At a certain level of spending, however, the return on investment for any particular tactic will start to level off. It’s different for every doctor and for every marketing effort, but once you’ve maxed out the frequency or reach of a campaign, spending more money on that given tactic beyond this point of diminishing return can eventually lead to a decrease in ROI. This illustrates the law of diminishing returns — and it’s at this point when you know you’ve reached the maximum expenditure on a certain marketing effort.
So how does the law of diminishing returns affect your dental practice marketing?
- It reinforces the need for tracking the ROI on each of your marketing efforts. Measuring the ROI gives you hard data to help you make informed decisions about the course of your marketing strategy. You no longer have to cross your fingers and hope that your marketing dollars are well spent.
- When you track your ROI, you start to notice trends. Say you double your investment in search engine advertising, but after a few months notice that it is not bringing in the same level of response you were expecting based on past expenditures. By noticing this trend, you can make adjustments as needed, saving the practice time and money, while keeping your marketing moving forward.
Consistently monitoring and reviewing the ROI of your marketing efforts is essential to build a successful long-term successful marketing strategy for your practice. Staying on top of the trends of your marketing investment will ensure steady growth fueled by smart decisions based on fact, not feelings, and will result in the best bang for your hard-earned marketing bucks.