Most practice owners that we work with know the value of online marketing, especially Google advertising and social media marketing. But when it comes to actually doing it, most people find it difficult because of the complexity of the tools, or they just don’t know where to start. If you are reading this to find a quick 5 steps to become rich, please stop reading right now. This is not a sales blog. So don’t expect me to give you 5 steps to get 500 new patients in 2 days. If you want to be able to do it, you need to learn it. I will start with some mental frameworks and statistical thinking and general terms, before moving on to marketing specifically for your practice.
Step one: Set your goal journey
“Set your goal” is a cliché that you see everywhere. What I mean by goal journey is simply breaking that ultimate goal to achievable steps. Let me describe what I mean by that. Yes, I know everyone wants as many patients as possible and that is your “goal”. But that is not going to help you much. You need to know where you want to be in next two weeks, then two weeks after that and then one month after that and so on. You might hate my writing style, but I get bored if people just talk philosophy with me. So let me get a bit practical. Here are some terms that we will use in future and their link to your goals:
Customer Lifetime Value (CLV): you need to know your CLV. This means on average how many times a new patient will visit you, say in the next 10 years? How much profit will you make out of that typical patient? Do you sell products to them too? Simply go through your historical data and see how much each typical patient has spent. You can group your patients in different categories if applicable, or you can average them all. Categorization usually helps, but don’t overdo it. You need somewhere around 3-7 categories.
Cost Per Click (CPC), Budget, Time, Learning (BTL): Now that you know your CLV you need to set a test budget for your Learning. It’s all about learning and improvement. I will talk about process of learning and statistics in the next blog in more detail. For this stage you need to put aside some money to practice with. Don’t put too little and don’t put too much. For typical practices that I have worked with, generally somewhere around $450 is enough. This should give you enough budget to advertise almost $20 – $50 per day for 2 weeks. Feel free to halve this budget and advertise $10 – $25 per day. We are working with statistics here. The more you spend, the more clicks you will get; the more clicks you get, the faster your learning. If you spend $10 a day and your Cost Per Click (CPC) is $2 you will get 5 clicks. To have statistically significant results you need to wait 2-3 days. If you spend $50 you will have a clue by end of day one. These numbers are all just hypothetical but you get what I mean.
Cost of Acquisition (COA): Now that we have a general understanding of what your CLV is and how much you want to spend for your learning. Let me give you your first clear goal in your journey. Your goal for the next two weeks is to learn how much it costs you to get your first new patient through your advertisement. This is called Cost of Acquisition (COA). Even in this learning phase your aim is to spend as little as possible while getting the maximum outcome.
The ultimate goal: In a nutshell, your ultimate goal is to achieve a state where your COA is less than your CLV. Basically, get new patients cheaper than the profit you make out of each of them – duh! In this blog, I will pass everything I have learned in this domain to help you achieve this.
Let’s be philosophical again. Many of my clients need this part. DON’T BE AFRAID, JUST CLICK THOSE BUTTONS. Many people are afraid of their reputation and consequences of doing the wrong thing. You are not going to say anything that will alienate your clientele. Worst case scenario, you will lose your learning budget. Well, that budget is there for exactly that – for making mistakes. So, please do what you want to do, don’t just read this blog and then go back to your work.
Ok, I think this is enough for one reading session. Please google these terms that I have put here and get a good understanding of your patient groups or categories and their CLV and set a learning budget for yourself. I will talk about next step, “Who is your patient?”, in the next blog post.
Click here to get updates for the next blog posts.