Defining Your Growth Rate Goals
Transactions (or client visits) are one of the basic components of revenue and can be viewed as the front door to your practice swinging. Driving transactional growth in the business indicates you are seeing more and more clients.
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Calculated Growth
High transactional growth is very much dependent on capacity and open hours in the business. As mentioned in the revenue section, maturing of practice ultimately comes into play here. As an example, a less mature practice doing $750k a year may have a large 5,000 square foot building and not be open extended hours—which means they have the capacity to increase transactional growth in the business through additional doctor hours, additional hours, and in general, maximizing their physical space. A larger practice doing $5 million in a 3,000 square foot facility with extended hours has limited ability to grow transactions because of the space limitations. This is an important point to make in understanding what you should be shooting for in the way of transactional growth. If you are a smaller practice with good upside, you should be in the 10-15% range of targeted transactional growth. The latter practice mentioned should not expect that high of transactional growth, and therefore has a greater priority to focus on the average transaction charge (ATC) to achieve growth.
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How To Affect It
- Analyze to ensure clients are cycling through the practices in an efficient manner to maximize client flow.
- Ensure your reminder platform is getting existing clients back into the practice as existing clients make up the bulk of all transactions.
- Cultivate lost clients through outbound phone calls and find out if there are any pain points that need to be addressed in order to increase the client experience. (See automated monthly lost client list on the”Clients” tab.)
- Ensure you’ve established a solid digital foundation with an error-free website and all social platforms claimed and optimized. Digital is the bedrock of marketing so adherence to today’s web standards is vital.
- Confirm you are getting a good return on investment for marketing efforts, and if so, increase spending. Budget for around 2% of revenue for marketing spend when you set your marketing plan for the year. This might sound like a lot, but as long as the practice is bringing in more and more new clients, and your marketing is the reason (through proper tracking), this is a smart investment!