Question 1

What costs should be included in 'Total Marketing & Sales Spend'?

Accepted Answer

You should include all expenses related to acquiring new patients. This includes digital advertising spend (Google, Facebook), content creation costs, marketing automation software fees, salaries of your marketing and sales teams, commissions, and any fees paid to medical tourism facilitators or referral partners.

Question 2

What's the difference between PAC and CPA (Cost Per Acquisition)?

Accepted Answer

While often used interchangeably, they can differ. CPA often refers to the cost of a specific action (like a lead, or a form submission), whereas PAC specifically measures the cost to acquire a fully converted, paying patient. PAC is a broader metric that encompasses the entire journey from lead to patient.

Question 3

How does PAC relate to Patient Lifetime Value (LTV)?

Accepted Answer

A healthy business model requires that your Patient Lifetime Value (LTV) is significantly higher than your Patient Acquisition Cost (PAC). A common benchmark is an LTV:PAC ratio of 3:1 or higher. This means for every dollar you spend acquiring a patient, you should expect to generate at least three dollars in revenue over their lifetime.

Question 4

How can I lower my Patient Acquisition Cost?

Accepted Answer

To lower PAC, focus on strategies like:Improving Conversion Rates: Optimize your website and landing pages.Leveraging Organic Channels: Invest in SEO and content marketing for long-term, low-cost patient acquisition.Encouraging Referrals: Implement a patient referral program.Refining Ad Targeting: Ensure your ads are reaching the most relevant audience to avoid wasted spend.

Question 5

How often should I calculate my PAC?

Accepted Answer

It's beneficial to calculate PAC on a recurring basis, such as monthly or quarterly. This allows you to track trends, measure the impact of new marketing initiatives, and make timely adjustments to your strategy. You can also calculate PAC for specific campaigns to measure their individual effectiveness.

Patient Acquisition Cost (PAC) Tool

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Understanding Patient Acquisition Cost (PAC)

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