Nine Marketing ROI Stats That Might Surprise You

Is your marketing working?

In other words, is it generating business in a profitable way?

If your answer is “no” or “I don’t know,” then read on to find out why it’s important to have a clear understanding of your marketing return on investment (ROI) and its impact on your business.

First, let’s define marketing ROI: It’s the practice of attributing profit and revenue growth to the impact of your marketing initiatives. Simply put, if you spend money on marketing, it measures your return.

Now, let’s discuss why your marketing ROI matters. Here are the top three reasons it’s a critical element of your overall business strategy:

  1. You can identify any “red flags” or missteps in your current marketing strategy so that you can make the necessary adjustments to drive greater results. For example, if your call response rate for your marketing initiative is below the industry benchmark, you might need to reevaluate your target audience.
  2. You can make informed decisions about allocating your marketing budget and creating your marketing plan for the coming year. If you don’t know what works and what doesn’t, then you’re essentially gambling with your investment.
  3. You can analyze your ROI data and know for certain if and how much your marketing efforts are contributing to revenue growth.

Now that you understand why marketing ROI is important, we can dive into the fun part—the data!

We reviewed a year and half of data from a select group of practices and below are some insights and benchmarks we uncovered. Some stats might surprise you or, more importantly, motivate you to take a closer look at your own marketing strategy and reevaluate your plan for 2020:
  1. Direct mail still works— in 2018 and 2019, our practices sent out 525 direct mail campaigns, yielding an average of $1,320 in profit per campaign. Find out if your own direct mail campaigns are successful with our Direct Mail Calculator.
  2. Thinking about advertising in your local magazine? You might want to give that a second thought! With a high cost-per-campaign and a negative return, magazine advertising serves more as a brand awareness tool than a true opportunity driver.
  3. Patients routinely check your digital properties before picking up the phone. 421 digital campaigns resulted in 2,935 calls with a total profit of $1,058 per campaign—a whopping 502 percent return!
  4. Over half (55 percent) of our Associates’ referrals come from physicians. This is encouraging because patients that come from a trusted opportunity source are more ready to buy. So, keep working to establish relationships with physicians in your area!
  5. Five thousand direct mail pieces resulted in 15 calls and 6 appointments with an average response rate of 31 percent. Although this appears low, the industry benchmark for response rates is 0.25-0.50 percent.
  6. Wouldn’t you like to make two months’ revenue in just three days? It’s possible with the Consult Upgrade Program! A total of 32 upgrade events averaged $58,000 in total revenue.
  7. Did you know that 40 percent of co-op dollars available are currently going unused? Every co-op dollar spent results in $5.39 in revenue for our Associates. If you’re not taking advantage of your co-op dollars, let our marketing team help you use them strategically.
  8. Calling Out of Warranty (OOW) patients generated an additional $215,000 in profits for our Associates while calling Tested Not Sold (TNS) patients yielded an extra $86,000 in profits. So, pick up the phone! Or, better yet, let Your Patient Contact Center do it for you.
  9. Due to blank categories in our Associates’ practice management systems, there was nearly $1.7 million in revenue unaccounted for. Meaning, many practices don’t know where all of their revenue is coming from each month. Don’t be one of those practices — let our marketing team help you establish an organized process for labeling opportunity sources in your practice management software.

*Based on the Marketing ROI data from a select group of practices between Jan. 2018 – June 2019

Consult YHN’s Quarterly Marketing ROI Reports offer invaluable insights that ensure every marketing dollar spent today is growing your practice for the future. If you don’t already receive a report, talk to your Account Manager to find out how you can!

About the Author

Laura Kegelman joined Consult YHN in 2018 and currently serves as a Strategic Planning Analyst. Her diverse professional background includes supply chain, forecasting, and marketing. Laura holds a degree in marketing from West Chester University in Pennsylvania. When she’s not working, Laura loves exploring the city she lives in (Philadelphia) as well as traveling to new cities and countries.

Six Key Elements to an Effective Direct Mail Campaign

There are those individuals who believe that direct mail doesn’t work anymore, but our Associates’ numbers tell another story!

Based on our practices’ data, the average cost-per-call is $247 and the cost-per-appointment is $442. Over the past year, direct mail generated an average of 40 percent ROI for our Associates.

In fact, when it is executed properly, direct mail is still one of the top opportunity drivers for our practices! When the Consult YHN marketing team develops direct mail strategies for our Associates, we incorporate the following components:

  • 1. Vendor

Surprisingly enough, there are numerous direct mail vendors that specialize in the hearing industry. We recommend only working with these companies because they understand the market and how to speak to the target audience. All their pieces have been tested and proven to drive results and they will supply the distribution list at no additional cost. Contact us for Consult YHN’s preferred vendor list and pricing.

  • 2. Budget

Our general rule of thumb is to allocate about 45 percent of your total marketing spend towards direct mail. Every practice has their own objectives and goals that may require increasing or decreasing that percentage amount. It is up to the practice owner to decide what he/she is comfortable spending and how much they are already investing in other marketing efforts. All of this information helps us determine what funds are available to put towards direct mail.

  • 3. Distribution

This is a key attribute of the direct mail strategy. If you aren’t reaching the right people in the appropriate zip codes, then it defeats the purpose.

Here are the factors that you should consider:

  • Age — Typically between the ages of 62-65, depending on how many residents it pulls.
  • Income — We suggest adding a household income filter of $30K. If you need more residents to target, you can eliminate that filter, but we don’t recommend increasing it. Keep in mind that most of these individuals are retired and don’t have as much disposable income.
  • Zip Codes — We recommend looking at your database and identifying in which zip codes your current patients live. If individuals in certain zip codes are already visiting and purchasing from the practice, others are likely to do so. Once the targeted zip codes have been identified, send them to the direct mail vendor of choice to confirm how many residents they can mail to in those areas.

Note: Consult YHN offers free territory analysis reports that identify all your surrounding zip codes in a certain mile radius (varies by practice) and where your competitors are in relation.

  • 4. Approach

Now that you have an idea on the budget and who the target audience is, the next step is figuring out how to reach them. When it comes to a successful direct mail campaign, frequency and consistency are crucial. It is best to divide your total audience into groups and rotate them every mailer. Once you’ve reached everyone on your list, continue that rotation until you have sent a direct mailer to your total audience 3–4 times over a 12-month period. You don’t want to inundate them with direct mail, but you need to reach them more than once to make it impactful.

Another key factor is how many pieces you send out with each direct mailer. While direct mail can be successful, the response rates are relatively low (.25 – .5 percent). We recommend sending out 5,000 – 7,500 pieces for each direct mailer (per location) to drive the necessary amount of opportunities to make it worth the investment. If you think you need to send more than that, you may want to divide it up further so there is a steady flow of traffic to the practice on a consistent basis.

If you are curious as to what results you should expect, check out Consult YHN’s direct mail response rate calculator. It will tell you how many calls and appointments you should receive and the gross revenue that you should generate.

  • 5. Messaging

We rely on our preferred direct mail vendors to determine what messages are the most successful and what resonates the best with our audience. Those vendors will customize each message for the specific practice (i.e., logo, contact information, offer, etc.) and we do not recommend interfering with the overall message. When you change the content, it could skew the results. We also recommend incorporating an offer that will entice individuals to come in. Many practices offer a free hearing screening, but that may not be enough of an incentive to get patients to your office.

  • 6. Call Tracking

If you want to know if your direct mail campaign is successful, you must have a call tracking number on it! Even if you have the best front office staff, it doesn’t hurt to have a documented report that captures all the calls that came in. You can purchase your own call tracking number through one of Consult YHN’s preferred call tracking vendors or your direct mail company may provide one to you.

There is a lot of strategic thinking that goes into a direct mail campaign, which is why the Consult YHN Marketing team is here to help! We will work with you to determine the best strategy and if it is driving the necessary traffic and ROI.

For more information about how to optimize your direct mail campaign, click here. You can also calculate your marketing ROI with our new Marketing Calculator.

About the Author

Lindsey Pierangeli joined Consult YHN in 2012 and serves as the Marketing Manager. Previously, she held marketing positions with advertising agencies and worked on accounts such as Amazon and Coca-Cola. Lindsey graduated Magna Cum Laude from Johnson and Wales University.

Omni-Channel Marketing: The Recommended Approach

As the hearing industry gets more competitive, it is essential to have a marketing communication plan that incorporates streamlined messaging via every medium. The path to device purchase can start or end at any time, in any location or any device for that matter — to be a leader in this market, it is imperative for your business to provide a seamless user experience.

That is where the omni-channel marketing approach comes in to play: Delivering the same message on different platforms, which not only optimizes your advertising dollars, but also better engages your audience.

For example, take a direct mail campaign that you tie to an open house event or, better yet, a community event like a lunch and learn or educational seminar. Instead of relying solely on that direct mail piece, here are a number of other avenues that you can utilize to promote that event:

Follow up phone calls.

Every direct mail vendor that we work with will allow you to obtain a phone list of the individuals you mailed to for a nominal cost — typically about 10 percent of the distribution list. You can also use this as an opportunity to speak to your database as another way to generate event attendance.

When you actively call your OOW, TNS, Cancel/No Show patients, along with your direct mail targets, 1 in 3 will schedule an appointment!

If your practice does not have the staff to make these calls, Your National Call Center can help. They will work as an extension of your practice to bring you quality opportunities and save you time, effort and money.

Promote through digital marketing.

Social Media: Post the event details on any social media page associated with your practice. Upload the PDF of the creative or simply outline the details within the post.
PPC: If you have an existing pay-per-click strategy in place, work with your digital marketing agency to pull the messaging from the direct mail piece, convert it to an online ad, and capture leads.
Email: If you currently have an email marketing strategy, use this event as another way to speak to your patients. Even if they recently purchased, they may know someone who may be interested in attending the event.

Consult YHN Associates who are investing in digital marketing doubled their marketing spend in profit! If you need assistance with your digital marketing strategy, Consult YHN’s Marketing Team can help. We can provide insight on your existing digital marketing strategy or provide recommendations on how to get one in place. We also have free white papers that review how to implement digital marketing and social media tactics.

Run an ad in the local newspaper.

Based on our quarterly Associate marketing ROI analysis, ads drive more opportunities when they are tied to a specific event.

Event-driven ads tend to bring in more qualified leads, which yields a positive ROI. We develop ads for Consult YHN Associates, free of charge! Check out the variety of ad templates available via Marketsource. We can easily adjust the messaging to be consistent with your direct mail piece and work on your behalf to negotiate ad rates, reserve placement, and release the creative.

Utilize your network within the community.

Another idea to consider is speaking to your local network of businesses to see if they would be willing to help promote your event.

For instance, if you have a Practice Development Representative (PDR), your event is another opportunity to speak to local physicians. Print out the direct mail piece or let us help you convert it to a flyer for presentation in their waiting rooms. Apply the same approach to any senior center, supermarket or other local business that has an event board you can post to — they represent other great ways to get your practice’s name out in the community without having to spend money.

At Consult YHN, we have Wellness representatives that can help you implement a physician marketing and/or community outreach strategy that is suitable to your practice. Contact them about your own ideas and any questions you may have.

As a marketer, I am a firm believer in the omni-channel approach in order to generate more leads. By adding one or more of these options to your direct mail campaign, you will decrease your dependency on the success of the piece itself and increase your branding/exposure within the community.

About the Author

Lindsey Pierangeli joined Consult YHN in 2012 and serves as the Marketing Manager. Previously, she held marketing positions with advertising agencies and worked on accounts such as Amazon and Coca-Cola. Lindsey graduated Magna Cum Laude from Johnson and Wales University.

What You Didn’t Know About Marketing

Every quarter, we conduct ROI reports for Associates who share their marketing results with us. We then compile those results and look at the data from a broader perspective to determine marketing trends in our industry.

Here are three interesting insights from our most recent ROI analysis that we all can benefit from.

did you know

At 87% digital marketing brings in the highest ROI?

With an average cost per call of $13 and cost per appointment of $99, Digital Marketing has the lowest cost of acquisition and highest ROI.

If you aren’t sure how your digital marketing is performing, contact Consult YHN’s marketing team for a FREE digital marketing analysis and website assessment.

It is important to realize that a strong marketing strategy requires a multi-media approach and a robust digital marketing presence. To drive traffic to your website — and ultimately to your practice — you need to consider other digital marketing strategies above and beyond a static online presence. Consult YHN partners with several digital marketing vendors that offer a variety programs that can boost your digital marketing strategy.

did you know

With $1.4M last year, direct mail brings in the most profit?

Our Associates invested over $1.9 million in marketing and 87% of their profit came from direct mail – $1.4 million over the past year!

If you aren’t making a profit from your direct mail, let Consult YHN’s marketing team help you. We can determine what kind of response you should be getting and do a deep dive on your direct mail strategy to maximize your results.

While direct mail can be costly and response rates have declined, it is still the number one opportunity driver for our Associates. That is why it is important that you have a direct mail strategy in your marketing plan, but one that doesn’t consume your entire budget. We recommend allocating about half of your marketing spend toward direct mail and strongly encourage you to review your results on a consistent basis to ensure you are getting the most out of your marketing dollars.

did you know

Your $1 grows to $1.87 when you have a marketing strategy?

For every $1 our Associates invested in marketing, they made $1.87! Do you know how much money you are making from your marketing?

You don’t need an Consult YHN marketing plan for us to develop an ROI analysis. Send your results to Consult YHN’s marketing team and we will provide you with insight and recommendations.

If you didn’t know, Consult YHN’s marketing team offers consultation and design services for FREE to all our Associates. We work as an extension of your practice to determine the most effective ways to reach new leads and keep you in touch with your existing customers.

Call the Consult YHN marketing line at 800-984-3272, option 8, and one of our account executives will answer all your marketing questions!

Three Trends & Tips to Successful Marketing

The Consult YHN marketing department is here to assist Associates with their marketing efforts and provide recommendations on how to maximize their investment. In addition to the ROI reports that we develop for individual Associates, we compile of a range of hearing industry data to identify marketing trends.

Here are three interesting trends that we recognized in our most recent ROI analysis along with suggestions on what you can do to address the challenges they present.

TREND 1: Your website drives a volume of calls, but very few convert to sales.

WHY: When someone is looking to learn more about a business, the majority of people go online to do their research. If the practice has a call tracking number on their website (we highly recommend this), it will capture all calls that come from that source. The challenge is not everyone is considered a new lead.

WHAT TO DO: If you want to change the ratio of calls and help your website generate more leads, there are two digital marketing tactics that you can implement.

One route is to increase the social relevancy of your practice through online reviews — by asking your patients to submit an online review. In this manner you will help potential customers evaluate your practice and make the decision to contact your office to be treated in the same way that your satisfied customers have been. Not only is it cost effective, but it is the best form of word-of-mouth marketing. If you are interested in learning more, read this article.

Another option is investing in a Pay-Per-Click (also known as search engine marketing) program. When done correctly, it is a quick way to drive more qualified leads directly to your website.  This initiative can be complex, so we recommend working with an experienced contractor. If you already have a provider in mind Consult YHN can review their proposal and provide unbiased feedback. Or, if you are not sure where to begin, one of our preferred digital marketing vendors can get you started. Are you currently enrolled in a PPC program? We can review the results and provide additional insights and recommendations. Looking for more detail? This article explains the concept more fully.

 

TREND 2: Direct mail is profitable, but there is no one-size-fits-all approach.

WHY: When analyzing marketing results, Consult YHN looks at direct mail as a group and also by individual vendors. While some may have better response rates or bring in a higher ROI, there isn’t any single vendor that is tailored to all of our Associate’s needs. A good match really depends on the practice’s marketing objectives and their budget. All of the vendors that we recommend specialize in the hearing industry and offer pieces that have been proven to drive opportunities.

WHAT TO DO: Let’s discuss your needs! If your objective is to fill the schedule, then we may recommend one supplier. If your practice is brand new and has a limited budget, then we would likely suggest another vendor.

If you have an existing direct mail strategy, but you aren’t sure if it is the best approach, call the Consult YHN marketing department. Don’t have a direct mail strategy in place? We can develop a distribution strategy for you that is tailored to your budget. We’ll even serve as a liaison between you and the vendor.

Lastly, the Consult YHN marketing team can provide insight on the results you should be receiving — and if you provide your results data, we will prepare an ROI analysis as well.

 

TREND 3: Print ads still bring in qualified leads, but they are much more effective when they are event-driven.

WHY: While print ads consistently carry the highest cost per call and cost per appointment in Consult YHN’s ROI analyses, they deliver the highest conversion from appointments to units sold and still yield a positive ROI.

In the past, many people thought the more frequently they ran their ads, the more opportunities they would generate. While that methodology worked at one time, ads are now more expensive and compete in a more complex advertising environment.

WHAT TO DO: To get the most value out of your print ads, Consult YHN recommends they be tied to an event such as a lunch & learn or an educational seminar.  The event should be a no-strings-attached occasion targeting people who recognize the importance of hearing health. Ideally the ad should be a full-page but if the budget limits that, go with a half-page size. Anything smaller than that isn’t enough real estate to get a strong message across to your community.

Check out the variety of FREE ad templates that Consult YHN has available to our Associates. The marketing staff can also work with your local publications on negotiating rates, reserving placement and releasing the creative on your behalf.

The only thing that remains constant is change, and marketing is no exception. These trends are relevant and actionable right now and the Consult YHN marketing team is prepared to help you successfully plan and implement timely marketing activities.

If you have any other questions or would like a free marketing consultation, call (800) 984-3272, option 8 or email marketing@ConsultYHN.com.