OrthoMail has really helped me grow my new practice with superb help in focused marketing as well as xceptional graphic design for promotional materials. They have been extremely prompt and reliable in all aspects.
The math element is an important part of determining if Demographic Mail is right for your practice. Based on documented studies on mail response rates by the Direct Marketing Association (DMA), a conservative estimate can be derived for a Demographic Mail Campaign for an Orthodontic practice.
1. Number of mailings in a campaign – five minimum, six recommended
Regarding frequency, studies conclude a single mailing has a very low probability of success. Multiple contacts rates of five and higher create an average response range of 0.0025 to 0.02 respectively.
2. Number of “qualified families” targeted – 3,000 minimum
Note: “qualified” families are defined as:
families with appropriate income for services
children in the correct age range
homes is in close proximity to office
3. “Invitations” mailed over a designated period - 18,000
We use the term “invitations” because that is the correct classification based on function. Orthodontists are inviting qualified families to come for a consultation.
Family Responses Figures are based on a campaign response rate of 0.17%respectively.
4. Response Goal
In this model we use a conservative 0.01 response rate.
(3,000 x 0.01 = 30)
Note: A typical response range is higher 0.0025 to 0.02.
5. Close Rate
Using a total of 30 families, closing at a conservative 75% rate, translates to 23 families starting a relationship with your practice.
6. Profitability / Return on Investment
There is $115,000 in revenue generated from 23 starts
at $5000 per new case start
There is an average of $1800* profit per case start
x 23 families = $41,400.
Estimated campaign cost / investment: $2,070 per mailing,
$12,420 total investment. $ 0.69 per piece mailed.
Note: Your payments are spread out over the duration of the campaign. Your costs could be lower. Contact us for pricing.
*Numbers are industry averages
Profit
For every $1.00 invested, you can earn $2.33 in profit. Seven new patients is the breakeven mark for your investment. The eighth family starts the profit zone.
These numbers don't take into account "bonus cases". We estimate that 35% of your new case starts will "spin off" another new patient. This could be siblings, parents and referred families.
7. The Conclusion
Demographic Mail Campaigns should be evaluated for your specific geographic market. This solution has a high probability of being a very profitable strategy…if done correctly.
Gary Smith is a graduate of the University of North Carolina-Chapel Hill where he received his BS degree in Marketing. Mr. Smith is also the president of The TransForm Group, a company he founded in 1985. TTG serves over 3500 clients nationally. OrthoMail is a specialized marketing-operations division of TTG that provides turnkey marketing services to Orthodontists that need to increase new case starts. Mr. Smith resides in Atlanta, GA with his wife Margaret and their four children.