Tuesday, June 25, 2013

Dental Marketing - 16 How Do I Measure ROI?

New Patients, Inc. 
5935 Edmond Street Suite 105
Las Vegas, NV 89118
Telephone: 866-336-8237   
Email:  info@newpatientsinc.com
Website: NewPatientsInc.com

Thursday, June 13, 2013

June 13, 2013: News You Can Use from New Patients, Inc.

Let's talk about call tracking and calculating forward ROI

In the last issue of this newsletter, we discussed what we are seeing across the board; a slow and steady growth in our response numbers. We also discussed where the revenue growth is coming from (elective) and recommended that it may be a good time to re-balance your promotion budget from 100% core staples of dentistry to perhaps an 80/20 mix of core staples and elective dental services.

Call Tracking & Calculating forward ROI

ROI = Return on Investment. If you are a client of NPI, you already know what call 
tracking is. We strongly encourage all of our clients to use tracking numbers on any promotion effort that consumes more than 10% of their annual promotion budget. 
For this e-newsletter, let's dig deeper. The goal of this newsletter is to give you monthly control of how your promotion is paying off. Maybe not this particular month, but most certainly down the line.

To provide clarity and consistency among the readership, we will focus on 
NPI direct mail, call tracking, and forward ROI calculation.

By now you know that NPI works in all promotion mediums (internal, web, SEO, 
web video, social media, direct mail, all forms of print advertising, radio, TV, etc). 
Each of these promotion mediums has a different future ROI projection. To keep 
things consistent and applicable to most of the reading audience, we are going to 
focus on one specific promotion medium - NPI direct mail. This makes sense for two reasons. The first reason is most of you are mailing through NPI. The second reason 
is, among all of our clients in 5 countries and all of their various promotions, the way  NPI does mail always generates the highest average revenue per patient.

The secret formula revealed!

Total monthly call volume x 40% x $1,400 = Projected first year return

Projected first year return x 2 = Projected 3rd year return

Projected third year return x 2 = Projected 6th year return

So let's put this to practical use.

Your homework will be to look at your own call tracking (if you forgot your login 
& password just call us at 702.221.2184 and we will get you back on track).

Let's say last month your mail generated 18 total phone calls. We all know there were some clunker phone calls in there, maybe a solicitation, maybe a repeat caller or two,  but that call volume should have generated about 7 new patients in your schedule  (total call volume x .40). Now multiply 7 new patients times the global average first  year revenue per patient (from mail) of $1,400. You get a projected first year return of $9,800.

We can now move onto projecting a 3 year return by multiplying the $9,800 x 2. 
That gives us $19,600.

One more step to project a 6 year return ($19,600 x 2), and we get $39,200.

What if I'm in a grossly competitive area and not getting 18 inquiries a month?

You don't have to have high call volume to generate a robust forward ROI. Take a look  at the math.

Example: 8 phone calls per month x 40% = about 3 new patients that month. 3 x $1,400 after they are in your practice for a year = $4,200 first year return. $4,200 x 2 = $8,400 three year return. $8,400 x 2 = $16,800 for a six year return. Your mail costs run about $2k/month. Even at 8 calls a month and 3 new patients a month, it is still generating a very solid ROI.

Don't be fooled by trading quality for volume.

The business of dentistry is not a one and done business. Patients take time to get necessary work done. Patients take time to choose elective dentistry. People take time to feel comfortable referring their friends and co-workers to you. They, in turn, take time to get their necessary and elective dentistry done. Not to mention the recurring revenue generated out of hygiene.

The key to driving solid forward ROI in a dental practice has a lot more to do with 
average revenue per patient, than it does with increasing patient volume. Anyone can generate additional new patient volume. Start promoting free exams and cleanings.  You will get new patients in the door. The problem is, their average first year revenue will range between $380 and $610, will NOT double in three or six years, and might double in 12 years.

You have homework!

We are hearing through our client services department that very few of you are looking at your call tracking numbers. If you do not look at them and listen to the calls, now would be a great time to get reacquainted.

Next month we are going to talk about barriers. Too many of you create your own. 
We are going to isolate and discuss a few of the most common in our next newsletter.

If any of you need us, just call 866.336.8237. We will be here for you.

Got questions? Want to learn more?   

You can reach Mark & Howie at:
Check out our latest dental marketing book

May 16, 2013: News You Can Use from New Patients, Inc.

How was your first quarter of 2013?

In the last issue of this newsletter, we discussed capacity, how it impacts growth, how  to measure where you are, and identify options moving forward depending upon where  you are.

Many of you are seeing slow steady growth in 2013

In this newsletter, back in October of 2012, we predicted a better 2013. All things 
being considered, that is what we are seeing. Are we seeing more new patients, 
or more patients getting more work done?

In select markets in the US, we are seeing more elective dentistry being completed 
and a slight uptick in new patient volume across the board. The revenue gains are 
being generated more by the elective dentistry side, than the increase in new patient volume. More people are getting more dental work completed. With that increase in
work, dentist production schedules are getting booked out farther. Now you know 
why we wrote in depth about capacity in last month's newsletter!

Remember the number 8. Don't let yourself be fooled by being booked out further 
than 8 days.

What is coming down the road?

Back in March of 2008, we shifted the consumer perception of our work for our clients  to the core staples of dentistry (kids, ortho, emergencies, conveniences, technologies, some price). At this point, don't stop with the staples. The staples got hundreds of dentist/clients growing through this recession. The overall growth rebound is going to  be slow - very slow. But, dentistry shed 18% during this recession. A bounce back is looming. Don't get all excited. Don't go crazy. Just realize that there is greater opportunity now, than there was one year ago today.

Rebounding home prices in specific markets is your guide. If your area is still seeing 
a decline or flat home prices, your specific area is behind. If your area has already 
flattened and is starting to gain, your specific area is about average. If your area has already seen sustained growth in home prices for 6 months or more, your specific 
area is ahead of the curve.

Balancing your budget allocation.

If your specific market area is rebounding or ahead of the curve, now would be a good time to talk to your NPI advisor about re-balancing your promotion budget. We realize the core staples of dentistry are boring to most dentists. Elective dentistry is exciting to most dentists. We get it. We understand. Just because we are seeing some growth across the board, doesn't mean you allocate 90% of your promotion budget toward elective dentistry. That would be foolish. That would add risk. With all that said, you could consider an 80/20 mix. Eighty percent of your budget should be going toward communicating the core staples of dentistry, with about twenty percent going toward an elective dentistry niche or a rotation of elective dentistry niches.

Here are some niche elective dental offerings that have shown to pull well when promoted individually, or as part of a rotation.

In no particular order:

Accelerated Ortho (six month smiles, Powerprox, etc.)
Sleep Apnea treatment
Kor Deep Bleaching (20 million people used Crest White strips and are looking for a better solution)
Same Day Dentistry
FaceLift Dentures
Sedation (it's still viable if it is in a rotation with other niches)

In the list above, same day dentistry would stand out as the one that we would use first if we didn't have the room or budget to create a rotation of several niches. Same day dentistry includes so many core staples (convenience & technology), along with anticipated growth in emergency care. What happens to teeth if you neglect them for 5 years during a recession? Exactly!

If any of you need us, just call 866.336.8237. We will be here for you.

Got questions? Want to learn more?   

You can reach Mark & Howie at:
Check out our latest dental marketing book

Monday, June 10, 2013

Dental Marketing - 14 How Can I Compete in a Very Saturated Dental Market?

New Patients, Inc. 
5935 Edmond Street Suite 105
Las Vegas, NV 89118
Telephone: 866-336-8237   
Email:  info@newpatientsinc.com
Website: NewPatientsInc.com