4 Key Factors Every Successful Clinic Considers When Investing in a Device

1) Do your patients want the treatment?

It’s easy to think that buying a new device with a high per-treatment profit margin must mean it’s a good investment, but this simply isn’t true. You must consider the likely penetration of that device within your current patient cohort. This means understanding your patient demographic, their likely willingness to expand their spending with you, and most importantly, create an estimate of that penetration as part of a commercial validation exercise. 

The great news is, research shows that your current clients are 60-70% more likely to make a purchase compared to new ones. Additionally, acquiring a new customer is five to ten times more expensive than retaining an existing one. This means focusing on your existing patient base can significantly enhance profitability and reduce costs.

Taking Action:

•  Understand Your Database Every clinic should know the key aspects of their patient database. These include: how many patients do you have, what is your retention, what is their average LTV (lifetime value), key demographics, how did they find you, to name a few. For this exercise, “penetration” of the device, i.e. how many of your patients are likely to book the treatment, is key.
• Don’t Send a Survey By now you know how important it is to conduct a thorough consultation with every patient. If you are considering a device now or in the future, note trends in patient concerns that could be assisted with a new modality. Surveys are designed to gather information you don’t already know. With thoughtful integration into your consultation and future-planning, you’ll have all the information you need ready when you need it.

2) Can you and your team cross-sell the treatment?

Introducing a new device isn't just about the equipment; it's about ensuring your team can effectively promote it. Cross-selling requires confidence and knowledge. Your staff’s ability to effectively communicate the benefits of new treatments, and their willingness to discuss new treatments with patients are both crucial to your success.

The great news is research shows that staff who are well-trained and confident in their knowledge are significantly more successful in cross-selling. By supporting your team with new and continued training, as well as setting the clear expectation to discuss new treatments with patients, greatly increases the likelihood that you will meet or exceed your penetration estimate.

3) What are the acquisition costs for new clients?

By choosing the right device for your patient population and fully leveraging integrated sales opportunities, you’ve started on the right path. But it is highly likely you’ll need to attract new patients to continue reaping the benefit of your investment.

This is where a well-executed client acquisition strategy comes into play.  Whilst it is clearly more expensive to attract new clients than to retain existing ones, most businesses will need to invest in acquisition at some point.

However, it’s important to remember that an acquisition strategy requires a retention strategy to maximise the long-term ROI and increase the LTV of each patient. This means considering what you’re doing to keep all the new patients you earn from your efforts.

Taking Action:

• Digital Marketing Campaigns Launch targeted campaigns on social media and Google Ads to reach potential clients. Highlight the unique benefits and success stories of the new treatment. It bears repeating that nothing is more effective than good before and after photos, so make sure to prioritise this (and gain consent to share those photos!)
• SEO Optimisation Whilst “seo” might seem like magic, it’s just simply involved ensuring your website includes keywords and phrases that people are likely to search for, improving your site’s visibility on search engines. This increases the chances of acquiring patients “organically,” i.e. without explicitly paying for them. 
• Ask for Referrals Asking a patient to tell their friends about the great results they have gotten from their treatments is perfectly ok!

4) What are the hidden costs of the treatment?

Understanding the hidden costs associated with a new treatment is essential for making an informed investment decision. Whilst consumables are a factor, they are only a part of the total cost.

It's essential to conduct a cost analysis; the depth of this analysis is likely to vary depending on the size and complexity of your clinic. Most clinics should at least consider the opportunity cost of the treatment and staff costs. By doing so, you can develop a realistic financial plan that ensures the new device contributes positively to your clinic's bottom line.

Bonus Tip: Plan for Device Downtime

Devices aren’t always operational. Factor in downtime for maintenance and repairs to avoid disruptions.

Taking Action:

• Buy a Service Contract Many manufacturers offer service plans or work with providers to do so, consider if one of these plans makes sense for your clinic. This can often be more cost-effective than ad hoc repairs.
• Disaster Planning As you grow your business, consider creating plans to deal with risks, such as having a device out of service. This type of planning can stimulate creative solutions that you’ll have ready if they are needed.

Conclusion

Bringing a new device into your clinic involves more than just looking at consumables and profit margins. By considering patient interest, cross-selling ability, acquisition strategy and costs, and other hidden costs, you can make a well-informed decision. If you need help with strategic decision-making, Glow Strategy Group is here to support you.

Download the spreadsheet to help with your calculations and schedule a 30-minute 1-1 session with Andrew through ConsultingRoom for personalised assistance.

For more information, please visit www.glowstrategy.co.uk