Dental Practice KPIs: Which Metrics to Track and Why
What is your office data telling you? Are you tracking the right KPIs?
Karl Pearson, the Father of Statistics, once said, "That which is measured improves. That which is measured and reported improves exponentially." In dentistry, success isn't just about providing exceptional care—it's about running a thriving practice. But how do you measure success? In this blog post, we'll delve into the essential Key Performance Indicators (KPIs) that every dental practice should track to achieve their goals and elevate productivity.
Before delving into KPIs, it's imperative to define your practice's objectives. What do you aspire to achieve? Whether it's boosting productivity, increasing treatment acceptance rates, attracting a steady stream of new patients, or hitting specific financial milestones, clarity on your objectives sets the foundation for success.
Once you have your objectives in mind, start tracking KPIs with precision. Begin by creating a simple yet effective Excel spreadsheet to monitor your KPI’s. Here's a suggested format to guide you:
List Your Goals at the Top: Clearly define your overarching objective, whether it's monthly production targets, new patient acquisition goals, or others.
Add 4 columns for the key KPIs noted below
• Column 1 – Working Days per Month: Record the number of operational days in each month.
• Column 2 – Scheduled Production Each Day: Record the actual treatment scheduled from the days appointments, encompassing both treatment procedures and hygiene visits. Treatment scheduled via phone is included.
• Column 3 – Actual Production Achieved: Record the actual production completed from the day’s appointments, including hygiene to provide insights into performance against set goals. Align your scheduled appointments with your Daily Production Goal for optimum efficiency.
• Column 4 - Number of New Patients (NP) Seen: Monitor the influx of new patients on a daily basis, facilitating an understanding of patient acquisition trends.
Add a “notes” column for each day to write down how you think the office felt and performed. Was a day exceptionally busy? Were there lulls? Was your dentist rushing between patients or at his or her desk a lot? These notes will come in handy when marrying up numbers and your knowledge of how a day “felt.”
Next, prepare to track the “data story” that emerges once you track these KPIs. What is a Data Story? It’s the sum of the trends and patterns you see as you track the important metrics above, combined with your notes and perceptions about how the day went. Are your “busy” days actually high on production, or are they full of unprofitable appointments? If your office feels slow, how are you doing on scheduling new patient appointments? Over time, you will be able to pair your insights with data to get a sense of what’s working and where you can improve.
We know that there are many tools out there that help you compare data points year over year, or week over week. Those have their purpose. But while real-time data reporting apps offer valuable insights for benchmarking against the past, we at DDS know that focusing on fundamental, go-forward scheduling KPIs is pivotal for the success of your business. Consistently attracting and retaining patients, alongside meeting production targets, are critical indicators of your practice's vitality. Looking to the past won’t help you move into the future.
By vigilantly tracking these KPIs, you can:
• Gauge Daily Progress: Stay informed about your progress towards predetermined objectives.
• Identify Early Deviations: Spot any deviations from targets promptly, enabling swift corrective action.
• Make Informed Adjustments: Fine-tune your scheduling and marketing strategies based on real-time data insights.
• Avoid Last-Minute Rushes: Sidestep frantic efforts to meet monthly production goals by staying proactive and agile.
In summary, tracking key scheduling KPI’s is indispensable for nurturing a successful dental practice. By implementing a simple spreadsheet to monitor daily production, new patient appointments, and overall progress towards your goals, you can make informed decisions and chart a course towards sustained success. Don't wait until the end of the month to assess your practice's performance—initiate the tracking of these critical metrics today and witness your practice flourish and thrive.
