Why Every Practice Should Consider Starting a Membership Program to Unlock Massive Growth
At Delivering WOW, we believe the benefits of starting a membership program in your practice make it a no-brainer.
To help you evaluate whether one is right for you, we recently sat down with Jordan Comstock to discuss how. Jordan took the time to explain how membership programs work and how his company, BoomCloud, helps dentists utilize membership programs to get their practice to reach peak profitability.
Here are three of our favorite reasons why every practice should consider starting a membership program.
Help more people get dental care.
At PPO practices, frustration about insurance is common. For many patients, the complications that come with dental insurance make it just as infuriating to them, too. As a result, patients frequently resort to paying more out-of-pocket than they need to. Those out-of-pocket expenses can really add up to the point that they don’t come in for preventative dental care as much as they should. They only come in for emergency care or when they can’t kick the can down the road any longer on their oral health issues.
Moreover, while health insurance is a common employee benefit, dental insurance isn’t. This leaves a big gap in the market for people who would want dental care but need an affordable and predictable option.
Finally, many retired patients lose their dental benefits and let their oral health decline. When patients retire, dental insurance can become prohibitively expensive. So, they let their oral health deteriorate. That’s a huge problem.
Offering a membership program can be the solution for many people and position you as a dental provider of choice.
Create predictable recurring revenue for your practice.
Oftentimes in dentistry, one month will be super busy and another month will be super slow. There’s a lot of fluctuation throughout the years—kids go back to school, holidays mean people have less money to spend, and more. Jordan refers to this volatility as “feast and famine” months.
Running a business in which you have to depend on feast and famine months can be very stressful. A lot of factors can make the difference between practice growth and a struggle to make a profit. Membership plans can make revenue more predictable and reliable.
Jordan works with practices that generate $30,000 to $40,000 a month from just automatic membership plan fees, and that doesn’t include dentistry from non-members. Why start at zero every month when you can start at $30,000 to $40,000? If you’re starting your month at $30,000 to $40,000 as your baseline, you can shoot for higher growth. How nice would it be to aim to start each month with $100,000 in membership plan fee revenue?
Keep your patients loyal.
When patients have insurance plans, they might only be loyal to you until they need to change plans. If they change jobs, you might lose a patient. If their plan gets expensive and they need a new one you might lose a patient. But if they are on your membership plan, a job change won’t impact their dental coverage.
That’s why patients who sign up for your membership plan will likely become very loyal to you. They’ve paid for a membership and they’re not going to forgo the benefits that come with it. Jordan has found that, when a patient becomes a member, they end up spending two to three and a half times more with that practice than a non-member would.
Does your practice have a membership program?
Whether you have a membership program already in place or decide to start one, make sure you educate your patients about your plan. Tell them how it works and all the benefits to them. Be sure to explain exactly how it works so they know what they’re buying into and how to maximize their benefits. If you do, you can create mutually beneficial relationships with patients that can last years and years!
For more strategies on making sure your practice grows to its full potential, join the Delivering WOW Platinum Coaching Program, where you and your team can access the best trainings and coaching from leading experts on all aspects of growing a WOW dental practice.