You are a professional and your practice reflects your commitment to your profession. Dentistry is a business like any other and operates on sound business practices. The balance sheets and profit and loss statements that your accountant provides gauge the financial health of your practice. Sound accounting principles keep your practice thriving.
What about the value and depreciation on the equipment that you purchase? Do you know what it is worth? I’m certain that your accountant can place an immediate value on it. But what is a patient worth? How do you quantify that? How do you determine the value of your patients?
Did you ever consider how much value a single patient represents to your practice in terms of both short-term and long-term net profit? It is easy to justify the investment in state-of-the-art x-ray machines and other specialized equipment needed to improve the dental experience for your customers. But how do you determine the value of your patients themselves? Once valued, how do you leverage them to increase your net profit? Just as importantly, should you be the one doing it?
Consider this hypothetical situation. Your patient John Smith spends an average of $800 a year for his dental services with you. In 5 years, he will have spent $4,000. During that same period of time, he also refers 2 other patients to your practice. They spend an average of $4,000 over the same time period as well. In effect, John doesn’t just represent your initial marketing cost to attract him to your practice and the $4,000 billed. He also represents the value of both of his referrals.
Following this logic, each new and existing patient has this same potential to reduce your per patient marketing cost. Your ability to continuously grow your practice through effective marketing, reducing your per patient marketing cost, has a direct correlation on the financial stability of your practice.
Who would do the surgery if you needed an operation, you or a surgeon? Wouldn’t you try to find the most qualified surgeon? You would find a professional who was skilled in the operation that needed to be performed. Similarly, do you know how to run a successful marketing campaign? Do you have the necessary time to invest? Should you be the one to do it?
Understand that the maximum return on your marketing dollars is not an accident. It requires dental marketing professionals. Dental marketing is as specialized as any other profession. These are the experts who familiarize themselves with every aspect of your practice and create an individual marketing plan that attracts new patients and increases your net profit.
“A satisfied patient’s value to a dental practice can’t be over-emphasized,” said professional financial strategist Dr. James Pitts. “They will stay, bring their family, refer their friends, and complete all their dentistry in that office. Instead of having a one-year monetary value of perhaps $1,500 to $3,000, they will over time generate 20 to 50 times that amount in revenue for that office.”
If the time demands of your practice have caused you to neglect your dental marketing or it isn’t producing the results that you are paying for, learn how My Dental Agency can help. It’s a single click that can make a major difference in your marketing success.
With over a decade of experience in corporate dental laboratory marketing and brand development, Jackie Ulasewich decided to take her passion for the dental business and marketing to the next level by founding My Dental Agency. Since starting her company, she and her team have helped a wide variety of practices all over the nation focus their message, reach their target patients, and grow their practice through effective marketing campaigns. When she isn’t helping dental practices reach their full potential, she can be found at the beach with her three dogs or immersed in everything food-related with her large Italian family. For more information, call (800) 689-6434.
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