How much is a patient worth to a dental clinic?
One has to know how much spending is being done. And how is that spending is being transformed into profits through a patient, if that treatment is a regular treatment or a one off such as dental implants?
For evaluation of the profits, one has to know the worth of patients and they may have to be segregated into two or three categories.
The mistake many make is simply dividing the promotional budget the previous year by the cost of treatment each patient received.
The lifetime value of the consumer concept?
It is overall profits generated by a specific customer from the beginning of customer and business relationship to the end. It is a marketing concept that aims to evaluate a customer’s profit given to the business over the customers lifetime.
To properly evaluate, as a minimum one has to provide the following information:
- The lifetime income generated by a patient
- The rate of profitability ( this should take into consideration both actual advertising and management budget)
- The number of patients that were referred to by this very same patient.