When asked, “Is your marketing working for you?” the most common response from practice owners is a sheepish, “I’m not sure.” Who can blame them for being uncertain when there are so many factors and potential confusion about how to evaluate a new patient marketing program?
Here is a simple framework that has been used to estimate the success of thousands of new patient marketing programs in order to determine if they are being financially successful for the practice owner.
This evaluation framework is called the “Einstein Method” because it involves modeling the campaign as a thought experiment. This is much the same way that Albert Einstein could sit in his office and tease out the secrets of the universe.
If it was good enough for him then it should be good enough to help us with our new patient marketing!
Start by determining the average case value for a patient in the first 90 days or on the first visit. Next, calculate the cost per lead and the number of leads generated per advertising spend. Estimate the percentage of leads that will become patients.
For example, if the average case value is $2,500, and $50 per day generates 30 appointment requests with a 30% conversion rate, that would result in nine new patients worth $22,500 in gross revenue.
The monthly ad spend would be $1,500. If you pay a marketing company an additional $2,500, the total investment would be $4000.
The monthly ROI (excluding operational costs) would be $19,000.
Adjust the numbers to estimate low, medium, and high scenarios.
Then run all of your new patient marketing campaigns through the same process.
If after this evaluation a campaign is profitable, continue running it. If it’s not then modify or cancel it.
Of course, there are many more things to know in order to create a consistent flow of qualified new patients for your practice.
To save time, many practitioners choose to partner with my agency, The Customer Factory.
To find out if our marketing program is a good fit for your practice visit our website and book a 15-minute Discovery call. You could have new patients coming in as soon as this time next week.
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