CALCULATING A PATIENT’S LIFETIME VALUE
Do You know the value of dental patients? Your patients are your most important asset. However, it's not just the quantity of new patients that your dentistry practice generates that matters—it's the long-term total profit those dental patients will generate that can make or break your company. To start any dental marketing you need to determine the statistics that represent the maximum amount of money it will make from all patients who came through your doors during the course of their entire lives.
The typical lifetime value (ALV) is the total amount of money you and your practice may expect to earn from any individual who becomes a patient—simple, right?
Around the globe, 96% of consumers say customer service is an important factor in their choice of loyalty. So we need to get this right!
In this post, we'll break down everything you need to know about how much a dental patient is worth in order to optimise income and move forward your practice while also establishing meaningful connections with your patients.
Consider your ideal patient. These individuals don't just show up for one check-up and then go away. Instead, these people come to you for all of their dental care throughout their lifetime. You're in charge of keeping their wonderful smile healthy for years—and that can add up to a lot of money. The average lifespan value of a dental patient.
How Do You Calculate The Average Lifetime Value Of A Dental Patient? And What Exactly Does It Imply For Your Practice?
To calculate ALV, you need to know three things:
How much money does your practice make with each patient per year?
How many years do patients stay with your firm, on average?
On average, how many total new patients each person refers to your clinic?
You can use the following basic formula if you know the numbers behind these three variables:
Average revenue per patient per year] x + = Average Lifetime Value
Assume a patient visits your practice twice each year on average and stays with you for ten years. Assume the typical patient is in excellent oral health and will only require routine cleaning (price up per cleaning). Finally, let's assume an average patient refers two friends or relatives with your business over time.
If your active patients visit your practice twice a year, this amounts to roughly 11.76 expected visits throughout their lifetime.
The average revenue generated per patient each year is each cleaning x 2 cleanses per year).
The average number of years an individual remains a patient = 10 years
Work out your average per patient
When we add the referral value to this equation, it's starting to look really good.
Although you can begin with overall averages, it's a good idea to split the data into patient categories later on. The age groupings of these patients (children, young adults, adults, seniors, and so on.) may be divided by their stage in life (such as infancy or adolescence) and the most frequent dental treatment associated with their age demographic.
Dentistry is a highly specialised industry, and each dental practice is unique. Because of this, the lifetime value for each practice will vary based on location, the services provided, and the effectiveness of their online marketing strategy.
Why ALV Is So Important To Your Practice
Once you know the average lifetime value of a patient, you'll be better equipped to make more informed decisions about your marketing, hiring the appropriate dental marketing firm, and advertising to new patients. You never want to spend more money on acquiring new patients than the lifetime profit they provide to your clinic.
Knowing the average ALV of your patients allows you to make better decisions for your practice, set a dependable marketing budget (12-20% of gross revenue), and more importantly, act as the incentive to attract and retain more people.
The Patient Experience Begins Online…
Use traffic-generating marketing strategies such as pay-per-click advertising, social media marketing, and search engine optimisation to your advantage.
On popular directories like Yelp, Google My Business, and Facebook, you may list and consolidate your online business listings.
Ensure that your website is aesthetically appealing and well-organised and that it accurately reflects the quality of your practice and services. This will establish your authority and trustworthiness to inspire a client to schedule an appointment.
Once The Patient Steps Into Your Practice.
It's easy to get caught up in the hustle and bustle of everyday life, but don't overlook the importance of over-delivering on your services and nurturing your patient relationship. Every patient should be treated like a V.I.P., and you may rest confident that they will return to you for all their dental needs.
After The Patient Has Left, You Will Want To Have A Plan In Place For Continual Communication:
- Send your patients special offers via traditional mail and email
- Send emails and/or texts to remind your patients of their next appointment
- Create various types of digital content that offer both existing and prospective patients helpful tips about maintaining optimal dental health
If you can offer high-quality services and a positive experience, patients will be happier for years to come.
A good patient experience can result in recommendations, and when your patients have children of their own under the same dental insurance plan, a favourable impression might lead to taking the whole family.
The Most Important Conclusion
Every patient you attract and offer a fantastic encounter is an investment in the future when it comes to acquiring clients and ALV revenue.
You may anticipate a high rate of return on investment (ROI). This cash can provide you with a significant return over time; the type of performance that might allow your company to grow, add staff and increase revenue.
Are You Ready To Get Started Attracting The Dental Patients To Your Practice
If you want to learn more about the value of dental patients and how to get more patients to visit your dental practice, contact Dental Marketing Expert
