E595 | 3 Drop Off Points You Must Track

In this podcast episode, the importance of tracking three critical areas for optimizing the customer experience and generating revenue is discussed.

These three areas include the drop-off point from leads to call booked, call booked to the initial evaluation and initial evaluation package percentage. By tracking these areas, businesses can gain valuable insights into their customer experience and predict revenue while making better staffing, marketing, and advertising decisions.

This episode provides a clear example of how tracking these areas can benefit a business. In this example, 10 initial contact forms resulted in 8 calls booked, 6 people showing up for the initial evaluation, and 4 people buying a package, which generated $9,200 in revenue.

Understanding these numbers helps businesses make decisions about advertising spend and can help identify areas where improvements can be made to optimize the customer experience.

Overall, this episode highlights the importance of tracking key performance indicators to optimize customer experience and generate revenue. It provides practical insights and examples that businesses can use to improve their operations and make data-driven decisions. By tracking these three areas, businesses can gain a competitive advantage and achieve long-term success.

Ready to elevate your practice? Book a call at the link below with one of our expert consultants today and start your journey to delivering unparalleled physical therapy.

Podcast Transcript

Danny: Hey, real quick before we start the podcast episode, I want you guys to check out our new YouTube channel for PT Biz. We are putting out a weekly video on the most common questions that we get, and we are breaking those down in a way that's more engaging. Where you can learn better and really focus on one thing at a time.

So if you're interested in really learning more skills to upgrade your cash and hybrid practice, head over to YouTube. Subscribe to the PT Biz Channel and check out the weekly videos that we're coming out with to help you win in the cash-based practice game. So here's the question. How do physical therapists like us who don't wanna see 30 patients a day, who don't want to work home health and have real student loans create a career and life for ourselves that we've always dreamed about?

This is the question, and this podcast is the answer. My name's Danny Matte, and welcome to the PT Entrepreneur Podcast.

What's going on guys? Doc Danny here with the PT Entrepreneur Podcast, and today I'm gonna talk about the three areas that you need to track that we see drop off in. So this is gonna be super tactical, so get your notebook ready and start writing these down. So the first one, it's gonna be the drop off point of lead to call book.

So for most of the businesses that we work with, um, there's some sort of initial triage call. Some people will do a, uh, an in-person. Triage visit, I might call it a discovery visit or something like that. But what this lets you do is block off, yeah, about 15 minutes to talk to somebody that's interested in potentially coming in to work with you.

And this is a much better way of going about it than just emailing somebody some specifics of like, yeah, this is how we run things and this is, you know, our setup book. Click here to book a book a visit, or whatever. Um, you wanna talk to these people because healthcare is confusing. Um, people. Instantly think if you don't take their insurance directly that you're a jerk versus they might not even know what they actually owe for their deductible or their co-insurance, and they could be.

Pretty much a hundred percent outta pocket no matter what, whether they go in-network, outer network, whatever. And also they may just might have a unique problem you can really help them solve. So you want to talk to them on the phone. Um, you also wanna rule out some of these people might not be the right fit, right?

So you wanna talk to 'em on the phone, but the first drop off point is gonna be from lead to call booked, right? So let's say somebody, um, opts into a contact request form that you have. Now, this could go to. You know, in, in through an email where somebody gets notified to, to call somebody, um, it could go to an auto calendar schedule.

Somebody's doing that. But either way, you can see, all right, well, how many contact request forms did I get? And either how many calls were booked or how many people answered whenever you called them back. So let's say you had 10 people that opted in and contact forms in a month, and of those 10, eight of 'em got on a call.

So you have an 80%, uh, conversion percentage from lead to call booked. So how could you get those other two, right? Like, what's the drop off? Why are those people dropping off? Are those people that you can follow up with on an ongoing basis? And then maybe you make that 90%, you add one more person. Um, and this is gonna be important as we look at how these numbers work with one another, but let's just say it's 80% right.

So you have 10 people and now eight of them have booked a call. Okay? So now all of a sudden you get people on the phone and they're like, oh, okay, wait, so you charge $200 for a visit? I don't know about this. Now you gotta talk to them about why they might want to come in to work with you and what it looks like and, and the value proposition of it, and actually have that conversation, right?

So now you have the call. Actually talking to your team, whether it's you or somebody else, to then the initial evaluation show up. So let's say somebody, you know, talks to you on the phone, they're like, yeah, I wanna book an initial evaluation. Like I'm in, um, let's get, get me down for Monday, or whatever.

Right? They pick, they pick their time and, and they get set up. So you talk to eight people and now let's say two people drop off from there, they decide, no, this isn't, this isn't the right fit for me. I'm gonna look elsewhere. So now all of a sudden you've got six people that have showed up, right? So six people that show up for that initial evaluation and.

Of those six, now you have to look at the next step, which would be initial evaluation package percentage. So the first step is lead to call booked. So how many of the leads turn into call booked? So if we had 10, eight of them booked a call from there, say call booked to initial evaluation show. So how many of those people showed up for their initial evaluation?

Let's say you talked to eight people and six people showed up. Maybe you booked seven. But that one person decided, nah, I'm good. I'm, I got cold feet, I'm gonna, I'm gonna, So now you got six people that showed up, and then your initial package percentage is what you want to know as well. So let's say all of a sudden now you've got four people that have turned into buying a package.

Okay? So four packages, and then you got two people that are probably doing one-off visits. Maybe it's something more acute, uh, something that doesn't require a package, but you know your numbers on this now. So now that you're tracking these things, here's where it gets, I guess, more valuable, right? You have to track this stuff to begin.

But you know, if these numbers hold, which you can look at this over a few months, you can say, okay, well if I get 10 contact requests, that means that I'm gonna have six new patients and four of them will buy a package. Two of them will do, you know, you know, whatever. A couple visits. Let's say it's three visits.

So let's say that those four packages is worth $2,000. All right, so now it's gonna be 8,000 cuz you have four packages times 2000. So that's $8,000 total. And let's say the other two people each did three visits, which let's say it's 200 visits dollars a visit, that's 600 bucks. That adds another $1,200.

So you're looking at $9,200 in revenue earned off of 10 initial contact forms. All right? 10 initial contact forms. And the reason that this is important is because you can become more predicted predictive of. The revenue, you can assume that you are going to. Uh, acquire and you're gonna gain based on front end data.

This helps with hiring. This helps with marketing decisions that you're making, staffing, location, size, all kinds of things, because all of a sudden, let's say you go to a hundred initial contacts, Now all of a sudden, if these same numbers hold, you're gonna end up with 60 new patients and 40 people buying a package, right?

So all of a sudden that number then is gonna go up dramatically. So you're gonna be at $92,000 a month instead of $9,200 a month based on you just 10 x the top line number. So you wanna know where, where you're at with these, but also where is there a potential drop off, right? So we have, you know, this lead to call booked.

So now we have two people that didn't actually. But they had enough interest that they wanted to submit a request. These people need to be followed up with over a long period of time. What about call, book to initial evaluation show? So this is, how good are you at talking to somebody about why they should or shouldn't come in to be seen for the injury that they have?

They're obviously interested in it. They're obviously, they've spent time where you've gotten, you gotten on the phone with you, so how can you improve that number? Or if it's really good, how do you hold that number steady with people besides just yourself And then the initial evaluation package percentage that is in office.

How good are your providers at just, you know, diagnosing. Offering a plan, plan of care that people then accept, as, you know, paying for a package of business that they're gonna work with, um, with you, right? So these are important as far as the business goes. These are drop off points that we see over and over again.

And in particular, if you're gonna do any sort of digital advertising. These are the three areas that you really need to be clear on because if you know you have 10 leads and if you have 10, six of 'em are gonna come in, four of 'em are gonna buy a package, and then three are just going to, or two are gonna do one off, you know, visits, a couple visits, you can predict $9,200 for those 10.

Leads. So if, let's say you're running ads and for an ad, let's say it costs you a hundred dollars to get somebody on a call. So you're gonna pay a hundred dollars to get somebody you know, to submit to book a call. So that means you're paying a thousand dollars to get those 10 leads. Now only eight of 'em are actually gonna like get on a call and then six of them are actually gonna show up and then four of them are gonna buy a package.

So we know $9,200 is what they're gonna generate overall. So you're paying a thousand dollars on the front end to require those 10 leads to then make $9,200. Would you do that? Probably. I would say it's a pretty good exchange. That's actually a great exchange. That's a nine to one. Like that's an amazing roi.

But if you aren't tracking these things, you might look. The advertising you're doing, you're saying, oh geez, this is terrible. Like I'm paying a hundred bucks a lead and like I'm just dropping a thousand dollars a month on on ads, and I don't know if it's actually working. I'm gonna turn it off because I'm just spending a thousand dollars when you're spending a thousand dollars to make 9,200.

So this is why understanding your numbers and the math behind it is so important because it helps you make the right decision, especially when it comes to what you're doing from an advertising standpoint and where you need to. In the business to make sure that people aren't just dropping off along the way.

So check these numbers. If you're not tracking them, add 'em in, and hopefully this helped you gain some clarity on what you should be focused on to really make sure that you are optimizing people coming into the business.

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Hey, real quick before you go, I just wanna say thank you so much for listening to this podcast, and I would love it if you got involved in the conversation. So this is a one way channel. I'd love to hear back from you. I'd love to get you into the group that we have formed on Facebook. Our PT Entrepreneurs Facebook group has about.

4,000 clinicians in there that are literally changing the face of our profession. I'd love for you to join the conversation, get connected with other clinicians all over the country. I do live trainings in there with Eve Gigi every single week, and we share resources that we don't share anywhere else outside that group.

So if you're serious about being a PT entrepreneur, a clinical rainmaker, Head to that group, get signed up. Go to facebook.com/groups/ptentrepreneur, or go to Facebook and just search for PT Entrepreneur. And we're gonna be the only group that pops up under that name.