Frequently when we talk to upper cervical chiropractors about their chiropractic marketing budget. We frequently hear things like:
“I really don’t have a specific marketing budget.”
“I don’t actually have a plan in place to reach my goals when it comes to marketing.”
“If I have a little extra money this month, maybe I will spend it on marketing”
Most upper cervical practices don’t have a marketing director. So the marketing of the practice falls to the clinic director. Some doctors are very skilled at chiropractic marketing, but most struggle in this area, especially generating patients from external sources.
Word-of-mouth referrals and internal marketing promotions are excellent ways to maintain the size of your practice. But if you have the goal to increase the size of your practice you must be doing external marketing.
In this article, we will walk you through the three steps you need to take to determine your chiropractic marketing budget based on your current collections and goals. Let's get started.
The 1st step in determining what a proper chiropractic marketing budget should be for your practice when it comes to marketing is to sit down and create SMART goals-specific, measurable, attainable, results-focused, and time-dependent goals.
You should have goals for patient visits, new patients, and collections, at the very least.
Next develop a month by month, week by week, and day by day chiropractic marketing plan focused on achieving your goals.
Once you layout the marketing activities that you will be participating in both internally and externally, you can then begin to develop a chiropractic marketing budget.
Based on the small business administration data, all upper cervical chiropractic practices should be spending about 7.5% of gross revenue on marketing. So for instance, if you collect $30,000 per month you should be spending about $2250 per month on your chiropractic marketing budget.
Now if you are looking to aggressively grow your practice you should be spending at least 10% of your gross revenue on marketing. So for instance, if your practice is doing $60,000 per month in collections and you want to consistently grow to be a million-dollar practice then you should be spending at least $6000 a month on marketing. This is related to all of your marketing expenses both internal and external. The most successful companies in the world are spending as much as 20% of their gross revenue on marketing.
If you are not spending any money on marketing that you are not helping as many people as you could. There are many people in your community that have no idea that you exist and a well-executed marketing plan is designed to reach more sick and suffering people in your community with hope and healing messages.
So the truth is if you want to grow your practice you need to spend money on marketing. What you want to look for is a good return on investment. If your case fee is $2000 and you spend $1500 a month on a new marketing program and that gets you on average 5, well-educated prequalified patients per month, who all start care, then your $1500 investment just created $10,000 in additional revenue for your practice. That would be an excellent return on investment!
When calculating your chiropractic marketing budget to understand the steps necessary to achieve your practice goals. For instance, if you want to see 5 more new patients per month for the rest of the year for a total of 30 new patients and you know that 3 out of every 4 new patients who come into your office start care with you, then you will need to generate 40 new patients from your external marketing over that 6 month period.
Then you just need to track backwards from 40 new patients to determine how many new patients you need to have per month, per week, and per day you’re in the office. Then establish a chiropractic marketing plan and budget to attract those new patients.
An excellent tool that you can use to determine how much your chiropractic marketing budget should be based on your collections and goals is our Chiropractic Marketing Calculator and Budget tool. In this resource you will have access to:
You can grab this tool here https://sales.uppercervicalmarketing.com/Calculator.
A crucial part of a chiropractic practice is consistent marketing to grow. If a practice is not growing then it is dying. There is no status quo. Properly understanding your chiropractic marketing budget is an important first step in consistently growing your practice.
If you want to learn more about growing your practice give us a call to have a quick chat at 877-252-1230.