Dental Marketing: $151,200 with Google Offers and Groupon

This is the final article in our dental marketing series on Internet dental coupon marketing.  Today we boil it all down to just how profitable this new dental marketing vector can be.

First, let’s start with a quick review of the offer and the results:

1. The basic offer — $59 for a $421 dental package.
2. That’s an 85% savings to consumers who buy within the allotted time.
3. The purchase window was 23 hours.
4. The number of offers (dental packages) available was 300.
5. The number of packages sold was 51 — or 17% of the available offers.
6. Total dollars grossed in the test was $3,009, which was split evenly — $1,504 each for Mt. Tabor Dental and Google.

(Click here to view the full ad)

What’s important to note in the results above are that 51 packages were sold for a gross income to Mt. Tabor Dental of $1,504. On the surface, this tells us that the practice now has about $29.50 available to service each of 51 new patients.

However, what most people don’t realize is the concept of “Breakage.

Not all the coupons will be redeemed with the allotted time period. The reality is that people forget to use their coupons, and breakage can run from 30% to 50%. Meanwhile the practice is using the cash immediately. (This is the same game that American Express has been playing with Traveler’s Checks for the last 60 years.)

I think we can safely assume a 30% breakage rate. This turns our 51 packages purchased to just 36, giving $41.77 to cover the service cost of each patient. Now most of you are now trying to calculate how much money you are going to lose on each of these new patients when you only have $41.77 to deliver an exam, X-rays and a bite-and-boil home tooth whitening kit.

Don’t bother!

The reality is that Mt. Tabor Dental has now identified 51 potential new patients who are willing to pay $59 each.

The average new patient in the US is worth about $975 in gross production in the first nine months of treatment. Take out delivery cost of 10%, 4% collections loss and 9% universal expenses (cotton balls) and your net marginal profit is about $750. Knock off another $50 to cover any additional initial delivery costs and you end up with $700 per patient in your pocket.

Assuming a 30% breakage loss on coupon utilization, you net 36 new patients at $700 net each for a total of $25,200. For those real pessimists in the crowd who will say that half of those bottom-feeding coupon patients won’t accept your treatment plan and stay for at least nine months, well ok, you just made $12,600.

Now do you see any good reason why you wouldn’t run this or a similar Internet coupon ad with Google or Groupon every month for the next year?

Think about a possible $151,200 net to your bottom line over the next 21 months…

Dental Marketing: A Doctor and His Dog

Fanatical cat people are not going to like this, our third article on Mt. Tabor Dental’s Google Offers dental marketing ad. The bottom line is that I’m a dog kind of guy. It’s not that I don’t like cats, it’s just than when I have a choice I’ll always pick the dog first.

In last week’s article we analyzed the offer and terms of Mt. Tabor Dental’s limited time new patient offer.

Below you’ll find a clip of the lower third of an ad which details THE DEAL, THE STORY and very importantly the practice location. Click here to see the full ad in all its glory.

Dental Marketin: A Doctor and His Dog

Click on the picture to enlarge

First, THE DEAL starts with a great opening line that grabs the reader with both a funny and realist stat “Number of bristles in your toothbrush: 37. Number of times you’ve forgotten to floss in your lifetime: 3,479.”

Next we are introduced to Willie, the friendly office dog. The key word here is “Friendly.” Then there is a quick repeat of the basic offer we reviewed last week that ends with “office dog is included in your visit.” This last, is an outstanding addition friendly bonus to the original offer.

At this point I was totally hooked! Remember, I’m a dog guy. If I lived in Portland and were looking for a dentist, I would have been there the next morning.

THE STORY goes on to list more warm and fuzzy commentary on Willie surrounded by additional office benefits. All of this copy leaves the reader with the feeling that this dental practice is both professional and caring.

THE MAP, address and contact info answers one of the primary questions in any dental marketing – where exactly is the practice located.

As much as many of you would like to think that you should be drawing patients from across the country with your marketing, the truth is that the average urban/suburban dental practice draws close to 90% of its new patients from within a geographic circle of 6 to 8 miles of its office location.

The final pieces of this advertising marvel are the “View Place Page” and “Look Inside” links.

The first take the reader to more information about the practice on Google’s Place page where you can find a team picture that includes Willie. The second, which I think is really cool, takes the visitor to a 360 degree office tour app.

Next week we will wrap up this add analysis with a review and a look at the most important aspect of the ad – what kind of Return-on-Investment, ROI, did it generate for the practice.

Dental Marketing with Google Offers

In last week’s article, “Dental Marketing: Google Offers vs. Groupon” we reviewed the basic results from Mt. Tabor Dental’s dental marketing coupon with Google Offers.

Today let’s break down the ad which starts off with big red discount tag of 85% OFF!

Dental Marketing with Google Offers

Click on the picture to enlarge

Who in their right mind wouldn’t want $421 dental package with exam, X-ray and take home whitening for life for just $59! I’d sign up personally if I lived in Portland. This is exceptionally great marketing title that grabs the most jaded consumer by the throat.

Plus it is followed with three short bullet points that scream quality and value –

  • Comprehensive dental package – The word “comprehensive” adds value to the offer.
  • Professional, friendly staff – Who doesn’t want a profession, friendly staff, but personally I would have used the term “dental team”
  • Take-home whitening for life – “For Life!” My family all lives into their 90’s; I’m going to make out like a bandit on this deal. I’ve always wanted to ask if this is my life-time or the life-time of the doctor’s.

This is followed by a “Redemption Time Limit”, which is always smart because you don’t want people coming in 5, 10 even 15 years from now asking to redeem their coupons.

Now the thing that makes this a truly great dental marketing offer is the “TERMS” and I must say that these are some of the best I’ve seen –

  • Limit one per person – make sense to me.
  • New patients only – absolutely.
  • By Appointment only – protects against strays from interrupting your schedule.
  • 24-hour cancellation policy or offer is forfeit – again, protects your schedule and incents them not to cancel.
  • Does not include teeth cleaning – this is the elephant hiding in the corner that cuts the delivery cost dramatically.
  • Whitening gel for life is dependent on fulfilling regular check-up appointment – which means I have to show up at least twice a year to get my get my gel fix for the rest of my life.

This is followed by a classic “Limited Time Offer” statement to close the sale now… by 5:00 AM or I will lose out on 30 years of free life-time whitening. The “Purchased:” number is there to show the consumer that other people, just like them, have already decided that this is a great deal!

Finally, we can all share this fantastic offer with all our friends by just clicking the Facebook or Twitter icons.

If any of you can come up with a great new patient offer that you are willing to share, don’t hesitate to post it below.

Thanks, next week we’ll look at how this ad tells a truly heartwarming story about a doctor and his dog.

Dental Marketing: Google Offers vs. Groupon

Dental marketing Google Offers betaNot long ago Google tried to buy Groupon for something like 6 billion dollars.

Groupon turned the offer down.

Within a month Google started Google Offers.

Mike Blumenthal’s blog reviewed the early test results on Google Offers for the local Portland beta test.

Low and behold, I spotted Mt. Tabor Dental as beta test campaign. Here is the actual ad Google designed with Mt. Tabor Dental:

Dental Marketing: Google offers

I have to say they did an outstanding job and over the next few weeks I will do my best to break it down into the component parts, but first let me give you the test results.

1. The basic offer — $59 for a $421 dental package.

2. The % savings to the consumer if they buy the offer within the allotted time allowed was 85%.

3. The purchase window was 23 hours.

4. The number of offers (dental packages) available were 300.

5. The number of packages sold was 51 — or 17% of the available offers (300).

6. Total dollars grossed in the test was $3,009 which was split — $1,504 each between Mt Tabor Dental and Google.

My question to all the doctors reading these results is very simple. Do you think this was a good result?

Post your comments below.


© 2017, The Wealthy Dentist - Dental Marketing - All Rights Reserved - Dental Website Marketing Site Map

The Wealthy Dentist® - Contact by email - Privacy Policy

P.O. Box 1220, Tiburon, CA 94920

The material on this website is offered in conjunction with MasterPlan Alliance.

Copyright 2017 Du Molin & Du Molin, Inc. All rights reserved. If you would like to use material from this site, our reports, articles, training programs
or tutorials for use in any printed or electronic media, please ask permission first by email.