What is the most you can spend to acquire a new client for your veterinary practice and still be profitable? If you do not know, you’re not alone. I developed a formula that helps determine what you can afford to pay to gain a new client based on its lifetime value of to your practice. Calculate your number to eliminate any marketing efforts that aren’t profitable.
Source: Park Marketing, May 9, 2019. Link. First, let’s look at the lifetime value of a client. According to a recent Hill’s lecture I attended, the lifetime value of the average client is surprisingly low, less than $500. Other sources suggest the average lifetime value of a client can be as high as $10,000.
INSIGHTS: As Dr. Parker notes, understanding the lifetime value of clients will be especially valuable to determine which types of promotional activity will help you acquire clients and ensure your clinic remains profitable.