Many dentists believe that metrics are our accountant's job, or perhaps something that has to be done to fulfill statutory tax obligations. While the service that we provide is a dental service, we are also running a business. In doing so, we need to ensure that the business is growing, so that we can continue to reinvest in technology and services to better serve our patients, develop our team, purchase new equipment if we choose, give back to the community, and take home an income to provide for our families.
The reason why we test and measure is that things that get tested improve. We are also able to make better decisions in terms of which marketing strategies are best, if we can afford a piece of new equipment, or even if the “PPO” strategy to grow our business makes sense.
Key metrics for dentists to track monthly are:
- payroll expenses
- non-payroll expenses
- dental lab fees
- overhead and profitability percentage
Here are some key metric percentages:
- staff salaries (25%-30%)
- lab fees (6%-8%)
- facility (5%-7%)
- dental supplies (5%-8%)
- marketing (5%-7%)
- operating expenses (10%-12%)
You can also track the following non-financial metrics:
- number of new patients
- number of calls received for each procedure vs the percentage scheduled
- number of new patients per referral source- including percentage from existing patients and social media
- number of procedures completed per service category
- percentage of treatment plans converted
You can track by internal tracking sheets, excel sheets, quickbooks, and whiteboards.
Different metric sources give measurable information so that you can identify weak points. Once you know your weak spots you know which areas to focus on and you will receive massive growth!