5 Critical Numbers That Can Skyrocket Your Pharmacy's Success

MAY 17, 2016
There are many things you need to know about your pharmacy as a business, but understanding the following 5 numbers is particularly critical.

1. The lifetime value of the average patient.  
The lifetime value of each patient is far too often unknown and underappreciated. Being in business 10 years or more helps. Whether or not you are, follow these steps:
  • Randomly choose 100 names from your patient database.
  • Determine how long each person has been a patient of yours.
  • Find out how much money each person spent in the time that he or she has been a patient.
When you add up these numbers and divide the aggregate by the number of names, you’ll arrive at the amount spent by the average patient. However, that’s not the final result you want. You must then multiply it by the average profit margin that each has achieved in order to arrive at the true value of the average patient.

2. The average cost of acquiring a patient.
This cost will dictate how much you want to spend to acquire more patients. The process of determining the average cost of a patient is as follows:    
  • Identify the number of new patients obtained in the course of the year by the amount of dollars spent on advertising both offline and online.
  • Identify the amount of money you spent on marketing, then divide it by the number of new patients.
You should now have the cost of acquiring a new patient. Hence, if you spent $12,000 and gathered in 120 patients, your cost of acquisition is $120 per patient.

Lester Nathan, MS
Lester Nathan, MS
A powerhouse in the world of independent pharmacy, Lester offers free business resources for Pharmacy Owners on his website, ThePharmacySage.com. Offering insight, wisdom, and strategy, Lester is an esteemed voice in pharmacy business. Lester helps his clients increase patients and profits in spite of the 3rd party payment fiasco.