Predictable revenues for plastic surgeons are NOT a pipedream.
Knowing you can count on revenues coming in consistently and reliably without the roller coaster revenues and sleepless nights is the goal.
So how do you make that happen?
Here is the answer and I hope you hear this…
Better patient experiences help you gain more predictable revenues because your patients like you and how you make them feel.
Decrease Patient Acquisition Costs
Good patient experience can drive a 1.3X to 2.4X increase in revenues per patient.
So, if a patient’s average value to you is $5K, you can increase that from $6,500 to $12K.
AND, with that influx of revenues, you can decrease your patient acquisition and advertising costs by 3-10X.
So, you make more and spend less in the process.
When it comes to predictable revenues for plastic surgeons, pricing does come into play.
Here’s an interesting statistic from Scalable.com…..
“64% of patients who have experienced good customer experiences are willing to pay 18% more on average.”
Isn’t that true? I know I have and I’m sure you’ve paid extra because paying extra saved you time, money, hassle and you felt good about your result and experience.
The secret is to change your mindset, team, and processes to cater to those patients who care more about the relationship and experience they have with you than they care about saving money.
Patient Retention Impacts Profits
The customer experience also affects retention which impacts your profit and valuation on average 2.75X.
So, if your revenues are $1M per year, they could be $2.75MM if you would simply retain the patients who already know, like, and trust you.
BTW, 40% of patients who leave and don’t return say it’s because of their poor patient experience. That’s significant.
Referrals Matter When It Comes to Predictable Revenues for Plastic Surgeons
And then in terms of referrals, they directly impact your revenues because good patient experiences have been shown to increase referrals by 9X on average, whereas poor patient experiences tend to decrease referrals and revenues by about 16X. YIKES!
These are very significant swings impacting the growth and health of your practice.
Example in terms of actual numbers:
Let’s say you spend $100K per year on patient acquisition and you improve the patient experience, so they return and refer their friends. You’re now able to drop that expense up to 67% to only $33K per year.
That means you’re going to decrease cost and increase profits directly because decreasing your customer acquisition cost helps your bottom line. You don’t have that huge expense anymore. That expense is going to go away by $67K.
Now for revenues, having the price increase of 18% (because you are catering to patients who pay extra for good customer service) gives you an extra boost of revenues. So $1MM becomes $1.18MM or an extra $180,000.
Now for retention, let’s say you increase the lifetime value of a patient from $5K to $10K which is going to directly increase your profit. If you only do that for 100 patients per year (out of the thousands you usually have in your database), that’s 100 x $5K extra or $500K.
And then in terms of your referrals increasing by nine times (per scalable.com), let’s say on average, you get 50 referrals per year, which jumps to 450 referrals per year. Even if a newly referred patient is only worth $1K that first year, that’s still an extra $450K.
So, when we look at the total benefits of just upping the game on your patient experience, we’re talking about significant revenue increases.
Because the annual cumulative effect of:
Saving $33K in patient acquisition advertising costs
Making an extra $180K by increasing your pricing
Increasing your retention & average lifetime value of a patient is an extra $500K
And the extra referrals are at least another $450K
That’s an extra $1,097,000.
The point being… impact of something that seems as intangible as having a good customer experience can be very dramatic.
My Recommendations for Predictable Revenues for Plastic Surgeons
Meet with your team with the sole purpose of dissecting the entire patient experience from beginning to end to find ways to make their experience more comfortable and more memorable.
Start with the initial contact the patient has with your office.
What happens when someone calls your office or opts into your website form or DMs you on social media?
Then if they scheduled an appointment, how easy was it?
- What was the pre-appointment or consultation like?
- Did they get a welcome package or email or video explaining what to expect on their visit?
- Was the paperwork process as hassle-free as possible?
- Did you send them appointment reminders and so on.
Then, what is their initial visit like?
- Are they greeted by super friendly staff who make them feel welcomed and comfortable?
- Do you see them on time or keep them waiting?
- Does your in-house signage and visuals subtly educate them on all you offer so you never hear them say, “I didn’t know you did that”?
- Then what? What’s the next step to examine?
If they came for a non-surgical tx, what is the process before, during, and after their treatment?
Or, If they came for a surgical consultation, what is the process before they meet the surgeon, during the consultation, and afterward?
- How do you present quotes and help them make a decision?
- Then, how do you follow up when they don’t book a surgical procedure or when they do book a surgical procedure?
- What’s the pre and post-op process like so the patient feels cared for and comfortable.
Additionally, what are your processes for:
- Patient consents
- Before/after photos
- Online reviews and so on.
It’s this kind of detail that differentiates you from your competitors, attracts a more sophisticated patient, and allows you to charge more.