News flash – there are other Key Performance Indicators (KPIs) than Return on Investment (ROI) and cost!
Don’t get me wrong – knowing how profitable you are and what you’re spending are probably THE MOST IMPORTANT metrics of financial success for your practice.
Yet, these figures don’t occur in a vacuum. There are a number of very important marketing metrics that directly influence your practice’s bottom line.
In this post, I’ll outline some of the most important marketing KPIs and what needs to happen in order to ensure success.
Conversion Rate (CVR)
Let’s begin with a KPI focused on driving new business. In a digital sense, conversion rate is the number of people who complete a form (think of examples like a Contact Us or Request a Demo form) or call-to-action divided by the total number of visitors who visit your website or a landing page.
Conversion rate is a direct correlation of how effective your marketing efforts are in turning people of all interest levels into leads. The better the targeting, messaging, and user experience, the higher the conversion rate, meaning the more leads your practice generates!
Cost Per Lead (CPL)
Cost Per Lead is a measurement of the money it costs you to generate a new lead. In other words, how much money does each lead cost you? It’s a measure of your marketing cost during a timeframe divided by the number of leads you’ve driven during that same amount of time.
This metric is particularly useful on a channel-by-channel basis. By calculating how much it costs to drive leads by channel you can invest more time, money, and resources into effective marketing channels and less into those that are providing a poor return.
If possible, DO add your marketing overhead cost into the calculation. By including costs like salaries or marketing management fees you’ll get a much more precise indication of what’s working well vs. what isn’t.
Lifetime Value (LTV)
Calculating the Lifetime Value of a patient is, frankly, not always an easy task.
You need to know the initial revenue a new patient brings in on average plus the average revenue each following visit drives until the person is no longer a patient.
That said, insight into what a patient is financially worth to your practice in the long-run is probably the best indicator of how much you can spend in marketing dollars to attract each new patient. It’s worth the effort if you can comb through all of your present and past patient accounting records!
If you are able to keep a close eye on all 3 of these marketing KPIs over time you’ll have a much better awareness of what’s working vs. what isn’t from a marketing perspective, contributing to greater overall success for your practice.
Are you a current or prospective client with questions surrounding any of these KPIs? Feel free to Contact Us for further support!
—Mike Fitterer, Sr. Marketing Manager, Sesame Communications