North Texas Dentistry Volume 10 Issue 1 2020 ISSUE 1 DE | Page 25

lish and carry out service above and
beyond expectation — every time a
patient has an interaction with any mem-
ber of your team.
That’s how you get referrals. That’s how
you earn the right to “ask” for referrals.
Go above and beyond expectation.
So, here’s a little realized fact about your
patients who come to you, stay with you
and refer others to you. These happy
patients hold great value.
FOR EXAMPLE: As you are determining
the lifetime value of a patient, consider
this calculation based on data from the
American Dental Association. Three cat-
egories are a part of the calculation:
Number of years a patient is in
the practice
Annual value or investment the
patient makes in the practice
Number of referrals made and the
value of those referrals
Patients who refer once or twice will,
more than likely, be willing to refer again
— if asked. Are you asking?
Here is the formula:
The average annual value or
investment + number of years
in the practice + referral value
= Customer (patient) Lifetime
Value or CLV.
Here is an example:
If a patient goes to the practice twice per
year and invests $400 per appointment
for hygiene services, radiographs, and
doctor evaluation, that would be $800
per year. $400 x 2=$800.
The ADA says that the average length of
time that a patient stays with a practice
is 10 years. Using that data, $800 x 10
years = $8,000.
The ADA also indicates that an existing
patient will refer an average of two peo-
ple who will become an active patient in
a practice. If they are worth the same
$8000, that equals $16,000.
$16,000 + $8,000= $24,000.
$24,000 is the minimal amount that a
patient of record is worth to a practice.
This calculation is conservative—on pur-
pose. Note that there is no reference to
treatment beyond hygiene being indi-
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