This article discusses the strategies that will help you increase Revenue In a Veterinary Practice by up to 25%. These are the same as the three KPIs (key performance indicators) that have made the top-performing veterinary practices very wealthy.
First, let’s consider the business equation:
Revenue = Number of clients × Number of visits × ATV
where ATV is the average transaction value, which is the amount of money spent per visit. In order to increase your revenue, there are three drivers. You need to:
Increase the number of new clients;
Get clients to come back more often; and
Increase the amount of money clients spend with you.
Consider what activities will bring in new clients. The most successful new client campaigns are ‘word-of-mouth referrals. How can you incentivize your existing clients to tell their friends how great you are? Think of your business like a leaking bucket, to keep it full of water you need to continuously top it up. Clients will leave and so you have to find even more new clients to continue growing.
Check your customer management system for reports showing the number of new clients and monitor this on a weekly basis.
Marketing Your Clinic Is Essential To Increase The Number of New Clients
What is a client worth to your business? How much on average do they spend a year? For example, if on average clients spend around £200–£300/ year, if they stay loyal and continue to buy from you for 10 years, that’s £2000–£3000 over the 10 years. Keeping clients engaged and active with your business is vital. Invest time in looking after your new clients with an example of your great customer service.
What do you currently do to make sure your clients stay with you and keep coming back? Do you know how often they come back? What products and services can you offer that will encourage your clients to come back and buy from you? Do you have a customer loyalty program?
As for new clients, monitor this every week (as already mentioned), set targets for the number of new clients you want to aim for, and celebrate when you succeed.
3- Increase The Amount of Money Clients Spend With You
This KPI is often the one that will make the biggest difference to your revenue. The ATV has a direct correlation to the quality of work you do. Give every client the best service and offer them relevant products. Charge appropriately for the work you do and ensure you are consistent with all of your clients. The ATV is calculated by dividing your income over a period of time by the number of clients in that same period. This gives you the average amount spent per visit. Measure this on a weekly basis, set targets for the number of new clients you want to aim for, and celebrate when you succeed. This is one KPI that most businesses struggle with. Other ways to improve ATV are to reduce discounting and stop non-charging. If you have a loyalty program, encourage clients who want discounts to join these. Any other discounting is subjective and may be construed as unfair. It often involves judgment of a client’s circumstances by their appearance. Make sure your employees know that giving goods and services without charging is stealing from the business, and this has a considerable impact on the overall profit. So keep an eye on missed charges and control discounting.
Final thoughts
These three KPIs are powerful tools that can help to ensure your practice flourishes and grows. Remember – you can’t achieve your business goals without profit!
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