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Issue 1 - January 2004 Dr. Nathan Unruh builds his practice
on a ‘building block’ belief Nathan Unruh knows his ABCs. The Sioux Falls, S.D. chiropractor and owner of the four-year-old Downtown Chiropractic has built his practice the same way he builds everything else: from the ground up and one step at a time. His “building block” philosophy has led to a practice that billed $1.1 million in 2003 and has sights set on aggressive growth over the next five years. The practice was established and has grown by maintaining a belief in marketing and developing a campaign that grows and expands as the practice does. The campaign has helped draw 250 patients per week to Unruh, the only chiropractor on board (though plans to add an associate are in the works), along with between 50 and 60 new patients per month. His current marketing campaign is based around the concept of stacked building blocks: For the blocks to stack up, they have to be aligned — just as your spine has to be aligned for you to “stack up” properly. Unruh spends between 6 percent and 8 percent of his gross billings — between $70,000 and $80,000 in 2003 — on marketing and believes every dollar has been well spent. The marketing effort started when a patient who happened to be in the advertising business struck up a conversation. “He was going through a treatment plan and we sat down for lunch one day and we came up with a concept,” Unruh says. “It was more of a testimonial campaign. We could do something for him… and it grew from there.” Unruh’s marketing avalanche, which now includes just about every advertising tool available, began with a direct mail campaign. It included current and potential patients. Within three months, television was blended into the mix. From there it was on to radio and billboards. Now, Downtown Chiropractic is in the public eye and ear via all those means, along with Yellow Page advertising, print ads and a Web site. Unruh also conducts a public relations campaign, sponsors a local indoor professional football team and holds patient appreciation parties to complete his marketing efforts. The various media are mixed during different periods, based on reaching his targeted audience. Not every medium is used at any one time. For instance, during summer months, when people are out and about more, Unruh does more radio and less TV. His direct mail campaign is executed monthly and goes out to around 4,000 recipients, many current patients and others in the general vicinity. Of Unruh’s mainstream marketing expenditures, television makes up 40 percent of the budget (“You have to spend money if you want to reach the masses,” he says), while radio (25 percent), direct mail (20 percent) and outdoor signage (15 percent) comprise the rest. Unruh says direct mail is the most successful part of his overall marketing campaign. One thing you won’t find among any of Unruh’s marketing is a gimmick. He simply does not believe in them. If you have a product, sell it, he says: Don’t give it away or cheapen it by offering it cut-rate. If people don’t want to pay full price, there’s likely a reason. “I don’t believe in giving away exams,” Unruh says. “I don’t feel you have to give away your services. Sometimes people get hooked into things like that. Overall you end up with a bad patient base.” Then, of course, there’s “Old Reliable” as a way to increase patient rolls: referrals. In spite of his ongoing multi-media blitz, three-quarters of his patients come from referrals; 69 percent from patient referrals and 6 percent from professional nods. Those numbers illustrate the importance of providing a good patient experience (See sidebar on page 60). Although many practitioners might be satisfied with that growth and not want to spend on other marketing, Unruh has calculated the benefits of aggressive marketing. For example: If Unruh spends 8 percent of billings ($88,000) on marketing and the marketing brings in an additional $275,000, the return on investment would be $3 for every $1 spent. And Unruh estimates that his marketing dollars actually bring in $4 for every $1 spent. “This type of figure — or even higher — is typical for a high-margin business,” says Greg Breukelman, of Breukelman Kubista Group, the agency handling Unruh’s campaign. “Dr. Unruh’s budget can support it.” Professionals do the marketing Unruh doesn’t execute his own marketing. He leaves that up to the professionals. He started out doing his own, but ultimately realized there’s a reason why ad agencies exist — the same reason why advertising executives go to chiropractors rather than adjust themselves. Enter Breukelman Kubista. “When I did my own marketing, I found that I ended up doing shotgun things here and there,” Unruh says. “Plus it took away from what I like to do, which is to treat people. These guys, it’s their business. It’s what they do all day long. It does cost a little more, yeah, but they can serve my product better.” Once he aligned himself with an agency, all that was needed was a campaign. A little brainstorming led to the building blocks campaign, which employs images of those little blocks children play with that are embossed with letters of the alphabet. By letting the professionals handle the promotional side of his practice, Unruh has plenty of time to work a full schedule and still have enough left over to live the life outside that he wants. That includes golfing, playing basketball and watching his daughter Gabrielle, 6, play soccer or spending time with wife Sara and their other two children, Lincoln, 4, and Alexa, 7 months. But free time aside, you’ll never catch Unruh complaining about his workload. “I enjoy what I do, so it’s not hard for me,” he says. “I always live by the premise, ‘make your job your hobby and you’ll never work another day in your life.’” u Todd Stumpf is a freelance writer from Akron, Ohio. He has written professionally for 4 years. He has been with Chiropractic Economics as a contributing editor for four years. He can be reached at TStumpf22@yahoo.com.
Marketing: Slow but sure works Marketing isn’t something to dive into, Unruh says. Even as he has implemented his program, which this year will encompass a budget of nearly $90,000, he has taken it slowly. He took his marketing program one step at a time and his marketing budget grew with it. Here are some tips that he offers to other chiropractors when planning their marketing strategies: • Plan. After establishing a budget, devise a plan, along with the message that your marketing will convey. Who are you? What do you offer? Why should someone choose you? What makes you stand out? These questions have to be answered in the blink of an eye, since that’s how long a typical consumer will pay attention to a typical advertisement. • Target. Even chiropractors who don’t specialize have a certain type of patient in mind, Unruh believes. Find the best ways to reach your targeted audience. For example, if you are located in New York, television might be cost-prohibitive. If you’re in a small town, door-to-door introductions might be in order.“You need to take this information and develop your unique message that will help you stand out and be recognized,” Unruh says. • Commit. After you plan and target, commit, says Unruh. Immediate results aren’t guaranteed.“You may have a bad month but you need to continue to get your message out,” Unruh says.“Be persistent. Then, once you see your numbers start to grow, continue to invest [the same percentage of your sales] in your marketing.” • Don’t stop. Once patients respond to the campaign and start coming, keep right on marketing to them. Sell yourself to them even as you’re seeing them. Make them remember their experience in your office. Service is as important as product, if not more. “Many people will tell you that you should not waste money on marketing,” Unruh says. “I will tell you that the more money I ‘waste’ on marketing the busier I am.”
Vital Statistics Downtown Chiropractic TEAM PLAYERS Dr. Nathan Unruh Rose Steffen Rachael Krueger Angela Fransman Marlin Schlenker Nichole Mitrevics Amanda Mitchell, CA OFFICE HOURS Monday-Wednesday Thursday Friday Saturday Practice revenue
Since start of practice in 2000: $2.6 million GROSS COLLECTIONS Since start of practice in 2000: $2.1 million. MARKETING BUDGET Allocation of marketing budget determined Marketing expense breakdown
Patient
visits per week: 250 Sources
of new patients All
figures are provided to |
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