Great veterinary practice management requires smart business strategies, but you can’t develop those strategies without understanding and analyzing your hospital’s financial performance.
Key performance indicators (KPIs) provide objective data from which teams can identify and address issues holding them back from reaching their goals.
Modern practice management software and many third-party industry partners provide tools to analyze dozens of KPIs, which can be overwhelming. If you are new to reporting and metrics, you should focus on a few essential veterinary KPIs to get started.
The Provet Cloud team identified six KPIs every practice leader should track and how they can impact your veterinary business.
KPI #1: Average client transaction
Your average client transaction (ACT) provides a snapshot of the typical revenue generated at each visit. This veterinary KPI is tied to practice profitability, making it extremely valuable to track.
- A low ACT might suggest that clients are declining services or that the team isn’t offering them.
- A high ACT, on the other hand, could indicate that clients only come in when pets are very sick and need more care.
Tracking this number monthly and by doctor or appointment type helps you identify missed opportunities and standardize care protocols and recommendations. Watching ACT trends also allows leaders to ask smarter, more targeted questions in areas like training, pricing, and compliance.
KPI #2: Revenue per veterinarian
Revenue per full-time equivalent (FTE) veterinarian is a KPI that tracks revenue per doctor by factoring in how much time they spend in the clinic.
This core KPI is critical for evaluating each veterinarian’s productivity, a component of many hospitals’ pay structures. It can also help you assess veterinarian schedules, support staff needs, and fee structures as you forecast future needs and plan for growth.
KPI #3: Client retention rate
Client retention is a strong indicator of veterinary business health and is essential for practices focused on long-term financial sustainability. Client acquisition efforts and marketing investments won’t matter if clients don't return.
Aim for an annual retention rate of 75% or higher. If you fall below your goal retention, re-evaluate your client engagement strategies, reminder systems, and post-visit follow-up procedures. Client visit numbers are relatively simple to track in your PIMs, which you can do annually or over rolling 12-month periods.
KPI #4: Active patients
The number of active patients in your database, usually measured within the last 12 to 18 months, is a vital benchmark for gauging practice health that estimates the size of your current (not former or ideal) client base.
This veterinary KPI matters because the size of your active patient pool directly impacts appointment demand, which dictates staff needs and revenue forecasting. It also ties into marketing and growth strategy – if your number of active patients decreases, it’s time to re-evaluate.
KPI #5: New client acquisitions
While retention tells you how many clients return for repeat visits, new acquisition shows how quickly and effectively your client base is growing. This veterinary KPI is critical for start-ups or practices in competitive markets. While evaluating new client numbers, consider also analyzing their average spend and how it changes over time.
If new client acquisition slows or your schedule seems bare, consider how easily clients can discover you. Make it easy for new clients to book and offer incentives like a discounted first exam to encourage first-time visits. With retention and active patient data, this KPI rounds out your big picture view of the practice.
KPI #6: Staff cost as a percentage of revenue
Payroll is a significant expense that practices should keep close tabs on. Staff cost is a core financial metric that should equal 40% to 50% of gross revenue. A higher rate may mean you’re overstaffed or underpriced. Conversely, a lower percentage may indicate your team is stretched too thin or you’re missing revenue from poor charge capture. It can also provide insights for planning raises, retention efforts, and hiring.
Track KPIs with practice management software
Monthly, quarterly, and annual reporting can be time-consuming, especially if you’re using an outdated system. Modern, cloud-based veterinary software keeps close track of all your data in one place, acting like a digital filing cabinet.
Systems with robust reporting features can automatically collect and analyze the data most important to you, and help you visualize and interpret the results so you can create an action plan for change. Some platforms even allow teams to set goals, benchmark performance, and forecast future revenue based on historical trends.
Software integrations in cloud-based systems connect scheduling, invoicing, and communications to give you a complete view of how your team is performing. You can track missed charges, see where efficiency breaks down, and better understand how staffing or booking decisions impact your KPIs.
Monitor veterinary KPIs with ease
The key to mastering metrics is choosing the ones that help you run a better veterinary business. Then, use modern software like Provet Cloud to simplify the process and follow a consistent reporting schedule.
Start small with two to three veterinary KPIs and review them monthly. Use what you learn to make incremental improvements that add up to significant change and success over time.
Contact us to schedule a demo and learn how our reporting features can work for you.
