The Value of One Patient and One Referral
When we get a sense that ever member of the office team is not 100% engaged in developing a deep and lasting relationship with the people who trust us for their dental care we do this little exercise at a staff meeting. A number of years ago we heard Imtiaz Mange speak at a Mercer Advisors meeting about the dollar value of one patient in our practice. More important to us was the impact of referral. This information as helps all of us remember that a successful practice is developed by earning the patient’s trust one at a time. Yes, we know it is not just about “the money” but this helps people realize the business is all about treating one person at a time.
What is the dollar value of one patient in our practice over 20 years?
Let’s make some simple and conservative assumptions:
Assume that the average recare visit has a value of $150.00 and we assume that the average patient comes in twice a year.
Assume that over 20 years the patient will need at least some limited restorative care ( let’s say a couple crowns, a filling or two and limited perio treatment). Let’s say $6,000
Assume it takes five years to build a true trust relationship and the patient refers just one person every five years after year five.
Here are the numbers:
Recare value = $300/year $300 x 20 = $6,000
Restorative care over 20 years $6,000
One referral per five years $48,000
Lifelong value of one patient who refers just one patient every five years after we have earned their trust. $60,000
How many patients do we see on an average day? Let’s call “average” a day with two hygienists and two doctors and assume everyone sees just eight people per day. What is the value to the practice of all the people we see on any given day? Why is important to get them appointed, re-appointed and have them leave knowing we love them and love it when they invite their friends to be part of our practice?
Average day lifelong patient value:
Hygiene 16 patients $960,000
Doctors 16 patients $960,000
Total daily value $1,920,000 passing through the office every day!
This is the potential lifelong dollar value of patients passing through your office on an “average” day. How important is it that we do everything in our power to help these people to be happy in our office? Why should we not be happy at work when these people are coming in and supporting us with their trust and hard earned dollars? What is holding us back from inviting the people we enjoy working with to invite their friends and family to be part of our practice?
I suggest that you sit down with your staff and a white board or paper and “do the numbers” for your office. It will amaze everyone. Hopefully, it will turn that phone that keeps ringing from an annoyance into an opportunity and that person who says “I just don’t know my “ into a positive challenge to educate about the value of a pre-set recare visit. Lastly, if you are getting referrals and fully scheduling your practice you can spend less on ads and marketing and more on making your current clients feel very special.
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When we get a sense that ever member of the office team is not 100% engaged in developing a deep and lasting relationship with the people who trust us for their dental care we do this little exercise at a staff meeting. A number of years ago we heard Imtiaz Mange speak at a Mercer Advisors meeting about the dollar value of one patient in our practice. More important to us was the impact of referral. This information as helps all of us remember that a successful practice is developed by earning the patient’s trust one at a time. Yes, we know it is not just about “the money” but this helps people realize the business is all about treating one person at a time.
What is the dollar value of one patient in our practice over 20 years?
Let’s make some simple and conservative assumptions:
Assume that the average recare visit has a value of $150.00 and we assume that the average patient comes in twice a year.
Assume that over 20 years the patient will need at least some limited restorative care ( let’s say a couple crowns, a filling or two and limited perio treatment). Let’s say $6,000
Assume it takes five years to build a true trust relationship and the patient refers just one person every five years after year five.
Here are the numbers:
Recare value = $300/year $300 x 20 = $6,000
Restorative care over 20 years $6,000
One referral per five years $48,000
Lifelong value of one patient who refers just one patient every five years after we have earned their trust. $60,000
How many patients do we see on an average day? Let’s call “average” a day with two hygienists and two doctors and assume everyone sees just eight people per day. What is the value to the practice of all the people we see on any given day? Why is important to get them appointed, re-appointed and have them leave knowing we love them and love it when they invite their friends to be part of our practice?
Average day lifelong patient value:
Hygiene 16 patients $960,000
Doctors 16 patients $960,000
Total daily value $1,920,000 passing through the office every day!
This is the potential lifelong dollar value of patients passing through your office on an “average” day. How important is it that we do everything in our power to help these people to be happy in our office? Why should we not be happy at work when these people are coming in and supporting us with their trust and hard earned dollars? What is holding us back from inviting the people we enjoy working with to invite their friends and family to be part of our practice?
I suggest that you sit down with your staff and a white board or paper and “do the numbers” for your office. It will amaze everyone. Hopefully, it will turn that phone that keeps ringing from an annoyance into an opportunity and that person who says “I just don’t know my “ into a positive challenge to educate about the value of a pre-set recare visit. Lastly, if you are getting referrals and fully scheduling your practice you can spend less on ads and marketing and more on making your current clients feel very special.
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