The last few years have been a crazy for hearing care practices. Between the pandemic, big industry changes and shifts, economic change…and currently…super weird weather across the country…things have been a little…unpredictable.
So, it’s no surprise that practices are frequently asking…how much should I be investing in marketing?
Whether you are a brand-new practice or a well-established practice…with a single location or multiple locations, the process for figuring out your marketing budget will be similar:
Step 1: Identify your SMART marketing goal(s)
This is one of the most important pieces of the puzzle, because your goals…shape your budget.
SMART goals are: Specific, Measurable, Attainable, Relevant, and Time-bound. Ummmm…what does that mean, Cassie?
Great question! Look at these examples of SMART marketing goals from some of the practices I’ve been working with:
- Increase annual hearing aid revenue by $75K using targeted lead generation strategies (this goal is by far the most used goal!)
- Generate 15 qualified leads per month by implementing a targeted Google Ad campaign with a click-through rate (CTR) of 5%.
- Boost lead to purchase conversion rate by 5% by implementing a strong lead nurturing strategy
Step 2: Analyze Marketing Results and Costs
This is the fun part. 😊 To get started, pull your marketing results for the last 6 months. (Tip: This is easy if you’re utilizing call tracking and analytics.)
The info you want to pull together is:
- Campaign Type
- Campaign Cost
- Total Calls
- Total Digital Forms
- Total Prospects
- Total Appointments
This info lets us calculate every marketers’ favorite numbers:
- Cost Per Prospect
- Cost Per Appointment
Once you have these numbers, you can estimate your average cost per prospect across all marketing channels…and get your budget calculated!
Step 3: Calculate your Marketing Budget
To calculate your budget (or additional budget needed), we work backwards from our original goal. These are the questions that need answering:
- How many additional hearing aid sales are needed to meet the revenue goal?
- How many new patients need to purchase?
- How many additional appointments will this require?
- How many additional prospects do we need reaching out to us?
2022 Marketing Budget + (Avg Cost Per Prospect X # Prospects Needed) = 2023 Marketing Budget
Once you have some ‘hard data’ you can use it to strategically allocate the budget to specific campaigns and/or channels based on the goals made, the costs calculated, and the response rates tracked.
A marketing budget (and a marketing plan) should be reviewed on a monthly basis to make sure your expenditures are helping you achieve your goal(s)—things can (and often do) change…and you need to be ready to pivot.
If you want help with your marketing budget or putting together an annual marketing plan—reach out to your Account Marketing Specialist today!
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