Top dentists reinvest at least 5% of total production back into marketing to maintain thriving practices. That could mean an annual marketing investment of $30,000 to $60,000.
Where does the capital come from for the initial investment?
Here are three simple ways to free up funds to invest in better marketing:
- Cancel current marketing tactics. (Especially those that aren’t working well.) List everything the practice is currently doing for marketing. Next to each, write down the cost. This is the Investment. Next to that, write down the total number of patients that came to the practice from that tactic in a particular time period no shorter than 3 months. (Nix from the list anything that’s been running for shorter than 3 months since that’s too early to draw metrics.) Multiply the number of patients by the average value of a patient to calculate your Return. If the Return is not greater than the Investment, cancel the marketing tactic. If you are in a long-term contract, see if you can renegotiate. In many cases, the same budget you are currently spending can be optimized into a worthwhile marketing investment. Simply canceling a directory listing can open up $15,000 annually.
- Sign up for discounts. Join a buyer’s club to get discounts on supplies, lab fees and implant systems. There is no better way to create instant savings. There’s no need to sacrifice quality in order to capitalize on discounts. Web-based buyer’s group Dentistry Unchained seeks out high-integrity providers that are willing to offer services and products at better rates. Practices that utilize these group discounts save up to $25,000 annually.
- Pause your practice consultant. An excellent practice consultant always has the practice’s best interest at heart. If the practice is in dire need of a sudden marketing injection, consider asking your practice consultant to put your contract with them on temporary hold. A 3-month break probably won’t be detrimental to the practice (but check with your consultant first), and that will free up $2,000 per month.
Most practices are already spending what is needed to fund a robust, comprehensive marketing plan. But that’s just it – they are spending it.
Marketing should never be an expense. It should always be an investment that produces healthy returns.