It can be easy to take your business (and busyness) at face value when it comes to medical spa management. If your medical spa is flooded with patients and your reception area is bustling, you must be generating considerable revenue, right? At some point, that might be the case, but not always. To witness how your results stack up, you need to look beyond the superficial measures of success.
It’s crucial for medical spas to identify key performance indicators (KPI) and set high yet, attainable goals to achieve success in the future. Tracking the proper KPIs can help you see clearly which factors help build your success, so you can make the necessary adjustments to reach your goals. Moreover, creating KPIs and taking the actions required to meet or exceed your goals will help drive business growth. This post will tell us more about why tracking your medical spa’s KPIs is essential and how technology can help.
Let’s face it: your medical spa can’t grow without your patients. And while every business owner wants more customers, some bring in more revenue than others. Do you get many first-time customers but not too many repeat visits? Do you get more patients when you launch referral programs? Do happy clients visit you as frequently as you hope? Are there certain employees who get to retain more regular customers than the rest? To know the answers to these burning questions, take some time to look at your KPIs.
Here are some of the top customer retention KPIs:
· Customer count – total number of customers
· First-time customers – number of first-time customers
· Customer visit frequency – frequency of customer visits
· Repeat customers – number of repeat customers
· Customer satisfaction score – customer responses to a post-survey visit
Once you start tracking significant KPIs over time, you may be surprised at your business’ growth and standing. Also, there is available software that you can use to track your medical spa’s KPIs in one simple yet sophisticated solution.
Productivity is critical in businesses of all scales and fields. For your medical spa, this directly represents the measurement of your facility’s busyness during regular business hours. Ask yourself: what do I think a recommended productivity goal for our employees should be? Owners should strive to set their team members’ productivity goals around 75%-80%. However, you also need the right balance since customer service issues could arise if the productivity goes beyond 80%. How? Your team members might be too occupied performing the essential aspects of their job, leaving little to no room for conflict resolution when problems occur.
To enhance productivity and reach your business’s optimal output, it is best to ensure that your team members are well-equipped with product knowledge and expertise in your medical spa’s services, plus specialties. And when combined with an excellent engagement practice, it can help lead to a more effective team effort that can answer client inquiries and point them in the direction of the most suitable treatments that fit their individual needs.
Improving your medical spa’s offered services
Tracking your customer retention and your business’ productivity is essential, but you must dive deeper. You should not miss your service KPI, such as the service provider utilization rate, average service ticket size, average treatment time, etc. If you aim to boost your sales and increase your business’ efficiency, you could study how much your patients spend on every visit and how much time they invest while on treatment.
Keeping a close watch on these KPIs can contribute massively to your medical spa’s success. And when you make improvements in these areas, it is always best to do so without putting any pressure on your patients to buy more or make them feel rushed, as these can impact your brand image negatively. Furthermore, if you wish to grow your revenue through upselling, you may want to track the tactics that work and those that don’t.
Monitor the company’s progress over time
We may think of KPIs as a scorecard for your company’s health. To monitor your business’s vital signs, you only need to focus on a handful of KPIs – those that truly matter. Only measure what you wish to advance so you can still put enough energy where you want to effect change, such as customer satisfaction, business strategy, business processes, and more. You need to ensure you filter the suitable KPIs for your business, then worry about who is accountable for each.
It is essential to track critical indicators like revenue, gross margin, number of employees, number of locations, etc. Set targets at the onset of each year and quarter, and progressively use KPIs weekly to measure your progress towards your goals. Building the proper KPIs can help measure your business’s overall progress and strategy.
Solve problems and tackle opportunities
Using a combination of KPIs and listing them down in a dashboard will provide you with the correct information and lets you solve problems and tackle opportunities at your fingertips. For example, if you are in a sales slump, the first thing to do is identify a handful of KPIs to help you turn the tide. Consolidate them all on a dashboard and track them regularly to see if what you leveraged helped you generate more sales. Another example is if you have a new sales promotion. Testing it out with a few clients first and using KPIs to validate your business model before launching it entirely might be your best bet. That way, you can monitor the number of clients interested, the projected budget to support this promotion, implementation time, the downsides, etc.
Are you feeling a tad overwhelmed with this sudden surge of information and think you might need some help from those who know the ropes? Growth99 has got your back! Your business’s growth lies ahead, which is what Growth99 aims to achieve with you. Contact us today and become part of a dynamic team!