Every piece of the your practice revenue engine is vital. Most dentists focus only on high value cases like all on fours. The reality is that every service and treatment is valuable. From whitening to membership plans to All-on-Fours.
The Practice Revenue Engine:
The term value ladder was coined by marketing guru, Russell Brunson. at BoomCloud we call it the "practice revenue engine". It is a system that generates revenue for your dental practice through a variety of services and treatments.
The value ladder is a way to think about the different levels of value that you can offer your patients. It starts with low-value, entry-level products and services and moves up to high-value, premium offerings.
The key is to offer a mix of services and treatments at different levels of value, so that you can attract new patients and keep them coming back for more.
1. Entry-level products and services: These are the low-cost, entry-level products and services that you offer to attract new patients. Examples might include teeth whitening, basic dental exams, and simple dental procedures.
2. Mid-level products and services: These are the mid-priced products and services that you offer to keep existing patients coming back. Examples might include dental implants, veneers, and orthodontics.
3. High-level products and services: These are the high-priced, premium products and services that you offer to attract new patients and keep existing patients coming back. Examples might include all-on-four dental implants, full mouth reconstruction, and cosmetic surgery.
4. Maintenance and support: This is the ongoing care and support that you offer to patients to keep them coming back. Examples might include membership plans, dental cleaning and checkup packages, and ongoing orthodontic care.
The key to a successful practice revenue engine is to offer a mix of services and treatments at different levels of value. This way, you can attract new patients and keep them coming back for more.
The Importance Of Recurring Revenue
If you only focus on high-value cases, you'll miss out on the opportunity to attract new patients and build long-term relationships. And if you only focus on low-value cases, you'll have a hard time generating the revenue you need to sustain your practice. Predictable recurring revenue from membership programs is key to laying the foundation of your revenue engine, You can download my book about making $50k/mo with a membership plan here - https://bit.ly/3QgFE3U
The key is to find the right mix of services and treatments that meets the needs of your patients while also generating the revenue you need to grow your practice. Each component of the revenue engine needs to generate some type of revenue for the practice.
The Marketing Ecosystem
- Ads
- referrals
- emails
- texting
- events
The Front Funnel Ecosystem
- Whitening membership program
Preventative Care/ Retainer Ecosystem
- Hygiene membership plan
- Perio membership plan
New Patient & Revenue Optimization Ecosystem
- New Patients from marketing
- B2B marketing
- PPO reduction
Revenue Expansion Ecosystem
Accounts Receivable Ecosystem
- Collect Invoices
- Insurance claims
- Financing
- Installment plans
Valuation
- What your practice is worth
Most Practice Miss the Big Revenue Picture
The reality is that most dental practices are only working on a few of these pieces. The top 10% are working on all of them. And that is what separates the top performers from the rest.
If you want to build a successful dental practice, you need to focus on all of these pieces in the revenue ecosystem. You can’t just focus on one or two. You need to have a system in place that covers all of them.
The Total Revenue Engine is that system. It’s a comprehensive approach to dental practice marketing, new patient acquisition & retention, treatment acceptance, and accounts receivable management.
The dental practice revenue engine is a system that generates income for dental practices through the use of value-based services and products. The revenue engine consists of four main components: patient acquisition, treatment planning, billing and collections, and practice management. Each component works together to create a well-oiled machine that produces consistent results & revenue.