Use of Coupons: Stimulant or depressant?
By: Roger Eshaghian, DDS
Suppose you spotted the following advertisement in a magazine:
Discount Heart Surgery!
25% Off All Triple-Bypass Procedures!*
(*when you bring in this coupon with your next heart attack)
Would you clip the coupon (saving it for that impending cardiac crisis) or turn the page and move on?
Obviously, we're writing with tongue firmly planted in cheek here. Nobody in their right mind would take this kind of a coupon seriously. At least, we hope not. But our example illustrates a point that a growing number of dental practitioners would be well served to heed -- by offering discount coupons to prospective patients, you end up discounting a lot more than the one-time procedure advertised on the face of the coupon.
I recently ran across an article in the Journal of Services Marketing (vol. 13, no. 1, 1999) that underscores this point. At first glance, says the JSM, discount coupons might seem like a good idea for dental practices because they increase consumer awareness. And no one questions the fact that coupons have a demonstrated track record of success in packaged goods and some consumer services. Based on their research, however, the JSM unequivocally comes out against the use of such coupons in the dental profession.
Why? Because they significantly reduce patients' perceptions of service quality - a critical ingredient in the success of any dental practice.
Short-Term Gain, Long-Term Loss
Typically, businesses use coupons for one of three reasons: to attract new customers, entice people to switch brands or secure that segment of the market always looking for the quick deal. Of the dental practices it studied, the JSM found that many did indeed generate new business in the first two categories by using discount coupons, but they absolutely failed to attract the bargain hunters.
These findings raise the obvious question of whether or not there exists a market for "bargain hunter" dental patients. Irregardless, says the JSM, the real issue is that coupons have very limited value as a dental marketing tool because individuals will not patronize a dentist they perceive as offering poor service -- regardless of any offer that dentist may make. Coupons may give prospective patients a sense of increased purchasing power, but they also dramatically increase the perceptions of poor service.
Rather than using coupons, the JSM recommends that dental practices focus on building local awareness in their markets and addressing quality service issues. In the absence of proper attention to the service aspects of the business, coupons can easily do more harm than good.
Trust, Professionalism are the Deciding Issues
The JSM article reinforces what I have always believed -- that the purchasing decision almost always comes down not to cost, but to trust, professionalism and the relationship between dentist and patient.
In the U.S. today, about 70% of dental patients have insurance that covers their basic dental needs. That in itself eliminates the cost issue for a majority of patients. Even without the insurance, however, the vast majority of patients choose a dentist based on the level of trust they have for the person who will be performing potentially painful procedures on a very important and sensitive part of their bodies. Dental patients want reliability, friendly, service and the certain knowledge of your good reputation as a skilled professional. They are far less concerned about getting $25 off their next cleaning and x-ray.
Many people have an ingrained fear and mistrust of dentists, not because they consider dentists bad people but because they have had negative experiences in the dentist's chair. By offering a discount, you only add to their perception of mistrust. In addition, coupons attract the wrong kind of customer. Someone looking for the cheapest cleaning in town probably won't become a long-term patient. Instead, they will immediately jump ship to the next unsuspecting dentist who lures them in with a well-intentioned but misguided coupon. And if they do refer someone, chances are it will be another bargain hunter, not the kind of quality patient you need to build your practice.
Simply put, we do not recommend the use of discount coupons to build your practice. At best, they may generate five to ten new patients a month. At worst, you lose more patients than you gain and you do irreparable damage to the image of your practice. As a professional who depends upon your reputation for quality service and integrity, the last thing you want is to create a perception of providing cut-rate services.
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