Knowing your Key Performance Indicators (KPIs) is crucial to growing your business. What are your current KPIs? Here’s the top 5 from us.
1) Average production per patient
A busy dental practice is not inevitably a profitable practice. A dentist who comes to his or her dental practice each day and sees a full lineup of dental patients from the start of the workday to the end of the day may feel lucky because the method cannot handle any more patients. But if the office manager does not track average production per head, it is difficult for the dentist to understand thoroughly whether the practice is as profitable as it should be.
2) Referral sources
Merely counting and sharing with the staff the number of new patients seen each month will cause the number to increase. All people know you are paying attention and that this is crucial. But you also want to understand by whom or what the new patients were referred. “An acquaintance” doesn’t tell you much. Your staff needs to ask which friend and you necessary to acknowledge that friend for the referral. “The Internet,” doesn’t help you much either. Where on the Internet? Google? Bing? Which keywords did they use to discover you? This is precious information for optimizing your website.
3) Collection and accounts receivable
Apparently, tracking the rate of collection and cycle-time of accounts receivable is critical to keep positive cash-flow. To explain these interdependent variables we ask how fast a practice can collect either from patient or insurance? These receivables can take anywhere to 80 days to receive and longer it takes higher the strain on the cash-flow as a practice is spending money today but for collection later. The patient collection cycle-time can be managed by raising co-payments during the visit, giving a cash discount for an upfront payment, accepting credit card, etc.
4) Call conversion percentage
Call conversion percentage is the rate at which your dental team can book at least two patient appointments per inbound call. Once you’re focused on this metric and using techniques shared in some the phone marketing systems, you can boost the number of patients booked per request in addition to improving overall conversion. With the practical use of our some of the phone systems out there, you can see MORE THAN DOUBLE new-patient flow for the majority of practices. Do you know that on average, most dental offices answer roughly 80% of their new patient inbound calls, missing 20%? Of the 80% that do get answered? That’s less than 50% is converted to at least one appointment. That means, as you can see in this chart, for every 100 valid new patient calls, just 80 are spoken with and only 38 results in an appointment. That’s if your practice is an industry average. Are you above or below?
5) Cost per new patient
Seriously, one of the best things about digital marketing strategies for dentists is that they can recall you how much it costs to acquire a new patient. Using the fake number we have above, let’s say we allocate $500 to get nine leads. These online leads are potential patients who might be interested in a cosmetic dental procedure or are inquiring about a special you were promoting. They aren’t dental patients just yet, still. We first need to have your sales team or front desk contact the potential new patient to set up an appointment.
In conclusion, keep in mind that the data never lies! Using these KPI’s will help you understand precisely how your practice is performing against established benchmarks of success. Keep Smiling!