Interview with Scott George BS, BC-HIS, Hearing Instrument Specialist
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Topic: Marketing and Professional Issues
AO/Beck: Hi Scott, thanks for speaking with me today.
George: Hi Doug. Thanks for the invitation.
AO/Beck: Scott, I've known you for a couple of years as an innovative and creative person, and I thought it would be good to tell the readers a little about you and your practice. You really have a wealth of knowledge regarding business practice protocols and management, and I thought perhaps we could get some of your perspectives. Why don't we start with your education and professional background?
George: Sure that's fine. I was raised in Southwest Missouri, and I attended the University of Missouri at Rolla School of Mines. I graduated in the 1970s with a Bachelor's degree in Computer Science and a minor in Mathematics. I worked in the Information Systems field at several Fortune 500 companies. Prior to joining Mid-America, I was in mid-level management at a nuclear power plant for a large eastern utility.
My parents actually started Mid-America Hearing Center back in the late 80's. Dad was a family practice physician. Mid-America Hearing Center originally located in the same facility as the nationally known Mid-America Dental Clinic. Like the dental practice, the hearing practice's market niche was quality health care, at reasonable fees, with same day service. In the 80's, many patients saw that as a big advantage; and, they still do today.
When my dad passed away, I joined the business as General Manger. I knew that if I was really going to manage it well, I needed to really understand both the professional and the business issues. I also wanted to understand the patient's needs. So, I studied for and took the Missouri licensing exam to become a Hearing Instrument Specialist. In addition, I passed the national BC-HIS exam.
AO/Beck: Scott, when did you join the practice?
George: I joined the practice in 1991. At that time, we had one office in Mt. Vernon with a single Hearing Instrument Specialist. We now have four offices with five Specialists, one Audiologist, and several individuals who are preparing to take their state examinations.
AO/Beck: Scott, it's no secret that the last quarter of 2001 was not wonderful. What are your thoughts and perspectives on that?
George: Well, that's a great question. I speak with lots of people across the country, dispensers, audiologists and many others. We share and discuss ideas. This helps me formulate opinions. Certainly the whole world changed on September 11th. It impacted the way we act and the way we think. Everyone needed time to sort through the obvious issues. Many Americans, while we think things through, evaluate and reflect, tend to pull back. I t was the right thing for us to do at that time.
I know that some offices were struggling to survive during this downturn; some probably didn't make it, through no fault of their own. Of course, it's important to realize that some offices did fine. These offices were established practices; not, new start-ups! The digital push over the last few years and the national marketing strategies that some of the manufacturers and offices employ also helped to raise awareness of hearing loss and hearing aids. One of the new statistics recently reported is that our market penetration has actually gone up a few points. Of, course, that is good news for all of us. Rather than the typical 20 percent that we've been stuck at for years, we have made it up to 22 percent. That may not seem like much to some people, but that is a ten percent increase in market penetration. I was heartened to see that.
AO/Beck: Yes, I read that too. Earlier in 2001 the penetration has dropped to 18 percent, and then it rebounded nicely.
George: Market penetration is really the key concept to focus on for the future. Our biggest competitor is not the office down the street, other disciplines, or other practice settings. Our biggest competition is the 80 percent of the hearing impaired people who never seek our services. Increasing market penetration should be where we focus our efforts.
AO/Beck: What about marketing? From your perspective as a dispenser and a manager of four offices, I'd like your sense of what works and what doesn't work?
George: Well, I have to explain that we are in a different market than the traditional dispensing office. Each of our offices has a licensed hearing specialist. What's different is each office also has a complete in-house hearing lab staffed with trained technicians. Thus, we are able to offer the patients same-day-service for their hearing needs. The patient comes in for the hearing evaluation. If they can benefit from hearing aids and do not require a medical referral, the patient is fitted with hearing aids before they leave that same day. We do the evaluation, fitting, and initial counseling all in one day. Patients come in knowing about and wanting that same-day-service. Thus, we can meet our Mission Statement of Our Best, For Less, In A Day.
One critical success factor is that Mid-America takes its time introducing new technology. We wait for the technology to be proven, for the problems to be worked out, and for the price to come down. In fact, our practice is just now introducing digitals. I know the rest of the world did that a little while ago. But, we built our market niche on same-day-service. Successfully being able to do that is more important than the particular technology. I am not saying the product doesn't matter - it certainly does. But, we focus on the same-day-service aspects of the business, that's our strength, that's what we're known for, and that works well for us.
AO/Beck: Scott, haven't you had patients come into the office over the last few years and ask for digital instruments?
George: Yes, certainly. We tell them the same thing as the more traditional practices, We cannot make digitals in the lab today. But, we can order them and we'll have them in a week or two. Usually, the patients decide that the service is really what they're most interested in. They will say That's OK, I'll take what you have now. More recently, some patients told us they were willing to wait for us to start fitting the digital technology in a same-day environment. I think there's a lesson in there. Find your market niche and stay in it. Of course, now we're at the point where we can produce a good digital in-house, so we're fitting digitals on the patients who can benefit from the latest technology.
AO/Beck: How important is the same day service aspect of your business?
George: It's very important to us. That is our focus and our promise to the patient. However, there are many offices that are successful with two-week turn around. That's terrific. I am happy for them. The same-day-service is very important to us in our situation. It's the basis of our market niche.
AO/Beck: What about the return rates on your same day products?
George: They typically run less than one percent.
AO/Beck: So basically it boils down to the Platinum Rule, which is a term I stole from Tony Alesandra. Dr Alessandra does some fantastic work with Siemens. He said the Platinum Rule is Treat people the way they want to be treated. And it seems to me that is the cornerstone of a service-based industry.
George: I think that's very true. People respond well when you meet their needs and exceed their expectations. Another important factor is that the single most important marketing tool you have is Word of Mouth. When a happy patient or professional refers a patient to you - that's about as good as it gets. You really need to do everything you can to take care of the patient. Then, the personal referrals will come. That's where the big win is. Focus on the patient and you'll have a very successful hearing practice.
AO/Beck: Can you tell me if you track your referrals, and if so, what percentage is actually referred in by word-of-mouth?
George: We do track that. I am very happy to tell you that about 80 percent of our patients are referred in by word-of-mouth. For us, those are the critical marketing key - personal relationships built on service, satisfied patients, and word-of-mouth referrals.
AO/Beck: Pretty much sticking to the basics.
George: That's how the basics got to be the basics. They work!
AO/Beck: Scott, I wish we had more time. Before we let you run, can you tell me your thoughts on the relationship between hearing instrument specialists and audiologists?
George: I know many audiologists, you among them. The relationship, between the majority of audiologists and hearing instrument specialists, is professional and terrific. That has certainly been true during the past two years while I served as President of the Missouri Hearing Society. Each of us recognizes that the other is a competent professional, that we all have something to contribute, and that we all strive to do our best. With a 20 percent market penetration, our biggest challenges are not from the other professionals, our biggest challenge is reaching the 80 percent of hearing impaired Americans who are not walking in the door.
AO/Beck: I agree, All ships rise with the tide.
George: Just think. If we could increase our market penetration to 30 percent of the hearing impaired people, there wouldn't be enough hearing health care professionals to take care of them! When the baby boomers show up in the next ten years, even at 20%, there aren't enough of us to take care of them! The real competition are the hearing impaired Americans who don't come see us. Not, each other. Focus on the patients. If we do our best for each individual patient, the referrals will be there, and the industry and our practices will grow.
AO/Beck: Scott, as always, it's a pleasure to spend time with you and I thank you for your time and knowledge.
George: It's been a lot of fun Doug. Thanks for inviting me. Audiology Online is a great service and we're glad you're out there. I wish you continued success and look forward to reading more of your work.
AO/Beck: Thanks Scott.
**********************************************************************
Interview with Dr. Tony Alessandra, Siemens Marketing Consultant and Professional Speaker
11/19/2001
George: Hi Doug. Thanks for the invitation.
AO/Beck: Scott, I've known you for a couple of years as an innovative and creative person, and I thought it would be good to tell the readers a little about you and your practice. You really have a wealth of knowledge regarding business practice protocols and management, and I thought perhaps we could get some of your perspectives. Why don't we start with your education and professional background?
George: Sure that's fine. I was raised in Southwest Missouri, and I attended the University of Missouri at Rolla School of Mines. I graduated in the 1970s with a Bachelor's degree in Computer Science and a minor in Mathematics. I worked in the Information Systems field at several Fortune 500 companies. Prior to joining Mid-America, I was in mid-level management at a nuclear power plant for a large eastern utility.
My parents actually started Mid-America Hearing Center back in the late 80's. Dad was a family practice physician. Mid-America Hearing Center originally located in the same facility as the nationally known Mid-America Dental Clinic. Like the dental practice, the hearing practice's market niche was quality health care, at reasonable fees, with same day service. In the 80's, many patients saw that as a big advantage; and, they still do today.
When my dad passed away, I joined the business as General Manger. I knew that if I was really going to manage it well, I needed to really understand both the professional and the business issues. I also wanted to understand the patient's needs. So, I studied for and took the Missouri licensing exam to become a Hearing Instrument Specialist. In addition, I passed the national BC-HIS exam.
AO/Beck: Scott, when did you join the practice?
George: I joined the practice in 1991. At that time, we had one office in Mt. Vernon with a single Hearing Instrument Specialist. We now have four offices with five Specialists, one Audiologist, and several individuals who are preparing to take their state examinations.
AO/Beck: Scott, it's no secret that the last quarter of 2001 was not wonderful. What are your thoughts and perspectives on that?
George: Well, that's a great question. I speak with lots of people across the country, dispensers, audiologists and many others. We share and discuss ideas. This helps me formulate opinions. Certainly the whole world changed on September 11th. It impacted the way we act and the way we think. Everyone needed time to sort through the obvious issues. Many Americans, while we think things through, evaluate and reflect, tend to pull back. I t was the right thing for us to do at that time.
I know that some offices were struggling to survive during this downturn; some probably didn't make it, through no fault of their own. Of course, it's important to realize that some offices did fine. These offices were established practices; not, new start-ups! The digital push over the last few years and the national marketing strategies that some of the manufacturers and offices employ also helped to raise awareness of hearing loss and hearing aids. One of the new statistics recently reported is that our market penetration has actually gone up a few points. Of, course, that is good news for all of us. Rather than the typical 20 percent that we've been stuck at for years, we have made it up to 22 percent. That may not seem like much to some people, but that is a ten percent increase in market penetration. I was heartened to see that.
AO/Beck: Yes, I read that too. Earlier in 2001 the penetration has dropped to 18 percent, and then it rebounded nicely.
George: Market penetration is really the key concept to focus on for the future. Our biggest competitor is not the office down the street, other disciplines, or other practice settings. Our biggest competition is the 80 percent of the hearing impaired people who never seek our services. Increasing market penetration should be where we focus our efforts.
AO/Beck: What about marketing? From your perspective as a dispenser and a manager of four offices, I'd like your sense of what works and what doesn't work?
George: Well, I have to explain that we are in a different market than the traditional dispensing office. Each of our offices has a licensed hearing specialist. What's different is each office also has a complete in-house hearing lab staffed with trained technicians. Thus, we are able to offer the patients same-day-service for their hearing needs. The patient comes in for the hearing evaluation. If they can benefit from hearing aids and do not require a medical referral, the patient is fitted with hearing aids before they leave that same day. We do the evaluation, fitting, and initial counseling all in one day. Patients come in knowing about and wanting that same-day-service. Thus, we can meet our Mission Statement of Our Best, For Less, In A Day.
One critical success factor is that Mid-America takes its time introducing new technology. We wait for the technology to be proven, for the problems to be worked out, and for the price to come down. In fact, our practice is just now introducing digitals. I know the rest of the world did that a little while ago. But, we built our market niche on same-day-service. Successfully being able to do that is more important than the particular technology. I am not saying the product doesn't matter - it certainly does. But, we focus on the same-day-service aspects of the business, that's our strength, that's what we're known for, and that works well for us.
AO/Beck: Scott, haven't you had patients come into the office over the last few years and ask for digital instruments?
George: Yes, certainly. We tell them the same thing as the more traditional practices, We cannot make digitals in the lab today. But, we can order them and we'll have them in a week or two. Usually, the patients decide that the service is really what they're most interested in. They will say That's OK, I'll take what you have now. More recently, some patients told us they were willing to wait for us to start fitting the digital technology in a same-day environment. I think there's a lesson in there. Find your market niche and stay in it. Of course, now we're at the point where we can produce a good digital in-house, so we're fitting digitals on the patients who can benefit from the latest technology.
AO/Beck: How important is the same day service aspect of your business?
George: It's very important to us. That is our focus and our promise to the patient. However, there are many offices that are successful with two-week turn around. That's terrific. I am happy for them. The same-day-service is very important to us in our situation. It's the basis of our market niche.
AO/Beck: What about the return rates on your same day products?
George: They typically run less than one percent.
AO/Beck: So basically it boils down to the Platinum Rule, which is a term I stole from Tony Alesandra. Dr Alessandra does some fantastic work with Siemens. He said the Platinum Rule is Treat people the way they want to be treated. And it seems to me that is the cornerstone of a service-based industry.
George: I think that's very true. People respond well when you meet their needs and exceed their expectations. Another important factor is that the single most important marketing tool you have is Word of Mouth. When a happy patient or professional refers a patient to you - that's about as good as it gets. You really need to do everything you can to take care of the patient. Then, the personal referrals will come. That's where the big win is. Focus on the patient and you'll have a very successful hearing practice.
AO/Beck: Can you tell me if you track your referrals, and if so, what percentage is actually referred in by word-of-mouth?
George: We do track that. I am very happy to tell you that about 80 percent of our patients are referred in by word-of-mouth. For us, those are the critical marketing key - personal relationships built on service, satisfied patients, and word-of-mouth referrals.
AO/Beck: Pretty much sticking to the basics.
George: That's how the basics got to be the basics. They work!
AO/Beck: Scott, I wish we had more time. Before we let you run, can you tell me your thoughts on the relationship between hearing instrument specialists and audiologists?
George: I know many audiologists, you among them. The relationship, between the majority of audiologists and hearing instrument specialists, is professional and terrific. That has certainly been true during the past two years while I served as President of the Missouri Hearing Society. Each of us recognizes that the other is a competent professional, that we all have something to contribute, and that we all strive to do our best. With a 20 percent market penetration, our biggest challenges are not from the other professionals, our biggest challenge is reaching the 80 percent of hearing impaired Americans who are not walking in the door.
AO/Beck: I agree, All ships rise with the tide.
George: Just think. If we could increase our market penetration to 30 percent of the hearing impaired people, there wouldn't be enough hearing health care professionals to take care of them! When the baby boomers show up in the next ten years, even at 20%, there aren't enough of us to take care of them! The real competition are the hearing impaired Americans who don't come see us. Not, each other. Focus on the patients. If we do our best for each individual patient, the referrals will be there, and the industry and our practices will grow.
AO/Beck: Scott, as always, it's a pleasure to spend time with you and I thank you for your time and knowledge.
George: It's been a lot of fun Doug. Thanks for inviting me. Audiology Online is a great service and we're glad you're out there. I wish you continued success and look forward to reading more of your work.
AO/Beck: Thanks Scott.
**********************************************************************
Interview with Dr. Tony Alessandra, Siemens Marketing Consultant and Professional Speaker
11/19/2001
