According to Dental Intel who has the data of over 8,000 dental practices, a massive famine is approaching in the 4th quarter (September, October & November) of 2020 for your dental office. COVID-19 has caused so much uncertainty and cash flow problems for dental practices and in this article we will be educating you on how to create a cash flow strategy now to help you attract more patients but also to create a recurring revenue strategy to whether any type of economic downturn.
These are the steps that you need follow to have a rocking 4th quarter!
- Figure out the average number of hygiene visits per month
- Identify how many hygiene visits you already have scheduled
- Calculate how many more visits you need
- Create a plan to schedule more patients
- Figure out the segment of patients without insurance
- Create and offer a membership program to new and uninsured patients
- Grow your recurring revenue month over month to give you a secure income stream
Create a Dental Membership Program
Subscription revenue or recurring revenue is the most sought after strategy in every business, it is the holy grail of business revenue. A dental membership program, when set up properly can give your practice this much needed revenue stream. Patients pay a monthly or yearly subscription fee in exchange for benefits and savings to your practice. Think of it like Amazon Prime but built for your practice, now you can be just like Jeff Bezos 😉
Why Recurring Revenue Matters
The Above image shows the BoomCloud dashboard of a practice that is generating just under $40,000 in monthly predictable revenue that shows up in the practice’s bank account automatically. John Warrilow, the author of the book The “Automatic Customer” teaches business owners of the value of recurring revenue. He says “One of the best parts about creating Automatic Customers through subscriptions is that you insulate yourself from the worst of a potential recession.”
I strongly believe in recurring revenue and the benefits it brings to your practice. During the pandemic shutdown, practices that had a strong membership program were not worried about cash flow issues and didn’t need to lay-off valuable employees.
Cash flow is king. Right now is the time to start to create a strong cash flow strategy with a dental membership program.
Steps to grow your membership program
- Set up a membership plan with BoomCloud
- Create marketing materials to promote your membership plan
- Pull a report of existing uninsured patients
- Send texts and emails out to your existing uninsured patients
- Talk to every patients about your membership program
- Set up external marketing strategies like direct mail to promote your program in your local area.
A membership program can be one of the greatest investments you implement into your practice. I highly recommend you get started before another famine begins. You can schedule a free consultation and live demo to learn more about how BoomCloud helps your practice create, organize, track and automate a dental membership program here – www.boomcloudapps.com/demo