If you’re a veterinary practice owner, you know that a big part of the job is managing your business. Although your main focus is always on providing the best care possible, in order to continue delivering excellent service, the profitability of your practice has to be at the forefront of your efforts. We know that veterinarians would much rather spend their time and energy taking care of their patients, so here are our top 3 tips to help you manage the business side as effectively as possible:
1. Measure your bonding rate
What exactly do we mean by bonding rate? Your bonding rate is how frequently your clients return to your clinic within 18 months of when you last saw them. The industry average bonding rate is 60%, but you should be aiming for 80-90%, where you get to see every client at least once a year. An easy way to improve this metric is by actively surveying your clients and encouraging feedback, as client satisfaction plays a key role in increasing how often clients come back to your clinic.
2. Monitor your clients’ yearly spend
What’s the average dollar amount each pet parent spends in your practice over the course of a year? We recommend you compare it with your previous year’s data in order to identify key trends. It’s also a good idea to speak with fellow practice owners in your area to get an idea of their yearly client spend and discuss possible ways to increase this, while providing gold standard veterinary care for your clients.
3. Keep track of total revenue
Okay, this one seems like a no brainer, but when was the last time you examined your practice’s revenue over the previous 5 years? We highly recommend actively tracking any changes you make to the operations of your practice and the monetary impact they have on your bottom line. Take for example the implementation of wellness plans – are you simply discounting services that your top clients would be purchasing even if they weren’t discounted? Or are you in fact providing additional value and incentivizing your “B-” and “C-level” clients to actively partake in preventative care measures, thus increasing your practice’s bottom line and improving overall pet health?
Measuring your bonding rate by actively seeking feedback will help you improve client satisfaction. In addition, optimizing your clients’ yearly spend and monitoring changes to your bottom line will ensure that your practice is profitable, thus allowing you to focus on what’s really important – taking care of your patients.
Want more tips on how to improve your practices’ profitability and efficiency? Shoot us a message or click here to see how Milo can help you monitor your business health.