Marketing Investment

What is marketing investment?

What is marketing investment? In your case this is the cost involved in marketing and advertising of your dental practice. That translates into a cost of bringing new patients into the practice.

Cost of Acquiring New Patient

Let say that you are running an annual marketing campaign which costing you $12,000 dollars. If this campaign has generated 240 New Patients for your practice, than the cost of bringing each patient into your practice would be $50.00 dollars ($12,000 / 240 = $50)

Patient’s Lifetime Value

Now, let’s take a look at the Value of each patient to your practice. Each healthy practice has a good mix of a Basic maintenance type patients and Cosmetic patients.

Lifetime value of these types of patients is different and calculated over a 4 year period.

Lifetime Value of a Basic Maintenance patient is approximately $4,000 dollars.

Lifetime Value of a Cosmetic patient is approximately $22,000 dollars.

Let say that you are getting a 50/50 mix of both patient types from your marketing campaign. Let’s figure out how many new patients you need to generate from your campaign in order to beak even.

Average Lifetime Value of a New Patient will be $13,000.

See calculation:

$22,000 + $4,000= $26,000

$26,000 / 2= $13,000 – Patient’s Average Lifetime Value

Now let’s find out what an Average New Patient can bring to your practice.

$13,000 / 4 years = $3250/year

In this example each new patient will generate an average of $3250 in gross production for your practice. If your campaign cost was $12,000, you would need about 4 new patients to break even.  

Now that we understand the cost of acquiring a new patient and each patient’s lifetime value, we can calculate ROI (Return On Investment) when you use any of the Dentist Advantage marketing programs.

Following table will demonstrate New Patient Acquisition Cost based on 6 Month program participation and minimum number of Guaranteed New Patients.

Following table will illustrate Income Potentials based on 6 Month program participation and minimum number of Guaranteed New Patients.

This table will show the actual ROI based on 6 Month program participation and minimum number of Guaranteed New Patients.

How Many New Patients Needed to Recover My Investment

Here you’ll be able to see a minimum number of New Patients needed to recover your marketing investment. As was established earlier the Average Annual Value of a Patient is $3250 dollars. However, for the purpose of this example we’ll divide $3250 in 2 to obtain a 6-Month Patient’s Value. That Value is $1625 dollars.

Dentist Advantage gives you this Powerful “Double” Guarantee! If after six months Dentist Advantage Marketing does not deliver the minimum number of New Patient Appointment Requests (Pre-Appointment Questions to be considered as  New Patient Appointment Requests), per city contracted, needed to recover twice the amount of marketing investment, we will continue your campaign absolutely FREE until it does, for up to additional six months!