There are many reasons why healthcare marketing is different than other industries, which makes calculating marketing ROI uniquely challenging.
For one thing, an ad for a particular provider, facility, or treatment may not result in immediate action by a consumer. Many who are exposed to healthcare marketing may not need the service at that moment, or maybe ever. Depending on your service line (e.g., cardio versus obstetrics), the time frame where you can attribute revenue to your marketing can vary dramatically.
So, how do you know how well your healthcare marketing is working? On the surface, the calculation for ROI is pretty straightforward:
(Net Revenue - Marketing Spend) / Marketing Spend = Marketing ROI
Because of the industry complexities mentioned above, there’s not an exact formula for healthcare marketing ROI. However, the businesses that commit to an approach and stay vigorous about tracking their definition of ROI are more likely to allocate resources better and build more effective budgets.