Pareto’s Principle and the Leaky Bucket

Business is simple…not easy but VERY SIMPLE.

 

If you weren’t on this week’s Q&A call, you’re going to want to check out the recording. If I say so myself, it was probably one of the more impactful sessions we have had. I said it on the call and I will say it here again…easily double, if not triple figure growth is possible if the initiative is taken to implement solutions identified on that call…

 

Key topics being how “Pareto’s principle” is showing up in your practice and how doing the simple “leaky bucket” exercise will save you thousands in lost revenue…

 

In any business, there are certain predictable points of attrition and lost customers that can be identified and measured. I have long believed we do not talk enough “business” within Chiropractic.

 

For some reason, I think because the unit of measuring is “humans”, it kind of feels a little weird to ruthlessly and unemotionally just look at this stuff and come up with solutions. BUT OUR SURVIVAL DEPENDS ON US DOING IT…

 

Watch the replay…!

 

But to summarise, if you look at Chiropractic businesses, there are some predictable areas of attrition/lost customers. Some notable ones are: before they come in, after the ROF, during their given recommendations and progress exams. Some solutions are DNA (Did Not Attend) reports, weekly DNA/NFA (No Future Appointment) reports and crucially, follow up for ALL OF THEM!

We also spoke about the principle of looking after your most valued and loyal “true believer” clients. DID YOU KNOW…? Right now, in your practice, about 70%-80% of your revenue is coming from 20-30% of your patients. This is where Pareto’s principle comes in. You may better know it as the 80/20 rule. Simply put, it states that 80% of the benefit comes from 20% of the effort or people. In this case, 70-80% of your revenue is coming from about 20-30% of your clients.

You don’t need to go do the analysis…WE HAVE DONE IT. It’s probably the most accurate study of this you could possibly find in the Chiropractic profession, considering that this was done analysing over 15 million dollars’ worth of revenue across easily 50+ Chiropractors. So, for us, UNBELIEVABLY, 10.23 million dollars’ worth of revenue came from just 30% of the clients…

SO, THE NEXT LOGICAL QUESTION WE ASKED OURSELVES WAS…WHAT THE HELL ARE WE DOING EXTRA FOR THAT GROUP…?! If all this letter does is get you to ask the same question…MY JOB IS DONE!!

Some possible solutions are custom audience campaigns on Facebook, patient appreciation events, birthday “win back” campaigns, nurture campaigns (of which print newsletters were mentioned).

The campaigns above are SIMPLE, in fact, I would go as far as to say, doing them BADLY will still give you the result, but doing them is NOT EASY.

SIMPLE. YES.

EASY. NO.