By: Messina Sinn | October 9 , 2017
Measuring the right practice metrics can help.
Millennials spending more than ever on pet health can mean a booming business with a full appointment calendar…or even more competition for your veterinary practice. With conveniences like big box stores or online retailers that compete for the pet owner’s dollar, it is crucial to keep an eye on your veterinary practice performance and grow your customer loyalty. The good news…your veterinary software can help!
Analyzing your veterinary practice’s financial and client data can give you a first-hand look at the health of your business while guiding marketing initiatives that give you a leg up on the competition. Now, we’ve made it easier than ever to use your veterinary practice management software to track the most important key performance indicators (KPIs) that affect your bottom line, helping you boost revenue and develop more consistent standards of care.
So, which KPIs should you measure?
Fewer client transactions can equal fewer patient visits
This KPI can be a major reason for declining revenues. A decline in transactions may be due to a decline in the number of new clients, clients not showing up for appointments, fewer clients coming in for wellness visits or other services, poor reminder systems, or a decline in patient visits in general. Tracking this KPI closely can help you better tailor your veterinary practice marketing initiatives to attract new clients or bring back existing clients.
A steady flow of both active clients and new clients is crucial
The average bonding rate for veterinary hospitals is 60 percent, which means you see six out of ten clients return within 18 months*. Veterinary practices need an active client base to ensure financial success. Be sure to also track the number of new clients who visit your hospital each month to assess how well your practice is attracting new pet owners. The industry benchmark for the recommended average number of new clients per doctor is 18.5 per month.*
Is doctor productivity where it should be?
Track the revenue generated by each doctor in your practice on a monthly basis as well as each doctor’s average client transaction (ACT). This can indicate how well doctors are performing at quality service and communicating the value of services to pet owners. If a substantial decrease in doctor production or ACT occurs, it is time to investigate the underlying cause. This also helps you set practitioner benchmarks for standards of care.
Which services are most utilized?
Analyze revenues by service category or profit center to gain valuable information about which services are more or less utilized at your practice. Service categories include exams/consultations, vaccines, laboratory testing, imaging, surgery, hospitalization, anesthesia, dentistry, and product sales. This helps you compare the practice revenue for each service category with industry benchmarks, while identifying opportunities for future marketing campaigns.
Make tracking KPIs easier
You may or may not be tracking these key KPIs within your veterinary practice, because normally you need to pull multiple reports from your veterinary practice management software to see this information, which is time consuming.
The new Sparkline Scorecard tracks over 40 KPIs on a monthly basis to monitor processes and activities that boost revenue and profits. Sparkline works with your practice management software from Henry Schein Veterinary Solutions (AVImark, ImproMed, or ImproMed Equine in North America; RoboVet or RxWorks in the UK and Europe; or VisionVPM or RxWorks in Asia Pacific) to display your data in an easy-to-read manner, with red and green symbols to show you what’s working … and what’s not.
Measuring the right practice metrics (and making it easy through your veterinary software) can make a big difference in your revenue and growth. Practices around the world using Sparkline have reported:
• 15% increase in average transaction value.
• 20% increase in net revenue.
• 30% increase in average revenue per customer.
• Fewer missed charges.
• More consistent standards of care from each veterinarian in the practice.
Source: Veterinary Economics, Give your practice a physical exam, DVM360