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TODAY’S PRACTICE



        Marketing Mishaps

              Promise and Deliver
                                             It all boils down to expectations.
                                                     BY SHAREEF MAHDAVI


                  Expectation is a powerful word. Words like          ume as their yardstick. The doom and gloom mindset of
                  anticipate, probable, and certain help              many refractive surgeons developed largely as a result of not
                  define what it means when one expects               meeting their own personal expectations about how many
                  something to happen. Take a moment                  eyes they treat per month or year relative to what happened
                  and recall your reaction to some recent             in an earlier time period.
                  news, event, or experience. Whatever                   At the patient level, individuals’ satisfaction after under-
                  your reaction was, it generally followed            going refractive surgery is directly tied to their preoperative
   your own expectations.                                             expectations, which relate to both outcome (how well do I
                                                                      see?) and process (how well was I treated?). Interview an un-
   MEASURING SUCCESS                                                  happy patient, and often you will uncover a combination of
       The term setting expectations is probably the single most      unrealistic expectations about his surgical outcome and
   influential action step in the world of refractive surgery. The    poor treatment by the provider.
   term permeates thinking at corporate, provider, and patient
   levels. It is so powerful because it gives the audience a basis    SETTING EXPECTATIONS
   for judging performance, with a clear end result: “we are sat-     Room for Improvement
   isfied, because expectations were met,” or, “we are dissatis-         In addition to judging performance, expectation setting is
   fied, because they weren’t.”                                       powerful because of its ability to drive behavior. Table 1
       At the corporate level, executives are known to guide          shows that not meeting expectations typically has a direct
   Wall Street analysts in forecasting a company’s ability to         effect.
   generate a profit. The key measure is earnings per share; if          Every day provides dozens of opportunities to witness
   the company meets the target, “the street” typically reacts        expectation-setting events and learn from what we observe.
   positively. But, if the forecast isn’t met, watch out! Investors   Parents get mad when their teenager doesn’t make it home
   don’t like surprises of this sort, and the disappointing earn-     by 11 o’clock. A weary traveler becomes frustrated when
   ings report can show up immediately in the company’s               the hotel room isn’t as clean as promised. And, the final bill
   stock price.                                                       from the auto repair shop can cause an extreme reaction
       At the provider level, doctors often use procedural vol-       when it is a lot costlier than originally discussed.




74 I CATARACT & REFRACTIVE SURGERY TODAY I JANUARY 2004
TODAY’S PRACTICE




    Parlayed into the world                           TABLE 1. THE EFFECTS OF UNMET EXPECTATIONS
of refractive surgery, there
is a lot of room for im-               Level          Problem                               Result
provement in how expec-                Corporate      Missed earnings                       Investors flee and market value suffers
tations are set between
providers and customers.               Provider       Perform fewer procedures              Doctor becomes grumpy
In the doctor-patient trans-           Patient        Unhappy with surgical outcome         Bad word-of-mouth and no referrals
action, managing patients’
expectations is a top priori-
ty, just below the need to reduce their fear. Patients enter           step of the procedure?
your office with expectations that are the sum of everything ‱ Postoperative care—did you answer all questions and
they know about you and the procedure you offer. That                  concerns from the patient?
sum is derived from other patients with whom they speak,            ‱ Referrals—did you remember to say “thank you?”
what your advertising says, and how you counsel them dur-               In the manufacturer-doctor transaction, similar rules
ing the decision-making process.                                    apply. One of the main reasons that new refractive proce-
    The challenge with refractive surgery is that there is no       dures fail is because companies make promises about prod-
way for the customer to sample the product. The expecta-            ucts that they do not keep. The refractive surgery industry is
tion you set is solely a promise of future performance. Meet littered with devices that simply didn’t work relative to the
or exceed customers’ expectations, and you win. Fail to             expectations set by company representatives. You should be
meet them, and you lose. It’s that simple. And, because this        concerned about product promises that state “better than
concept is so straightforward, it tends to be taken for grant- LASIK.” This, once again, is an expectation being set. And,
ed. Hyped advertising sets patients’ expectations so high           better gets interpreted in a multitude of ways: better out-
that it becomes nearly impossible to exceed them. Here,             comes for the patient, more procedures for the doctor, and
hype is defined as a promise of a specific outcome (eg, “no         better profitability for investors. If any one of those promises
more glasses”) or of a specific price (eg, $149 per eye).           is unmet, it’s bad news, and that bad news affects everyone
    The irony is that satisfied patients focus on their new         involved in the industry, not just the one who made the
vision and all it does for them. They rarely describe it using      promises.
our metric of visual acuity, and they almost never talk about           Superior providers, be they manufacturers or doctors, go
how cheap or expensive the fee was. Instead, they often des- out of their way to properly manage their customers’ expec-
cribe how their vision has improved their everyday activities, tations. They believe that the success of their enterprise is
how surprised they were at how little of their fear was ever        directly tied to their ability to meet and exceed the expecta-
realized, and how glad they are to have spent the money.            tions of their customers. In the short term, exceeding expec-
Other consumer marketers would kill for this kind of end-           tations translates to happy customers. In the long term, it
user satisfaction! Refractive surgeons tend to halt the mo-         translates to more customers and better business. At a glob-
mentum in building the refractive surgery category by either al level, it also enhances the credibility of the profession and
overpromising or underpricing their services relative to the        the industry. One unmet expectation can offset 100 satis-
benefits experienced by their patients.                             fied customers. That’s why even a 1% dissatisfaction rate
                                                                    among patients should not be tolerated.
Rising to the Challenge
    To meet the challenge of properly setting expectations for KEEPING YOUR PROMISES
your customers, you need to ruthlessly examine your com-                This column addresses a weighty subject, and I suspect
munications and define (1) the expectation that is being            some of you might just want to turn the page. Improving
created and (2) whether or not you can meet that expecta-           your ability to set expectations is critical, because it affects
tion with each and every customer. If you can’t, then you           your credibility. And, the business of refractive surgery is
shouldn’t make the promise. Look at every touch point you largely based on credibility. It reminds me of a tried-and-
have with your customer, including but not limited to:              true saying: It’s much better to underpromise and overdeliv-
‱ Advertising—can you live up to what the ad says?                  er than to overpromise and underdeliver. s
‱ Phone answering—does a real person answer in three
   rings or less?                                                       Shareef Mahdavi offers marketing counsel to refractive sur-
‱ Scheduling—does an arriving customer have to wait more gery providers and medical device manufacturers. He is based
   than a few minutes?                                              in Pleasanton, California. Mr. Mahdavi may be reached at
‱ Surgery—do you keep the patient informed during each              (925) 425-9963; shareef@sm2consulting.com.

                                                                             JANUARY 2004 I CATARACT & REFRACTIVE SURGERY TODAY I 75

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Promise and deliver

  • 1. TODAY’S PRACTICE Marketing Mishaps Promise and Deliver It all boils down to expectations. BY SHAREEF MAHDAVI Expectation is a powerful word. Words like ume as their yardstick. The doom and gloom mindset of anticipate, probable, and certain help many refractive surgeons developed largely as a result of not define what it means when one expects meeting their own personal expectations about how many something to happen. Take a moment eyes they treat per month or year relative to what happened and recall your reaction to some recent in an earlier time period. news, event, or experience. Whatever At the patient level, individuals’ satisfaction after under- your reaction was, it generally followed going refractive surgery is directly tied to their preoperative your own expectations. expectations, which relate to both outcome (how well do I see?) and process (how well was I treated?). Interview an un- MEASURING SUCCESS happy patient, and often you will uncover a combination of The term setting expectations is probably the single most unrealistic expectations about his surgical outcome and influential action step in the world of refractive surgery. The poor treatment by the provider. term permeates thinking at corporate, provider, and patient levels. It is so powerful because it gives the audience a basis SETTING EXPECTATIONS for judging performance, with a clear end result: “we are sat- Room for Improvement isfied, because expectations were met,” or, “we are dissatis- In addition to judging performance, expectation setting is fied, because they weren’t.” powerful because of its ability to drive behavior. Table 1 At the corporate level, executives are known to guide shows that not meeting expectations typically has a direct Wall Street analysts in forecasting a company’s ability to effect. generate a profit. The key measure is earnings per share; if Every day provides dozens of opportunities to witness the company meets the target, “the street” typically reacts expectation-setting events and learn from what we observe. positively. But, if the forecast isn’t met, watch out! Investors Parents get mad when their teenager doesn’t make it home don’t like surprises of this sort, and the disappointing earn- by 11 o’clock. A weary traveler becomes frustrated when ings report can show up immediately in the company’s the hotel room isn’t as clean as promised. And, the final bill stock price. from the auto repair shop can cause an extreme reaction At the provider level, doctors often use procedural vol- when it is a lot costlier than originally discussed. 74 I CATARACT & REFRACTIVE SURGERY TODAY I JANUARY 2004
  • 2. TODAY’S PRACTICE Parlayed into the world TABLE 1. THE EFFECTS OF UNMET EXPECTATIONS of refractive surgery, there is a lot of room for im- Level Problem Result provement in how expec- Corporate Missed earnings Investors flee and market value suffers tations are set between providers and customers. Provider Perform fewer procedures Doctor becomes grumpy In the doctor-patient trans- Patient Unhappy with surgical outcome Bad word-of-mouth and no referrals action, managing patients’ expectations is a top priori- ty, just below the need to reduce their fear. Patients enter step of the procedure? your office with expectations that are the sum of everything ‱ Postoperative care—did you answer all questions and they know about you and the procedure you offer. That concerns from the patient? sum is derived from other patients with whom they speak, ‱ Referrals—did you remember to say “thank you?” what your advertising says, and how you counsel them dur- In the manufacturer-doctor transaction, similar rules ing the decision-making process. apply. One of the main reasons that new refractive proce- The challenge with refractive surgery is that there is no dures fail is because companies make promises about prod- way for the customer to sample the product. The expecta- ucts that they do not keep. The refractive surgery industry is tion you set is solely a promise of future performance. Meet littered with devices that simply didn’t work relative to the or exceed customers’ expectations, and you win. Fail to expectations set by company representatives. You should be meet them, and you lose. It’s that simple. And, because this concerned about product promises that state “better than concept is so straightforward, it tends to be taken for grant- LASIK.” This, once again, is an expectation being set. And, ed. Hyped advertising sets patients’ expectations so high better gets interpreted in a multitude of ways: better out- that it becomes nearly impossible to exceed them. Here, comes for the patient, more procedures for the doctor, and hype is defined as a promise of a specific outcome (eg, “no better profitability for investors. If any one of those promises more glasses”) or of a specific price (eg, $149 per eye). is unmet, it’s bad news, and that bad news affects everyone The irony is that satisfied patients focus on their new involved in the industry, not just the one who made the vision and all it does for them. They rarely describe it using promises. our metric of visual acuity, and they almost never talk about Superior providers, be they manufacturers or doctors, go how cheap or expensive the fee was. Instead, they often des- out of their way to properly manage their customers’ expec- cribe how their vision has improved their everyday activities, tations. They believe that the success of their enterprise is how surprised they were at how little of their fear was ever directly tied to their ability to meet and exceed the expecta- realized, and how glad they are to have spent the money. tions of their customers. In the short term, exceeding expec- Other consumer marketers would kill for this kind of end- tations translates to happy customers. In the long term, it user satisfaction! Refractive surgeons tend to halt the mo- translates to more customers and better business. At a glob- mentum in building the refractive surgery category by either al level, it also enhances the credibility of the profession and overpromising or underpricing their services relative to the the industry. One unmet expectation can offset 100 satis- benefits experienced by their patients. fied customers. That’s why even a 1% dissatisfaction rate among patients should not be tolerated. Rising to the Challenge To meet the challenge of properly setting expectations for KEEPING YOUR PROMISES your customers, you need to ruthlessly examine your com- This column addresses a weighty subject, and I suspect munications and define (1) the expectation that is being some of you might just want to turn the page. Improving created and (2) whether or not you can meet that expecta- your ability to set expectations is critical, because it affects tion with each and every customer. If you can’t, then you your credibility. And, the business of refractive surgery is shouldn’t make the promise. Look at every touch point you largely based on credibility. It reminds me of a tried-and- have with your customer, including but not limited to: true saying: It’s much better to underpromise and overdeliv- ‱ Advertising—can you live up to what the ad says? er than to overpromise and underdeliver. s ‱ Phone answering—does a real person answer in three rings or less? Shareef Mahdavi offers marketing counsel to refractive sur- ‱ Scheduling—does an arriving customer have to wait more gery providers and medical device manufacturers. He is based than a few minutes? in Pleasanton, California. Mr. Mahdavi may be reached at ‱ Surgery—do you keep the patient informed during each (925) 425-9963; shareef@sm2consulting.com. JANUARY 2004 I CATARACT & REFRACTIVE SURGERY TODAY I 75