Most practice owners can easily determine their marketing costs by checking their budget and expenses. But, do you know what those costs translate to in profits?
The Customer Acquisition Cost or CAC is amount of money spent to acquire 1 new patient.
Let’s see a simple CAC example for PT practices. If you spend $3,000 per month on marketing and get 30 new patients, the customer acquisitions cost or CAC is $100 per patient. That means in 1-2 visits, the marketing costs to get each patient have been paid off. For practice owners, you should use this information to calculate how much to spend on your marketing based on the return on investment.
You can also determine how much each individual component of your marketing program contributes to new patient growth. For example, say you typically spend $3,000 per month on marketing and get 30 patients. Then, you add a new website program at $600 per month ($3,600 marketing spend per month total) and get 50 new patients. The CAC actually dropped from $100 last month to $72 per patient even with spending more for your website. You now know that the website marketing costs equals $28 savings in acquiring new patients.
“What is the RIGHT Marketing Budget?”
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