All the successful chiropractors I have worked with have one thing in common: they know their numbers when they make marketing decisions. Knowing your numbers can be broken down into a simple formula, and I am going to lay it out for you.
In order to understand the formula you have to first understand 3 important elements.
1. Case Average
2. Cost to Acquire a Patient
3. Return on Investment
Your case average is an equation based on the average cost per visit in your office multiplied by the average number of visits by a patient.
For example, if the average cost per visit by a patient is $50, and the average number of visits by a patient in your office is 36 visits (of course some patients only stay for 1 to 3 visits and others stay for years, so finding your average is important):
$50 x 36 = $1800 (Case Average)
Your Cost to Acquire a patient is the money you invest in marketing that converts directly into new clients.
*Your conversion rate is advertising leads that turn into clients and it is important here. I am assuming you have that rate locked down and in order.
The industry standard is to get a 3 to 1 return on your marketing investment based on your case average.
If you don’t know your numbers the investment may seem intimidating and can limit you in making an investment that could scale your company quickly.
Let’s break down this scenario: someone with a case average of $1,500 could feel like $3,000 a month in marketing doesn’t make sense. However, if this doctor knows her conversion rate projects that she will acquire 10 new committed patients, she understands her business will make $15,000 or a 5 to 1 return on her investment which is nearly double the 3 to1 industry standard.
$1,500 10 clients $15,000 $3,000 5 to 1
(Case Average) x (Conversion Rate) = (Projected Income) ➗ (Cost to acquire a patient) = Return on Investment
It is so valuable to have a solid grasp on these numbers because it allows you to scale beyond the pack with long term thinking.
You have a system and data in place to make an educated, strategic investment to scale your business quickly and smoothly. Chiropractors who don’t know their numbers can’t accurately project possibilities of growth into their future.
As a result they grow slower and invest more time losing what I call opportunity cost, or what they could have been doing with that time such as inventing new systems or spending time with their families.
Clarity is necessary. Clarity on your numbers gives you confidence to leverage systems and long term thinking to free up time and grow faster.
Get your numbers in order, put strategic marketing in place and join the ranks of successful doctors doing exactly what they want with their time.
How well we communicate is determined not by how well we say things, but how well we are understood.