Occasionally, during my Discovery Calls with my clients, I ask them “What’s the conversion rate of your Inbound Leads?”, or “How many of your website visitors are clicking on your Call-to-Actions?”
And usually there is an awkward silence.
It’s actually okay… not many Principle Dentists nor Practice Managers are expected to know these exact numbers. However, if you did know your numbers, what would you do with them exactly?
Let’s play with some Numbers
If I told you your website was tracking 1000 weekly visitors, and out of those 1000 visitors, 5 booked in a query for a £4000 Invisalign treatment.
And every week, your Sales staff contacted all 5 prospects, and was able to close 2 Appointments, bringing in £8000 to your business.
With those numbers, would you be happy with them… or would you love to do better?
Let’s dive deeper into the numbers
Using the same example, let’s say your 2 Invisalign bookings brings in £8000, but Total Expenses (staff wages, material costs, marketing fees, etc) were £6000, then your Total Profit would be £2000.
Let’s see what those numbers look like in terms of metrics:
• Tracking Duration: weekly
• Website Traffic: 1000 visitors
• Website Events: 5 Invisalign queries (Leads)
• Website Conversion rate: 1 Lead in every 200 visitors (0.005%)
• Invisalign Price: £4000
• Sales Closing Rate: 2 Appointments in every 5 Invisalign Leads (40%)
• Total Income: £8000
• Total Expenses: £6000
• Total Profit: £2000
• Profit Margin (ROI): 34%
Again I ask, would you be happy with those numbers… or would you love to do better? I think you would love to do better.
So how do you increase your Total Profit? Where in your Sales process needs improving for your Practice to bring in more business?
Assuming increasing your Marketing Budget is not an option, what can you do to increase your profitability?
Improve Website Performance
If your website is only converting 5 Invisalign Leads in every 1000 website visitors, then it may be a good prompt to look at your website’s analytics, and see what the other 995 visitors are doing on your site, and why they’re not progressing forwards with a query.
– Could it be your website takes too long to load?
– Are your Special Offers not enticing enough?
– Are there any clear Call To Actions on the website?
Let’s imagine you did improve the website’s performance and was able to generate an extra Invisalign query? Let’s see how different your numbers will look:
• Tracking Duration: weekly
• Website Traffic: 1000 visitors
• Website Events: 6 Invisalign queries (Leads)
• Website Conversion rate: 3 Leads in every 500 visitors (0.006%)
• Invisalign Price: £4000
• Sales Closing Rate: 2.4 Appointments in every 6 Invisalign Leads (40%)
• Total Income: £9600
• Total Expenses: £6000
• Total Profit: £3600
• Profit Margin (ROI): 60%
I know you can’t have 2.4 Appointments, but just for the sake of making a good point about improving your Website’s performance, you can see that just being able to convert an extra single Lead (with no additional expenses), your Total Profit and Profit Margin have increased by £1600 and 26% respectively.
That’s a welcoming increase just from making small adjustments to your existing website.
Improve Sales Closing Rate
Using the same example above, if your Sales staff are closing 2 Appointments in every 5 Invisalign Leads, it’d be in your interest to find out why the other 3 Leads aren’t being converted.
– Could it be your Sales staff are unmotivated to improve?
– Is your website feeding you poor-quality Leads?
– Are your Sales staff taking too long to contact the Leads?
Let’s imagine you did improve the Sales Closing rate and was able to generate an extra Invisalign Appointment? Let’s see how different your numbers will look:
• Tracking Duration: weekly
• Website Traffic: 1000 visitors
• Website Events: 5 Invisalign queries (Leads)
• Website Conversion rate: 1 Lead in every 200 visitors (0.005%)
• Invisalign Price: £4000
• Sales Closing Rate: 3 Appointments in every 5 Invisalign Leads (67%)
• Total Income: £12000
• Total Expenses: £6000
• Total Profit: £6000
• Profit Margin (ROI): 50%
In this scenario, an extra single Appointment booked has dramatically increased your Total Profit and Profit Margin to £6000 and 16% respectively, as well as the Sales Closing Rate by 27%.
Perhaps adjusting your website to prequalify Leads before they enter your pipeline, or offering your Sales staff an extra incentive to motivate them to convert more Leads will have a major impact on your Profits.
Increase Website Traffic
Let’s say your marketing agency were able to increase your weekly website visitors by 50% (500 new visitors) for just an extra £500 to your marketing budget. With all other variables remaining constant, your new metrics would look like this:
• Tracking Duration: weekly
• Website Traffic: 1500 visitors
• Website Events: 7.5 Invisalign queries (Leads)
• Website Conversion rate: 1 Lead in every 200 visitors (0.005%)
• Invisalign Price: £4000
• Sales Closing Rate: 3 Appointments in every 7.5 Invisalign Leads (40%)
• Total Income: £12000
• Total Expenses: £6000 (+£500)
• Total Profit: £5500
• Profit Margin (ROI): 85%
Once again, I know you can’t have 7.5 Invisalign queries (but thank you for bearing with me), you can see clearly that your Total Profit and Profit Margin have increased by £3500 and 51% respectively.
Consider your website as your online business hub, so exploring new sources of traffic to drive to your website can be a very profitable investment, especially with platforms like Instagram, YouTube and Tik Tok that are becoming even more trendier to connect with your target audiences.
Conclusion
Knowing your numbers can certainly locate areas in your business that can increase your income and profitability, whether that comes from improving your website’s performance, your sales staff’s closing rate, or your marketing reach.
Please use this article as a reference only, as there are no guarantees that the numbers expressed here are a guarantee of typical results and strategies.