What’s Wrong With My Practice?
Right now, we don’t know. Anyone who walks into your practice with a pre-fabricated plan for success doesn’t know either. We never work with a practice without a thorough analysis of several key components of the practice.
Any business is a complex system that requires all the components to interact seamlessly and efficiently in order for the practice to succeed.
Sample Practice – ABC Hearing
ABC Hearing came to us with an annualized net income of $82,632.
Obviously, the practice owner was doing something right but sensed that he wasn’t coming close to the potential of the practice.
Every relationship has a starting point. Our starting point with every practice owner is the “audit”. The audit provides us with a comprehensive overview of each of the critical components of a hearing healthcare business.
The starting point for the practice above was $82,632, not a bad number but as in most practices we work with, there was a substantial amount of room for improvement. Following the audit and an in-depth analysis of the practice, we focused on 5 key areas for improvement.
- Reducing the cost per lead.
We put systems in place to allow for an analysis of their cost per lead. Their cost per lead was $462, significantly exceeding the industry standards. A reduction of the less effective marketing methods accompanied by the addition of more effective marketing methods allowed the cost per lead to decline significantly.
- Increasing the number of referrals via internal marketing.
The practice was not taking advantage of their large database. We implemented several in-house marketing strategies, significantly increasing the word of mouth referrals without negatively impacting the overhead.
- Increasing the closure ratio.
To put it simply, no one in the practice could sell. Training an individual to sell any product is never easy, but it’s always worth the effort. Our sales training program is simple to implement and will on average bump a salespersons closure ratio by 20%.
- Decreasing the cost of goods sold.
Their cost of goods was slightly higher than we typically see in the average hearing healthcare practice. Once they established a cost of goods they were comfortable with, we implemented systems to ensure the COG would continue to be monitored and changed in response to vendor increases.
- Improving the ability of employees to convert leads into appointments.
We provided training to the support staff so they better understood that the goal of a phone goal is not just to answer the phone.
We spent time implementing one change at a time. Once the change is implemented, systems must be put into place to ensure the change is permanent.
With the changes in place the practice generated $374,280 in the 12 months following the implementation of our changes.
As mentioned earlier the practice owner sensed his practice had untapped potential. He was right.