Are you struggling to build a marketing budget for your practice? If so, you’re not alone. Often, practices we first meet are stuck in one of two places: 1) ‘Analysis paralysis’: They’re so overwhelmed with not knowing what to do that they never do anything. Or, 2) ‘Spaghetti marketing mode’: They’re so overwhelmed with not knowing what to do that they’re throwing diluted dollars at everything to see what sticks.
In today’s competitive healthcare landscape, attracting new patients (and keeping them) is crucial for the success and sustainability of your practice. But with so many marketing options available, creating a budget that delivers results can feel overwhelming. It’s important to remember there’s no one-size-fits-all plan. However, a well-defined marketing budget built on specific goals and data-driven insights can deliver a strong return on investment (ROI). Here’s your guide to crafting a winning practice marketing budget:
Step 1: Know Your Numbers
Before diving into marketing strategies, you must understand your current financials.
- Revenue
- Overhead
- Profitability
- Value of a New Patient: This number will vary by specialty and may seem ambiguous. But it’s critical to consider when building your practice marketing budget.
This financial snapshot helps you determine how much you can realistically allocate to marketing. We usually recommend aiming for 5-10% of your revenue, adjusting based on your practice’s growth goals.
Step 2: Define Your Goals (and Target Audience)
Vague goals like “get more patients” won’t lead to a targeted marketing budget. Ask yourself:
- Who are you trying to reach? New patients within a particular demographic or service line? Or is your practice more referral-based?
- What are your desired outcomes outside of increased patient volume? Increased brand awareness, or appointments for a specific procedure or treatment?
By defining your target audience and goals, as well as ROI, you can choose the most effective marketing channels.
Step 3: Explore Your Marketing Options
Here are just a few popular marketing channels for physician practices, along with estimated costs:
Website & Search Engine Optimization (SEO)
A user-friendly, informative website is your digital storefront. Invest in professional design and SEO optimization to rank higher in search engine results. Additionally, well-written and optimized blog posts can bring hundreds, if not thousands, of additional visitors to your site each month organically. (estimated cost: $2,000 – $10,000+).
Pay-Per-Click (PPC) Advertising
Target online searches with ads on popular search engines. You pay only when someone clicks on your ad, allowing for budget control. (estimated cost: $500 – $5,000+ per month).
Social Media
Engage with patients on relevant platforms like Facebook or Instagram. Initially, we typically recommend at least 2 posts per week per platform and build on from there. If you find your organic reach is limited, consider paid promotions for wider exposure. (estimated cost: Free – $1,000+ per month).
Email Marketing
Build an email list to nurture relationships with existing patients as well as promote new services, treatments, and procedures (estimated cost: Free – $100+ per month for email marketing software).
Print & Swag Marketing (Rack Cards, Flyers, and Branded Materials, etc.)
While digital marketing dominates, targeted print materials are still very effective. Well-positioned print materials and unique swag are both practice referral reminders as well as patient education tools for a referred patient. (estimated cost: Varies significantly based on design, printing, and distribution).
Online Patient Reviews
Encourage patients to leave positive reviews on platforms like Google Business, Facebook, Healthgrades, Vitals, and Yelp, etc. Positive online reviews can significantly influence patient choice. (estimated cost: Free)
Step 4: Allocate Your Budget Strategically
Now comes the magic: allocating your budget based on your goals and target audience. Here’s a basic sample breakdown of how a practice marketing budget might look:
- 65% – Website & SEO, including regular Blog posts (foundational element, as well as brand awareness and patient acquisition)
- 15% – Social Media (patient engagement & brand awareness)
- 10% – Print & Swag Marketing (brand awareness
- 10% – Email Marketing (patient communication & retention)
This is just an example. You will adapt and allocate your budget based on your practice’s unique needs and situation. Remember, some channels, like email marketing, offer free options with paid add-ons, allowing for flexibility.
Most importantly, never forget to DEFINE THE ROI before each ‘tool/activity’ listed above. Without defining the ROI, you are simply tossing dollars out the window. The ROI provides the ability to financially discern what’s working and what’s not, as well as when you need to pivot.
Step 5: Track, Analyze, and Adapt
Remember, marketing is an ongoing process. Don’t set your budget and forget it! Use analytics tools provided by your website, social media platforms, and PPC campaigns to track performance. Your ROI for each marketing tool will show you what’s working and what isn’t. Then, adjust your budget accordingly. Here are some metrics to monitor:
- Website traffic and lead generation
- Social media engagement and reach
- Email open rates and click-through rates
- Cost per lead and cost per acquisition for PPC campaigns
Bonus Tip: Explore Free & Low-Cost Marketing Options
There are several ways to stretch your marketing budget:
- Partner with local retail businesses: Collaborate with gyms, restaurants, health stores, etc. to offer joint promotions.
- Guest blog on relevant websites: Share your expertise and reach a new audience.
- Hold community events or health fairs: Increase brand awareness and connect with potential patients.
- Leverage patient testimonials and success stories on your website and social media.
Conclusion
Building a winning marketing budget requires strategic planning and ongoing analysis. By following these steps and keeping your goals in mind, you’ll be well on your way to growing your practice. That said, practices can’t execute a comprehensive marketing plan alone. We are here to help. At n2MDs, we are committed to helping practices succeed through our expert referral, creative, and digital marketing services. Contact us to learn more about our services and how we can help you.