LIFETIME PATIENT VALUE (LPV)
What is Patient Lifetime Value(LPV)?
LPV represents the average revenue you can anticipate earning from a single patient over the course of their entire relationship with your practice.
It enables companies to calculate the estimated monetary worth of a customer over their entire time doing business with them.
Why is LPV important?
- Improve decision making
- Helps identify your ideal customers
- Forecasting for future cash flow
- Short Term Planning
- Long Term (Sale) Planning
How do I increase LPV?
Increasing any of the variables (Billing per visit, Visits per year, Years retained) will raise your LPV.
How do I calculate LPV?
Input the values in each of the correlating fields below. Confirming these numbers with your accountant or the person in charge of patient data will yield the most accurate results.
B
Average Billing Per Visit
x
V
Average Number of Visits Per Year
x
R
Average Years Retained
=
LPV
Average Years Retained
Understanding your Lifetime Patient Value (LPV) is crucial for making informed business decisions in a dental practice. This metric helps you estimate the total revenue a patient will generate over their entire relationship with your practice, allowing for better budgeting and marketing strategies. By knowing the LPV, you can determine how much you should spend on acquiring new patients, retaining existing ones, which services to offer, and what equipment to buy.
