What additional turnover am I looking to generate through my marketing?
How many new patients should I target?
Which areas of marketing need to pay off for me?
You have a choice when you are looking to answer these important questions.
You can pluck these figures out of the air. Or you can set meaningful targets which directly relate to the practice growth you desire.
You need to know what practice growth you are aiming for first of all. A good accountant will discuss your hopes and plans (both for your practice and your life), so that a financial forecast can be put together to fund your goals.
It’s when you have this forecast that you can start to make the targets you set for your marketing meaningful.
After all, a financial target can only be reached by doing the right things, in the right areas and having the right results on a day to day basis.
So how do you convert these financial goals into driving and focussing on the right marketing activities during your daily work?
Assuming you are looking after your patient experience to make sure you retain your existing patients (and you are doing this, aren’t you?), you can be reasonably sure that you will continue to generate at least a similar level of sales. Sure, there are external influences which may adversely affect the situation. Your accountant should be working with you to highlight and nullify these threats as much as possible.
So your ‘core’ sales figure will cover a proportion of your forecast revenue.
Any price increases you make will also contribute. Make sure you consider raising your fees at least once a year, ideally just before your financial year end when you can consider them alongside any pay rises you may be giving your team.
This leaves an amount of turnover you need to generate through ‘new business’.
You can target a slice of this turnover by highlighting where you have the potential to ‘cross sell’ additional services and treatments to your existing patients. Be sure to check out my next blog which will cover this marketing strategy.
It is the remaining turnover that you need to generate via new patients.
So how many new patients do you need? This depends on your average new patient spend in a year. It pays you to conduct a review of the new patients you saw last year and calculate the average they spent. Work out this figure and you will know how many new patients you need to convert in order to generate the remaining turnover.
Then look at your strongest marketing sources. Where do your new patients typically come from? Which sources are more successful for your practice?
You need a clear and separate strategy for the conversion of new patients in each area, whether it be new patients from existing patients, your website, your advertising, your social media activities.
Make sure you keep track of the return you see from each area of marketing spend each year. You can then make comparisons with the year before and calculate the revenue ‘gap’ which needs to be covered via new marketing activity again.
Follow this process and you will convert your financial goals into meaningful, relevant marketing targets to focus on with your team.
Need to ask a question or raise a comment on this process? Don’t hesitate, just leave it in the box below and I’ll get back to you.