Every practice, from start-up to established, has the capacity for increased success, but budget allocation can vary based on factors such as practice age, the competitive environment where you’re located, how much you want to grow and how fast.
Budgeting includes monitoring and cost-control, production and revenue targets, and fund allocation for your marketing program to ensure you achieve your topline goals. Here are 3 steps to consider:
Establish your marketing goals –
- Do you want to focus on internal marketing to build patient loyalty and referrals? Are you going to reward referrals, and what are your monthly goals?
- Do you need to educate patients to increase case acceptance and treatment revenue?
- Do you need to market externally and find new patients to ensure practice growth? What are your new patient numbers now, and what is your monthly goal?
Take a close look at where you are now –
- Are you short on time, staff, or skills to create ongoing materials? Can you commit your own resources to your monthly marketing creative, production and implementation?
- Do you prefer in-depth hands-on involvement in your marketing, but want an expert to guide you?
- Do you want someone to just do it all for you?
- Is a multi-channel approach important to you and your patients? Incorporating electronic and print, for example, requires different types of content.
Establish a marketing budget that is realistic –
- A good general rule of thumb is about 4-7% of your gross revenue, but can be up to double that especially for a new practice.
- Consider your community – you may have to spend more aggressively to capture the market share you want.
- Plan on allocating more if you are a start-up, fee-for-service, on a high growth cycle, or incorporating multi-channel marketing technologies – it depends on your practice goals.
We all know we have to spend money to make money, but remember that your marketing budget allocation is your investment in your success. If you would like more information about marketing your practice and how to budget your marketing investment please send us an email with your questions: firstname.lastname@example.org