Services Marketing - Pacific Cataract and Laser Institute (pcli)

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Patient Journey: The (customer) patient is presented with a seamlessly integrated, all included eye treatment service. While the process is split between two service providers, the Optometrists (OP) and Pacific Cataract and Laser Institute (PCLI) the customer experiences a complete integration between the two. This amalgamated experience cumulates in a unified bill covering the entire service cost, without the patient’s need to deal with the possible hassle of dealing with individual providers. The core of this process is a good partnership between the OP and PCLI. To ensure superior customer service a tight interplay between the two service providers is essential. While direct referrals to PCLI are possible the customer experience is tied around the OP as initial point of contact. This is followed by a seamless transfer to the surgery center at PLCI. Once the surgery is completed and the immediate follow up performed, the patient is then handed back to the OP’s care for required long-term follow up. This integrated process ensures maximum patient safety, quality of care with a high level of convenience for the patient.

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Figure1

Schematic summary of the customer/ patient journey to receive eye care at PCLI.

Recommendation:

Some of the key issues that Pacific Cataract and laser Institute (PCLI) is facing include offered prices of procedures which are higher than that of competitors’, limited operating days for surgery, diverse practice area with limited number of resources, high transportation costs, and minimal advertising. So, in order to compete in the market and to gain a greater market share, it is imperative for PCLI to develop new strategies. The key focus should be pricing and marketing which are discussed below:

Pricing Strategy:

PCLI cannot reduce their prices as they incur high fixed costs. External variables such as government regulations play a vital role in providing the Canadian counterparts an added advantage in terms of cost. These organizations have been operating since long and have already achieved a break even in terms of equipment cost. Also these institutes do not pay royalties, pay lower wages, and even the currency conversion plays in their favor. Therefore, in terms of pricing, PCLI can only focus to minimize their operational cost as defensive mechanism. One way in which PCLI can reduce the cost is by re-evaluating their transportation cost. PCLI flies their doctors and their staff in private jets to go from one city to the other at a very high price. It is an expensive endeavor as they have not only made the large investment in two jets but they also incur a large variable cost in terms of fuel and resource utilization which requires the pilot to be on stand-by. To overcome this constraint, PCLI needs to restructure this part of their business by hiring more doctors who can serve a large customer base. In the current organizational structure, PCLI operates with seven surgeons out which three perform Lasik surgeries. A training module needs to be set up, where the other four surgeons are trained internally in order to provide them with the indispensable skills to perform Lasik surgeries. This module will also include trainings for resident doctors to perform the role of ODs, i.e. execute pre and post-operative care.

Therefore, these measures would not only provide PCLI with reduced operating cost but also ensure the regular availability of surgeons in permanent locations, which will expand their business to cover more areas. Also by training the resident doctors, customer can choose to go to PCLI directly rather than going to the OD first which could effectively reduce the overall surgery cost.

Marketing Strategy:

PCLI needs to revamp its marketing strategy as soon as possible. The current advertising provided by PCLI is vague which only provides customers with the information about services in LASIK surgery. These advertisements do not include any incentives for patients nor do they highlight the quality aspect of PCLI’s services. PCLI needs to market the capabilities and the innovation that their doctors have accomplished as well as differentiate themselves from the competitors by emphasizing on the safety facet, advertising PCLI as a one place for all eye problems and providing a sense of satisfaction through their qualified and experienced team of doctors.

Five elements of promotional mix can contribute to the marketing strategy for PCLI to position themselves strongly in the market:

1) Hybrid model of pull and push advertising strategy should be implemented where advertisements would include the unique services offered by PCLI i.e. promote itself as one place for all services with the focus on the quality of surgery and pre-and-post surgery care. Discounts offered on health plans would be highlighted which would act as an incentive for customers. Also the number of industry experience doctors have will be highlighted. The advertisement will pull the customers by accentuating Dr. Ford as the face of PCLI.

2) Strong public relations could be fostered by making post-operative calls to the patients. Also mobile services such as providing appointment details through text messages can be integrated in the operational mechanism. This will add value and provide better service experience to the patients relatively to the competitors.

3) Collaboration with health service plans could be used to increase PCLI’s referring physician base. This model would operate on profit sharing basis and would help in increasing the market share.

4) Direct marketing technique such as search engine optimization for websites can help PCLI increase market presence. These websites would display the experience and quality care provided under supervision of Dr. Ford as a key ingredient. Creating surveys on various medical sites and providing feedback forms can help PCLI garner customer data and therefore provide better customer service.

5) The use of testimonials could be leveraged for marketing efforts and personal selling technique.

PCLI has some positive aspects which need to be augmented by a better advertising campaign, reduced transportation cost and increased workforce. This will enable them to attract more customers and achieve a better business strategy for their future.

The strategy suggested above can be implemented in three phases with each phase lasting three months as shown below: