Do you look at your marketing budget as a line item that should be kept to a minimum in order to maximize your bottom line? Or, do you look at marketing as an investment that should be optimized? While many business owners take the former perspective, they would generally have a healthier bottom line if they viewed their marketing investment more like an investment in the stock market or real estate. In fact, an investment in marketing your business can be better than buying stock or land, because you can gather data that acts as a legal equivalent to insider information.
If you knew for sure that a stock was going to triple in price over the next month, would you look to buy the smallest amount of this stock that you could? Or would you buy as much as you could?
Before the internet came along, measuring the return on investment from marketing activities was a difficult task that lacked accuracy. Just like playing the stock market, you had some ups and some downs, which provided only a limited amount of information about future ups and downs.
With the rise of digital marketing, measuring results has gotten much easier. When someone visits your website, we can determine which ad or other marketing tactic led to that visit. Furthermore, we can determine which marketing campaign led to specific actions. You will still have some ups and downs, but by collecting and analyzing data, we can minimize the losses and maximize the gains.
If you are selling something online, you can often measure exactly how much it costs to make each sale. For medical practices, it isn’t quite that easy, but we still have the ability to determine how much it costs to get people to take certain key actions. For each campaign, we can determine how many people:
- call you
- look up directions to your location
- use your online check-in functionality
- fill out registration or information request forms
- sign up for newsletters or other email updates
Based on this data, and combined with data on your actual patient visit numbers each day, we can help you determine how much it costs to acquire a patient. If your practice earns, on average, $125 for a patient visit, and we determine that it costs $200 to bring in a new patient, you are not going to want to buy those patient visits (for this example, we’ll just consider the value of the initial visit, not the potential lifetime value of that patient or the referrals that they might bring). On the other hand, if we determine that you can acquire a new patient for $20, how many of those patient visits would you want to buy? If you are like most people, you’ll buy as many of those $20 patient visits as are available.