While completing a year end report for a client I noticed the high rate of appointments that had been rescheduled over the year. It was the global aspect of looking at the year that made the information jump from the screen.
The Talkapolis model allows for just 5 total client initiated appointment reschedules or cancellations per month. Although this seems like it is unreasonable to ask of our clients, it is with them in mind we ask. We made this a part of our system due to experience because our model is focused on the end result (a completed consultation) we saw the need to protect or clients, and ourselves, from any unnecessary lost revenue.
Over the course of a year you may not think it is unreasonable to reschedule 100 patients. That’s just 8 a month and 2 a week, but the results on the business can be dramatic. Break the numbers down to see it’s something that shouldn't be ignored.
They had 107 appointments that had been rescheduled in 12 months and the client had reschedule 92 of them. Patients had only rescheduled 15 times over that period, meaning just 1.25 patients per month initiated the rescheduling process and the client had initiated 7.6 per month.
What does this all mean? A patient is far more likely to not attend an appointment after being rescheduled.
Of the 92 appointments that had been rescheduled 69 patients never attended a consultation. In this client’s case they were offering a facial rejuvenation procedure with the average cost of $4,000.00.
Potential revenue lost:
Every patient that walks through your door should be seen as a potential sale and every patient that doesn’t not due to your internal systems should be seen as a lost opportunity. In this case, 69 patients at a potential $4,000.00 did not attend because of the clients direct actions. A potential loss of $276,000.00.
The Talkapolis model allows physicians to pay for each completed consultation. The minute a client initiates an appointment to be rescheduled we see it as a lost opportunity. A completed consultation outlay for this client was $250.00 (just 6.25% of the potential revenue derived from the consultation). If we focused on the 69 of the 92 that didn’t return for an appointment that’s $17,250.00
It gets worse
Today’s cosmetic patient is worth more than $100,000 in lifetime service. Mature cosmetic practices (10 years old) should rest on a foundation wherein repeat business accounts for 50% of receivables. If all 69 of the rescheduled patients did attend, the client had every opportunity to convert 50% of them to lifetime patients a potential lifetime revenue of $3.5 million.
When the potential revenue lost to both parties is clearly outline, it’s easy to see why Talkapolis only allows for just 5 total client initiated appointment reschedules or cancellations per month. On second thought, we may make it 4….