Did you have a good week last week? How was your year? Beyond just measuring revenue, how do you know?
Dollars are the obvious way to measure the success of a clinic or any business. But there are a number of underlying factors that impact both the financial and vital non-financial elements that keep a business running effectively.
Here are a few areas you may wish to start measuring.
Every time an employee leaves, it costs your business time and money. New people need to be onboarded and trained on the devices you use. Your culture and the way to deal with clients need to be communicated, and then after all that they may decide it’s not for them and move on.
Whichever way you look at it, lower staff turnover is better and cheaper than the alternative. Look at your hiring policies and clinic culture if there is an obvious issue. Also, don’t buy into the whole ‘the industry has high turnover’ nonsense. Plenty of clinics keep their staff for a long time.
Which treatments bring you the most revenue and the most profit? This isn’t just a question to ask when things aren’t going well – as most clinic owners and managers tend to do – but also when things are fine. In fact, it’s when things are pumping along that underperforming treatments tend to get missed. If this is measured effectively, you can remove unwanted or unnecessary treatments, thus cleaning up your menu and potentially removing costly devices. If you maintain the same revenue with fewer ongoing expenses, so much the better. Additionally, this can also be a good opportunity to take on other treatments that may be more profitable.
(If you’re interested in experimenting with different treatments, Laseraid has a 3-month guarantee period that you can use to test how popular a treatment will be in your local area. Contact your Laseraid advisor for details.)
We all know our best clients – the ones who come in regularly and love our skincare products and testing out new treatments, but what about the ‘second-best clients’?
These are the clients that are semi-regular, perhaps once every couple of months. You are ‘their’ clinic, but there’s not the same level of buy-in as the best clients.
If you can identify your second-best clients, you can create offers to turn them into best clients. The good news is, they’re not hard to find – just use frequency of visit. If they’re in once a month, perhaps they’re the best clients. Every 2-3 months? That’s a second-best client that needs some love.
While you’re looking at client frequency, take the time to identify the ‘worst clients.’ These are the ones that barely spend any money but take up your time and that of your staff by being hard work. They might be better served at another clinic.
There are few things more annoying than someone who books a treatment during peak hours, and either doesn’t show up or calls apologetically at the last minute. How often does this happen in your clinic? This is important to make sure you and your team are all talking in the same language. For example, if your no-shows are high, then ‘bookings’ are not a good measurement of effectiveness. A better one would be ‘completed treatments.’
Additionally, if you have a high number of no-shows, it might be time to change your booking policies, especially for new clients and those who are constant no-shows.
Of course, you can over-measure your business. Too many numbers mean nothing ends up being measured effectively and so no action is taken. Pick a few important numbers and make them your own.