Helping A Chiro Scale Past 6 Locations | Ep 837
In this episode, Raymond Kooner, owner of a chain of 6 chiropractic clinics, details his $5.2 million business operation. Kooner shares strategies for lead generation, patient consultations, and clinic performance across multiple locations. He also discusses his plans for future expansion.
Alex Hormozi analyzes Kooner's approach and provides recommendations to improve sales, streamline operations, and scale the business. These include appointing dedicated patient coordinators, optimizing local SEO and Google advertising, standardizing sales processes, and emphasizing same-day conversions. Hormozi emphasizes the importance of effective marketing, smooth coordination between team roles, and a singular focus on maximizing sales growth.
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1-Page Summary
Kooner's Current Business Performance and Model
Raymond Kooner has built a successful chain of 6 chiropractic clinics in the Seattle area. His clinics achieve $5.2 million in revenue with a 23% net profit margin. Kooner's clinics serve insured or cash-paying employed adults aged 35-65, offering treatment packages from $2,400 to $3,600 over 60-90 days. While acquisitions fueled his growth, Kooner ponders shifting to an organic expansion strategy.
Sales and Marketing Strategies For Kooner's Clinics
Kooner spends $1,000-$2,000 monthly per location on Facebook and Google ads for lead generation. His Facebook ads yield around 20 sales per month from 35 leads, with an 80% show rate and 71% close rate. According to Kooner, Google ads outperform Facebook, generating better leads and conversions.
Kooner uses a 2-day consultation process: Day 1 involves consultation and examination, while Day 2 presents the treatment plan tailored to the patient's insurance coverage. Reminders, calls, and click-to-call ads facilitate patient attendance.
Operational Scaling Challenges and Solutions
Scaling from 1 to 6 locations created lead flow inconsistencies for Kooner. Performance varies across clinics, with Kent and Everett outperforming Auburn and Federal Way.
Kooner identifies reliance on doctors for sales as a bottleneck. Alex Hormozi recommends having dedicated patient coordinators for sales, leaving doctors to focus on treatment plans. Hormozi also advises increasing Google ad spend, focusing on local SEO with targeted location-based keywords for consistent lead generation.
Hormozi's Recommendations For Kooner's Business Growth
Hormozi suggests having patient coordinators handle consultations and insurance, while doctors present treatment plans - utilizing standardized sales scripts and processes for consistency.
To boost show rates, Hormozi recommends charging $29 for X-rays/assessments at booking and collecting insurance details by phone. He advises increasing Google ad spend and local SEO investment for better ROI.
Hormozi emphasizes same-day sales, systematizing sales processes, maximizing marketing resources, and the pivotal role of sales-focused patient coordinators in scaling Kooner's business.
1-Page Summary
Additional Materials
Clarifications
- Kooner's clinics cater to adults aged 35-65 who are either covered by insurance or can pay out of pocket. The clinics offer treatment packages priced between $2,400 and $3,600, which are designed to be completed over a period of 60 to 90 days. These treatment packages are structured to address the specific needs of the patients within this age group and typically involve a comprehensive care plan over the specified timeframe.
- Raymond Kooner is considering transitioning from growing his business through acquisitions to a more organic expansion strategy. This shift would involve focusing on internal growth and developing his existing clinics rather than acquiring new ones. Organic expansion typically involves slower but more sustainable growth compared to rapid expansion through acquisitions. Kooner may be contemplating this change to potentially have more control over the growth process and to build a stronger foundation for his business in the long term.
- Kooner's 2-day consultation process involves an initial day for consultation and examination to assess the patient's condition. The second day is dedicated to presenting a tailored treatment plan based on the examination results and the patient's insurance coverage. This structured approach allows for a thorough assessment of the patient's needs and the development of a personalized treatment strategy.
- Kent and Everett clinics outperform Auburn and Federal Way locations in terms of business performance metrics such as revenue, profitability, or patient volume. This indicates that Kent and Everett clinics are more successful or efficient compared to Auburn and Federal Way clinics within Raymond Kooner's chain of chiropractic clinics.
- Alex Hormozi suggests that Raymond Kooner should hire patient coordinators to handle sales tasks, allowing the doctors to focus solely on creating treatment plans for the patients. This division of responsibilities can streamline the process, improve efficiency, and potentially lead to better patient outcomes. By having dedicated staff members focused on sales, the clinics can enhance their overall operational effectiveness and provide a more structured approach to patient care.
- Hormozi's advice to increase Google ad spend means allocating more budget towards advertising on Google's platform to reach a larger audience. Focusing on local SEO involves optimizing the online presence of Kooner's clinics to appear more prominently in local search results, attracting nearby potential customers. Targeted keywords are specific terms related to chiropractic services and locations that, when used effectively, can improve the visibility of Kooner's clinics online. This strategy aims to enhance lead generation by ensuring that the clinics are easily discoverable by individuals seeking chiropractic care in their area.
- Charging a fee for X-rays/assessments at the time of booking can increase the likelihood that patients show up for their appointments. Collecting insurance details over the phone in advance helps streamline the check-in process and ensures smoother interactions during the patient's visit. This approach can help reduce no-show rates and improve the overall efficiency of the clinic's operations.
- To scale Kooner's business effectively, implementing same-day sales ensures quick conversion of leads into paying customers. Systematizing sales processes involves creating structured and efficient methods for handling sales interactions consistently. Maximizing marketing resources means optimizing the use of advertising and promotional strategies to attract more customers. Having sales-focused patient coordinators involves assigning staff dedicated to sales tasks, allowing doctors to focus on providing treatments.
Counterarguments
- While Google ads are reported to be more effective, it's important to consider that advertising platforms can change over time, and what works now might not work in the future. Diversification of advertising channels could mitigate this risk.
- The 2-day consultation process might be seen as a barrier to entry for some potential patients who prefer a faster service or have scheduling constraints.
- Relying on patient coordinators for sales could potentially lead to a less personalized approach if not managed carefully, as they may not have the same level of medical knowledge as doctors.
- Charging for X-rays/assessments could deter some potential patients, especially those who are price-sensitive or those who are used to complimentary consultations.
- While standardizing sales scripts and processes can improve consistency, it may also reduce the flexibility to tailor interactions to individual patient needs and preferences.
- The focus on maximizing marketing resources and same-day sales could lead to a perception that the clinics prioritize profit over patient care, which could harm the brand's reputation if not balanced correctly.
- The recommendation to increase Google ad spend and local SEO investment assumes that these methods will continue to provide a better ROI, which may not always be the case due to market saturation, changes in Google's algorithm, or shifts in consumer behavior.
- The emphasis on sales-focused patient coordinators might overlook the importance of other aspects of the patient experience, such as aftercare and ongoing support, which can also contribute to business growth through patient retention and referrals.
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Kooner's Current Business Performance and Model
Raymond Kooner has successfully carved out a niche in the chiropractic industry with Cairo First of Washington, his chain of six clinics in the greater Seattle area.
Kooner's 6 Seattle Chiropractic Clinics: $5.2M Revenue, 23% Net Profit
His business has achieved impressive financial results, boasting an annual revenue of $5.2 million. Over the last 12 months, Kooner's top-line revenue of $5.2 million has resulted in a net profit of $1.2 million, establishing a robust net profit margin of about 23%. This level of profitability reflects the effectiveness of the clinics' business model.
Kooner's Clinics Serve Insured/Cash-Paying Employed Adults Aged 35-65
Catering to a specific demographic, Kooner’s clinics primarily serve employed adults between the ages of 35 and 65. His patient base consists of both insured individuals and those capable of paying cash for services, enabling a stable and predictable revenue stream.
Kooner's Clinics Offer Chiropractic, Rehab, and Spinal Decompression Services, With Packages From $2,400 to $3,600 Over 60-90 Days
Kooner’s clinics have crafted a service offering tailored to their patients' needs. They provide custom treatment plans that may include chiropractic care, rehabilitation, and spinal decompression services. By offering thorough care packages priced between $2,400 and $3,600 for periods of 60 to 90 days, Kooner's clinics capit ...
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Kooner's Current Business Performance and Model
Additional Materials
Actionables
- You can analyze your own spending habits to identify areas where you can achieve a similar net profit margin as the clinics. By tracking your income and expenses, you can calculate your personal net profit margin and set goals to improve it. For example, if you find that dining out is a significant expense, you might aim to cook more meals at home to increase your savings rate.
- Consider creating a simple business plan for a hypothetical service-based company targeting the same demographic as the clinics. This exercise can help you understand market segmentation and pricing strategies. You could, for instance, draft a plan for a mobile car detailing service for busy professionals aged 35-65, determining competitive pricing and packages that would appeal to this group.
- Explore the concept of organic growth in ...
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Sales and Marketing Strategies For Kooner's Clinics
Raymond Kooner discusses the various sales and marketing strategies employed by Kooner's Clinics, focusing on their spend on Facebook and Google ads, as well as their in-depth two-day sales process.
Kooner Spends $1,000-$2,000 Monthly Per Location on Facebook and Google Ads For Lead Generation
Kooner’s clinics allocate a monthly budget ranging from $1,000 to $2,000 per location for advertising on Facebook and Google. These platforms are leveraged for lead generation and contribute significantly to the clinic's patient acquisition efforts.
Kooner's Facebook Ads Yield 20 Sales/Month From 35 Leads With an 80% Show Rate and 71% Close Rate
Kooner's sales metrics from Facebook ads are impressive, with an 80% show rate and a 71% close rate on approximately 35 leads. This efficiency converts to about 20 new sales or clientele each month.
Google Ads Surpass Facebook For Kooner, Yielding Better Leads and Conversions, but Full Potential Untapped
The data suggests that Google ads outperform Facebook ads for Kooner’s clinics, generating higher-quality leads and conversions. Recognizing the superior return from Google ads, Kooner voices his intention to increase investment in this area, particularly as patients sourced from Google tend to have immediate needs, facilitating easier case acceptance.
Kooner's Sales: 2-Day Consultation, Treatment Plan, Streamline Insurance & Package Presentation
Kooner has instituted a robust sales process that spans two days. This process involves an initial consultation, x-rays, ...
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Sales and Marketing Strategies For Kooner's Clinics
Additional Materials
Clarifications
- The 2-day sales process at Kooner's Clinics involves an initial consultation, x-rays, and examination on the first day. The next day includes a review of x-ray results and the presentation of a customized treatment plan. This process is designed to optimize patient attendance and streamline the sales process for effective patient management. Text reminders, calls, and a centralized call center support patient intake, ensuring a comprehensive approach to patient care and sales.
- "Case acceptance" in the context of Kooner's Clinics refers to the process of patients agreeing to and moving forward with the proposed treatment plans after consultations. It measures the success rate of converting consultations into actual treatment procedures. High case acceptance rates indicate effective communication, trust-building, and alignment between patient needs and the clinic's recommended care.
- "Streamlining insurance" in the context of Kooner's Clinics' sales process involves optimizing the handling of insurance-related matters to ensure a smooth and efficient patient experience. This may include simplifying the insurance verification process, coordinating with insurance providers for timely approvals, and ensuring that patients understand their coverage and benefits without unnecessary delays or complications. The goal is to make the insurance aspect of the patient journey as seamless as possible, reducing any potential barriers to treatment acceptance and overall satisfaction.
- A centralized call center in the context of Kooner's Clinics serves as a single point of contact for handling incoming calls from patients or potential clients. This centralized setup ensures that all calls are efficiently managed, routed, and responded to by trained staff, enhancing customer service and streamlining communication processes within the clinics. The call center may handle appointment scheduling ...
Counterarguments
- The budget allocated for Facebook and Google ads may not be sufficient for larger markets or more competitive areas, where ad spend requirements could be significantly higher to achieve similar results.
- The reported sales metrics from Facebook ads, while impressive, may not account for the long-term value or lifetime value of a customer, which could be a more important metric for overall business success.
- The effectiveness of Google ads over Facebook ads could vary depending on the target demographic, as different platforms may be more effective for different age groups, interests, or behaviors.
- Increasing investment in Google ads might not necessarily lead to proportionally increased conversions or sales; there could be diminishing returns on ad spend beyond a certain point.
- The two-day sales process could be too time-consuming for some patients, potentially leading to a loss of leads who prefer a quicker decision-making process.
- The reminder sequence, while thorough, could be seen as too aggressive or intrusive by some patients, potentially leading to a negative perception of the clinic.
- Adapting treatment ...
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Operational Scaling Challenges and Solutions
Kooner and Alex Hormozi discuss the challenges Kooner faces in scaling his business from one location to six and explore potential solutions for more consistent lead generation and sales processes.
Kooner Faces Lead Flow Issues Scaling From 1 to 6 Locations
Kooner's Clinics' Performance Varies, Highlighting Consistency Opportunities
Kooner identifies lead flow as a significant constraint, observing that it has become inconsistent as he scaled from one location to six. The variation affects the ability to predict and control marketing outcomes. He points out that performance varies across his clinics, with some, like the third location in Kent, performing much better than others like Auburn and Federal Way. This performance discrepancy signals opportunities for consistency and the replication of best practices within the network.
Kooner notes that Kent and Everett are his top-performing locations, while Auburn and Federal Way are the lowest. He discusses the challenge of transferring leads manually into their EHR, which adds to the inconsistency in lead flow.
Reliance on Doctors For Sales Creates Inconsistency; Recommends Structured, Templated Sales by a Dedicated Patient Coordinator
The reliance on doctors to carry out sales results in inconsistency, according to Kooner. He finds it challenging to train his doctors to standardize their sales patterns, suggesting that a more effective approach might be a structured, templated sales process carried out by someone other than the doctor. Alex Hormozi agrees, recommending that putting a dedicated patient coord ...
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Operational Scaling Challenges and Solutions
Additional Materials
Clarifications
- EHR stands for Electronic Health Record. It is a digital version of a patient's paper chart, containing their medical history, diagnoses, medications, treatment plans, immunization dates, allergies, radiology images, and laboratory test results. EHRs are designed to be shared across different healthcare settings, providing a comprehensive view of a patient's health information. Healthcare providers use EHRs to improve patient care by streamlining processes, reducing errors, and promoting coordinated care.
- SEO stands for Search Engine Optimization. It is the practice of optimizing your website to increase its visibility on search engines like Google. This involves improving factors like content quality, keywords, and backlinks to rank higher in search results, ultimately driving more organic (non-paid) traffic to your site. SEO helps websites attract relevant visitors and improve their online presence and visibility.
- Google Ads is an online advertising platform by Google where advertisers bid to display ads to web users. It operates on a pay-per-click (PPC) and cost-per-view (CPV) pricing model. Advertisers can showcase ads on Google Search, mobile apps, videos, and non-search websites to reach their target audience effectively. The platform allows businesses to create and manage their advertising campaigns to promote their products or services.
- A templated sales process involves creating standardized, pre-defined sales procedures and scripts that outline the steps and key points for engaging with potential customers. This structured approach helps ensure consistency in sales interactions and messaging across different sales representatives or locations. By using templates, businesses can streamline their sales efforts, maintain quality control, and improve the overall effectiveness of their sales strategies.
- Structured sales patterns are predefined, organized approaches to selling products or services. They involve following a set sequence of steps or actions during the sales process to guide potential customers towards making a purchase. These patterns help ensure ...
Counterarguments
- While doubling ad spend might increase visibility, it does not guarantee a proportional increase in quality leads or ROI; careful analysis and strategic targeting are crucial.
- Structured, templated sales processes can improve consistency, but they may also reduce the personalization of the sales experience, which can be important in healthcare.
- Relying solely on local SEO and Google Ads might miss opportunities in other marketing channels, such as social media or referral programs.
- Hiring a dedicated patient coordinator for sales could improve consistency, but it also adds to operational costs and may require additional training and management oversight.
- Improving lead flow consistency is important, but focusing too much on lead quantity over lead quality could result in inefficient use of resources.
- The assumption that local SEO is not difficult to win may underestimate the competition and complexity of SEO, especially in satura ...
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Hormozi's Recommendations For Kooner's Business Growth
Hormozi provides extensive advice on refining Kooner's business approach, emphasizing the enhancement of the sales process, marketing strategies, and the standardization of service delivery across clinics.
Hormozi's Sales Process: Coordinator For Consultation/Insurance, Doctor Presents Treatment Plan
Hormozi proposes a streamlined sales process for Kooner's clinics. He suggests separating roles by having a sales-focused patient coordinator handle consultations and insurance, freeing the doctor to focus solely on presenting treatment plans. This division of labor is meant to ensure that doctors don't get bogged down with administrative tasks. The patient coordinator could potentially earn significant commissions based on sales performance, evolving the role into a more sales-centric position.
Hormozi: Use $29 X-Ray and Assessment to Boost Show Rates and Begin Sales Process
To improve patient show rates and kickstart the sales process, Hormozi recommends offering a discounted X-ray and assessment service. By charging $29 at the time of booking and securing the appointment with a credit card, Kooner can ensure higher commitment from patients. Hormozi also suggests collecting insurance information over the phone to avoid delays in the clinic.
Hormozi Advises Kooner to Boost Google Ad Spend and Explore Local SEO For Better ROI
Hormozi notes the potential in Google AdWords data and advises Kooner to increase his spending on Google Ads and delve into local SEO to achieve a better return on investment. He suggests that Kooner instruct his marketing teams to raise their current cost per acquisition targets for Google Ads, asserting that a willingness to spend more could substantially increase their lead flow.
Hormozi Advises Kooner to Use Standardized Sales Scripts and Processes For Consistency and Scalability Across His Clinics
To ensure consistency a ...
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Hormozi's Recommendations For Kooner's Business Growth
Additional Materials
Counterarguments
- Separating roles may lead to communication gaps between patient coordinators and doctors, potentially affecting the quality of patient care.
- A $29 X-ray and assessment fee might deter some patients from booking an appointment, especially those who are price-sensitive or uninsured.
- Collecting insurance information over the phone could lead to privacy concerns or data entry errors if not handled securely and accurately.
- Increasing Google Ad spend and focusing on local SEO might not yield a better ROI if the campaigns are not well-targeted or if the market is already saturated.
- Raising cost per acquisition targets could result in a higher customer acquisition cost that may not be sustainable in the long term.
- Standardized sales scripts and processes may not be flexible enough to cater to individual patient needs and could make interactions feel impersonal.
- Systematizing the sales process might stifle creativity and discourage personalized service, which can be a key differentiator in healthcare.
- Attaching scripts to patient contracts for tracking adherence could be seen as micromanaging and may demotivate staff.
- Te ...
Actionables
- You can streamline your daily decision-making by creating a flowchart for routine choices. For instance, if you're often unsure about what to eat for breakfast, design a flowchart that factors in your nutritional goals, available ingredients, and prep time. This approach mimics the standardization of service delivery, making your mornings more efficient.
- Develop a personal reward system to incentivize completing tasks you usually procrastinate on. For example, if you tend to delay exercise, promise yourself a small treat, like watching an episode of your favorite show, only after you've completed your workout. This mirrors the concept of boosting show rates with an incentive, applied to your personal goals.
- Enhance your ...
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