketing methods do you expect to use in 2010? Direct mail 27% 35% 31% 19% 23% 42% 19% Lunch-and-learn 44% 61% 46% 57% 21% 81% 10% Message-on-hold 48% 32% 58% 60% 46% 65% 40% Newsletter to referring health care practitioners 44% 48% 31% 49% 48% 50% 33% Patient newsletter 19% 5% 23% 13% 27% 27% 31% Practice brochure 50% 45% 54% 49% 48% 65% 50% Print advertising 32% 21% 27% 28% 58% 35% 27% Waiting-room video 23% 6% 35% 40% 15% 31% 25% Web site 80% 73% 92% 87% 81% 81% 75% Yellow page advertising 55% 53% 54% 57% 63% 58% 48% Do you have a member of your office staff who is responsible for marketing? Yes 47% 48% 46% 58% 35% 46% 46% No 52% 50% 54% 42% 65% 54% 54% Do you have an outside marketing consultant? Yes 18% 11% 19% 21% 23% 15% 21% No 79% 87% 81% 79% 69% 85% 77% How important is it to have a marketing plan or program? Very important 54% 55% 58% 49% 54% 62% 54% Somewhat important 37% 39% 38% 30% 38% 38% 38% Not important 5% 6% 4% 2% 8% 0% 8% page 6
8 Key Research Findings Total Endodontists Orthodontists Oral Surgeons Pediatric Dentists Periodontists Prosthodontists Responses How did 2010 revenue compare with 2009? Higher 33% 28% 29% 18% 49% 32% 40% About the same 31% 36% 25% 31% 27% 36% 29% Lower 28% 28% 25% 38% 20% 32% 26% Which of the following marketing methods did you use in 2010? Direct mail 26% 25% 25% 21% 29% 27% 29% Lunch-and-learn 30% 36% 36% 51% 12% 32% 14% Message-on-hold 38% 25% 54% 44% 45% 36% 34% Newsletter to referring health care practitioners 28% 38% 14% 41% 14% 41% 23% Patient newsletter 12% 0% 21% 0% 16% 23% 23% Practice brochure 41% 38% 54% 44% 33% 59% 34% Print advertising 30% 9% 46% 26% 47% 23% 34% Waiting-room video 19% 8% 32% 31% 12% 18% 20% Web site 73% 64% 93% 62% 71% 86% 80% Yellow page advertising 58% 43% 64% 56% 80% 55% 46% How do you expect 2011 revenue from your practice will compare with 2010? Higher 55% 51% 57% 51% 59% 41% 69% About the same 40% 43% 32% 49% 37% 55% 26% Lower 4% 2% 7% 0% 4% 5% 6% Which of the following marketing methods do you expect to use in 2011? Direct mail 26% 28% 25% 18% 35% 14% 29% Lunch-and-learn 39% 49% 50% 56% 18% 45% 23% Message-on-hold 44% 36% 54% 49% 51% 36% 37% Newsletter to referring health care practitioners 43% 42% 25% 56% 41% 64% 37% Patient newsletter 26% 6% 46% 21% 33% 32% 34% Practice brochure 55% 36% 68% 54% 57% 64% 66% Print advertising 30% 13% 36% 28% 45% 23% 37% Waiting-room video 27% 13% 43% 41% 20% 23% 31% Web site 84% 74% 89% 77% 90% 91% 89% Yellow page advertising 50% 36% 57% 51% 63% 50% 43% Do you have a member of your office staff who is responsible for marketing? Yes 52% 66% 61% 49% 45% 41% 43% No 47% 34% 39% 51% 53% 59% 54% Do you have an outside marketing consultant? Yes 20% 6% 29% 15% 27% 18% 34% No 80% 94% 71% 85% 73% 82% 66% How important is it to have a marketing plan or program? Very important 63% 60% 86% 64% 59% 50% 60% Somewhat important 32% 34% 11% 33% 39% 27% 40% Not important 5% 6% 4% 3% 2% 23% 0% page 7
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