Many people are thinking along the lines of "dentistry is a business".
Therefore they are operating and thinking like a conventional business.
A conventional business has differences. It is where a product or a service is first generated (through innovation and mistakes). The business is then created around this product. Marketing is designed to generate leads interested in this product and to create awareness. The product is not normal. The aim is then to first create awareness and then to convert the leads.
For this reason, a conventional business operates primarily on targets, numbers and financial revenue. These parameters become important because the conventional business sits in a very competitive and disruptive environment. This is an environment where there are no real barriers to entry (anyone can set up as competition). Customers can choose whether to engage with the service or not - it is optional. It is not critical. This creates a situation of much higher risk. The input for innovation of the product and building the business is very high and the output from customer traction can be jeopardised in an instant. In fact, there is a focus on short term traction because any other innovation can come and disrupt the business.
In many conventional businesses, customers are also much better informed about the service or product. Therefore there is less information asymmetry. In conventional business the usage of a product or a service could be for the short term.
Dentistry (or healthcare on a wider level) is unique in this respect.
1. The product and service is already created and refined. Marketing to raise awareness of the product is not needed and the innovation risk is much less. Everyone knows what a dentist does. This creates normality.
2. Patients don't have or are limited in terms of making a choice. This is particularly true in acute situations. A patient with a toothache cannot choose whether to engage with a service or not. They have to engage with the service. This creates a necessity.
3. The sheer depth of medical and dental knowledge required to understand the service or the product means that the patient cannot have as much information and understanding. There is information asymmetry.
4. The healthcare provider (business owner) has to have done a specific degree or qualification. Any random cannot simply enter the market and set up to provide the service. This creates a barrier to entry.
5. The "product" or service of healthcare should be to last long term. The teeth and biology will not change. No replacement will come to disrupt the status quo. Health can therefore be done for the long term. For example an implant or a root canal is not just for Christmas, it is for the long long term (meaning years or decades). The body structure as such will not change drastically so speed and short term traction is not of essence.
These 5 factors place the healthcare provider in a unique position and place the customer i.e. patient is in a much less privileged position. The healthcare provider has an upper hand, so to speak.
- The product is ready and refined (innovation advantage)
- The patients are compelled (marketing advantage)
- The knowledge is asymmetric (information advantage)
- The position is protected (market advantage)
- The solution is designed for the long term (time advantage)
This creates a massive asymmetry with all 5 factors. The healthcare business is in a big advantage position.
The patient is in a disadvantaged position to start with. This means that they have no choice but to place their trust in the service provider in order to solve the problem.
In that position, if the healthcare provider chooses to operate like a conventional business, for example by creating methods to convert rather than to service - then it can be construed as taking advantage of that advantaged position.
In such a market the currency of leads and conversions can be damaging. In such a market, the real currency should be understanding and trust. The healthcare provider's success should not be measured in terms of revenue, KPIs and conversions. The real parameters of success should be things like "has the patient understood and felt listened to", "have they taken up treatment based on trust", and what is the long term outcome.
These are very different parameters. Parameters determine incentives, and the incentives determines the behaviour.
We are seeing a huge amount of dental behaviours related to "how to make a money", "how to build 7 figure businesses", "how to get X amount of leads" and the rest. The real conversations should be around "how do we get the public to trust us as a profession", "how do we win the trust of patients long term", "how do we showcase 7 year successes".
We are seeing corporates funded by conventional- business minded VCs backing these behaviours.
We are seeing coaches coaching systems that propagate these behaviours through systems.
In operating like conventional businesses, dentistry has lost its way. I fear the consequences coming our way...