Dentist Referral Programs
You want to grow your dental practice. That’s a given.
New patient acquisition is expensive. Another given.
What’s a dental practice owner to do? If you have an unlimited marketing budget, you can simply put it into attracting and nurturing new patients. But I don’t know many dental practice owners who have that luxury.
Fortunately, there are alternatives. One of the best options is to start a patient referral program. Here’s how to do it.
What Is A Referral Program?
A patient referral program is a program that encourages and incentivizes your existing patients to refer other people to your practice.
You already know that it’s costly to acquire new patients. In fact, as of 2020, it cost about five times as much to acquire a new patient as it does to hold on to an existing patient.
New patient acquisition is also time-consuming. It takes between 5 and 7 interactions with a brand for people to remember it.
Referral programs are both less expensive and less time-consuming than traditional patient acquisition methods. One of the biggest reasons is that they come with built-in social proof. Research shows that more than 80% of consumers trust a personal recommendation from a friend more than they would a review in a newspaper or magazine.
What Are The Benefits Of Starting A Patient Referral Program?
The biggest benefit of starting a patient referral program is that referral programs are proven to work. Here are some statistics that illustrate their potential.
- 60% of marketers say that referrals are an excellent source of leads
- 54% agree that the per-lead cost of referral programs is lower than other lead channels
- 78% of B2B marketers like referrals as a way of generating qualified leads
- People who are referred by a friend are 4 times as likely to make a purchase as people who find your business any other way
Referral programs provide a low-cost, high-reward way to attract new patients to your practice. People are already asking your patients for recommendations. Your mission, should you choose to accept it, is to harness something they’re already doing to make it beneficial for them – and profitable for you.
The Best Referral Program Ideas For Dental Practices
Now it’s time for the fun part. There are dozens of different ways to set up a patient referral program and you can get creative with it. The main components you need are:
- A fun and appealing name
- Rules for how the program works
- A system of incentives and rewards
- A way to let your patients know about the program
One of the biggest things you’ll need to decide ahead of time is when the rewards kick in. Will you give a patient a reward when they refer someone, or only if that referral turns into a new patient? It’s important to be specific so that your patients know what to expect.
To get an idea of how your referral program can work, let’s look at some examples.
GrubHub
GrubHub is a food delivery app that’s become hugely popular. People can use it to order food from local restaurants and have it delivered to them at home or at work.
GrubHub’s referral program is especially clever because it incentivizes people to order at both ends. When an existing GrubHub customer refers a friend, the friend gets a discount on their first order; AND the person who made the referral gets a discount at the same time.
I know a lot of people who use GrubHub and refer people for exactly this reason. It’s a great program that is set up for success.
DapperTime
DapperTime is a watch company that puts a different spin on the discounting game. Instead of offering a flat discount, their referral program works more like an affiliate program.
The key difference here is that the person who does the referral earns a percentage of their friend’s purchase. That way, if the friend turns into a big spender, the person who referred them will get to share in the rewards.
This model won’t work for every business, but it’s worth considering if you think it will appeal to your patients.
Hubstaff
Let’s look at Hubstaff, who set up a recurring commission option.
Participants in their referral program get a dedicated link they can use to refer people to Hubstaff. When one of their referrals signs up, they get a 30% commission for life.
Let’s be clear. That’s a big reward, and not one that every dental practice can afford to offer. However, because the payout is so attractive, it’s the kind of thing that will incentivize people to participate because they’ll start mentally spending their commission as soon as they hear about the program.
Dropbox
One of the earliest and most successful digital referral programs is the one created by Dropbox.
Instead of offering participants money back or a commission, they offered what is arguably their most valuable commodity: storage space. For each friend that a customer refers, they get additional storage ranging from 500 MB to 1 GB per referral. That space is theirs for as long they have their Dropbox account.
Soylent
Not all referral programs offer a reward directly to participants. Some, like Soylent’s, provide an opportunity to give the reward to people in need.
This program gives participants’ friends a discount, and donates four meals to a food-related charity. In other words, the reward comes in the form of a good deed. People who join the program have the satisfaction of knowing they’ve helped someone who needs it.
A similar program is the one at PillPack, where each referral that results in a sale gets a $100 donation to a charity that builds healthcare facilities for children. Charity-based referral programs are highly appealing to Millennials, who like to align themselves with companies that share their values.
These are just a few examples of successful referral programs. My suggestion is that you start with your patients and figure out what’s most likely to appeal to them. Then, you can work backward from there to create a referral program that works for both them and you.
Tools To Build Your Referral Program
Not sure how to start building your referral program? Here are a few tools that can help you do it with a minimum of time and trouble.
- Extole has beautiful templates you can use to sign people up for your referral program, and options to add the rewards you choose.
- Yotpo offers custom-designed landing pages and pop-ups and a choice of reward structures.
- Omnistar Affiliate Software has built-in sign-up forms, promo codes, and free promotional tools to help you advertise your referral program.
- TapMango has an array of customizable programs to choose from and offers SMS, mobile push, and email options to manage your referrals.
These are just a few of the software options available. You can read reviews and compare your options here.
What are you waiting for? Starting a patient referral program now is one of the best ways to focus on new patient acquisition and secure your future success!
Talk to the referral program experts at Dental Marketing Heroes – book a discovery call with us now!
About the author
Ian Cantle is passionate about helping dental practice owners achieve their dreams by helping them systematically grow their practices, beat out the competition, and give back to their community.
Ian is an author and expert in the fields of strategic marketing for local businesses, SEO (Search Engine Optimization), and Web Design.
Want to discover the Dental Marketing Heroes difference, book a free discovery call or call us at 905-251-8178.
Ian Cantle is passionate about helping dental practice owners achieve their dreams by helping them systematically grow their practices, beat out the competition, and give back to their community.Ian is an author and expert in the fields of strategic marketing for local businesses, SEO (Search Engine Optimization), and Web Design.Want to discover the Dental Marketing Heroes difference, book a free discovery call or call us at 905-251-8178.
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Frequently Asked Questions
How do I assess a consultant's effectiveness?
To assess a consultant's effectiveness, focus on tangible results, alignment with your goals, clear communication, and the consultant's ability to adapt to your changing needs.
What are common dental practice marketing strategies?
Some common dental practice marketing strategies include search engine optimization (SEO), content marketing, social media marketing, email marketing, direct mail, and patient referral programs. These tactics can help attract new patients and retain existing ones.
How can a dental clinic increase patient acquisition?
A dental clinic can increase patient acquisition by implementing effective marketing strategies, such as improving their online presence, leveraging social media, and offering promotions or incentives to attract new patients.
What roles does a marketing consultant fulfill?
A marketing consultant helps develop and implement effective marketing strategies, analyze data, identify growth opportunities, and provide guidance to improve a business's marketing efforts and overall performance.
Can consultants improve online marketing efforts?
Yes, consultants can improve online marketing efforts by providing strategic guidance, analyzing data, and implementing proven tactics to enhance a business's digital presence and drive measurable results.
What metrics measure marketing success for dentists?
The key metrics for measuring marketing success for dentists include new patient acquisition, patient retention, average revenue per patient, patient referrals, and return on investment (ROI) from marketing campaigns.
How often should marketing strategies be revised?
Marketing strategies should be reviewed and revised on a regular basis, typically every 6-12 months, to ensure they remain relevant and effective in responding to changing market conditions, competitor actions, and customer needs.
What digital marketing trends impact dental clinics?
Digital marketing trends impacting dental clinics include increased focus on patient experience, rise of telemedicine, growth of social media marketing, and optimization for mobile devices.
How to balance traditional and digital marketing?
Balancing traditional and digital marketing involves strategically combining both channels to maximize reach and engagement. Integrate print, broadcast, and direct mail with a robust online presence, social media, and targeted digital campaigns for a comprehensive marketing strategy.
How to choose the right marketing agency?
Look for an agency with proven dental marketing expertise, transparent reporting, and a focus on delivering measurable results that align with your practice's objectives. Ensure clear communication and a collaborative partnership for long-term success.
What constitutes a successful marketing campaign?
A successful marketing campaign effectively targets the right audience, delivers a compelling message through the appropriate channels, and produces measurable results aligned with the organization's objectives.
How to gauge patient satisfaction with marketing?
Regularly gather patient feedback through surveys, reviews, and personal interactions to understand their satisfaction with your marketing efforts. Monitor metrics like website traffic, lead generation, and appointment bookings to assess the effectiveness of your marketing.
What should a dental marketing plan include?
A dental marketing plan should include strategies for patient acquisition, retention, and referrals, incorporating tactics such as website optimization, social media engagement, email marketing, and targeted advertising to reach and connect with the desired patient base.
How does a consultant optimize marketing budgets?
A consultant optimizes marketing budgets by analyzing data, identifying high-performing channels, reallocating resources, and implementing cost-effective strategies to maximize return on investment.
Are there specialized marketing tools for dentists?
Yes, there are specialized marketing tools and strategies for dentists, such as dental-specific SEO, social media management, lead generation funnels, and reputation management services to help grow dental practices.
What's crucial for a dental website's success?
A dental website's success hinges on a user-friendly design, compelling content, strong search engine optimization, and a seamless patient booking experience to attract and convert visitors into loyal patients.
How can SEO improve a dentist's online presence?
SEO can improve a dentist's online presence by increasing their website's visibility in search engine results, driving more targeted traffic, and enhancing credibility through higher search rankings.
What's the role of social media in marketing?
Social media plays a crucial role in marketing by allowing businesses to engage directly with their target audience, build brand awareness, generate leads, and drive sales through cost-effective and measurable campaigns.
How to create engaging dental marketing content?
Develop a content strategy focused on providing valuable information to your target audience. Use visuals, storytelling, and thought leadership to create content that resonates and builds trust with potential patients.
What innovative marketing tactics attract new patients?
Innovative marketing tactics that attract new dental patients include targeted social media advertising, creating a strong online presence, offering promotions for new patients, and leveraging patient referrals through loyalty programs.
How to manage patient feedback effectively?
Actively solicit patient feedback, respond promptly to concerns, use feedback to improve processes, and regularly communicate with patients about changes made based on their input.
Can targeted ads increase dental appointment bookings?
Targeted ads can be an effective strategy to increase dental appointment bookings by reaching potential patients who are most likely to need and seek dental services. Careful targeting and ad optimization are key to maximizing the impact on appointment bookings.
How to build a referral network through marketing?
Build a referral network through consistent content marketing, strategic partnerships, and exceptional customer service. Leverage testimonials, rewards programs, and personalized outreach to encourage existing patients to refer new business.
What are the compliance considerations in dental marketing?
Dental marketing must comply with regulations on patient privacy, advertising claims, and professional conduct. Practices should consult legal counsel to ensure marketing activities adhere to relevant laws and industry guidelines.
How to measure ROI from marketing expenditures?
Measuring the ROI from marketing expenditures requires tracking key performance indicators such as website traffic, lead generation, conversions, and revenue generated. Regular analysis of these metrics can help determine the effectiveness of marketing initiatives and guide future investments.
What's the impact of branding on patient loyalty?
Effective branding helps build trust and credibility, which can foster stronger patient-provider relationships and boost patient loyalty. A strong brand identity differentiates a practice, creating a memorable impression that keeps patients returning.
How to navigate competitive analysis in dental marketing?
Conduct thorough research on competitors' marketing strategies, identify their strengths and weaknesses, and use these insights to develop a unique value proposition and differentiate your dental practice in the market.
How can analytics improve marketing decision-making?
Analytics can improve marketing decision-making by providing data-driven insights into customer behavior, campaign performance, and marketing channel effectiveness, enabling more informed and strategic decisions to optimize marketing efforts and drive better business outcomes.
What is the importance of a marketing audit?
A marketing audit provides valuable insights into the effectiveness of a practice's marketing efforts, allowing for data-driven decision-making to improve ROI and better align strategies with business objectives.
How does a consultant streamline marketing operations?
A consultant can streamline marketing operations by evaluating current processes, identifying inefficiencies, and implementing more efficient workflows, automation, and data-driven decision-making to optimize resource allocation and improve overall marketing performance.
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