Gathering all of your business’s KPIs can be a daunting task, especially if you haven’t historically tracked any of this data. As tedious as it can be, this baseline is critical for evaluating the success or failure of optimizations going forward.
In case you need some extra motivation — this foundation sets the stage for compounding conversions down the road. The potential of compounding conversion rates, and why they’re so exciting, is best demonstrated using an example.
Let’s pretend you see 1,000 patients with the following KPIs:
- 50% capture rate to your optical.
- Average profit per sale is $100 (for easy math).
Your optical would profit $50,000 from those sales (1000 x 50% = 500 x $100 = $50,000). If you isolate and improve only one of these metrics, it moves the needle in a direction would please any business owner:
- A 80% capture rate would net you an additional $30,000 profit (60% increase).
- An average profit per sale of $150 would net you an additional $25,000 profit (50% increase).
But the real excitement comes when you improve BOTH metrics and those high-value “levers” in your business compound on one another:
- 80% capture rate AND $150 average profit per sale = $120,000 (a 140% increase!).
You yield a 140% increase rather than a simple increase of 110% (60% from improved capture rate + 50% from improved average profit/ sale) because the first metric feeds into and fuels the second metric. They don’t simply add together, they compound.
This clearly demonstrates how some practices yield $50,000 profit from 1,000 patients and how other practices yield $120,000 or more. Still not convinced? It gets even better:
This simplified scenario only factors in two KPIs, but an independent optical has SEVERAL more.
What exactly are these KPIs, and how do you go about improving them to reap the benefits of compounding conversions?
In this section, you’ll learn exactly which KPIs you should collect and focus on to begin overhauling your practice because, as illustrated above, they’re what will allow you to set goals and clearly conclude whether or not new sales strategies, new suppliers, and new employees (plus more) are succeeding.
We’ll also teach you how to start “pulling levers” to potentially improve your practice’s profit by 100%, 200%, or more using the same amount of foot traffic, the same equipment, and the same staff currently employed. But first, you’ll need to collect all of the baseline numbers.
Step 3 Table of Contents
- 3.1 Independent Optical KPIs
- 3.2 Industry-Leading KPIs to Aim for Over the Coming Months
- Wrapping Up KPI Discovery: “Is that it?!”