To better attract and retain uninsured dental patients, you may consider offering a discount plan or an in-office membership plan. Understanding the key differences between these two approaches can help you decide which is best suited for your dental practice’s long-term success. Here, we’ll discuss each plan type to help you make an informed decision.
Hunter vs. Farmer Analogy
At Dental Menu, we often use an analogy to help dentists think about discount plans vs. membership plans. In our analogy, we compare dentists seeking new patients to hunters and farmers.
A hunter constantly chases after big game, much like practices that rely heavily on discount plans. These plans attract patients by offering immediate savings, but they often require continuous effort to bring in new patients.
Conversely, a farmer cultivates steady, reliable resources over time, similar to how a membership plan nurtures a consistent patient base. Patients with memberships have regular access to care, which encourages frequent visits and builds loyalty.
Discount Plans
Discount plans work much like a Groupon deal. They appeal to patients motivated by cost savings and can bring a quick influx of patients. However, patients often don’t return until they need another treatment, limiting long-term patient relationships.
Pros of Discount Plans:
- Immediate patient acquisition: Discount plans can attract patients quickly because they appeal to those seeking immediate savings.
- Flexibility for patients: Patients appreciate the flexibility of using discount plans without a long-term commitment. They can use the services they need at a lower cost, making dental care more accessible for those hesitant about upfront expenses.
Cons of Discount Plans:
- Unreliable patient retention: While discount plans bring patients in, they often fail to keep them coming back. Once the discounted service is completed, many patients don’t return until they need another specific treatment, leading to inconsistent appointments and low patient loyalty.
- Inconsistent revenue: Discount plans create a volatile income stream, as practices rely on one-off visits rather than ongoing care.
- Marketing dependency: Since discount plans are typically one-time offers, dental practices must continuously invest in marketing to attract new patients. This approach can result in higher costs and effort to maintain a steady patient flow.
In-Office Membership Plans
In-office membership plans function like a subscription service, offering regular access to preventive care. This model encourages ongoing patient engagement and creates a steady income stream.
Pros of In-Office Membership Plans:
- Predictable revenue stream: Membership plans offer recurring payments, providing a steady and predictable source of income. This revenue stream reduces the financial uncertainty that often comes with relying solely on insurance or sporadic patient visits.
- Improved patient retention: Patients enrolled in a membership plan are more likely to return for regular checkups and services, fostering long-term relationships.
- Patient loyalty and trust: Membership plans create a sense of belonging, much like a gym membership. Patients feel like they are part of the practice and are more likely to follow through with treatments and preventative care, improving overall health outcomes.
Cons of In-Office Membership Plans:
- More complex to manage: Setting up and maintaining a membership plan can be administratively challenging. Practices must manage payment processing, patient accounts, and ensure the correct application of services to memberships. Membership plans add a layer of complexity compared to simpler discount plans.
- Initial setup time and effort: Introducing a membership plan requires planning, software integration, and staff training. While it pays off in the long run, the start can be daunting for practices unfamiliar with this model. However, using a membership plan software like Dental Menu's can simplify and automate much of this process, making plans easier to implement and manage.
Making the Right Choice for Your Practice
Choosing between a discount plan and an in-office membership plan depends on your practice's goals. While discount plans can offer quick patient acquisition, they often lack the long-term benefits that membership plans provide. Membership plans support continuous patient engagement and create a predictable revenue stream, reducing the practice’s dependency on external insurance.
By adopting a membership plan, you can shift your practice from a “hunter” mentality, constantly seeking new patients, to a “farmer” mentality that nurtures long-term relationships with patients, enhancing both patient satisfaction and practice profitability.
Choosing between discount plans and in-office membership plans can greatly impact your practice. Both have their advantages, but in-office membership plans foster stronger patient loyalty and long-term growth.
If you’re interested in learning more about how membership plans can benefit your practice, explore your options with Dental Menu and schedule a demo today!
