In the world of allied health, particularly among podiatrists, there's a prevailing misconception: simply being qualified and opening your doors will attract a steady stream of patients. That people with health concerns must just be waiting, hoping for the day you become a clinician so they can come see you…this isn’t the case.
These clinicians have no understanding of the Cost to Acquire a Customer (CAC). CAC encompasses all costs associated with convincing a potential customer to purchase a service, Google/Facebook ads, paid marketing, time and money spent on visits to referrers etc.
It might shock some to hear that CAC can be as high as half the initial appointment fee, sometimes even higher! By the time you deduct this, along with your wage (+ super), consumables, overheads, admin costs and the all the other expenses of a clinic, the profit margin on that initial appointment could be minimal or even nonexistent.
Maybe you’re sitting there saying, “so what, that’s my boss’ job, bring in patients for me to treat. It’s not my problem.”
Where it becomes your problem is in treatment planning. If you’re seeing a patient for their initial session and end the consult with “let’s see how you go and call me if you need another session,” it won’t be long before you become an unnecessary expense in the business.
This method does not encourage follow-ups, leaving patients to self-manage, often resulting in inadequate care. Consequently, these patients are unlikely to return or refer others.
Not only does it make you a poor clinician, it also wastes the investment made in acquiring that patient. Every missed follow-up is a lost opportunity to recoup the initial CAC and to build a long-term relationship that benefits both patient health and clinic profitability.
To counter this, practitioners must shift their focus towards comprehensive treatment plans that prioritise patient outcomes and continuity of care. By scheduling follow-ups and clearly communicating the importance of ongoing treatment, you enhance patient satisfaction and loyalty, ensuring better health outcomes and clinic growth.
Alternatively, if you have some “moral objection” to rebooking patients, start lowering your clinics CAC. Make moves to increase your profile in the local community. Go speak with referrers, sports teams, aged care facilities. Find ways to acquire patients that aren’t going to financially ruin your employer which ultimately leads to you losing your job.
Ideally, just rebook and lower CAC. You might be surprised that your boss can suddenly afford that pay rise you’ve been asking for…
Ultimately, understanding and managing CAC is not just about business savvy; it's about delivering high-quality care that keeps patients coming back and referring others. This dual focus on patient well-being and financial sustainability is the key to building a long-lasting and rewarding career in podiatry.
#podiatry #alliedhealth #physiotherapy
