I always thought that my business growth was going to come from new patients. I spent a lot of time trying to attract new patients - doing ads, Facebook ads, newspaper ads, getting out to the community, going and talking to doctors, going to senior centers, and trying to get new people.
It worked, but it didn't work that well.
What The Statistics Tell Us
This is the WebPT research that they came out with, and they didn't put it in this year's State of Rehab, but they did in last year's State of Rehab: they actually showed that 75% of your people quit on you. 75% of your patients don't complete their plan of care. They quit and walk away from your business.
When you have 75% of your people walking away, what point is there adding another 10 or 15% to the mix? It's going to have an effect, but it's gonna have a small effect. If you can keep the 75% in your practice, that's where the real magic happens. That's where business growth is.
It's not in getting new people. New people aren’t good if they leave on you. If 75% of the new people you get leave, you're fighting a losing battle. Your real leverage point or the place in your business that you can make the most money is your current patients - in getting them to stay.
I was reading this statistics from pretty much every industry. 80% of your future income comes from 20% of your current customers. Think about that - 80% of what you're going to make a future comes from 20% of your current customers.
That means that 20% of them are either going to come back, or they're going to go and talk about you to other people. Even with your advertising, you're working on 20% of the pie and ignoring the 80% of the pie. That doesn't make any sense.
If you can move that 20% sliver up to 25%, that 80% grows by another 25%. This is where the magic is. This is where business growth happens. It's in your current and past people. If you can identify these people, make them happy, and get them to refer family and friends to you, this is where everything blows up.
In every industry, 80% of your money comes from 20% of past customers. 75% of your people are leaving. What happens if you move from 75% of your people not completing that plan of care to 50%? You have twice as many people.
Even if the 20% block stays at 20%, it's twice as big. If you move it to 30% during the year, you’re at 150% growth of your business. This is where the magic happens. So what do we do? How do we do this?
How do We Make These People Happy?
We have to have some method of measurement. If you can't measure it, you can't improve it. You have to measure what's in the other person's mind.
It's not as complicated as you might think. That's what that Net Promoter Score is. You need to know what's in the head of your customer. If you know what's in the head of your customer, if you know what they're thinking, you can now improve.
You know who wants to refer to you, who doesn't want to refer to you, who wants to come back, who doesn't want to come back, and you focus your time and efforts on those people that are going to give you the greatest return. Don't waste your time on those that aren't.
A lead from word of mouth is your cheapest lead. If you get a lead from Facebook ads and ClickFunnels, the cost on that new evaluation is five times higher than one that is referred from a past patient, friend, or family member.
That is your biggest leverage point. It costs you less money. It's a bigger piece of the pie. It's going to make you more money, because 80% of your future money comes from 20% of your past customers.
But somehow, we always think the magic is into, “I just need a couple more new patients. If I can go from five new patients a week to seven new patients a week, that would be huge for me.”
75% of them leave. It didn't move that much. Then you think the answer is, “Oh, I need more new patients. I got to get into the eight, nine, or 10.” However, the problem is still there. The problem is that people are quitting on you and you're not identifying why you're not getting into their psyche.
You have to develop a relationship with that person, every step. You have to cultivate that relationship. You have to measure that relationship. Then when the time is right, you have to ask that person or relationship to refer you a new relationship. Everybody will tell you that word of mouth is their biggest growth, revenue, and referral source.
Word of Mouth is Your Biggest Referral
That's where you get most of your patients from, but you don't do anything to improve it. You're like, “Oh, I just need more new patients. I'm going to keep doing the same thing that I'm doing with my patients, and I'm going to expect that 75% of them don't leave any more.”
Sounds like a great plan. What could possibly go wrong? You have no idea. Then 75% leave again. Everybody's like, “Huh? That must be how this business goes. That's just how it is?”
No, it's not. We are not trying to improve it.
First, we have to measure it. If you can't measure it, you can't improve it. You measure it, then you start improving. Then you start trying things.
You start trying, “Oh, maybe he will implement a Net Promoter Score. Then maybe we’ll ask for Google reviews. Maybe we start really engaging with this patient when they're with us at our practice. Maybe we'll reach out to them at home.”
We try to really cultivate and create a relationship there. You create that relationship with the other person. And guess what? The word of mouth referrals keeps growing and growing, because you're cultivating and developing relationships with people.
This is all businesses, people. It's not ClickFunnels. It's not Facebook ads. It's none of that crap. That crap will help you but if you suck, you're still going to be in the same spot.
You can turn that spigot on as heavy as you want, but it's not going to do any good because the holes in your bucket are just dumping out the water faster than you're putting it. You have to improve your internal systems - systems inside of your practice have to improve. You have to measure them to know whether you're making a change.
It costs five times as much to get a new patient from a cold patient phone lead generation, as it does take get one from a current or past patient. 80% of your future money comes from 20% of your current or past patients. 75% of your people are leaving on you.
Best case scenario: we still somehow think that we just need a couple more new patients. This doesn't make any sense. The numbers are there. This is research. This is statistics. Your past
patients and current patients are what is going to grow your practice on more than anything.
I would love to see somebody that would be willing to go toe to toe with me with trying to add new patients versus implementing a system to current patients. I would love to go toe to toe with them because it's not possible. The statistics don't lie. They are what they are.
Your biggest leverage point in your practice is your current people. Please reach out to them. I’m not saying use my software. Do something in your practice. Talk to somebody. Find somebody that's good at this. You start learning about yourself.
You have to do something to fix your internal funnel. Your internal system? Nobody's working on it. When they do work on it, it’s because, “Oh, my evaluation no-show rate isn't what I want. My cancellation rate isn't what I want. I need to change that.”
Right, but you're measuring the symptoms. You're not measuring the cause. You got to get ahead of it.
If you have any questions, please down below guys. I would be happy to discuss this with you.