Do You Know The Average Lifetime Value Of Your Dental Patients?

Your patients are your most valuable asset. But it’s not just the number of new patients your practice brings in that matters. It’s the total profit those patients deliver over time that can make or break your business. To run a successful dental marketing campaign, you need to know the average lifetime value of a dental patient for your practice specifically.

So how do you determine the average lifetime value of a dental patient, and what does it really mean for your practice? In this article, we break down how much a dental patient is worth, so you can maximize revenue and grow your business while building meaningful relationships with your patients.

01What is customer lifetime value?

Customer Lifetime Value (CLV) is a prediction of the total worth of a client to a business over the entirety of their relationship.

CLV is a crucial marketing measurement for any business, but especially for relationship-driven businesses like dentistry. Think about your ideal patient. They don’t come in for one routine check-up and disappear. They come to you for all their dental needs throughout their lifetime, depending on you to maintain a healthy smile for years, and that adds up. The average lifetime value of a dental patient is an important metric when investing in your practice and calculating your marketing ROI.

02What is the lifetime value of a dental patient?

No two dental practices are alike, so lifetime value varies by location, the services offered, and the effectiveness of the practice’s online marketing strategy.

You may have heard $10,000 thrown around as the magic number for the average lifetime value of a dental patient. Derek Naylor, a dental practice consultant, offers a more optimistic estimate of $22,000. At the top of the spectrum, True Dental Success believes the lifetime value of a dental patient is around $45,000 over a 20-year lifetime.

03How to calculate lifetime value for your practice

Given the large differences between estimates, we suggest calculating lifetime value for your own practice. Here’s what you’ll need:

• Lifelong relationship: The total length of time, in years, that the average patient stays with you.
• Average annual value: The revenue you make from each patient per year.
• Client referral value: How many patients the average client refers, and what they are worth.

First, determine how much the average patient spends per year. If most patients come in twice a year for hygiene and exams and spend $400 each time, the Average Annual Value is $800.

Next, you need the length of the average patient relationship. If you’re not sure, use an industry average of ten years. That puts the patient’s lifetime value at $8,000 so far.

Now add referrals. Say the average client refers two new patients over their relationship with your practice. Each new patient is worth an additional $8,000, so the Client Referral Value is $16,000.

You won’t be able to predict the average lifetime value of a dental patient down to the penny, but as long as you know the average behavior of most of your patients, you will get a realistic idea. Number crunching isn’t always glamorous, but monitoring your new patients and estimating their lifetime value is critical to the success of your practice.

04Why customer lifetime value matters

Once you know the average lifetime value of a dental patient, you can make more informed decisions about your marketing, hiring the right dental marketing company, and advertising to new patients. You never want to spend more acquiring new patients than the lifetime profit they deliver to your practice.

Knowing what each new patient is worth also gives you a number to exceed. When you improve the average lifetime value of your patients, your practice becomes more successful and more valuable.

05How to maximize the lifetime value of your dental patients

1. 1
   Consistently provide quality serviceNever underestimate the value of over-delivering on your services and nurturing your relationships with patients. Treat every patient like a VIP, and they will keep coming back to you for all of their dental needs.
2. 2
   Acquire the right patientsFocus on acquiring patients who will say yes to complex cases and who have the insurance or income to pay for those procedures. Optimized Facebook ads for dentists, paired with high-converting dental websites, can help direct these patients to your premium offerings.