E679 | One Change To Double Your Paid Ads Conversions

In this podcast episode, the effectiveness of paid ads for physical therapy practices is explored. Danny highlights the importance of business owners or clinicians taking the initial discovery calls themselves, as this can significantly increase the return on investment.

Based on data tracked by marketing company Patch, it was found that having the front desk staff handle the initial calls from leads generated through ads resulted in a lower conversion rate compared to when the business owner or clinician handled the calls directly. When the front desk staff takes the calls, the average return on investment is around 2-3 times the ad spend amount, resulting in approximately $1,500 in revenue for every $500 spent on ads.

However, when the business owner or clinician takes the calls themselves, the conversion rate is 2-3 times higher. This means that the same $500 ad spend could result in $1,000-$1,500 at a 2x return on investment or up to $3,000 at a 3x return on investment. Some clinics have even experienced return on investment as high as 6-12 times when the business owner handles the calls. This could mean generating $6,000-$12,000 in revenue from an original $500 ad spend.

The higher conversion rate when the business owner takes the calls is believed to be because they can speak with more authority as a trained professional and have more in-depth conversations about recommendations compared to front desk staff. Additionally, taking the calls allows the business owner to directly develop relationships with potential new clients and potentially gain referrals through word-of-mouth.

It is noted that harder-to-convert leads from online searches and ads require the increased authority and persuasiveness of the business owner during the initial call. The podcast emphasizes that increasing ad spend while maintaining a high return on investment through business owner calls can lead to exponential revenue growth over time through the compound effect. For example, a $10,000 monthly ad spend at an 8x return on investment could result in nearly $100,000 in annual revenue.

However, it is important to first properly set up digital marketing before scaling ad spend. The episode concludes that the business owner's involvement in the initial calls is critical for the success of ads.

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Podcast Transcript

Danny: As the clinician, if you tell somebody, Hey, it sounds like you have this going on. We see this all the time. You should definitely come in for a visit. We can help you get back to X, Y, and Z. You can say that. And it means very, something very different than somebody that is your. Office manager that says the exact same thing.

Hey, are you a physical therapist looking to leverage your skillset in a way that helps you create time and financial freedom for yourself and your family? If so, you're in the right spot. My name is Danny Matei. Over the last 15 years, I've done pretty much everything you can in the profession, been a staff PT, I've been an active duty military officer, physical therapist.

I've started my own cash practice. I've sold that cash practice. And today my company, physical therapy business helped over a thousand clinicians start growing scale, their own cash practices. So if this sounds like something you want to do, listen up. Cause I'm here to help you.

Hey, what's going on? Doc Danny here with the PT entrepreneur podcast. And today we're getting tactical. It's going to be a short one, but this one's going to be very specific to your business, to your practice and. A area in your business that we have been seeing drop off that I wanted to share with the podcast listeners, because if you are running any sort of paid ads, this is going to directly help you.

And if you're running any sort of paid ads, you may have already figured this out. We'll see. So we have a close relationship with patch and patch is a done for you marketing company that works with cash based practices. And part of that is running ads for these. For these practices and one thing that we've seen now in particular, we've been really tracking this for the last I would say six months just to make sure that we are collecting the right data and have a big enough sample size is the effectiveness of ads can dramatically change based on who.

Is talking to the perspective client. Now this might sound obvious in some ways, but one of the first things that clinic owners like to give. Up is any sort of discovery call, any sort of, call with a perspective patient to, make sure that they're a good fit for the clinic. And really it's the introductory sales call into working with you.

So one of the first things that we want to do is not have to jump on these random calls throughout the day or evening or whenever it is that you can line up time to talk to somebody. And we pass these off typically to our front desk because we assume, Hey, you can just handle this when it comes in, right on the spot.

If you have somebody that's running your front desk, you probably realized they're busy doing a lot of different things and they might be pretty good at talking to, inbound. Leads, but they're never going to be as good as number one, the business owner, and number two, potentially another clinician.

So what we've seen is if we're running ads in this specific example, this is running Google ads. to a page where they can pick a time to talk to your staff about what they have going on to see if there's a fit for you to help them. From there, this is what's considered an inbound lead, meaning number one, they're not just calling at any time because, they have the availability.

And maybe your admin misses it or they're busy doing something else or whatever, like it's not the right circumstances for them to really. Focus and have a conversation like this. Instead, you're picking a time that works for both of you. So then auto calendar and then we're having the business owner, the clinician that started the practice actually handled those calls.

Now, here's a difference that we've seen when you have your front desk. Take these calls. So it goes to a call where the front desk actually does them, or it goes to a call where the clinician, and we've seen now, not necessarily just the business owner, but in most cases, it's the person that owns the business is handling these calls.

But we'll just say the clinician takes it instead. You're going to two to three X your conversion percentage by doing this yourself. So by you taking the calls in particular, now, if you're spending, let's say you're spending 500 a month on advertising. If you have your front desk, calls, you're looking at probably a two to three X ROI on that money.

Meaning you'll end up generating about a thousand to 1, 500 in revenue for the clinic. You can think of that potentially as one package. If you have your front desk, take these calls. If you take these calls as a business owner or as a clinician, they can have more. in depth conversations and understanding as well as far more authority.

Keep that in mind, far more authority when it comes to your recommendations, you are going to convert two to three times higher. So we're seeing two to three X of on ad spend. So in this scenario, 500 to have spend would equate to a thousand to 1, 500 in actual return investment to the clinic. If the. Clinician takes the calls you're talking about two to three times more than that, right?

So you're talking about a usually a six to some, sometimes as high as 12 X ROI on ads. This in a lot of ways has to do with number one. Your ability to have a conversation with somebody about how you could potentially help them. So on the call, as well as your price point plays into this. So your price point being higher will increase your return on investment.

So this idea of an ROI or return on investment is basically just what is the multiple of the. Dollars that you spent for the amount of business that you brought into your clinic. So if the business owner takes these calls, and let's say they're getting a 10 XROI on ads, that means for that same $500, you're generating $5,000 for the clinic versus $1,500 for the clinic.

Now that's a massive difference. That's $3,500 difference in a month. Add that up over a year and you're talking 40 grand that you're generating for the entire year difference with the same amount of ad spend. So is it beneficial for you to do these calls? Probably unless you have a clinician that works at your company that is also, very good with having these conversations on the front end, which should be considered, triage front end sales calls.

It is very much worth the clinician doing it because it's going to increase return on investment so significantly, as well as you've got to think about the other variables of this. So think about the more people you get in your clinic, the more people get exposed to you and your staff, the more they tell their friends and family.

So the more people you have come in, the more. So you've got to keep in mind that, the more people there are to tell their friends and family, the more opportunities you have for reviews and to develop relationships that can lead to, local networking partners. And you don't know who people know, right?

So we want to get as many people in the clinic as we can and fulfilling that as at a high level. So you've got to keep in mind that. This might be a task that you're like, Oh, it's one less thing that I have to do. That's why I have an office manager or whatever, but they may not be the right person to do the calls based on what we've seen.

And this isn't like just a couple of clinics, you're talking 60 to 70 clinics that we've been tracking for months looking at the difference between these two different. I think the biggest difference is it comes down to authority. It comes down to authority that you probably underestimate how powerful it is.

As a, as the clinician, if you tell somebody, Hey, it sounds like you have this going on. We see this all the time. You should definitely come in for a visit. We can help you get back to X, Y, and Z. You can say that. And it means very, something very different than somebody that is your, Office manager that says the exact same thing but it comes from the authority position of somebody that's managing the office Versus somebody that has a degree that works directly with these type of patients on a daily basis and the conviction that you have with your recommendations and The power associated with your credibility and authority is very high.

And we underestimate this as physical therapists. But if you think about it as what if your doctor told you, Hey, I need you to take this medication for this infection you have so that it doesn't create a bigger problem. Like you're not gonna, you're not gonna be like, Oh I'm not going to take that.

You just assume you, you're a doctor. This is what you're telling me I need. I don't want to have an infection. I'm going to take this. Whatever it is versus what if that person's office manager said, Hey, I need you to take this medication. It sounds like you have this infection is popping up and take all these, all the pills throughout the course of the next week.

Like it's a different type of authority and. That can be very powerful on the front end especially if you are talking to people that are harder to convert. So when you start running paid ads, you are no longer just dealing with warm introductions and people that have been referred by clients and, or have spent time with you at a local marketing event.

They're very warm. Very warm. They're easy to sell to because they have so much trust already because of the recommendations of their friends and family. When you start talking to people that are just searching the internet for solutions to problems, they don't really know you very well. They're more skeptical and they're harder to get across the line to be able to help them out.

So that is where we see such a big drop off with people that are running ads where you're barely breaking even, maybe it's not working to all of a sudden. It's wow. If I'm getting a 10 X ROI, why am I only spending 500 bucks is thinking about that for a second. Now it's not infinitely going to scale depending on the size of your town and your niche and all that.

But let's say you're going to 10 X ROI and you're spending 500 bucks. What if you bump that up to 10 or to a thousand dollars and maybe your ROI goes down to. Cause you get a few maybe less qualified people. You're getting a bit more reach, but even still you put a thousand dollars in, you're generating 8, 000 for your clinic.

So almost a hundred thousand dollars in a year by you doing that versus if you bump it up and you get slightly less qualified people and you still have your front desk doing it, they're going to be at a two X ROI. And it's a huge difference over the course of a year. So it's just something that this is very.

It's very specific. I thought this was interesting and I wanted to make sure to share this for anybody that's out there that's thinking about running ads or that is currently running ads. It's definitely going to make a big difference on your ROI. Something to think about. Some consolidated data that I thought was pretty interesting.

I hope this helps you as are a great thing to add in. Once you have a solid reputation a good digital footprints with your social media, with your reviews that you have a website that is going to be, able to convert. And you have your digital ducks in a row, like that's the big key, right?

So get that stuff in order first, then. Get some help running this. If you're trying to figure it all out by yourself, that's why you can definitely do it. But I guess you have to ask yourself is what's your time worth, right? If you can save yourself hours a week by having somebody else do this correctly and actually like.

Build these things correctly on the backend and manage them. And you can focus on your clients and your customers like that's ideal. For you to be able to leverage your time. So maybe you don't need to learn all of it, but you definitely know, need to know how to have these front end conversations to make sure that when you spend money on advertising, that you're getting the best return on investment you possibly can.

And over time, that's going to snowball and compound and really help you grow your practice.

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