Best sellers, loss leaders and client KPIs
An opportunity for growth
As with other data reports, the key here is to follow the results with action points, and what better way to initiate this than with evidence collated through your own veterinary software. The reports can help to:
Identify what’s going well in your practice; where focused support could be beneficial; and how you might locate lost revenue.
Measure how many new clients your practice is attracting; how many came back for additional visits; and the number of clients who have left.
It’s not uncommon to have a slight ‘head in the sand’ approach to this data. After all, no one enjoys facing what might not be going well. But a less-than-desirable set of numbers doesn’t automatically mean that your practice is performing poorly; often, it is just the result of oversight when we’re busy with the day-to-day running of the practice. A few focused changes are normally all it takes to see results improve.
Running reports on your clinic’s best sellers can be established by measuring what is bringing in the most revenue alongside the number of procedures completed. A thriving vaccination clinic may not bring in quite the same profit as just a few major procedures, but both have their role in your practice’s success. It’s also helpful to consider if a best seller could potentially become your practice’s unique selling point (USP). This can streamline marketing choices and help to consistently give you the edge over competitors.
When it comes to measuring what is unprofitable, a holistic, objective approach is best when initiating action points from the data. Is there a way to boost marketing? Or can focused CPD in this area be offered to members of the team who would be happy to champion this particular service?
Sometimes, it makes business sense to discontinue a loss-making service if it is not essential to the running of the practice, but before you do, it is worth considering if any administrative errors could be to blame for lost revenue. For example, are the estimate of charges being automatically converted to invoices on the practice management system? And are automated client communications set up, such as reminders to book a second appointment or for their next vaccination?
Client metrics such as acquisition (the number of new customers), churn rate (how many clients leave), and your repeat visit rate can be quickly assessed through running reports on your PMS. Again, this data can be useful as it is not subject to bias and can prompt informed action points. Trends in the data can be seasonal, so it is worth considering the time of year if you observe peaks or a lull.
Client satisfaction surveys work well alongside these reports and can offer context to your data. Is it the ease (or difficulty) of use that is attracting or putting off clients? Or the level of customer service that is provided? Perhaps the opening hours play a part in the accessibility of the practice or has a new competitor entered your local market? Both qualitative and quantitative data can be invaluable when looking to extrapolate trends and themes from the results.
Let’s take a look at two case studies on how data analytics has helped veterinary practices:
A seven-vet practice ran reports to measure how many of their clients continued to be active two years after initial registration. The data revealed a lower result than they were aiming for, prompting an in-depth review of the loyalty business model.
They also improved the euthanasia protocol after observing a lack of new patient registrations after a pet had passed away. Results from a client satisfaction survey conducted a year later revealed that 84 per cent of clients were ‘very likely’ to return.
A new practice has evaluated client metrics after one year of opening. After an initial boom in client acquisition during the first five months, the data has revealed that the rate is now reaching a plateau.
In order to increase footfall, the clinic decided to sponsor one of their veterinary surgeons to train as an OV (Official Veterinarian). The practice had received an increasing number of enquiries about animal health certificates and felt that offering this service could attract new clients and set them apart from competitors in their marketing campaigns.
In addition, the practice also revised their new-client offers and used customer feedback from surveys to make the client journey more convenient and comfortable.
Conducting reports through your PMS into your practice’s best sellers, loss leaders and client KPIs can streamline business action points. Collecting this data digitally will not only save you considerable time but will collate results that are easy to measure and return to. Tracking improvements in the numbers will aid in ensuring the longevity of your practice and can help to protect against competition.
