Accurate data is crucial to running a successful dental practice and making smart business decisions. You should know your numbers when it comes to your in-office membership plan to help you identify trends, take advantage of opportunities, and prevent potential challenges. Here are some metrics you should pay close attention to:
1. Total Active Plan Membership
By tracking active member growth, you will better understand patient interest and engagement with your membership plan. You will also be able to identify spikes in signups to gauge the effectiveness of your marketing efforts.
2. Monthly Recurring Revenue (MRR)
Your monthly recurring revenue (MRR) is an important number to determine your predictable income, which helps manage cash flow and plan for the future.
3. Patient Retention Rate
Retention is key to maintaining the profitability of your membership plan. Careful tracking of this key performance indicator will help you see how many patients are staying on your plan. If your patient retention rate drops, you can then make any needed adjustments to your plan and marketing strategy.
4. Average Patient Lifetime Value (LTV)
This metric defines the value of each member over the lifetime of their membership. You can work on increasing LTV by encouraging renewals and maximizing patient engagement with offered services.
5. Cost to Acquire a Member (CAC)
This data point helps you understand the cost of acquiring each member, including marketing, promotions and administrative costs. You will be able to measure the effectiveness of your advertising efforts and make certain your marketing investment will be worth it.
6. Utilization Rate of Services
Tracking which services your members utilize most will allow you to adjust the plan offerings to keep your membership plan a valuable product for the patients while also profitable for your practice.
7. Churn Rate
Churn rate refers to those patients who either cancel their membership or don't renew their membership. Learning the reason why patients leave your plan will help you make necessary changes to your strategy to increase retention.
This list includes a few of the membership plan metrics to keep track of. By analyzing your data, you will be able to make more informed decisions to ensure the long-term success of your membership plan and practice.
If you’re looking to start or improve a membership plan, contact Dental Menu to learn how our software can help.
