In any healthcare practice, understanding the financial health and the effectiveness of your marketing strategies is vital.
Two key metrics that provide deep insights into these areas are Patient Visit Average (PVA) and Lifetime Value (LTV). By mastering these, you can make informed decisions about your marketing strategies and understand the return on investment (ROI) of your campaigns.
What is Patient Visit Average (PVA)?
How to Calculate PVA
PVA=Total Number of Visits/Number of Unique Patients
For example, if your practice had 100 visits last week from 10 unique patients, your PVA would be:
PVA=100/10=10
This means, on average for the previous week, each patient visited your practice about 10 times.
Applying PVA
A higher PVA suggests effective patient management and retention, indicating that patients return to your practice multiple times. This is a sign of trust and satisfaction, which are crucial for sustained practice growth.
Understanding Lifetime Value (LTV)
How to Calculate LTV
LTV=Average Value of a Visit×PVA
If the average value of a visit is $100, using the PVA from the previous example:
LTV=100×10=$1000
This figure represents the expected revenue from each patient based on current visit patterns and spending.
Applying LTV
Understanding LTV helps in determining how much you should invest in acquiring new patients and retaining existing ones. It also aids in evaluating the ROI of different marketing campaigns. If the cost to acquire a patient is less than the LTV, your marketing efforts are likely generating a positive return.
Evaluating ROI Using PVA and LTV
Conclusion: The Power of Key Metrics in Healthcare Marketing
By understanding and monitoring PVA and LTV, your practice can make strategic decisions that optimise both patient care and business growth. These metrics help evaluate the effectiveness of your existing strategies and plan future marketing efforts to ensure the best outcomes for your practice and patients.
Ready to dive deeper into how these metrics can transform your practice?
Contact us at practiceedge, and let's explore how we can tailor your marketing strategies for maximum impact.
Founder and CEO of practiceedge
