03 Apr What should a dentist focus on to generate a good ROI:
Last time we debated why the dentist is so expensive, but the question arises, if the services a dentist provides are so expensive, are the dentists making big bucks?
Before you get into the debate of how to generate a good ROI, you will need to understand what ROI is and how you can measure or calculate it.
ROI or Return on Investment:
It is a performance calculation that is normally used to measure the competence of any investments. ROI measures how much return is being gained at a particular investment. This is calculated o understand and determine whether the cost is enough to gain profits. The result or outcome of ROI is articulated as either a percentage or a ratio. The formula that is used to calculate the ROI is,
ROI = (Gain from Investment – Cost of Investment) / Cost of Investment
Steps to generate good Roi:
The most effective way to generate good ROI is to market your practice, the more you market, the more people will remember you. Once they need a dentist the first name that will come to their mind will be yours. Marketing is a way to direct any patient in the right way regarding the value and efficient services. If you are to market your services, then you will need to understand the needs of your patient as to what is more important to your patient, you will also need to get an idea about the target market as well as patients spending trends. All this depends on the Demographic group that you will be targeting. As each group differs so does their needs as well as their spending trends. Once you have selected your targeted market, you can now start with your marketing plans. Here are a few marketing factors that you can follow.
The most cost-effective way of marketing your dental service in Internal marketing. This is also the highest-ranking strategy to get better even the best ROI. The internal market is nothing but catering to your existing clients. Once you have gained their loyalty, you will surely get more and more customers. Word of mouth may seem a small thing, but it’s huge when it comes to business. You can safely say that it can make or break a business. You will need to perfect and polish your business to satisfy your existing customers because it takes less effort to make your existing customer happy than getting an entirely new one. Once they have utter faith in your, they will refer with you even asking them to. Your work will speak for itself.
Referral and Referral Sources:
Train your employees to ask the patients for references subtly. You can train them to say “Your smile looks satisfied, we are glad that we were able to help you. Make sure you let your friends know about us too. Here, take a few of our cards just in case they need our services as well.”
Successful referrals should be rewarded as well. You don’t have to go out of the way for the rewards; they can be things like a thoughtful thank-you letter enclosed with a gift card for a restaurant, shop or even a movie ticket. Rewarding is one way of repeating. Moreover, the additional cost of the gift is easily covered by the referral itself.
You can’t have a successful marketing program is you don’t keep track of it. Keep track of your referrals; this will enable you to get the much-needed information about your targeted market as well as successful networks. The references are a two-way street, you can send gift cards and thank you letter to your patient who referred you, and you can give a discount to the patient that came through a referral. We saw how critical this is when one of the greatest dental clinics in Sandefjord, Norway – Tannlege Sandefjord: Velkommen til Tannlegene på Torvet that have only 5-star ratings, the referrals where trough the rough and the clinic quickly became one of the top in Sandefjord.