Do you know the secret to growing an orchid? It’s easier than you think. Place it on a windowsill with indirect sunlight. Every couple of weeks, take it out of its pot, rinse the roots with tepid water, allow it to drain, and put it back in its pot on the windowsill. That’s it.
So, what do orchids have to do with marketing? A physician practice without a marketing budget is like an orchid without water and sun. Neither can grow without proper care. For healthcare organizations today, proper care includes creating a marketing budget and plan.
Most practices spend from 2 to 15 percent of their net revenue on marketing. That’s quite a range. Percentage recommendations depend on many factors like global competition, practice size, new doctors joining the group, growth goals, and the practice’s specialty.
For instance, an established practice that’s been around for 20 years may only need a 2 percent budget. A new physician group just opening its doors would need more, up to 15 percent. Where does that leave you?
- Practice profile – Your office relies primarily or entirely on reimbursements from Medicare. You are currently experiencing very limited profit.
- Recommendation: Diversify revenue streams and attract more commercial pay patients by adding 2 to 5 percent to your marketing budget.
- Practice profile – Your practice recently added and introduced new, high-profit services, products, or technology.
- Recommendation: Recover the hard costs of those items by adding 5 to 8 percent to your marketing budget.
- Practice profile – Your office has lost market share in your area.
- Recommendation: Consider increasing your marketing spend by 2 to 5 percent. Many medical offices do not aggressively market themselves. A small budget increase will go a long way to regain market share and get ahead of competitors.
- Practice profile – You want to kick your practice’s growth into high gear.
- Recommendation: Achieve your goals by increasing your marketing budget by 5 to 10 percent.
- Practice profile – You have no marketing plan or budget. You just want a consistent flow of patients.
- Recommendation: Spend 2 to 3 percent of your revenue on marketing. Even if your goals are modest, money spent on marketing will ensure a steady stream of patients.
An orchid will weaken and wither away without the proper care. So will your practice. We can help you thrive by generating a marketing budget, plan, and strategies that best suit your practice’s needs and goals.