Gem Publishing July 2018

6 Marketing Gems You Can Take to the Bank! Before Maximizing New Patient Flow

By Dr. Tom “The Gems Guy” Orent

Just start with a goal to increase by one new patient a week.

We discussed the basic math behind how increasing by just one new patient per week, which is 50 for the year (with two weeks off for good behavior), can add $240,000 to your revenue over a six-year period. What we didn’t explain was how that compounds from year to year. The average lifetime value (ALV) of a patient is $4,800 over their six-year sales cycle. You’ll see roughly $60,000 of that revenue in the first year. In the second year, that same patient brings in another $36,000. But when you add the Year 2 group of the additional 50 new patients, their revenue combines with the first group and creates a snowball effect — one that takes you to a quarter-million dollars and beyond. The following table illustrates this concept:

In our last issue, we defined capacity and broke down how to maximize new patient flow. A practice at capacity is open six or seven days a week from 7 a.m. till 9 p.m. They use every square inch of space, even possibly expanding the square footage of their building. All hygienists’ and doctors’ chairs are booked out for the next two months, and they can’t squeeze in a patient even if they wanted to. The fact is that very few practices are truly at capacity! Practices at capacity are generating $3,000,000 to $6,000,000 per year per location. If you are not at capacity, then one proven effective method (of several) for increasing revenue is simply to increase new patient flow — and it doesn’t have to be by huge numbers.

Group 1 Group 2 Group 3 Group 4 Group 5 Group 6 Total

Year 1

$60,000

$60,000

Year 2

$36,000

$60,000

$96,000

Year 3

$36,000

$36,000

$60,000

$132,000

Year 4

$36,000

$36,000

$36,000

$60,000

$168,000

Year 5

$36,000

$36,000

$36,000

$36,000

$204,000

$60,000

Year 6

$36,000

$36,000

$36,000

$36,000

$240,000

$36,000

$60,000

Continued on page 7...

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