Advertising in a Soft Market
What is a soft market?
A soft market occurs when there are more potential sellers than buyers, leading to downward pressure on prices. This term is most commonly used in the insurance industry, where it contrasts with a hard market. However, it can apply to any market with a buyer shortage relative to sellers, such as the retail industry or specific assets like lumber. In such a scenario, it is often called a buyer's market because buyers hold significant negotiating power.
What do you do when getting new clients becomes harder and harder?
For several years, therapists have enjoyed a strong market. According to Fortune Business Insights, the global telehealth market grew 135% in 2020. Practices were able to capitalize on this growth by expanding their services and taking on new clinicians. Personally, it’s been wonderful to watch this transformation and help our clients reach their growth goals.
But what happens when that market starts to soften? Since the beginning of 2024, we have seen a slight decline in available impressions and conversion rates. More clinicians are noting a decline in intake rates compared to this time last year. Prospective clients are asking about insurance coverage and shopping around before making their decision. These factors lead to a general unease, and raises the question of a softening in the therapy market.
This unease could lead practice owners to question the effectiveness of marketing. Is it worth advertising on platforms like Google and Meta if the market is getting tighter. The answer is unequivocally ‘Yes’.
Why Advertise In A Soft Market?
Continuing your marketing efforts in a soft market in three ways:
Helps you stand out in a crowded field
Fosters trust and credibility
Help attain long-term growth
Helps you stand out in a crowded field.
The softer the market, the more crowded the advertising landscape is going to get. More practices are going to feel the need to seek out new clients instead of relying on passive referrals. With more practices vying for clients’ attention, effective marketing tactics can differentiate one practitioner from another. When done correctly, marketing on platforms like Google allows practices to target the right audience with compelling content that can capture the interest of potential clients who may otherwise overlook them.
Marketing also allows practices to reach a broader audience. By using tools like online advertising, SEO, and local outreach, therapists can reach people they never would have before. There are still more people looking for therapy services than ever before. It is just about getting in front of them and giving them a reason to pick your practice over someone else.
Fosters trust and credibility
Seth Godin wrote in his book ‘This is Marketing: You Can’t Be Seen Until You Learn To See’, “Marketing is the generous act of helping someone solve a problem. Their problem.” By showcasing expertise, experience, and specialization through your marketing channels, therapists can establish themselves as authorities in their respective niches. This credibility not only attracts new clients who are seeking your services.
Continuous marketing also cultivates brand loyalty and credibility. By consistently communicating with current and past clients through newsletters, blogs, and social media interactions, therapists can maintain strong relationships with their clients. These efforts also demonstrate ongoing support and create the loyalty needed to have clients choose your practice again and again.
Help Attain Long Term Growth
Marketing has often been referred to as a faucet. As long as the faucet is open, the opportunity for new clients to flow in is there. Once the faucet is turned off, the potential is turned off as well. If you stop communicating with the market, you have lost the opportunity to reach potential clients when they are searching for your services. While decreasing marketing spend might help the bottom line now, the loss of that potential will impact your future growth. The best example of this is Coca-Cola. They continuously invest an average of $4 billion in advertising year over year, so they can stay in front of both current and potential customers. Coca-Cola understands that due to the competitive nature of their industry if they do not advertise consistently, they will lose market share to other competitors or lose out on customers that might choose a non-soda option.
And while therapy and soft drinks are very different industries, the principles still apply. Continuing to show up for clients consistently with compelling content will help practices grow in the future.
Ultimately, advertising during a soft market can help practices maintain their current market share and stay in front of potential clients. The key is to stay vigilant with your marketing efforts. This is the time to evaluate the effectiveness of your strategies, seek feedback from clients, and explore new avenues. During soft markets, the question is not if you should advertise, but how.
