Practicing veterinary medicine requires genuine care for animals, but that’s not all. You’re also running a business, and it won’t survive unless you can generate revenue, optimize your workflow, and improve operational performance. Fortunately, you can discover critical insights about the success of your practice by measuring veterinary benchmarks and key performance indicators (KPIs). Below, we’ll explore KPIs and their importance to the continued growth of your veterinary practice.
Additionally, we’ll outline well-managed veterinary practice benchmarks and critical veterinarian KPIs and how you can use cutting-edge software to monitor and analyze data metrics. Here at Weave, we offer an integrated digital platform tailored for the veterinary industry. It’s one user-friendly software system to help you monitor, streamline, and increase efficiency and practice performance.
Defining Veterinary Benchmarks and KPIs
The purpose of measuring veterinary key performance indicators is to assess the performance and success of your practice. These calculations help you determine the profitability of your business. You can monitor progress toward achieving goals, identify strengths and weaknesses, and pinpoint growth opportunities.
Common KPIs and veterinary metrics include financial, operations, clinical aspects, and marketing. The first step is setting short- and long-term goals for your veterinary practice, helping you make well-informed decisions regarding the specific metrics you should measure.
Importance of Veterinary Benchmarks and KPIs
Every veterinary practice, from general practices and emergency clinics to companion animal practices and more, generates vast amounts of business data. Within that data hides valuable information and insights regarding the success of your practice. Furthermore, benchmarks and KPIs can benefit veterinary professionals by allowing them to:
- Monitor the success of your practice
- Measure your progress over time
- Determine if you’ve been meeting goals and objectives
- Discover vulnerable areas and adjust operations accordingly
- Identify and solve problems or obstacles to growth
- Pinpoint new and missed opportunities
- Analyze patterns and long-term performance
- Find ways to cut costs and increase profits
Veterinary Financial Benchmarks and KPIs
Financial KPIs are some of the most important data sets to analyze, including the following:
- Gross and Net Revenue: The gross revenue of your practice includes the total amount of money you’ve earned before payroll, expenses, insurance, etc. Net income refers to your total profit after deducting expenses and gives you industry insight regarding the success of your business model.
- Average Transaction Value (ATV): ATV shows the average sales revenue per transaction. You can calculate this by dividing total revenue by the number of sales or transactions.
- Cost of Goods Sold: COGS measures your profit margin and compensation on the services and products you provide to your patients and examines the impact of expenses like labor, equipment, supplies, etc.
- Overhead Expenses: Benchmarking total overhead for your clinic tells you how much you’re spending on each expense category. For example, staffing and personnel costs, rent and utilities, discretionary costs, etc.
- Profit Margin: This KPI determines the dollar amount of sales left after deducting the COGS. It shows whether your business can still make a profit even after subtracting expenses.
Of course, the average practice owners don’t have the free time to calculate and analyze financial KPIs manually. However, with Weave’s cutting-edge software solutions and platform, you can automate the process of measuring KPIs and other essential business functions, regardless of your practice type. For example, financial tools like Buy Now, Pay Over Time give your patients access to flexible payment options. To learn more, read our case studies demonstrating how Weave’s integrated software solutions helped veterinary practices enhance productivity and generate more profit.
Veterinary Operational Benchmarks and KPIs
Operational benchmarks and KPIs assess data regarding day-to-day operations and practice efficiency, including:
- Scheduling and Wait Times: This KPI analyzes scheduling volumes and the average wait time during patient visits. Longer wait times negatively affect patient experience and your clinic’s reputation.
- Staff Productivity and Utilization: Measuring the productivity levels of your veterinary team lets you know whether they’re achieving goals, accomplishing objectives, and working efficiently.
- Client Retention Rates: Tracking data about new clients and returning clients can provide vital knowledge about the quality of care and experience your clinic provides.
- Patient Volume and Caseload: Calculating the volume of patient appointments can help you find new opportunities to optimize your workflow and daily caseload.
- Inventory Management: How much extra room is in your supply budget? Monitoring inventory expenses and utilization lets you identify areas to cut costs and save money.
- Staff Turnover: Examining your turnover rate is essential because hiring and training new employees is time-consuming and expensive.
In today’s digital age, clients expect businesses to provide convenience and flexibility. For example, tools like Weave’s digital forms, automated appointment reminders, and online scheduling ensure an easy, hassle-free experience for your practice manager and patients, improving retention rates and your reputation.
Veterinary Clinical Benchmarks and KPIs
While there’s a wide range of clinical benchmarks and KPIs in the veterinary profession, the most important metrics include:
- Case Mix and Complexity: Does your veterinary practice handle a diverse mix of patients and cases? How complex are the procedures you’re performing for pet owners? This data helps you discover whether your services are benefiting your practice or making your workload unnecessarily difficult.
- Patient Outcomes and Survival Rates: Tracking patient outcomes and survival rates is an effective way to benchmark the skill, knowledge, and quality of care your practice provides, particularly if you run a veterinary hospital.
- Employee Education and Development: Staffing KPIs like training, continuing education, and professional development are critical to your practice’s future success. Investing in your staff’s education can deliver a significant return as they gain more advanced skills and knowledge.
- Treatment Protocols and Compliance: Failure to follow proper treatment protocols or comply with regulatory agencies can result in serious consequences, making this KPI one of the most important to track for veterinary teams.
Help your team stay on track with these metrics with data-syncing technology. Reduce human error and provide excellent patient care with patient and pet profiles and customer insights.
Veterinary Marketing Benchmarks and KPIs
In addition to your daily caseload and veterinary duties, you’ll need to invest time and money into marketing and practice expansion. The most important marketing KPIs and industry benchmarks include:
- Online Presence and Reputation Management: Using KPIs to evaluate the success of your marketing campaigns and manage your reputation on review sites helps you strengthen your online presence and establish trust and credibility for your veterinary clinic.
- New Patient Acquisition Rates: Calculate your patient acquisition rate to discover if you need to focus more on gaining leads you can turn into loyal clients.
- Current Patient Referral Rates: One of the best sources of new patients is referrals. Assess your total patient referrals to find out if you should invest more time and effort in this regard.
- Marketing Campaign ROI: Do you know if your marketing campaigns are delivering a positive ROI (return on investment)? Analyzing this data allows you to pinpoint the most successful campaigns and make smarter decisions regarding your advertising budget.
Many licensed vets don’t have experience in the world of digital marketing and advertising. With Weave, you can measure those key marketing metrics and assess campaign performance just like a professional. Our software solutions for managing reviews, email marketing, text communication, and phone analytics make it easy to manage all those tasks, even without a dedicated office manager.
9 out of 10 people check online reviews before choosing a business
Weave helps you easily collect and monitor reviews on Google and Facebook. These reviews can be some of the best marketing for your business.Schedule Demo
Invest in the Future Success of Your Vet Clinic with Weave
We can’t underestimate the importance of using tools like Weave to measure veterinary benchmarks, KPIs, and business metrics to drive growth for your practice and keep it thriving. As your end-to-end solution for an integrated software platform, Weave allows you to automate essential tasks and monitor the health and performance of your practice, gaining valuable insights and creating opportunities for advancement. Contact us now at 866-308-2039, or schedule a free demo here.