Saturday, December 3, 2011

Extract Uncertainty When Pulling Teeth

During the Great Recession, the profitability of auto repair services accelerated while the profitability of American dental practices decayed. Still, in other ways, these two retailing endeavors have similarities.
     According to a Sageworks, Inc. analysis of 7,852 U.S. dental practices, both revenue and net income dropped roughly 3% during the first nine months of 2011. This 3% figure is small by comparison to what happened to construction companies, let’s say. But, as described in an article in the Los Angeles Times, the dentists are taking decisive steps now to stop the bleeding.
  • Redesigning websites to inject excitement and consumer education
  • Launching blogs and e-mail marketing to sell teeth whitening and other elective cosmetic services
  • Rearranging office hours to add convenience for patients
  • Brushing up waiting room and in-chair amenities
     Now back to the riddle: How is a dental practice similar to an auto repair shop?
     In both, the core target market consists of people who are coming there by necessity and people who anticipate experiencing pain. In the auto shop, it’s anticipation of the emotional pain of large bills and having the car out of commission for a while.
     Here are shopper psychology tips to all those types of retailers where physical or emotional discomfort is a backdrop:
  • Keep to time commitments. When you set an appointment, be ready to greet the client promptly if she arrives on time. It’s best to start delivery of the service on schedule, but if you can’t, at least welcome the person with a promise of how long he’ll need to wait. Consumers of dental services and, to a lesser extent, auto repair services do manage to arrive late or not at all. Here, use your business sense as to how to reschedule, but still keep to your time commitments.
  • Stay in touch with the client. When my car’s in the repair shop, I want to know how it’s coming along. When I’m in the dental chair, I get uncomfortable if left by myself for long periods of time. Most other consumers are like me, research says.
  • Maintain a clear impression of competence. Researchers at UCLA found that consumers describe competent retailers as reliable, intelligent, and successful. Impressions of being daring, spirited, and exciting can detract from the image of competence.
     All three of these address the importance of minimizing uncertainty for the consumer who is anticipating pain.

For your profitability: Sell Well: What Really Moves Your Shoppers

Click below for more:
Practice Personality
Know the Tradeoffs in Being Sincere

2 comments:

  1. Bruce, I was really intrigued with that LA Times dentist article. Love your comparison to auto repair.

    I hope you had a lovely Thanksgiving.

    Best,
    CB

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  2. I’m pleased you found the article interesting, CB. As always, thanks for continuing to keep an eye on the RIMtailing blog. I know that your own blogging at Flooring the Consumer ( http://flooringtheconsumer.blogspot.com/) and Simple Marketing Now (www.simplemarketingnow.com) keep you busy as you help retailers and others.

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