What Is the Relationship Between Patient Lifetime Value (PLV) and Patient Acquisition Cost (PAC)?
The PLV-to-PAC Ratio measures the financial return on acquiring new patients in a dental practice.
-
- Patient Lifetime Value (PLV) (also known as LTV) = the total revenue a patient generates over their relationship with the practice.
- Patient Acquisition Cost (PAC) = the average cost to acquire a new patient through marketing and advertising.
The ratio compares long-term value vs upfront cost — showing whether marketing spend creates sustainable profit.
Why Does the PLV-to-PAC Ratio Matter for Dental Practice Owners?
Many practices overspend on marketing without measuring retention or lifetime value. This leads to:
- High PAC with poor recall → wasted spend
- New patients treated as one-off cases instead of long-term relationships
- Misjudged marketing ROI
By measuring PLV ÷ PAC, owners can see if growth is profitable.
Example:
- PAC = £100
- PLV (average patient) = £1,200
- Ratio = 12:1
👉 Every £1 spent acquiring patients returns £12 in lifetime value.
If the ratio falls below 3:1, marketing efficiency is usually too low to sustain profitability.
How Is the PLV-to-PAC Ratio Calculated?
PLV-to-PAC Ratio=Patient Lifetime Value (PLV)Patient Acquisition Cost (PAC)\text{PLV-to-PAC Ratio} = \frac{\text{Patient Lifetime Value (PLV)}}{\text{Patient Acquisition Cost (PAC)}}PLV-to-PAC Ratio=Patient Acquisition Cost (PAC)Patient Lifetime Value (PLV)
What Is a Healthy PLV-to-PAC Ratio in Dentistry?
| Ratio | Interpretation |
| < 3:1 | Unsustainable – acquisition costs outweigh value |
| 3–5:1 | Acceptable – balanced marketing costs |
| > 5:1 | Excellent – strong retention & profitability |
How Does DentPulse Optimise PLV-to-PAC?
| Feature | Function |
| PAC Tracker | Calculates cost per new patient by channel |
| PLV Calculator | Projects average revenue per patient (recall + treatment mix) |
| Retention Metrics | Links recall effectiveness to patient lifetime value |
| Treatment Profitability Index™ | Ensures high-value treatments justify higher PAC |
| OWS™ Overlay | Connects marketing spend and patient value to long-term owner wealth |
DentPulse makes PLV-to-PAC transparent, trackable, and tied to profit — not just marketing numbers.
DentPulse Tip™
“A diary full of new patients means nothing if the PLV-to-PAC ratio is broken.
Profit isn’t in acquisition — it’s in retention.”
Related Glossary Terms
- Patient Acquisition Cost (PAC) – cost to win a new patient
- Patient Lifetime Value (PLV) – revenue generated per patient over their journey
- Marketing ROI in Dentistry – return on spend at revenue/profit level
- Treatment Conversion Funnel – how enquiries become accepted treatment
- Retention Rate – driver of lifetime value
Glossary Summary Table
| Term | Meaning |
| PLV-to-PAC Ratio | Compares lifetime value of patients to cost of acquiring them |
| Healthy Range | 3:1 minimum, 5:1+ excellent |
| Purpose | Measure marketing efficiency & profitability |
| DentPulse Advantage | Automates PAC + PLV tracking, ties ROI to profit + wealth |
