Are you involved in the veterinary industry? Are you looking for ways to increase the performance of your veterinary clinic? If so, it's crucial to track and calculate your key performance indicators (KPIs). By doing so, you can gain valuable insights into your clinic's performance and identify opportunities for improvement.
In this blog post, we will explore the top seven KPI metrics for veterinary clinics. These KPIs have been identified as the most important by industry experts, and they can help you track everything from customer retention to revenue and more.
- Percentage of appointments kept by customers: One key KPI to track is the percentage of appointments that are kept by customers. This metric can help you identify any issues with scheduling or customer service that may be impacting your clinic's performance.
- Average revenue per appointment: Another important KPI is the average revenue generated per appointment. By tracking this metric, you can identify opportunities to upsell and increase revenue per customer.
- Client retention rate: The client retention rate measures how many of your customers return to your clinic for future appointments. This KPI can help you identify areas where you may be losing customers and take steps to improve retention.
There are several other important KPIs to track as well, including the pet insurance acceptance rate, revenue generated by sales of products, number of emergency care visits, and percentage of repeat customers. By tracking these metrics, you can gain valuable insights into your clinic's performance and make data-driven decisions to improve it.
So, if you're ready to take your veterinary clinic to the next level, start tracking these KPIs today and watch your performance soar!
Percentage of Appointments Kept by Customers
One of the most crucial KPIs for a veterinary clinic is the percentage of appointments kept by customers. This KPI is essential to determine how committed clients are to sticking to their appointments with the vet.
Percentage of appointments kept by customers is a KPI that measures the percentage of scheduled appointments that were attended by customers compared to the total number of appointments scheduled.
This KPI is important for a veterinary clinic as it helps determine the clinic’s customer service effectiveness. A low percentage indicates the need for follow-up and reminders, while a high percentage indicates that the clinic has satisfied and loyal customers.
How to Calculate KPI
The formula for calculating percentage of appointments kept by customers:(Total Appointments Kept / Total Appointments Scheduled) * 100 = Percentage of Appointments Kept by Customers
For instance, suppose a veterinary clinic has scheduled a total of 100 appointments during a month. Out of these, 85 appointments have been kept by customers.
Using the above formula, we can calculate the percentage of appointments kept by customers:(85 / 100) * 100 = 85%
Therefore, the clinic’s percentage of appointments kept by customers during that month was 85%.
- Helps improve customer engagement and satisfaction.
- Helps to identify potential barriers that affect clients' decision to keep appointments.
- Improves revenue by enhancing customer loyalty and commitment to appointments.
- It might not account for circumstances beyond a client's control that prevent them from coming to the appointment.
- A potential information gap exists if clients do not frequently visit the clinic or receive reminders or prompts.
- The KPI might be affected by incomplete scheduling during peak hours.
KPI Industry Benchmarks for the KPI: 'Percentage of appointments kept by customers.'
The industry benchmark for percentage of appointments kept by customers is between 70% to 90%.
Tips & Tricks
- Offer reminders, such as phone calls, text messages or email notifications, about appointments to improve the chances of a client showing up.
- Differentiate no-shows from cancellations to track different types of customer behavior.
- Do not underestimate the potential of a patient's first appointment – leave an excellent first impression with good service and attention.
Veterinary Clinic Financial Model
Average revenue per appointment.
As a veterinary clinic, it is important to understand your financials. One metric that can help you assess the financial performance of your business is the average revenue per appointment. In this chapter, we will look at what this metric entails, including its definition, use case, calculation, advantages, and disadvantages.
The average revenue per appointment metric is calculated by dividing the total revenue earned in a given period by the number of appointments during the same period.
The average revenue per appointment metric is useful in assessing the clinic's financial performance. It helps owners identify trends and understand how much revenue a clinic is earning on average from each appointment. It is a useful benchmark for tracking revenue growth over time.
How to Calculate KPI:
The formula to calculate the average revenue per appointment is:
Let's say your clinic generated $100,000 in revenue in a month and had 500 appointments that same month. The calculation would be:
Therefore, the average revenue achieved per appointment in that given month was $200.
- It is a simple metric that is easy to understand and calculate.
- It provides insights into the clinic's financial performance over time.
- It helps owners identify trends and areas for improvement.
- It does not take into account the cost of goods sold or other expenses.
- It does not provide a comprehensive picture of the clinic's financial health.
- It can be affected by external factors such as seasonality and market fluctuations.
KPI Industry Benchmarks for the KPI: 'Average revenue per appointment.'
According to industry benchmarks, the average revenue per appointment for veterinary clinics ranges from $130 to $225, with an average of $180.
Tips & Tricks:
- Use this metric in conjunction with other financial metrics to get a comprehensive analysis of your business's financial health.
- Track this metric over time to identify trends and areas for improvement.
- Consider adjusting your pricing or service mix to increase your average revenue per appointment.
Client retention rate.
Client retention rate is the percentage of customers or clients who remain with a veterinary clinic over a period of time. It is an important key performance indicator (KPI) because it helps to measure a veterinary clinic's ability to retain clients and build a strong client base.
The client retention rate KPI is a ratio of the number of clients who remain with a veterinary clinic over a period of time to the total number of clients at the beginning of the period.
Client retention rate is an important KPI for veterinary clinics. It helps to measure how well a clinic is doing in terms of retaining clients and building a strong client base. A high client retention rate indicates that a clinic is doing a good job in keeping its clients happy and satisfied with its services. On the other hand, a low client retention rate indicates that a clinic needs to work on improving its services and customer experience.
How To Calculate KPI
The formula for calculating client retention rate is:
Client retention rate = ((E-N)/S) x 100
- E = number of clients remaining at the end of the period
- N = number of new clients acquired during the period
- S = number of clients at the start of the period
Let's say a veterinary clinic started the year with 500 clients. During the year, they acquired 100 new clients and ended the year with 450 clients. Using the client retention rate formula, we can calculate the client retention rate for the year:
Client retention rate = ((450 - 100)/500) x 100 = 70%
- Helps to measure a veterinary clinic's ability to retain clients and build a strong client base
- Helps to identify areas where a clinic needs to improve its services and customer experience
- Can be used to benchmark a clinic's performance against industry averages
- Does not take into account the reasons why clients leave a clinic
- Does not provide information on the satisfaction level of clients who remain with the clinic
KPI Industry Benchmarks
According to industry benchmarks, the average client retention rate for veterinary clinics is around 60-65%. However, some top-performing clinics have a client retention rate of over 80%.
Tips & Tricks:
- Offer loyalty rewards or discounts to repeat clients to encourage them to come back and use your services again
- Regularly survey your clients to get feedback on your services and identify areas for improvement
- Train your staff to provide excellent customer service and to build strong relationships with your clients
Pet Insurance Acceptance Rate
As a veterinary clinic, one of the key performance indicators (KPIs) you should track is the pet insurance acceptance rate. This KPI measures the percentage of pet owners who accept your recommendation to obtain pet insurance for their pets.
The pet insurance acceptance rate KPI measures how successful a veterinary clinic is in persuading pet owners to obtain pet insurance for their pets.
The use case for the pet insurance acceptance rate KPI is to encourage veterinary clinics to promote pet insurance among their customers. It enables veterinary clinics to measure their success in persuading pet owners to obtain pet insurance for their pets.
How To Calculate KPI
To calculate the pet insurance acceptance rate KPI, you need to divide the number of pet owners who accepted your recommendation to obtain pet insurance by the total number of pet owners who visited your clinic over a specific period. The formula for calculating the pet insurance acceptance rate KPI is:
Pet Insurance Acceptance Rate = (Number of Pet Owners Who Obtained Pet Insurance / Total Number of Pet Owners Who Visited the Clinic) x 100
Suppose your veterinary clinic had 500 pet owners visit during the last month, and you recommended pet insurance to 100 of them. Among those 100 pet owners, 70 accepted your recommendation and obtained pet insurance.
Pet Insurance Acceptance Rate = (70 / 100) x 100 = 70%
- The pet insurance acceptance rate KPI encourages veterinary clinics to inform pet owners about the benefits of pet insurance, which can help provide better care for their pets.
- The KPI encourages veterinary clinics to increase revenue by promoting pet insurance, which can provide a new stream of income for the business.
- The KPI helps veterinary clinics track the effectiveness of their marketing campaigns for pet insurance.
- The pet insurance acceptance rate KPI may not accurately reflect the clinic's ability to provide quality care to pets.
- The KPI may be influenced by external factors such as the availability of affordable pet insurance options.
- It may be challenging to measure the KPI accurately if the clinic relies on self-reporting by pet owners.
KPI Industry Benchmarks
According to industry benchmarks, a pet insurance acceptance rate of around 60% is considered excellent for a veterinary clinic. However, the benchmark may vary based on the region, the size of the clinic, and the availability and price of pet insurance in the market.
Tips & Tricks:
- Offer incentives to pet owners to obtain pet insurance, such as discounted rates for routine check-ups and vaccinations.
- Collaborate with pet insurance companies to offer promotional deals that make it easier for pet owners to obtain insurance.
- Educate your staff about the benefits of pet insurance so they can promote it to pet owners effectively.
Revenue generated by sales of products.
As a veterinary clinic owner or operator, it is important to track how much revenue your clinic is generating from the sales of products. This is a critical key performance indicator (KPI) that can help you understand how well your clinic is performing financially.
Revenue generated by sales of products is the total amount of money that your veterinary clinic makes from the sale of products such as pet food, medications, and other supplies.
This KPI is important because it can give you insight into how much of your clinic's revenue is coming from product sales. If your revenue from product sales is low, you may want to consider improving your product offerings or your marketing efforts to increase revenue. Alternatively, if your revenue from product sales is high, you may want to focus on ensuring that you have enough products in stock to meet demand.
How To Calculate KPI
To calculate the revenue generated by sales of products, use the following formula:
Let's say that your veterinary clinic generated $500,000 in revenue last year, and $100,000 of that revenue came from product sales. To calculate the revenue generated by sales of products:
- Helps you understand how much of your clinic's revenue is coming from product sales.
- Can help you identify areas where you can improve your product offerings or marketing efforts to increase revenue.
- Can help you forecast future revenue by analyzing trends in product sales over time.
- Does not take into account other sources of revenue such as services or fees.
- May not be as useful for clinics that do not rely heavily on product sales.
- May not provide a complete picture of clinic performance without additional KPIs.
KPI Industry Benchmarks for the KPI: 'Revenue generated by sales of products.'
Industry benchmarks for this KPI can vary widely depending on the size and location of your veterinary clinic, as well as other factors such as the types of products you sell and your pricing strategy. However, according to a recent study by the American Animal Hospital Association, the average veterinary clinic generates around 15-20% of its revenue from product sales.
Tips & Tricks
- Regularly review your product offerings to ensure that they align with the needs of your clients.
- Consider offering promotions or discounts on products to increase sales.
- Track product sales by category to identify which products are performing well and which may need to be discontinued or reevaluated.
Number of emergency care visits.
In the veterinary industry, emergency care is one of the most important services to provide to the pet owners, and therefore, it is vital to measure its success. The number of emergency care visits KPI is an essential metric to track as it plays a crucial step in evaluating the hospital's performance while addressing the needs of the patients and the clients.
The number of emergency care visits KPI is a performance measurement that shows the total number of pets coming to the clinic for emergency purposes. This KPI helps hospitals to identify the number of visits due to accidents, injuries, or other illnesses that require urgent attention.
It is essential to monitor the number of emergency care visits to understand the frequency and timing of emergency visits to help allocate resources when needed. The KPI can help veterinary owners to assess the level of staffing required during peak emergency timings, ensure that the necessary resources are available, and analyze data to identify any seasonal patterns that need addressing.
How To Calculate KPI
To calculate the number of emergency care visits KPI, use the following formula:
Reporting period is usually one year, although it can be quarterly or monthly depending on the hospital.
Let's assume that an Animal Hospital had a total of 200 emergency care visits in one year.
Based on this data, the total number of emergency visits per day can be calculated by using the following formula:
The hospital, therefore, had an average of 0.55 emergency visits per day in that year.
- Helps veterinary hospitals plan for peak emergency timings
- Enables hospitals to allocate resources effectively.
- Assists in monitoring the frequency of emergencies and to improve preventative practices
- The number of emergency visits could be impacted by external factors such as weather, natural disasters, or epidemics.
- Some pets visited for emergency reasons might require extended recovery, which could impact the hospital's ability to admit more pets for emergency treatment.
KPI Industry Benchmarks
According to the Veterinary Hospital Managers Association, number of emergency care visits KPI averages between 1-2 patients per day in small to medium-sized hospitals, while larger practices can expect up to four patients per day.
Tips & Tricks
- It is essential to track the reasons behind the emergency visits to assess and improve the preventive practices in place.
- Ensure that the hospital staff are adequately trained to handle emergency visits and are equipped with the proper resources.
- Track trends and patterns in the number of emergency visits to identify the seasons or times when pet owners are more likely to bring their pets in for emergency visits.
Percentage of repeat customers
As a veterinary clinic, tracking your percentage of repeat customers is critical in understanding your business growth and stability. In this chapter, we'll discuss the definition of this KPI, its use case, how to calculate it, its advantages and disadvantages, and industry benchmarks.
Percentage of repeat customers, also known as customer retention rate, measures the percentage of customers who return to your clinic within a given period of time. It provides an understanding of how many customers are loyal to your clinic and how well you're delivering your services.
The percentage of repeat customers KPI is a valuable metric in determining the quality of the services you offer. It helps you understand how satisfied your clients are with your service, as satisfied customers are more likely to come back for future appointments and recommend you to others.
How To Calculate KPI
To calculate the percentage of repeat customers, use the following formula:
(Total number of customers who return within a given period ÷ Total number of customers who visited your clinic within the same period) x 100 = Percentage of repeat customers
Let's say your clinic had 100 new customers in June and 80 of them returned for follow-up visits in August. To calculate your percentage of repeat customers:
(80 ÷ 100) x 100 = 80%
Your clinic has an 80% customer retention rate, meaning 80% of the customers who visited in June returned for follow-up visits in August.
- Measures customer loyalty and satisfaction
- Helps identify areas of improvement in customer service
- Allows for effective planning and forecasting for future growth
- Does not provide insight into the reasons behind customer behavior
- May be affected by factors outside of clinic control, such as customer location or personal circumstances
- May be difficult to increase the percentage without implementing changes that may require additional resources
KPI Industry Benchmarks
The average percentage of repeat customers varies by industry. However, a benchmark for veterinary clinics is around 60-70%. If your clinic falls below these industry benchmarks, it may indicate a need for improvement in customer service or pricing.
Tips and Tricks
- Offer loyalty rewards or discounts to incentivize customers to return
- Ensure your clinic provides quality care and has knowledgeable and friendly staff
- Send follow-up emails or texts to remind customers of upcoming appointments or to check on their pet's health after a visit
Tracking key performance indicators (KPIs) is essential for any veterinary clinic looking to improve its performance. By keeping a close eye on metrics such as percentage of appointments kept by customers, average revenue per appointment, client retention rate, pet insurance acceptance rate, revenue generated by sales of products, number of emergency care visits, and percentage of repeat customers, you can gain valuable insights into your clinic's performance and identify opportunities for improvement.
These KPIs have been identified as the most important by industry experts and can help you not only track your clinic's performance but also identify areas where you may be losing customers and take steps to improve retention. By using data-driven decisions, you can take your veterinary clinic to the next level.
So, if you're involved in the veterinary industry and looking for ways to increase your clinic's performance, start tracking these KPIs today. With a focus on improving these metrics, you'll be well on your way to achieving success and seeing your clinic's performance soar.
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