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