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.