A major physical therapy practice with twenty clinics throughout its target region sought a marketing strategy to boost profit. Analysis revealed several that the client was had already achieved contiguous geographic coverage of its target region, supporting the client’s reservations about opening more clinics. An effective sales team ensured strong brand recognition with regional hospitals and medical practitioners, achieving brand differentiation that reinforced the practice’s specialties.

To boost profits without expanding the geographical footprint or interfering with effective sales operations, Rocky Run Consulting advised the practice to implement a market segmentation strategy to identify and target customer segments with the greatest net lifetime values. Thorough data analysis confirmed this hypothesis, identifying insurance plans that were more and less favorable to the practice.

Lessons learned:

Availability of complete referral and patient data (transactional, not medical) was crucial to the success of this strategy due to the nature of medical referrals, allowing the practice to acknowledge lucrative referral partners and challenge less-supportive ones.

A focused and coordinated sales team was key to implementing this advanced strategy. Effective sales starts with effective tactical selling and is guided by management’s focus on the allocation of their abilities.