A single best solution rarely exists in reality and requires knowledge of all possible solutions. In practice, this is rarely the case.
According to the principle of “bounded rationality”, it is therefore more realistic not to make a “best” decision, but a good and satisfying one (Simon, 1955, cited in Standford, 2018). After conducting some research, I found a good way to recover from economic crises and use it myself – my agency will no longer offer a variety of services and solely focus on 2 main services.
Here’s how you can apply the method in your business/ practice.Many medical practices and companies are forced to shut down due to COVID-19.
This offers you the time resources to improve the fundamentals of your practice or your company as well as to analyze and classify the yields of different services in order to put more focus on the advertising and delivery of the more profitable services in the future.
A suitable solution for this is a simplified approach to the ABC analysis, an old instrument from corporate controlling as a planning and decision-making aid for inventory, since it lists which services make which contribution to the end result (Vollmann, 2005). A distinction is made between categories A (highest priority), B (medium priority) and C (lowest priority).
I think that an adapted form of ABC analysis for plastic surgeons and service providers provides important information about the distribution of earnings and is a useful decision-making aid. It is important to identify which treatments/ services achieve the greatest turnover with the least amount of time, in order to carry them out more often in the future at the expense of the less efficient interventions and ultimately to use the time more profitably.
Your Category A services achieve the highest revenue share with the least amount of time, ideally according to the Pareto principle, 80% of the total income are achieved with 20% time.
Category B includes all services that generate 15% of all total income. The time consumption may even be up to 30% – 40% of your time. Category C includes all remaining services, which are only responsible for 5% of the total turnover and often require a relatively big part of your time resources.
Those who cancel their Category C and maybe even Category B services/ products got rid of their most inefficient services and have more time resources that can be assigned to “Category A” – the most financially efficient services.
Marketing of plastic surgeries/ services of category A
Let’s stick with aesthetic clinics for this example. Before choosing individual marketing or advertising instruments, you have to make sure that the use of this instrument is actually useful and indicated. A good decision can only be made if the behavior of the customer is known. According to a survey by Statista on the selection criteria (multiple answers were possible) of patients when choosing a plastic surgeon, the main reasons are (Statista, 2019):
1. A good reputation (39.2%)
2. Expertise for the procedure (38.8%)
3. Trustworthy impression (31.4%)
4. Professional online appearance (21.5%)
5. Surgery already performed (13.3%)
Your reviews, subjectively perceived expertise as well as a trustworthy impression play the greatest roles in the choice of a plastic surgeon.
Demonstrate your expertise of your “Category A Services” to your future customers in blogs or in posts in social networks. Alternatively, write articles in magazines that your target group reads – of course again with a heavy focus on your “Category A” services. A professional websites are available today for under $ 1,500 with a blog function and a general focus on the services of your “Category A”.
You demonstrate expertise, trustworthiness and a professional online appearance through your informative website and are already able to acquire a large share of the potential customer pool.
Targeted, measurable advertising activities in your “Category A” services could be Google Advertisements and Social Media Marketing.
The most efficient solution is to benefit from artificial intelligence and only advertise to those who are already highly interested in your “Category A” services.
Google and social medias offer the most advanced platforms and reach the majority of the total population of your patients.
As soon as your patients are interested in having a plastic surgery, they start collecting information. This happens almost exclusively through the Google search engine: 87.35% of all search engine inquiries worldwide were entered on Google (Statista, 2020). Google Advertisement Services is used to target those who are already very interested in your Category A services. Adding different sequences to the customer journey, we pre-qualify the patients and ensure that their expectations of the procedure are realistic.
Worldwide there are 3.81 billion active social media users every day, which is 49% of the entire world population (data portal, 2020). The average daily usage time is 2 hours and 29 minutes. Social media also uses artificial intelligence to know our needs better than we do, and enable targeted, cost-effective advertising for those who are highly interested in the services of your “Category A”. Here, too, we add different sequences to the customer journey to pre-qualify the patients and ensure that their expectations of the procedure are realistic.
A very good way to recover economically from crises is to determine the services that bring the highest financial return in the least amount of time.
One possibility is to use a simplified approach to the ABC analysis, a proven controlling instrument for inventory. The financially most efficient services should be targeted. The basis for this is an Internet presence that suggests expertise, trustworthiness and a reputable Internet presence.
Probably the most efficient advertising campaigns are Google Ads and Social Media Marketing, because of the use of artificial intelligence to analyze the largest population of all potential customers and only present your advertisements to those who are already highly interested in your services.
Datareportal (2020). Global Social Media Overview. Online: https://datareportal.com/social-media-users
Statista GmbH (2019). Gewichtung der Kriterien bei der Arztwahl für eine Schönheitsoperation, online:https://de.statista.com/statistik/daten/studie/241393/umfrage/gewichtung-der-kriterien-bei-der-arztwahl-fuer-eine-schoenheitsoperation/
Statista (2020). Worldwide desktop market share of leading search engines from January 2010 to January 2020. Online: https://www.statista.com/statistics/216573/worldwide-market-share-of-search-engines/
Simon, Herbert (1955). “A Behavioral Model of Rational Choice”, Quarterly Journal of Economics, 69(1): 99–118. Cited in the Stanford Encyclopedia of Philosophy (2018). Bounded Rationality. Online: https://plato.stanford.edu/entries/bounded-rationality/#ExpeUtilTheo
Thomas E. Vollmann (2005). Manufacturing planning and control systems for supply chain management.