COMMONLY ASKED QUESTIONS ABOUT dental MARKETING BUDGET CALCULATOR

How much should dentists budget for dental marketing?

Dental marketing budget allocation varies according to the size of the practice, the size of its market, and the degree of competition it faces. New dental practices need to allocate 12 to 20 percent of their revenue. In comparison, practices that have been around for more than five years can manage with a marketing budget allocation of 6 to 12 percent.

Let us get more precise here. To arrive at the ideal dental marketing budget, you need to work backward from your intended ROI. The revenue you earn from marketing should be 8 to 10 times your marketing expenditure.

For instance, let’s say that each of your Invisalign patients is worth $4,000 and that you are targeting 15 new Invisalign patients a month, which gives you $60,000 in new revenue. Working backward, the $60,000 in new monthly revenue that the practice is seeking suggests a monthly marketing budget of $6,000 to $7,500,

i.e., $60,000/10x ROI = $6,000 or $60,000/8x ROI = $7,500.

If this doesn’t feel intuitive, here’s a simplified version of this approach: your marketing budget should be between 10% and 12.5% of the targeted revenue.

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Why should dentists use a dental marketing budget calculator?

A dental marketing budget calculator helps dental practices estimate their dental marketing budget allocation. A budget calculator considers various factors such as your annual revenue, profit goals, etc., into account and builds an estimate for you to mobilize your financial resources optimally. Here’s an overview of the benefits of using a dental marketing budget calculator:

• You get a fair estimate of the ideal amount to spend on marketing
• You can select the time frame and generate an estimate depending on your practice goals.
• It helps you direct resources to specific areas of marketing
• It gives you a clear plan for your marketing activities moving forward.

Why should dentists understand their patient acquisition cost? (CAC)

Patient Acquisition Cost is the total expenditure incurred to acquire one patient. All the marketing efforts collectively contribute to the Patient Acquisition Cost from lead generation to the appointment booking stage. Here’s why dentists need to understand this metric.

• Measuring acquisition cost helps you determine how effective your marketing campaigns are in attracting more patients.
• It enables you to determine the value each patient brings and the resulting ROI from acquiring that patient.
• To gain an accurate understanding of whether your practice is operating at a sustainable profit margin.

Not tracking the CAC is a fatal mistake as it leaves you with no insights on whether your marketing efforts are bearing favorable results.

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What if I’m currently spending more than the marketing budget calculator estimates?

Suppose you are currently spending more than what is recommended by the dental marketing budget calculator. In that case, you need to evaluate if the extra spend is generating proportionally higher returns for your practice. If the returns are not in proportion to what you are spending, it is wise to stick with your budget calculator figure. Your dental marketing agency should be able to help you make an intelligent decision here.

How to choose dental digital marketing channels for your dental marketing plan?

Curating the perfect mix of dental digital marketing channels is crucial for your dental marketing campaign’s success. Here are five tips to help you execute that task accurately:

• Get acquainted with different dental digital marketing channels. Have a look at crucial metrics like CPC, conversion rates, CTR, engagement rate, etc. for all these channels/
• Define the goals you intend to achieve through digital marketing and prioritize investment in those channels that directly contribute to accomplishing your goals. 
• Identify the channels where you are most likely to reach your audience
• Learn the costs and returns associated with each marketing channel