Mastering Key Metrics: Patient Visit Average and Lifetime Value

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)?

Patient Visit Average represents the average number of visits a patient makes to your practice over a given period. This metric is critical as it reflects patient retention and the efficacy of your treatment plans.

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.

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Understanding Lifetime Value (LTV)

Lifetime Value calculates the total revenue you can expect from a patient over their relationship with your practice. It is a projection of future earnings from each patient, helping you gauge the long-term value brought by your marketing efforts.

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.

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Evaluating ROI Using PVA and LTV

When assessing the ROI of marketing campaigns, consider both the cost of acquisition and the potential revenue per patient as indicated by LTV. For instance, if a Google Ads campaign costs $2000 and brings in 10 new patients, the cost per acquisition is $200. If the LTV of each patient is $1000, then the campaign has yielded a substantial return.Furthermore, the expected total return from 10 new clients is $10,000, representing a significant boost to revenue.

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.

Simon Mauger

Founder and CEO of practiceedge

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