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What Should Your Healthcare Marketing Budget be in 2021

When most healthcare providers attend school, they don’t usually think about what it takes to run a practice; the last thing on their minds is a healthcare marketing budget – or any direct marketing plan. But planning to reach and acquire new patients is crucial if you want a thriving practice.  

Why? Because no matter how exceptional your care, how much your patients love and trust you, some will leave your practice. Some patients will move out of the area, grow out of your specialty, or won’t be a fit for your practice. 

If your patient acquisition plans don’t outpace the rate that patients leave, then your practice is at risk. To get the best results, use the best strategies to attract new patients. 

Healthcare Direct Mail Marketing Delivers

Healthcare Marketing Budget older woman seeing her mail webWhy direct mail? Because people spend more time with it, it stays in the minds of your prospects longer, and it has a good rate of return. This isn’t just lip service, the statistics prove it:

BMC Health Services Research demonstrates that healthcare direct mail marketing is an effective tool for patient acquisition and retention when it’s done properly. The overall message is to use organizations that are proficient in communicating to various patient streams. 

42% of individuals look over their direct mail – which means that if you send out 1,000 postcards in a campaign, then 420 people looked at it. That’s an impressive rate. 

73% of Americans say they prefer direct mail. When comparing direct mail to other methods of communication, including email, people prefer to receive mail. 

Direct mail offers a 29% return on investment. So, if you spend $5,000 on your campaign, you can expect to make at least $6,450; a $10,000 campaign can expect a return of about $12,900. These numbers only show the results of a one-time purchase, the lifetime value of a new patient is much higher. 

With impressive statistics like this, how much of your healthcare marketing budget should be allocated to direct mail? 

Your Healthcare Marketing Budget

How much should you allocate to marketing? A good rule of thumb is between 5 to 10% of a practice’s revenue should go toward marketing [1], but if you’re building the practice or establishing a new practice, then as much as 12% should be allocated.  

After you’ve determined the marketing budget, it’s time to decide what percentage should be spent on different marketing channels. To determine this, decide which channel will give you the best results. 

Direct mail vs. email

Healthcare Marketing Budget young woman sat in floor checking her mail webYou may naturally think of email and digital marketing as inexpensive, easy options, but they don’t deliver the results that healthcare direct mail does. Plus, an effective email campaign requires an “opt-in” from the receiver – so it’s not the best option to gain new patients. 

Plus, recipients remember direct mail longer than an email –  direct mail has an average lifespan of 17 days. That’s because an attractive offer or colorful postcard will make it to the refrigerator, bulletin, or whiteboard. But emails are often victims of group email purges and not be thought of at all.

If you’re concerned that only older adults like direct mail, the Small Business Association says that younger individuals don’t look at direct mail as “junk mail” and often prefer direct mail to receive service and product offers.  

People spend more with direct mail

According to a 2018 article by Email Insider, not only do they confirm direct mail’s prolonged shelf life and that Millennials like it, but they also show that direct mail recipients spend 5 times more than email recipients. 

Cost of Patient Acquisition vs. Patient ROI

As mentioned above, your initial investment in a healthcare direct mail campaign will get about a 29% ROI, according to SEO marketing guru Neil Patel. Using this formula, the more you’re willing to invest, the bigger your return. 

To calculate your ROI, use this handy calculator. Simply estimate the size of your direct mail campaign and other elements, including the initial fees new patients will pay, the percentage of new patients that will stay with your practice, and more. The tool will help you determine your break-even point and likely revenue for the campaign. 

New patients who return and create long-term relationships with you, your staff, and patients can return a lifetime of value. What is that worth to you? More than the cost of a healthcare direct mail campaign. 

Direct Mail Works for Patient Communication

Although acquiring new patients is important, retaining your patients is essential. You can use your patient list to send direct mail and communicate: 

  • Healthcare Marketing Budget flyer example webSpecial holiday hours – It’s also important to communicate how to receive treatment when your office is closed.
  • Special protocols – The COVID-19 pandemic is creating concerns, which you can ease by sharing sanitation methods and mask-wearing requirements. 
  • How to reschedule missed appointments
  • Telehealth offerings, virtual appointments, and other new services
  • Office and service updates to keep the community close

 

A postcard, flyer-letter, or newsletter are wonderful ways to keep your practice top-of-mind. They also provide the perfect way for your patients to refer you with a “pass-along” communique that can give prospects an idea of what it will be like to become your patient. 

The effectiveness of direct mail demonstrates the importance of establishing a healthcare direct mail budget for your practice. Direct mail delivers the best results and should have a significant portion of your budget. Choosing an expert to partner with you to develop and deploy direct mail campaigns deserves significant consideration.

One Stop Mail has experts who can assist you with every element of direct mail, including creating lists, eye-catching healthcare designs, and the highest quality offset and variable data printing. Contact us or give us a call at 602-962-9243 if you want to raise your ROI on your next healthcare direct mail marketing campaign.  

direct mail statistics you can use

Top 7 Direct Mail Statistics You Can Use

With the business world about to enter into the last quarter of the year, it is a good time to take stock of direct mail’s effectiveness in 2017 so far. Although the volume of direct mail went down last year, direct mail garnered a larger percentage of all mail. With technology and other tools to improve the timing of direct mail, this year’s statistics have shown that direct mail is not only still relevant in the marketing world, but that it is, in fact, one of the most successful channels available to marketers. Here are the top direct mail statistics you can use for this year.

#1 Direct Mail Statistics You Can Use – Household Response Rates Are at 5.1%

Yes, that decimal is in the right spot. According to compu-mail, direct mail has earned the highest response rate, with email and paid search at .6%, social media at .4%, and online display at .2%. Part of the reason why response rates are so high with direct mail is an increase in tools and information through technology that has enabled well-timed and personalized direct mail marketing campaigns.

OSM Mailboxes mathyas kurmann fb7yNPbT0l8 unsplash direct mail statistics you can use77% of People Sort Through Their Mail

Many marketers are finding it difficult to get prospects to open emails. I personally usually delete without even looking any extraneous emails and promotions. It has just become routine, which is unfortunate for marketers, for I can only imagine how many other people are like me. Average open rates are typically below 20% in comparison to mail. I for one always sort through my mail, and when I see something that stands out, I usually take a few seconds to see what it is, which bodes well for direct mail.

Every $167 Spent On Direct Mail Resulted in $2,095 Of Sold Goods

I believe that ROI speaks for itself, but one must ask what industries reaped the most benefit from direct mail. The largest users of direct mail include companies that offer financial services and also consumer packaged goods. With print still playing such a large role in marketing, coupled with cost-effective green methods of print, one can only imagine that direct mail will still be a major component of marketing campaigns going forward.

98% of Consumers Bring Their Mail In The Day It’s Delivered

Many are concerned that after putting all of the effort to create a personalized direct mail piece that it will just end up in the trash with the rest of the junk mail. If it does, it is probably not due to a diminishing trend in the public’s responsiveness to direct mail, but rather the direct mail piece itself missing the mark. As the direct mail statistics you can use from the U.S. Postal Service exemplifies, whatever you send out will get eyes on it. Whatever happens after will, for the most part, be within your power to control.

Customer Response Rates Increased Year-Over-Year by 48%

Companies who have never thought of using direct mail would be smart to start considering using it as one of their marketing channels. Not only did customer response rates increased, but prospective response rates more than doubled with a reported 190% increase. As noted by the Direct Marketing Association (DMA), this is in part due to the “pairing of mailings with digital intelligence. “

Adding A Person’s Name and Color Can Boost Response Rates By 135%

We have discussed the importance of personalization time and time again, and if for some reason you didn’t believe it before, then perhaps this statistic can lend some credence to this idea. Personalization, particularly with the introduction of variable data printing, is now within reach of most budgets. And in turn, can improve your ROI, and make the money you spend go a greater distance.

Print Is 43% Less Annoying than the Internet

Bottom line, we all hate spam. I for one get irritated when advertising videos start on websites yet it is nearly impossible for me to find it to shut it off. Many of us have become blind and aggressively against online advertising in many ways. That is why direct mail is refreshing to most since it is usually personalized, relevant, and recognized as something that took a lot of effort on the part of the company sending it. This makes the consumer feel important and valued, which at the end of the day, is just good marketing.

When it comes time to rely on direct mail experts, don’t leave it to chance. Go with an organization with vast experience and diverse mail services so you can be sure that your goals are taken seriously. One Stop Mail’s mail and list services will target the audience that will respond to your specific offer. Learn more by calling 602.932.7984 or send a request and we’ll be ready to help.

DIrect Mail Marketing Targeted Mailing Lists

How To Target Baby Boomers: A Direct Mail Strategy

How To Target Baby Boomers: A Direct Mail Strategy

 

According to the Population Reference Bureau (PRB), the number of baby boomers currently in the U.S. numbers around 76 million. That is almost one-quarter of the entire U.S. population, making them a prime target for marketers. One of the best ways to reach the baby boomer generation is through direct mail. However, it is critical that you don’t approach this like your other direct mail marketing campaigns. Here are some things to keep in mind as well as some useful tips when developing your direct mail marketing campaign targeting baby boomers.

 

Besides Their Population Size, Why To Target Them

 

The baby boomer generation controls approximately 70% of all disposable income in the U.S. This generation is quite affluent and empowers them to make buying decisions. But this does not explain why direct mail would be a good marketing channel to use. According to Neil Patel in his article, How to Reach Baby Boomers, Gen-Xers and Millennials with Your Online Marketing,” the baby boomer generation “are more likely to respond to direct mail campaigns than any other generation.” Another factor to consider is how many of them are reaching retirement age, and have more free time to engage with content. According to a Marketing Chart Study that surveyed purchase influence among baby boomers between the ages of 50-68, they found that “more than 3 in 10 survey respondents reporting that direct mail had influenced them to purchase a product or service during the prior 6 months. Interestingly, that was the most commonly-cited purchase influencer of 16 identified, ahead of word-of-mouth and online consumer reviews.” With these things in mind, you can see why direct mail is a prime marketing option. To make sure that your campaign reaches them effectively, keep these things at the forefront when crafting your message.  

 

Be Straightforward Rather Than Creative

 

When you are drafting your copy, make sure that your message hits home on everything and does not come off vague. According to the Entrepreneur in “5 Ways to Effectively Market to Baby Boomers,” they say, “seniors want to see everything spelled out in print. It’s far more important to use the right language than catchy copy.” Any sort of ambiguity or lack of information can cause them to not trust your offer or leave with them unanswered questions. This is why the article goes on to say, “Address every potential question a user may have. Include the answers in printed brochures, direct mail materials, and make the information easily available on the website.” Brainstorm all of the questions that someone may have after your reading your copy, and find a way to work the answers into the final marketing piece.

 

Dump Conventional Wisdom

 

Many of us have a certain predisposition to retirees, which misleads marketers into thinking falsely about baby boomers. In Eric Cosway’s article, “Send baby boomers direct mail and let the magic unfold,” he states that, “conventional wisdom has long been that retirees value comfort, stability and the relaxation of a quiet life. Just as they defied the conventional wisdom of their era as teens, baby boomers are defying today’s stereotypes of retirees.” It is important not to cater your message with this in mind, for it will most likely fall flat on its face. Cosway makes a good point that the baby boomer generation actually shares more things in common with their children than they did with their parents, such as, “adventure, change, achievement, and happiness.” He boils it down to one basic principle, “don’t make them feel old.”

 

Shoot Straight and Focus The Message

 

Considering how the baby boomers are quite receptive to direct mail and are in a position with greater spending power that other generations, you want to make sure that you nail your message. Your call-to-action should be very clear and simple. When composing your copy, don’t leave anything out. Any question unanswered is just one more reason why they should throw your copy in the trash rather than following through with the action you want them to take. And lastly, keep their personal values in mind, and flush the retiree stereotypes down the toilet.  

 

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A Marketing Strategy that Targets the Consumer’s Desire to Save

No matter what level of income someone makes, everyone cares about saving money. It is a misconception that coupon users are confined to a certain income level. In fact, recent studies have found that affluent shoppers do indeed care about saving and are receptive to offers. This is why it is important for companies to incorporate print promotions into their omnichannel marketing strategy.

Connecting People to Your Brand

Coupons are still one of the best ways to build a bridge between your brand and your potential customer. The desire to save money will never wane from people’s minds, and that is why it is so reliable. According to a Valassis study, 92% of shoppers use paper coupons and about half use them always or very often. With direct mail, you have an opportunity to target an age range that most would consider unreachable unless using a digital method. However, paper is still strong, and is not ending up in the trash but rather are being redeemed in stores.  The same study found that more than 50% of all consumers like receiving print coupons in the mail. It is clear that mail is still one of the strongest delivering methods for deals and other specials that can get more customers purchasing online or at your brick and mortar locations.

Influencing the Purchase of New Products

Trying to get consumers to switch to a new product from a different brand can be a challenge. A new marketing strategy can offer a variety of tactics that influence a shopper’s decision making, but one of the most effective methods has been tied to one’s desire to save money. A RetailMeNot survey found that about 80% of participants made a first-time purchase using a coupon. You can influence new customers with an offer that reduces the risk of trying something new and sets the foundation for new customer relationships.

Marketing Strategy that Incorporates Direct Mail

Providing opportunities for shoppers to save will never go out of style. Consider how effective your marketing strategy is now, and how much more you can improve its performance by adding a direct mail marketing campaign to the fold. Put the coupons right in the hands of the consumer so that you can empower them to make their next purchase without breaking the bank. In doing so, you will build a valuable relationship with new customers while also achieving the goals of new products. Contact us today to get started!