As a privately owned dental practice, it is critical you think like a business owner. Part of that thinking is knowing what the lifetime value of a dental patient is.
When you get this number it will open your eyes to the opportunity in front of you to grow and build a dental (or orthodontic) practice that will set you up to retire comfortably.
How Do You Figure Out The Lifetime Value Of A Dental Patient?
Implementing a system where you know without a doubt what the lifetime value of a patient is will be an important tool for your practice growth and success.
So what you need to track is how often a new patient comes in the first year, and how much do they spend. Then you need to see how long the average patient stays with you, before they move or go to another dentist.
And lastly, if you have good internal marketing in place, how many referrals does a patient send you?
Often times, even knowing just the “first year” value is important to have an ROI on your marketing. We have found that number to be in a range of $800 to several thousand depending on your area, demographic and discretionary income.
So even with that number, you can do some simple math.
Let’s say you get 20 new patients every month. That means you are adding an additional $16,000 per month to your gross revenues.
Given you don’t turn over too many existing patients, that’s a whopping $192,000 per YEAR to your gross revenues!
Of course you have a cost for acquiring each new patient, but that should be an exciting number for you to implement new patient attract strategies as soon as possible!
Don’t Forget Referrals…
This is where it gets exciting!
You can almost guarantee if you get a new patient, and they are happy with your service, you will get the rest of their family. We recently changed dentist, and I sent my wife in there first.
We spent over $2,000 right off the bat. Then…because she came back and said she liked this dentist. I proceeded to schedule appointments for the rest of my family (my 2 teenage kids and myself). Combined for the 3 of us it was $1875.
So that is $3875 for my family within the first month!
That is 4 new patients for that dentist, that started with just ONE!
But that’s only the start…
Now my wife told a co-worker about our new dentist. The co-worker went within a month. She got a crown ($1100) within a week. She then told her husband to go. He had 3 fillings ($600) and scheduled for a dental implant $3,000 including crown).
This is only the beginning… all starting from my wife (one new patient).
I hope you now see the value in just ONE new patient. It can mean tens of thousands of dollars in the first year, and add that up for a lifetime of value.
The number gets very big!
What’s That Mean To Your Practice?
We can really go crazy with number-crunching, but one new patient, should conservatively turn into 4 referral patients (family, friends, and co-workers).
Even on the low end of $800 for first-year value, you are talking about $4,000 per month, per new patient.
That’s ONE PATIENT!
If you are implementing dental marketing strategies, and getting 10-20 new patients each-and-every month, you could potentially be bringing in by the end of year one, 40-80 new patients each month like clockwork.