Investment in patient lifetime is essential for the expansion of any medical practice, but it is insufficient to maximize revenue. Thus, numerous clinics focus on improving patient retention rates and generating traffic by focusing on marketing in addition to patient lifetime value. If you want more details, you can visit this site to understand these tactics further, but we’ll be covering most of it down below, so do stick around.
In general, you will want to pay more to bring on a new patient with a higher patient lifetime value. If your patient lifetime value is $1,500, for instance, you might be ready to invest up to $800 in every new one. The simplest way to determine LTV is to multiply the worth of an average appointment by the standard number of visits a patient makes to your clinic per annum.
Maximize Revenue by Determining Overall Patient Lifetime Value
Knowing what a patient lifetime value is and how to track it can truly make the difference between an average and a successful dental office. Learn how to calculate the average lifetime value of a dental patient and how to increase it.
Determining the average lifetime value of dental patient
Start by multiplying the average length of time a patient stays at your office by the typical amount of money a patient spends annually to get the lifetime value of one patient. Ideally, you will be familiar with the exact figures, but you may also make some educated guesses.
Example: Assuming a patient stays for five years at your dental practice and typically spends $200 per year, then the average lifetime value of a patient at your clinic is $1,000.
Include the value of secondary referrals (word of mouth)
It should go without saying that word of mouth is one of the best strategies to grow your dental office. By improving patient experience and asking for honest reviews, you are likely to get five more patients over the course of the following five years just from one loyal client.
Example: If an average patient spends $1,000 for the entire time at your practice and refers five other patients, that’s a potentially extra $5,000. Meaning — 5 recommendations at $1,000 each are $5,000 in secondary referral value.
Calculate the overall lifetime value of a dental patient
Now, add up the worth of steps one and two and calculate the overall patient lifetime value (what they pay for your services + what you gained from their referral). You would be surprised by the results.
Example: Mark will spend $1,000 on your service for the entire time at your dental office. Mark will bring Lisa, Tom, Jane, George, and Ryan – and each one of them will spend $1,000 respectively on your services. That means Mark increased your revenue by $6,000 in total, and that’s his overall lifetime value of a patient.
Who Can Help You Increase the Lifetime Value of a Patient
Create your digital identity and utilize an online presence
The majority of your competitors already have some kind of online presence — a website, social media accounts, Google my business, search engine optimization, paid ads, etc. You should know that over 80% of people look up a service or a product online before making a purchase. Individual doctors and dental practices can always seek the counsel of dental marketing companies.
Some of the dental marketing services you should seek are
Brand identity — Having a unique logo and tagline might seem excessive, but people notice and tend to remember brands precisely for their brand identity. Here are some of the components of a digital brand identity: logo, typography, tagline, color scheme, and copywriting style.
Optimized website — Not only do you need a website, but you need a functional one. Your business’ website should at least have a breakdown of your services, other patients’ reviews, and some type of booking form.
SEO — Write blogs to rank higher on Google. If, for example, your business specializes in dental prosthetics and is located in Denver, you will want to rank the highest on ‘dental prosthetics in Denver’ searches.
Paid advertising — Organic content is efficient in the long run, but if you want to see the results soon, allocate a budget for paid advertising on Google and relevant social media channels.
Google my business management — GMB can be a great tool to showcase your work, show your dental office, and present staff, all while you gain calls and new website visits. And all potential patients can see other people’s reviews.
Social media presence — Arguably, as a dental practice, Google should be your digital priority, but bear in mind that people today almost equally look up things on, e.g., Instagram than in a Google search.
The lifetime value of dental patients is crucial in expanding your dental practice. To increase revenue by tracking the average lifetime value of a patient, you might need professional help.
Credible dental marketing companies offer premium dental marketing services that can change for the better the entire way your business operates. By optimizing your digital presence, you’re opening a whole other door of revenue.
With the help of (a bit of) math and marketing professionals, you’ll know precisely where and how to acquire new patients. You will also know how to project and anticipate potential new revenues, which can be highly beneficial for your dental practice.
After reading this article, make sure to:
- Calculate patient lifetime value for all of your clients
- Create a simple referral system (e.g., with possible discount)
- Create a financial model with a 5-year prognosis to get a nice overview of things
- Look up dental marketing companies that can help you build your online presence
- Make calculating sheets to track your progress