Social media and larger digital marketing practices are paramount for any healthcare company because they help in building bridges and connecting to communities. From a small family practices to a large medical conglomerates, practices that are not meeting their audiences with authentic and creative content, and an understanding of local culture, will not expand their patient base and their retention.
Sometimes healthcare professionals dismiss the need for an investment in these services – at the expense of millions of dollars in lifetime value profit. Here is a simple formula that helps you calculate how much of that loss you can make back by investing in StreamLined Health’s services.
Return On Investment (ROI) Formula:
Number of patients x lifetime value OR cash value = Net Profit
(Net profit / Total Digital Investment) *100 = ROI
First, let’s talk through the formula and a scenario – a bit of math:
Let’s say you are a dentist and you’ve found the lifetime value of a patient to be $60,000, with an immediate profit value of $1,200 on their first visit.
You hire StreamLined for a website design and 3 months of our Tier 3 digital marketing plan.
From that investment you receive 60 new patient leads per month and 30 of those people visit your office. This amounts to a 50% conversion rate for leads becoming patients, however, this is a conservative estimate, as typical conversion rates range from 60-65% or higher, depending on patient intent and type of practice.
What is the ROI?
90 patients x $1,200 per visit = $108,000 profit.
(108,000 / 20,000) * 100 This means you yield a 540% cash ROI.
What about in lifetime patient value?
(90 patients x $60,000 lifetime value)= $5,400,000
(5,400,000 / $20,000 in digital investment)*100 = 27,000% Lifetime Value ROI
Let’s say patients spend 10 years visiting your practice (“patient lifetime”), which is the average for some some healthcare companies. In this case, the annualized ROI – or the ROI each year during the patient lifetime – is 75%. It is worth noting that this is based on the conservative estimate of a 50% lead-to-patient conversion rate, but the ROI would increase with a (typically) higher conversion rate.
And remember: this calculation is based on the initial investment of three months worth of digital marketing services from StreamLined Health. Imagine the possibilities!
Not a dentist and want to see your ROI in action? Calculate your custom ROI below!*
