logo
[email protected]
(01) 903 8118
 

The Value of a New Patient

As a dentist, your most valuable assets are your patients but the overall success of your practice isn’t as simple as finding new patients. To successfully start a new dental marketing campaign, fully analyse it and execute it to perfection, it is important to know the value of each patient. In this way, we can see the current value of your patients and the value of new patients. knowing how much each patient means to your overall success will be key in making sure you keep those steady income streams coming. You have to know which of these assets are worth retaining for growth over time so take some time calculating the value of both current customers and potential leads before taking any steps towards expansion or retention strategies

The total profit delivered over time by those patients is what can break or make your dentistry business. If you can calculate the average worth of a patient, you can invest a smaller amount of this to acquire a new patient to ensure your business is profitable.  Knowing the value of a new patient will also make you more comfortable investing money to gain new revenue streams or patients.

The average value of a new dental patient is €1064, Orthodontic patients are much more than this

77

of website owners are at risk of losing clients due to poor user interfaces.

How user-friendly is your website?

What this could mean for your Clinic?

From multiple research the average value of a new patient is €1064. This is taking into account some just require minimal treatment, but others will require more expensive orthodontic treatment etc, pushing this figure close 4-5k.

Lifetime Patient Value = Lifelong Relationship x Average Annual Value + Client Referral Value

Value of a Dental Patient

The majority of dental clinics allocate a part of their overall budget towards acquiring and locating new patients. The amount that should go towards attracting new patients will vary substantially from one dental clinic to another. It goes without saying that the money going into marketing efforts geared to attracting a new patient must not exceed that patient’s lifetime value to the practice.

This makes calculating the value of a new patient a vital component in determining the most prudent way of allocating your marketing budget. However, marketing experts, have a wide-ranging estimate when it comes to a new client’s long-term value. Some have placed the estimates at just a couple of hundred Euros, while others place it well over €8871.

A Wealthy Dentist survey revealed that out of the 68 dentistry survey respondents, only a quarter had ever tried estimating the value of a new dental patient. Generally, the estimated value of new patients was in the range of €177 to €2661, with an average of between €798 and €1064 per patient.

It must be stated that this value is an overall average, some patients are once-off and will not return, some will become regular patients and bring their family and friends. Some patients will just require to check up’s and cleaning, some will require restorative work, and others orthodontic or more complicated treatments. With this in mind, it’s important to state that this figure is just an average amount to use.
You can even go as far as to calculate the value of a particular type of patient, general, cosmetic and orthodontic, as these three areas vary greatly.

61

61% have recommended a local business to someone they know by word of mouth

A Patients Value include's the life long referrals

50

of adults say they visit their dentist every 6 months

Recurring customers are extremely valuable

68

say that they would be more likely to recommend a local business if it was reliable & professional

How is your Dental Clinic's Reputation

36% of patients are less likely to leave a particular dentist that they have used

Determining Patient Lifetime Value

To build meaningful dentist-patient relationships, you need to have an estimate of their lifetime value. This way, you can structure and market your practice strategically to maximize revenue and take your business to the next level. The concept of Customer Lifetime Value (or CLV) is an estimation of the total value of a customer to a business during their entire engagement period.
Customer Lifetime Value is an indispensable marketing measurement tool for any business, and it is particularly critical for relationship-driven businesses, like dentistry. The factors to consider in estimating CLV for your particular clinic include:

• Lifelong Relationship: Total duration that an average patient spends at your dentistry.
• Average Annual Value: Revenue made annually from each patient.
• Client Referral Value: Patients referred by a client.

In calculating the lifetime value of an average patient, the following formula is useful:
Lifetime Patient Value = Lifelong Relationship x Average Annual Value + Client Referral Value
Importance of a Patient Lifetime Value Calculation.

Once you estimate a new dental patient’s lifetime value, it becomes possible to make decisions that are more informed regarding advertising and marketing. You will certainly not want to spend more on acquiring new patients than what a single patient brings to your dental practice in their lifetime.

When you have a clear idea of the current worth of each new patient, it also gives you a target figure that needs to be exceeded. For example, if you think the new customer is worth €443 and you have invested €4435 in a patient postcard campaign, then for you to consider your campaign a success, you will need to bring over 10 new patients to cover this cost. However, with proper marketing strategies, 10 new clients is not a difficult task at all.

Loyal Customers

The truth is, when someone chooses a Dentist, they will normally stick with this dentist for a large proportion of their life. Changing Dentists and looking for a new one, who is trustworthy etc. is a complicated and time-consuming process.
A family usually uses the same Dentist, so if you gain one more client, and the treatment and experience result in them being a happy client, they will talk to their friends and family and encourage them to use your Clinic. With this in mind, there is a large chance that one happy client will generate up to 5 more new patients, thus your patient base will grow exponentially afterwards.
68% say that they would be more likely to recommend a local business if it was reliable & professional. We will take later about how to utilise your current patient base to market for you.

Reluctant to Invest?

Understandably a lot of Dentists are reluctant to spend money on marketing due to bad experiences in the past,  hiring marketing professionals which did not deliver end results or made matters worse in the long run due to poor quality work.
There are other available options if you are one of these, for example at Dental Booster, we offer packages that allow you to pay the minimum with us until we show you the results as promised, no risk for your Dental Clinic.  This ensures when you are getting more enquiries, you will be in a better financial position to expand and develop your marketing plan further without paying for results that may never come.

The Second reason a Dental Clinic may be reluctant to invest in its marketing is due to the fact that its clinic is doing absolutely fine and kept busy due to referrals and foot traffic (if it is working, why change it?). The important thing I need to say to these dentists is that firstly it is fantastic that your clinic has built up a firm reputation and has a steady following, but secondly, why not add to it?

Why not plan to exponentially grow your clinic?  With a mix of loyal customers, word of mouth, foot traffic with a strong marketing plan increasing the dental clinic’s visibility to new patients, the clinic will grow exponentially, and with every new patient valued over 1000 euro, it’s a firm investment.

If you need help attracting more patients, please get in touch with us today!

Frequently Asked Questions – Patient Value

How do you value a new dental patient?

The fact that each patient is different makes it difficult to determine their value. However, using groups based on their treatment or even treatment category can help you understand how much time and money and resources should be spent on a given individual based on the type of procedure they need.  The concept of Customer Lifetime Value (or CLV) is an estimation of the total value of a customer to a business during their entire engagement period.  Customer Lifetime Value is an indispensable marketing measurement tool for any business, and it is particularly critical for relationship-driven businesses, like dentistry. The factors to consider in estimating CLV for your particular clinic include:

• Lifelong Relationship: Total duration that an average patient spends at your dentistry.
• Average Annual Value: Revenue made annually from each patient.
• Client Referral Value: Patients referred by a client.

In calculating the lifetime value of an average patient, the following formula is useful:
Lifetime Patient Value = Lifelong Relationship x Average Annual Value + Client Referral Value

How Much is a Dental Patient really Worth in Ireland?

At Dentalbooster, we have calculated the minimum average value of a dental patient in 2018 to be €1064, but this value has increased dramatically since then for a number of reasons:

  • The importance of orthodontic and cosmetic treatments has grown over the past few years, making more expensive treatments more popular and sought after
  • Due to COVID-19 and long periods of lockdown, there has been an increase in expenditure on dental treatments.
  • People stay with the same dentist on average 11 years, which makes them more valuable over time

Learn How To Find The Lifetime Value Of A Dental Patient!

In order to generate the most revenue possible, dental practices must know how much their patients are worth. The lifetime value of a patient is the cumulative amount that they will spend over time under your care and can be considered as an indicator for you on what kind of return you’re getting from them.

Dentists should be mindful of how they can best monetize their dental patients. The lifetime value (LTV) is a critical metric to track in order to make the most out of every patient relationship and maximize profits over time.

Your patients are your most valuable asset. But it’s not just the number of new patients that matters—it’s how much profit they deliver over time, which can make or break a business. For example, some dental organizations see an average lifetime value for their customers to be about €3-5K per patient and others may generate up to €12k in revenue from each patient.

The key is knowing this information specifically for YOUR practice so you know what kind of return on investment (ROI) potential there will be when marketing budgets go towards advertising.

The calculation works a lot better when it is as correct as possible, therefore it’s a good idea to calculate how many patients you have getting each particular treatment.  Then for this, you can calculate the profit per treatment type, for example, a visit from a nervous patient may take more time, effort and resources than a simple checkup. It is important to calculate the time is taken, the staff cost, the running costs for that time, and finally you can see the profit for each treatment.

The lifetime value of a patient is vital to know, as keeping the patients you have happy and content should be a high priority, as they will come back, and tell their friends and family to choose you as their dental clinic if you treat them well.

An error we see here a lot is that dental clinics spend more time, money and effort capturing new patients while somewhat ignoring the ones they currently have

How To Maximise the Lifetime Value of Your Dental Patients?

To Maximize the Lifetime Value of Your Dental Patients, it is important to take care of them, ensure they are content, listen to them, but you can also put them to good work

Quality of Dental Service

Do you want your patients to keep coming back? Give them exclusive personalised treatment. Never underestimate the power of generosity, kindness and personalised care for a patient’s well-being.  Get to know them, strive to have a real personal relationship with them.

Are your current Patients the right ones?

Stepping back a bit, if you currently have a large number of patients that do not meet your ideal patient description, they may end up unhappy with your service, for example, if you inherited a clinic with mostly cosmetic patients, and you wanted to offer more holistic treatment, no matter what you do you will not make these people happy.  The same goes for your future marketing techniques, you should be trying to attract the RIGHT patients for you.

Let them know you appreciate them

Little gifts, rewards, free treatment can make a patient feel appreciated and they will repay this in years to come with their loyalty to you.

Put them to work

This is slightly off-topic for this question, but a mutually beneficial referral scheme works well for both parties.  Offer your patients a discount, credit or free treatment when they bring their family and friends to you.  You will turn many inactive patients into hardworking sales and marketing staff, generating profit and valuable patients for you.

Do you know the value of a new patient?

From multiple research, the average value of a new patient is €10240. This is taking into account some just require minimal treatment, but others will require more expensive orthodontic treatment etc, pushing this figure close to 4-5k.

0 New Patients
More income for your Clinic
See how you can GENERATE the amount below for your Clinic
0 extra income
Talk to us now!