Episode 28 of our podcast is out NOW! In this episode we cover the 9 Numbers Your Med Spa Needs to Track To Grow your business.
We get it, you are stuck in the day to day, working IN your business, putting out fires left to right and hustling to get things done, and there is no time left to work ON the business. Which can make it really hard to know what will it take to get to the next level, whatever that means to you and your business.
Maybe you want more monthly revenue, more people in your business, or even get a new technology. The goal is there, and you might be doing all the things, but nothing seems to be moving you forward. Wouldn’t it be great if you can get a chance to see a bird’s eye view of where the problem is and how to fix it?
Well, we’ve got you! In this week’s episode, we talk about the 9 numbers you need to keep consistent track of. First off, we talk about the importance of the data that this gives you, which will help you make the best decisions on where and when to spend your money wisely for your specific goal.
Identifying these numbers is very valuable. It can answer a lot of the questions you might have within your business. It will help you understand it better and create a strategy. Overall, this data will give you the leverage you need to grow your business.. Because now, you can reverse engineer how much money you need to get to your next goal. No more making assumptions. This is a numbers game.
Here are the 9 numbers you need to know:
- Identify Monthly Advertising Budget
If you’ve been spending whatever you need to spend, grab a number now and stick to it for the next three months to see what you can get out it. To figure this budget out, it all depends on what you are advertising and how much money that service will bring in return. Check out the podcast to know how much money we tell our clients to spend on average.
- Number Of Leads Generated W/ Ad Budget
How many leads came from the advertising budget above? This number can be easy to find out if you are using any sort of digital advertising. You can keep track of it on your Facebook and Google platforms, a spreadsheet, or even our software PatientGem.
- Cost per Lead
[# of Leads / Monthly Budget = CPL (Cost per Lead)
Grab the two numbers above to get your cost per lead. Keeping track of this number throughout the year will be helpful to know monthly trends and when to add more money or less to your campaigns.
- Number of Appointments Generated from Leads
Appointments / Leads * 100 = Lead to Appt. Conversion Rate
What was the conversion rate? We like to track this number as a percentage. We want to know what percentage of the leads that came in from our marketing efforts ended up making appointments. Not all of your leads will end up scheduling appointments, that is just the name of the game, but tracking it will help us make informed decisions in the future. Plus, we can start asking ourselves why. And if there is something we can improve in our campaigns, our funnel, or even our systems.
- Number of Consults Generated from Appointments
Consults / Appointments * 100 = Appt. to Consult Conversion Rate
What was the conversion rate? Out the people that made appointment to come in, how many actually showed up? Two other numbers you can track here is the Cancellation Rate & No Show Rate. And asking why. This might be a big problem for a lot of practices and med spas. Did that lead live too far away? Did we schedule them too far since they called in? Did we not send them a message or call reminder? And what can we do to fix that.
- Number of Closes Generated from Consults
Closes / Consults * 100 = Consults to Closes Conversion Rate (Closing Rates)
What was the conversion rate? How many of those who showed up to their appointment became paying patients? If this number is too low, we might consider all the possibilities as to why. Sometimes focusing more on sales techniques that can help us close those clients might be exactly what we need.
- Average Sale Value
Total Sum of Revenue Closed / # of Patients Closed
Identifying what the average sale value is can be very beneficial, because with this number you can know how much you need to be selling in order to reach a certain goal. It also helps you to make predictions off of that.
- Cost Per Sale
Monthly Ad Budget / # of Patients Closed = Cost Per Sale
How much is it costing you to get a new patient in your business on average? This is your front-end money. And if this number is too high for the average in the industry and your area, we might need to consider several things to do in order to bring this down. We will look at all the numbers above and see where the discrepancy is to know what we need to work on.
- Lifetime Patient Value (LTV)
= Average Value of Appointment * Average Number of Appointments Each Year * Average Number of Years They Visit Your Practice
Example: 3 Visits x $150 x 3 Years = $1,350
This is your back-end money. How many times is that new patient coming back to your practice to get a service/treatment? It might take some time to get this number, but it is worth it since you will be able to know how much money you can spend in the beginning.
With these numbers you now have the data you need to create a strategy to reach your business goals. You don’t have to guess or be in the dark to grow. Download our PDF with all the numbers you need to be tracking and their formulas.
You can always create a Google Spreadsheet, but PatientGem makes is so easy for you and your staff to track these numbers and visually see what is happening in your business every step of the way!
Check out the entire episode for more information.
This episode is being sponsored by PatientGem. Visit www.gopatientgem.com to get a FREE 2-Week Trial.
Subscribe & Review in iTunes
Are you subscribed to our podcast? If you’re not, we want to encourage you to do that today. We don’t want you to miss an episode. SUBSCRIBE HERE.
Now, if you’re loving this content, we would be really grateful if you left us a review over on iTunes. Those reviews help other people find our podcast and they’re also fun for us to go in and read. Select “Ratings and Reviews” and “Write a Review” and let us know what your favorite part of the podcast is. Thank you!