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Ep.101: Predictable Revenues are Possible

Beauty and the Biz

Knowing you can count on revenues coming in consistently and reliably without the financial roller coaster and sleepless nights is the goal.

Better patient experiences help you gain more predictable revenues because your patients like you and how you make them feel.

Increase your profits and valuation by an average of 275%!

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Hello and Welcome to Beauty and the Biz where we talk about the Business and

Marketing side of Plastic Surgery.

This episode is about enjoying Predictable Revenues in your practice.

And, no, Predictable Revenues are NOT a pipe dream.

Knowing you can count on revenues coming in consistently and reliably without the financial roller coaster 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.

Good patient experiences 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.

Also, pricing comes into play.

Here’s an interesting statistic from Scalable.com…..

64% of people who have 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.

The patient experience also affects retention which impacts your profit and valuation an average of 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 is because of their poor patient experience with you. That’s significant.

And then in terms of referrals, it can 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.

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 patient 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 of extra revenues or $500K.

And then in terms of your referrals increasing by nine times, let’s say on average, you get 50 referrals per year, that jumps to 450 referrals per year. Even if a new 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 $67K in patient acquisition advertising costs

Making at 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 $1.2MM

The point being… impact of something that seems as intangible as having a good patient experience can be very dramatic.

Here’s my recommendation…..

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.

If they called, what happened?

If they opted-into a website form, what happened?

If they DM’d you on social media, what happened?

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?

Did you make the paperwork process as hassle-free as possible?

Did you send them appointment reminders and so on.

What is their initial visit like?

Are they greeted by super friendly staff who make them feel welcomed and comfortable?

Are they seen on time or left 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 treatment, what is the process before, during and after their treatment?

If they came for a surgical consultation, what is the process before they meet the surgeon, during the consultation and afterwards?

How do you present quotes and help them make a decision?

Then, how do you follow up when they don’t book a sx procedure or when they do?

What’s the pre and post-op processes like so the patient feels cared for and comfortable.

What are your processes for:

  •  Patient Consents
  •  Before/After Photos
  •  Referrals
  •  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.

If this makes sense to you, let’s talk. We’ll find and fill in the gaps costing you too much in lost profits.

Ok that wraps up this episode.

Catherine Maley

Catherine Maley

Catherine is a business/marketing consultant to plastic surgeons. She speaks at medical conferences all over the world on practice building, marketing and the business side of plastic surgery. Get a Free Copy of her popular book, Your Aesthetic Practice: What Your Patients Are Saying View Author Profile.

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TESTIMONIALS

5/5
"Catherine outlined a plan that put key metrics in place, gave us a clear plan to follow throughout the year and trained our staff to increase their conversions by at least 10%. Since engaging with Catherine, I’m happy to report that revenues are up 15% over the last three months - 22% in the last month alone! I highly recommend Catherine’s consulting services to any practice looking for “best practice” additions to their operation."
Robert Sigal, MD
Robert Sigal, MD
"I have finally tapped into the most efficient way to grow my cosmetic practice and that is to “fish in the pond of my own patients”. When patients return to my practice, over 85% will purchase another service, product, or procedure. Not only was it worth over $200,000 in revenues this past year, it also reminds my patients I’m still around so they don’t wander off to my competitors. Catherine’s group has far exceeded our expectations and goals we had set up for them to achieve."
Victor Ferrari, MD
Victor Ferrari, MD
"Our consult conversions were running at 40-50%. Then we attended Catherine’s online training and implemented her strategies. They immediately increased conversion rates to 75-80%."
Anthony Corrado, MD
Anthony Corrado, MD
"I know how to run a profitable practice; however, it was not without major staff issues, inefficiencies and unproductive drama. With Catherine's guidance, I reorganized staff, set up processes for them to carry more of the workload and hold them accountable so I have more time to focus on patient care. The changes we put in place and the staff training to convert more callers and consultations will easily increase my revenues by 15% as well as save us time, money and costly mistakes. "
Evan Sorokin, MD
Evan Sorokin, MD
"Working with Catherine and her team has been very profitable. We’re only half way through the year and I’m up $200K and I’m booked out for the next 2 months even though we typically go into our slow summer months now. Her recent promotion brought in an extra $63,782 with more surgeries scheduled. I never realized how much money was sitting in my patient list but I’m a believer now!"
Robert Langdon, MD
Robert Langdon, MD
"Catherine Maley has one of the best Marketing Minds in the aesthetic industry, bar none. She understands the aesthetic patient and she also understands the challenges and frustrations we face as aesthetic surgeons. You will benefit from Catherine's tools whether you are new in practice or a seasoned professional.Turn to Catherine for guidance - she knows what she's talking about."
Edwin Williams, MD
Edwin Williams, MD
“Catherine’s Cosmetic Patient Marketing Service has been a great addition to our practice-building overall plan. While we still invest in our online presence, we also found immense value in the internal marketing efforts. We especially like that all results are tracked so we know we are getting a great return ... last year it was 1,148% and no staff time was used. That’s a much easier way to grow my cosmetic practice.”
Mark Mason, MD
Mark Mason, MD
"Catherine Maley turned our practice around. We converted more consultations in one week than we did in an entire month. Our practice went from a painful 50% no show rate to a remarkable 85% show rate. Even more impressive was our close ratio - from 35% to 80% and still increasing. We would recommend her to any practice that’s looking to not only increase their profits today, but sustain a healthy flow of income for many years to come. Thanks Catherine!"
Sam Assassa, MD
Sam Assassa, MD
"Catherine found me the best patient care coordinator I could have asked for. She worked out a payment plan that was fair to me and motivating to my coordinator. She also provided training tools to help my coordinator convert better, even though she was already experienced. The results have been phenomenal. So good, in fact, that my income increased 250% and I’m booked out for 3 months. Don’t waste any more time or money doing it yourself. Outsource to someone you trust!"
Andrew Lofman, MD
Andrew Lofman, MD
"Since we’ve been working with Catherine and her team for the past 5 months, we’ve brought in $79K in surgeries and have booked an additional 17 surgical procedures and 20 non-invasive body procedures since then. This does not include the additional new patient referrals and revenues we are seeing from the on-going nurturing of my current patient database."
Verne Weisberg, MD
Verne Weisberg, MD
"I had given my staff the goal to convert at least $35K per week in surgeries AND I gave them the tools to help which was Catherine’s Online Learning Center at More Patients Academy. They watched Catherine’s modules and implemented her strategies and converted $80K! That equaled a 2,550% ROI. Nice!"
Adam Stein, MD
Adam Stein, MD
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