Every $1 you spend on marketing should bring in at least $3 to $5 in revenue.
Before making an equipment purchase, a typical veterinary practice owner goes through a sophisticated ROI analysis—considering the equipment’s cost, revenue per use, how often and how long it will be used—then makes an informed decision.
Unfortunately, when it comes to investing in marketing, surprisingly few practice owners make a similar assessment, often treating marketing as a “box to be checked” at the lowest cost and with minimum engagement. Yet, ROI is the entire purpose of marketing.
So, let’s take a look at how to make better marketing decisions based on some basic ROI analysis.
Expense or Revenue Driver?
There’s a common misconception among practice owners that marketing is an “expense.” On the contrary, effective marketing is actually a revenue driver. A dollar spent on marketing should return several dollars in revenue (this goal varies, but for most practices, the return should be at least 3 to 5 times the amount spent, depending on your practice’s margins).
The goal shouldn’t be to minimize your spend but to maximize your profits. For example, if one marketing program costs $500 but only drives $1,000 in new business, and another marketing program costs $1,000 and drives $10,000 in new business, the second program would, of course, be a better investment.
Establish Purpose, Goals and Monitoring
Great marketing begins with purpose, executes with strategy, measures results and adjusts to improve performance. So, before anyone updates your website, posts on a social network or creates an advertisement, they should have a reason, a goal, and some way to track and monitor the results.
Thanks to modern platforms for website analytics and call tracking, it’s easier than ever to determine the ROI from your marketing activities.
Analytics Tools You Should Be Using
- Google Analytics: This free tool provided by Google tracks information about every visit to your website.
- Call-Tracking Software: Demonstrates marketing results and records calls for quality assurance.
- Social Networks, Advertising Networks, and Directories: Typically have built-in reporting to track engagement.
- Third-party Tools: Heap Analytics, Oribi or Cyfe can combine metrics from various platforms into useful reports.
What to Monitor
- Top-performing practices track touchpoints throughout the customer journey and attribute value to each step:
- Ad impressions and clicks
- Social post interactions
- Website visits
- Incoming calls
- Website form submissions
- New clients (and new client revenue)
- Returning clients
Less Obvious Forms of ROI
While monetary returns are the most obvious, there are other important benefits as well. Great marketing requires focus and intention. It raises awareness and creates accountability.
This strengthens the workplace culture, inspires confidence, strengthens your bond with existing clients, and helps attract and retain high-quality employees. That’s why practices that prioritize marketing activities tend to perform better across the board.
PSIvet Education Modules
For more on marketing your practice, check out PSIvet’s education module on creating the ultimate client experience.