The Chiropractor Marketing Report Contents
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2 Contents Introduction... 3 Whitepaper Summary... 3 Industry Overview... 4 Industry Background... 4 Services Offered And Market Segments... 4 Industry Performance And Trends... 5 Survey Respondent Profiles... 6 What s Going On Profile of Today s Chiropractors... 7 Chiropractors Cannot Rely on Regular Patients New Patients Fuel Growth... 7 Most Chiropractors Are Responsible For Their Own Marketing Activities... 8 Chiropractors Are Spending Time And Money Marketing Their Practice... 9 Chiropractors Are Engaged In Multiple Marketing Activities Keeping Track of How Patients Find Your Practice And Using Digital Media Are Norms, Rather Than Exceptions Marketing That Is Working There Is A Benefit To Having More Marketing Activities In Play Chiropractors Engaged In More Activities Can Better Reach New Patients Word Of Mouth Is Still Dominant, But Digital Media Is a Strong Source Of New Patients The Difference Between Chiropractors That Can Reach New Patients And Chiropractors That Cannot Is Digital Media (Facebook and ) Keeping Track Of New Patients Is A Best Practice And Tells You What Is Working And What Is Not Takeaways The Hit List Four Ways To Improve Your Marketing Today Appendix Free Responses Survey Questions ThriveHive.com 1 Main St. Suite 530. Cambridge, MA (877)
3 Introduction WHITEPAPER SUMMARY 236 chiropractors completed an online survey regarding their marketing and advertising efforts. Respondents answered questions that fell into three separate categories: Background of their practice Perception and level of marketing Marketing activities used to reach new customers Additionally, chiropractors were given an opportunity to provide free responses regarding current challenges in obtaining new customers. A sample of questions can be found in the Appendix of this whitepaper. The key findings presented in this whitepaper are summarized below: 1. Word of mouth has moved into digital media Word of mouth is still the most popular tool within the industry, and chiropractors that are successfully reaching new patients are using digital media (Facebook and ) to increase both verbal and digital exchanges. 2. Almost all chiropractors are looking for new patients but have limited resources Despite balancing the responsibilities of treating patients and running a business, most chiropractors manage their own marketing. Those who spend time and use a variety of marketing activities are able to reach new patients. 3. Social media is an effective marketing tool and provides reach.to those who use it More than half of the chiropractors that do not use social media, which is free, have a tight marketing budget ($0 - $250). Many chiropractors have the opportunity to expand their marketing activities in a cost-effective manner. 3
4 Industry Overview 1 INDUSTRY BACKGROUND Practitioners in this industry hold a Doctor of Chiropractic degree and treat patients by manipulating the spine. The following are characteristics of the industry: 78.0 percent of practices employ fewer than five employees (independent practices) 98.0 percent of the 56,524 practices earn less than $1 million of revenue per year Annual industry revenue is $12.5 billion SERVICES OFFERED AND MARKET SEGMENTS There are various services aimed to treat specific ailments within the chiropractic industry. Below is a breakdown of the most common services performed: Services Offered Segment % Manual Manipulation for Back Pain 25% Rehabilitation 20% Extremity Manipulating and Adjusting 20% Non-manual Procedures for Back Pain 15% Manual Manipulation for Neck Pain 11% Non-manual Procedures for Neck Pain 9% Though chiropractors provide these services to individuals, other parties are often responsible for payment. Chiropractors commonly serve the following markets: Mark et Segmentation Segment % Private Health Insurance 42% Patients Paying Out of Pocket 28% Property or Casualty and Auto Insurance 14% Medicare 8% Workers Compensation 5% Other 2% Medicaid 1% 1 IBISWorld Industry Report 62131, Chiropractors in the US dated October
5 INDUSTRY PERFORMANCE AND TRENDS The chiropractic industry has averaged 1.0 percent annualized growth over the past five years. The relatively slow growth can be attributed to the following factors: Integration with other healthcare professionals to provide more multidisciplinary services Economic pressures faced by private insurance companies and public programs resulting in shrinking reimbursement rates Lower household disposable income Fewer referrals from other healthcare providers Lack of public understanding of the industry and services In addition to the external pressures, individual practices will face competition from within the industry. As such, chiropractors will continue to differentiate themselves in an effort to build a good reputation and increase positive word of mouth exchanges. Despite the current challenge, this industry is forecasted to grow at 2.2 percent to $13.9 billion over the next five years. This growth will be supported by the aging of baby boomers and expected healthcare reform, which will provide more health coverage to individuals. 5
6 SURVEY RESPONDENT PROFILES 236 chiropractors were interviewed from over 37 states. Below is a presentation of the locations of survey respondents 2 : Similar to the industry data presented above, a majority of the respondents have small chiropractic practices (less than five employees). The following sections present the survey findings. 2 Map graphic from Illuminations. Retrieved January 28, 2012 from 6
7 What s Going On Profile of Today s Chiropractors CHIROPRACTORS CANNOT RELY ON REGULAR PATIENTS NEW PATIENTS FUEL GROWTH It s probably no surprise that most chiropractors are in a constant search for patients. If you are thinking Yep, that s me, welcome to the 96.0 percent. Percent of Chiropractors Looking for New Patients What may be more surprising is that less than 20.0 percent of chiropractors believe that they have a high level (over 75.0 percent) of regular patients. Percent of Chiropractors with "Regular" Patients 7
8 MOST CHIROPRACTORS ARE RESPONSIBLE FOR THEIR OWN MARKETING ACTIVITIES Consistent with the overall industry, a large majority of respondents indicate that their practice employs between one and five people. Breakdown of Practice Size by Employment With the average practice employing approximately two employees, chiropractors are largely unable to delegate marketing responsibilities. Even with the use of third parties chiropractors have some responsibilities and approach marketing as a team effort. 3 Who is Handling Marketing Responsibilities? 3 Common responses to the Other category included internal marketing director, business partners, and office managers. 8
9 CHIROPRACTORS ARE SPENDING TIME AND MONEY MARKETING THEIR PRACTICE Despite pulling double duties by running a business and treating patients, chiropractors are not skimping on marketing. As presented below, a large group of chiropractors are spending in excess of five hours per month handling marketing responsibilities. Time Spent With Marketing Initiatives The chart of how much money chiropractors are spending each month on marketing activities is a mirror image of the Time Spent Marketing chart. The survey data shows that chiropractors are more focused on their wallets rather than their watches. Monthly Marketing Spend 9
10 CHIROPRACTORS ARE ENGAGED IN MULTIPLE MARKETING ACTIVITIES With the growing popularity of digital marketing (Facebook, , etc.), chiropractors have more ways to reach new patients. A majority of chiropractors indicate that they have many marketing activities supporting their word of mouth initiatives. Number of Marketing Activities Used to Promote Their Practice Specific Marketing Activities 10
11 KEEPING TRACK OF HOW PATIENTS FIND YOUR PRACTICE AND USING DIGITAL MEDIA ARE NORMS, RATHER THAN EXCEPTIONS A majority of chiropractors have a system in place to keep track of how a new patient learned about their practice. Common survey responses to tracking methods included intake forms and spreadsheets (i.e. excel). Percent of Chiropractors That Keep Track of How Patients Found Them Most likely, tracking forms look much different today than they did a couple years ago. If Facebook isn t an option to the question How did you hear about us then it is time to rethink your intake forms percent of chiropractors are using social media. Percent of Chiropractors Using Social Media 11
12 Marketing That Is Working THERE IS A BENEFIT TO HAVING MORE MARKETING ACTIVITIES IN PLAY CHIROPRACTORS ENGAGED IN MORE ACTIVITIES CAN BETTER REACH NEW PATIENTS Those who agreed to the statement I have ways to reach new customers also used an assortment of marketing activities (six or more). Number of Marketing Activities Used by Chiropractors Who Can Reach New Patients Chiropractors that cannot reach new patients are using fewer marketing activities. As presented below, almost half of the chiropractors having difficulties finding new patients are supporting their word of mouth with only one additional marketing activity. Number of Marketing Activities Used by Chiropractors Who Cannot Reach New Patients 12
13 WORD OF MOUTH IS STILL DOMINANT, BUT DIGITAL MEDIA IS A STRONG SOURCE OF NEW PATIENTS Respondents were asked to rank their top three sources of new patients. Given chiropractors' focus on building and maintaining a positive reputation within their communities, nearly all respondents listed word of mouth in the top three. Top Sources of New Patients Leveraging other tools, many chiropractors have reached more people and directed more traffic to their websites to not only advertise to potential patients, but also provide additional information about the doctor, practice, and services. Some chiropractors have been successful in spreading their good reputation using their digital voice and putting social media to work. 13
14 THE DIFFERENCE BETWEEN CHIROPRACTORS THAT CAN REACH NEW PATIENTS AND CHIROPRACTORS THAT CANNOT IS DIGITAL MEDIA (FACEBOOK AND ) The data show differences between the marketing activities used by those who believe they can reach new customers and those who don t, with Facebook accounting for the largest difference. Different Marketing Activities Between Those Who Can and Cannot Reach Patients More than half of the chiropractors that do not use social media, which is free, have a tight marketing budget ($0 - $250). Chiropractors are missing out on the opportunity to expand their marketing activities in a cost-effective manner. Social Media Usage and Marketing Spend 14
15 KEEPING TRACK OF NEW PATIENTS IS A BEST PRACTICE AND TELLS YOU WHAT IS WORKING AND WHAT IS NOT A majority of respondents who agreed that they have ways to reach new patients also were able to track patients. Conversely, chiropractors that lacked reach to new patients also fell short in tracking activities. Chiropractors That Can Reach New Patients: Percent That Keep Track of Patients Chiropractors That Cannot Reach New Patients: Percent That Keep Track of Patients 15
16 Takeaways THE HIT LIST FOUR WAYS TO IMPROVE YOUR MARKETING TODAY Marketing will continue to play an important role as chiropractors strive to find and educate new patients in a time and cost-efficient manner. Here are some ways to get you started: 1. There Is A Benefit To Having More Marketing Activities In Play Chiropractors Engaged In More Marketing Activities Can Better Reach New Patients All chiropractors are using word of mouth to market their practice take the time to learn how you can leverage new marketing activities to help maximize reach and ultimately get more patients in the door. 2. Word Of Mouth Is Still Dominant, But Digital Media Is a Strong Source Of New Patients Digital media is word of mouth! Start connecting with your patients (social media, , blogs, etc.) and let them know more than just your address and business hours. 3. The Difference Between Chiropractors Who Can Reach New Patients And Chiropractors Who Cannot Is Digital Media (Facebook and ) Get comfortable with digital media and get your practice on Facebook! Already on Facebook? Take it a step further and start thinking how you can share content that can be posted to social media or included in regular s. 4. Keeping Track Of New Patients Is A Best Practice And Tells You What Is Working And What Is Not Start measuring your success understand how patients learned about your practice and refine your marketing activities. After engaging in more marketing activities, simple methods of tracking new patients while monitoring existing activities will become too complicated for simple intake forms. Come learn about the ThriveHive all-in-one marketing platform that lets chiropractors build, manage, and measure all of their marketing efforts (including digital media) online: 16
17 Appendix FREE RESPONSES 4 Respondents were asked about their greatest challenges in obtaining new customers. Below is both a categorized summary of their responses and unedited responses represented by a word cloud: Challenges of 2012 % Res pons es Patient Education 26% Consistently Attracting Quality Patients 24% Time 17% Healthcare/Insurance 17% Referrals 8% Marketing Plan 8% Cost of Advertising 6% Competition 2% Location 1% 4 Word cloud provided by wordle.net 17
18 SURVEY QUESTIONS Below is a sample of questions answered by the respondents. They have been separated into the following categories: Background of their practice Perception and level of marketing Marketing activities used to reach new customers Background How many people does your practice employ, yourself included? What percentage of your customers do you consider to be regulars? Who is responsible for marketing/advertising activities? Perception and Level of Marketing Marketing and advertising help me obtain new customers (level of agreement). I have ways to reach new customers (level of agreement). Marketing is a daily activity/responsibility (level of agreement). I would like to expand my marketing/advertising activities (level of agreement). What is the greatest challenge in obtaining new customers? Tools and Platforms Used to Reach New Customers What tools do you use to attract new customers? Are you comfortable using social media to market and advertise your practice? Do you currently have tools or resources in place to keep track of marketing and advertising activities? 18
Chiropractic Marketing
Chiropractic Marketing I would like to get my name out there but I don t know too much about marketing, and I don t want to spend a fortune on it. Target marketing is smart marketing 95% of chiropractors
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