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How much you should spend on marketing to get rehab clients?
The Three Main Channels and CAC For Each
Rehab centers can acquire clients through several channels, each with varying CAC, or client acquisition costs. These costs are the estimated amount of money it takes to acquire a new customer. Things to factor into CAC are advertising and marketing costs, and costs for sales and advertising staff. To calculate CAC, take the total amount that you spend on client acquisition and divide it by your number of clients.
Using CAC to calculate your marketing budget
Calculating your CAC also helps to calculate your marketing budget. For example, let’s say you want 20 clients and have one channel of client acquisition. Multiply your CAC by 20 to determine your marketing budget.
You can also use CAC to determine your marketing budget if you have more than one channel of client acquisition. Let’s say you still want 20 clients but have three channels of acquisition:
Channel one: 10% of admissions, $1000 CAC
Channel two: 20% of admissions, $3000 CAC
Channel three: 70% of admissions, $2000 CAC
Find the proportion of the 20 clients that will come from each channel:
Channel one: 10% of 20 = 2
Channel two: 20% of 20 = 4
Channel three: 70% of 20 = 14
Then multiply the respective CAC for each result.
Channel one: 2 x $1000 = $2000
Channel two: 4 x $3000 = $12 000
Channel three: 14 x $2000 = $28 000
Then add the results together:
$2000 + $12 000 + $28 000 = $42 000
Three primary methods of getting clients
1. Alumni Clients
Alumni clients, or clients who have previously attended your facility, should represent around 20% of your admissions. Consider these return clients as a testament to your services. The level of care you provide during their first visit will determine whether they return for future stays.
CAC- Around $500 or less
2. Online Clients
These clients are the result of your online marketing efforts. This may include organic website traffic, online ads and Google Ads, Google Maps, Google Adwords, and Yelp or other directory listings. Online clients should comprise about 25% of your admissions.
CAC- Around $3,000 to $5,000
3. Business Development Clients
Clients from business development efforts should comprise about 50% of your admissions. You gain these clients from networking and existing relationships. Dedicate a Business Development, or Clinical Outreach, professional in your facility to create a network with other facility reps and service providers. With this network, you can refer clients you cannot help to others, and in return, you may get referred clients that others cannot help.
For example, a client from Texas may only be willing to go to treatment in California. The rep from the rehab center in Texas can call their California contacts and make a referral. Referrals can also extend beyond locational preferences, and pertain to facilities that offer specific programs, or whether the client needs in-patient or out-patient care.
Networking goes beyond other rehab centers and includes service providers, such as AA meeting hosts, law enforcement, therapists, and medical professionals. Given that many people working in addictions are recovering addicts themselves, they may have a wide network of others working in the field, or needing treatment, in both their professional and personal life.
Business development is largely about being open to opportunities, forging relationships with others in the industry, and keeping your eyes open for an opportunity to form a mutually beneficial relationship. As Asana Recovery’s Clinical Outreach Professional, Tyson Sullivan says, “Since one in three people know someone with mental health or addictions issues, business development can happen anywhere.”
CAC- Around $1,000
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