Consumer buying behaviour
Identifying quiet and busy periods
Of course, sometimes a short ‘lull’ is useful to help everyone catch their breath, but a lull can also be a signal that something is going wrong, and the reason needs to be identified. And as there is a well-known belief that saying the dreaded ‘Q word’ out loud is enough to immediately and magically create the opposite situation, we don’t always recognise slowdowns fast enough!
Seasonal variations: Christmas shopping and tight budgets reducing elective procedures can mean it is quiet in December.
Recency effects: an exceptionally busy period previously can mean the current level seems quiet in comparison.
Holidays, staff absence or new graduates requiring support.
A few high value procedures or bulk buying or flea products in the spring can mask an underlying trend unless all factors are taken into account.
Overall revenueSales data is a great starting point since it is also a measure of financial success. It’s a measure that is really useful to track year on year and month on month as important trends can often be identified and those can help inform decisions around rotas and recruitment.
Beware a unicorn month that occurs as a result of a few expensive procedures or outstanding bills being paid as a result of new credit control measures. Note too that individuals can make a difference to sales revenue – a vet or RVN who takes a holistic approach may sell more preventive treatments during a routine consult and front desk staff who explain the benefits of healthcare plans effectively may also have a significant impact on sales.
Finally – the old adage that turnover is vanity, profit is sanity holds true. Year-on-year revenue might stay static but if it is delivered by a larger team, then profit can decrease. Both parameters need to be evaluated together.
Number of procedures or specific servicesElective procedures are often a good measure of consumer confidence and may also reflect the success of your pricing strategy as clients do call around to get quotes on neutering and vaccinations. A common theme through this publication is that context is everything. It’s easy to be a ‘busy fool’ and busy can mean reduced ability to make clients aware of other services and preventive healthcare in particular, so these are especially important to track.
New client acquisitionThis can be a good measure of sustained and future success. If new client sign-offs have dipped however, it can be difficult to assess why. The reason might be poor marketing or customer service at the point of sign-up, pricing, reputational issues, competitor activity, or economic concerns. You may also want to take into account puppy and kitten season.
Age demographic of patientsPuppies, kittens and senior pets are more likely to receive more costly care than those in middle age – as pandemic pets become adults we may expect to see a dip for a few years.
Number of appointmentsAlso a great metric when compared to previous periods but is also closely associated with the number of vets which defines the number of available appointments. For this reason, some practices record the percentage of appointments which are booked. Another data point to observe is the turnover per consultation. Longer consultation times mean fewer appointments but don’t always reduce profit as they can result in better first contact resolution, improving customer satisfaction and employee satisfaction.
GoogleGoogle often shows when a place is busier than usual, indicates busiest days and it may also flag up average waiting times. It uses aggregated and anonymised data from users who have opted in to Google Location History to do so. Check out the popular times on your local Google Business profile for a quick snapshot of activity by day and time.
