January 8, 2011 — As the recession continues to drag on, the importance of retaining existing patients becomes increasingly important to chiropractors that want to survive and eventually thrive again.
To help chiropractors fully understand how critical existing patients are, Robinson & Associates Inc., has created a free, easy-to-use Customer Lifetime Value (CLV) calculator and posted it online.
The CLV calculator is located at www.rfactorstudy.com on the “calculators” page.
“Calculating the lifetime value of patients is nothing new in the business world, but it is often forgotten and now is the perfect time for chiropractors to put it to use again,” says Lydia Baird, director of business development for Robinson & Associates, a company that helps businesses with client retention and development. “The long-term value of a patient didn’t matter much in the glory days of our economy because there were plenty of them calling or walking through the door. But our economic heydays are over and won’t be back for another three to five years if economists are correct in their outlooks.”
Determining the value of patients and knowing how to retain them is now a requirement, not an option, Baird says. “Measuring to determine how to keep patients coming back is a critical step toward going from hoping you will stay in business to knowing that you can grow your practice,” Baird notes.
The CLV calculator has six fields that the chiropractor fills in. After filling in the fields, simply click on the “calculate” button and the calculator produces the patient’s lifetime value. The CLV calculator also helps chiropractors understand what it’s worth over time to attract a new patient, Baird says.
“Here’s an extremely telling exercise,” Baird says. “After filling in the fields and obtaining the value, increase the number in the retention rate field by 10 percent and recalculate. The result is astonishing and should encourage any chiropractor to work hard to keep their existing patients.”
Source: Robinson & Associates Inc., www.rfactorstudy.com