The Annual Dental Business KPI Report 2013
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1 A Clear Vision Sur vey for dentistsd The Annual Dental Business KPI Report 2013 Discover the UK national averages and how you can maximise your KPI results Report price where sold Clear Vision Accountancy Group Limited 1 Abacus House Newlands Road Corsham Wiltshire SN13 0BH Tel:
2 The Challenge for Dentists It is widely acknowledged that a key challenge for a dentist running a practice is to become a business person. Dentists are taught dentistry at dental school but not the business of business. Perhaps running your dental business is a natural process. More likely, you are like the majority of dentists who find running a business is a major challenge. One which obliges you to work purposefully everyday in pursuit of greater business success, alongside looking after your patients really, really well. Essentially, as a dentist, you are looking for a double whammy : 1. To provide exceptional dental care and patient experience 2. To see greater success and increased profits for your dental business The Solution for You It is entirely possible for you to pursue these two goals simultaneously. The key to doing this successfully is to: Measure the Key Performance Indicators (KPIs) for your dental business - the everyday figures which influence your financial results, and Drive the improvement of these results through an improved patient experience which stands out from your local competitors Let s look at this solution in action...
3 Your Solution in Action Key Performance Indictors (KPIs) are not figures you will find in your dental business accounts. Neither will you find them in monthly or quarterly management accounts. And yet, these are vital numbers which you ABSOLUTELY, DEFINITELY must measure and improve because they influence your patient experience and financial results. These are the underlying numbers which drive them and make them better. Here s where the solution to your challenge comes in... When you measure and improve these numbers, you see your financial results improve. In order to improve these numbers, you are obliged to stand back, assess your patient experience and seek to make it better. So you can see it makes sense for you to focus on them if you want to achieve the double whammy of keeping your patients happy and healthy AND generating greater income for your dental business. The Clear Vision team meets with dentists every week. So we have access to KPI results measured by dentists across the UK. We help dentists to identify their KPIs, set up systems for measuring them We provide dentists with regular feedback on their KPI results to ensure they improve their patient experience and subsequently improve their bottom line financial results. There are a number of KPIs a dental business can and should measure. You are now reading Clear Vision s third annual survey revealing the average results we see for four of the most powerful KPIs. Four powerful KPIs which make a difference to the top line financial results of your dental business. The report also contains the best ideas and insights our team has collected while we have worked for dentists for over a decade. They will help you improve your KPI results, generate bigger profits and delight your patients. Read on to see the UK averages and discover the advice provided by our specialist dental business consultants.
4 Powerful KPI No.1: New private patients recommended by existing patients * Here's why it's powerful: You need new patients: The untapped potential of your existing patient base will only go so far. To keep your business growing and increase your profits, you need to generate new patients. External promotion is expensive: Traditional advertising and other forms of external promotion can generate new patients when done well. But unless you have low-cost access to local media, it will be an expensive exercise and one which will require your regular reinvestment. You have a low-cost patient generator right under your nose: Your existing patients are a great source of new patients. They re already on your side and asking them for help requires little monetary investment. You can use it to see practice and profit growth: When you consistently and effectively encourage existing patients to bring new patients, you spend less on marketing, your dental business grows and profits rise. Here's how the result compares to 2012: 2013 UK AVERAGE: 4.64 new patients per month * private patients generated by private and mixed practices via this source
5 How you can beat this average... UK practices succeeded in generating more new private patients via their existing patients in 2013, compared to This result rose from 3 per month to 4.64 last year. This rise represents close to 20 new private patients per practice during 2013 via this source. Emulate the top quartile... It s important to stress this is the average figure across all the UK dental practices Clear Vision meet. Our data shows that around 25% of dental businesses succeed in generating a noticeably higher monthly figure. Some double this figure on a regular basis. Others exceed it further. You can take your practice into this high-achieving bracket by doing what these dental businesses do... Best practice insights Let patients know they can recommend the dental business If patients don't know they can recommend, they're less likely to. Tell them on your website. In your literature. On your wall. On reception. And in person. Be remarkable Patients need to feel motivated to remark about your dental business to others. So you need to be remarkable. Develop ways to make your patient experience a little more unexpected and work in 'memorable moments' for them. Work with your dental team to be more special. Play the numbers game The more you ask patients for recommendations, the more you get. Agree a system with your team and follow it consistently. Print 'recommend a friend' or 'personal invitation' cards. Record when cards are given out and to whom. Make sure the same patients aren't asked too often. Thank the patients who recommend you. Measure what works Measure new patients from your existing patients now. Measure new patients from existing patients after you put the above points in place. Gauge the success of the action you take.
6 Powerful KPI No.2: New private patients via website * Here's why it's powerful: You need new patients: The untapped potential of your existing patient base will only go so far. To keep your business growing and increase your profits, you need to generate new patients. Word of Mouse counts: You may ask your friends or family who they know. But if they have no one to recommend you to, where do you go? The majority of people go online. So you need an online shop front. This is your website. A website promotes you 7 days a week, 24 hours per day: Your practice may be closed. You may be climbing a mountain. Or lying on a beach. Your website will still be doing its work. They can readily update it: You can update your website with the latest news and offers you have to share, easily and quickly. No reprints required! Here's how the result compares to 2012: 2013 UK AVERAGE: 3.86 new patients per month * private patients generated by private practices via this source
7 How you can beat this average... The average number of new private patients dentists generate via their websites has gone down since 2012, from 4 patients per month to 3.86 in The decrease is marginal, but indicates the majority of dental businesses need to make their websites work harder as a source of new patients. Emulate the top 25% There are dental businesses that exceed this average result every month. And by some margin. A note on social media Statistics suggest more people now use social media to search for a business than going directly to a search engine. Clear Vision data shows that around 25% of dental businesses generate a noticeably higher monthly figure. Some succeed in generating upwards of 8 new patients from their websites per month. That s at least 207% more than the UK average. You can bust the average result too, when you do what these dental businesses do... In 2013, Clear Vision observed the dentists generating the best results through their online presence beginning to harness the power of Facebook, Twitter etc. to help drive traffic to their websites. Best practice insights Use a specialist Invest a modest monthly amount in engaging a website specialist Particularly for SEO purposes. SEO is increasingly difficult to get right in-house. Don't try and do it. Set targets Establish which keywords or phrases your website is to appear in the rankings for. Your specialist will help you choose the best ones, check current rankings and set targets for ranking improvement. Bring the traffic Agree a plan to achieve your target rankings with the specialist. Combine off-page optimisation with on-page optimisation. Convert the traffic Your website needs to successfully convert traffic into enquiries for your practice. Make your website as user-friendly and compelling as possible. Own the listing The major search engine Google increasingly puts an emphasis on local listing pages. Take ownership of your Google+ local page and maximise its effectiveness. Ask happy patients to leave their feedback on it. Great for rankings and also internet searches via mobile phones.
8 Powerful KPI No.3: Your exam recall rate * Here's why it's powerful: Recalls are your bread and butter: You appreciate that without returning patients, your dental business would fail pretty quickly. So your recall system really is your bread and butter. You need patients in the chair: It is exams which feed treatment. You need patients in the chair to diagnose required treatments and services. More patients in your chair, more treatments for you. And more profit for your dental business. You need patients in the chair Part 2 : You can delight the patients in your chair. You can improve their oral health and make a difference to them. And when you do this, your patients appreciate the value you provide. Plus they come back regularly and tell more people about you. Here's how the result compares to the last two years: 2013 UK AVERAGE: 64.89% per month * recall rate generated by private and mixed practices
9 How you can beat this average... The average percentage of patients successfully recalled for examinations across UK dental businesses inched up again in The uplift since 2011 is now 14.12%. Emulate the top 30% 64.89% is the average result across practices. But a portion of dental business exceed this percentage every month. Clear Vision data shows that around 30% of dental businesses generate a noticeably higher monthly rate. These practices see 80%+ of patients due for recall return on a monthly basis. You want to generate a similar result for your dental business? Take their lead from these practices: Best practice insights Make communications effective 'You are due for a dental exam' is not enough. Tell your patients what you check for during a check-up and how this benefits them. Show them that they can't afford NOT to attend regular exams. Use their preferred method of contact Be prepared to send s, use texts and so on. This improves your recall rates AND reduces your postage costs. Good for your patients, good for your business! Educate your patients to book in advance Ensure as many of your patients as possible book in advance. Put up polite notices explaining patients can expect to book in advance. Ensure your clinicians are working with your reception team to remind every patient to return to reception as they leave the surgery. Illustrate the value Patients who appreciate the value of your dental exam will recall successfully. They need to know what is going on as you look in their mouths. Tell them what you are checking while you are checking it. Confirm these checks on a simple patient exam assessment form. Pass the patient a copy of the form to leave with. Test and measure the results What works in recalling your patients will not work so well for another local practice. Measure your recall rate now. Tweak your recall system. Measure the results of the change. Then do it again. And again...
10 Powerful KPI No.3: Your hygiene recall rate * Here's why it's powerful: It serves your patients: A hygienist represents an integral part of maintaining the oral health and wellbeing of your patients. And achieving part one of your challenge to provide exceptional dental care. You need your hygiene books full: Clinicians are a significant expense to your dental business. To maximise profits your hygiene books need to be full. Especially if you pay your hygienist(s) on an hourly rate, whether a patient is in their chair or not. When hygiene thrives, your practice thrives: Your hygiene function has a significant influence on the overall success of your business. It enhances overall patient health. Plus it offers referral-generating potential and aids your patient retention. Here's how the result compares to the last two years: 2013 UK AVERAGE: 74.04% per month * recall rate generated by private and mixed practices
11 How you can beat this average... The average percentage of patients successfully recalled for hygiene sessions across UK dental businesses rose marginally from 71.93% in 2012 to 74.04% in In 2013, Clear Vision saw patients drop hygiene in practices where the hygiene function was not adequately promoted. Emulate the top 30% 74.04% is the average result across practices. A portion of dental business exceed this percentage every month. Clear Vision data shows that around 30% of dental businesses generate a noticeably higher monthly rate. Some see 90%+ of patients due to attend a hygiene session return on a monthly basis. If you are looking to generate a similar result for your dental business, take your lead from what these practices do... Best practice insights Do the same as for exam recalls Pay as much attention to increasing your hygiene recall rate as your exam recall rate. See the insights on exam recalls again. Treat hygiene as a separate business Adopt a combined team approach to highlight patients not seeing your hygienist or recalling badly. Discuss this with these patients in surgery. Keep the score for your patients Create a hygiene 'scoring' system which patients understand. Tell them what their score is now and what it should be. Encourage your patients to stick to hygiene sessions if they want their score to improve. SHOW them don't tell them Get creative to help your patients appreciate hygiene support. Examples: Use an intra oral camera or hand mirror to SHOW them why they need to see the hygienist regularly. Use a set of balls with different levels of firmness to pass to patients to illustrate their perio situation.
12 In conclusion... It is very possible for you to measure these numbers but you also need to drive them in order to achieve the double whammy of: 1. Providing exceptional dental care and patient experience 2. Seeing greater success and increased profits for your dental business You see this is the case when you compare the average results and the top results the Clear Vision team sees. The top % of dental business actively drive and seek to improve their KPI figures. Here are the additional fruits of their labour: KPI New private patients from existing patients New private patients from website Exam recall rate Hygiene recall rate Average UK monthly result 4.64 patients per month 3.86 patients per month 64.89% of patients recalling successfully 74.04% of patients recalling successfully Top % average monthly Additional benefit result 9 patients per month 50+ additional new patients via this source per year 8 patients per month 50 additional new patients via this source per year 80%+ of patients recalling successfully 90%+ of patients recalling successfully Over 15% more patients returning every month Over 15% more patients returning every month Imagine how you would benefit from these higher results in your dental business...
13 Clear Vision s Solution in Action Clear Vision can provide a KPI support service, including: Discussing and agreeing exactly what KPIs are appropriate to your specific dental business Setting up systems for your dental business to measure these numbers on a monthly basis Providing materials and applying specialist dental marketing skills to enhance your systems Holding your dental team accountable to producing KPI figures on a monthly basis Providing ongoing support in testing and measuring actions to improve your systems and results If you would like your dental business to benefit from this service, just call our friendly team on The Clear Vision team will gladly have an informal, no-obligation discussion with you. Clear Vision Accountancy Limited 1 Abacus House Newlands Road Corsham Wiltshire SN13 0BH Tel: Fax:
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