There are five revenue drivers or pedals dentists can push but since they only have two feet, they can’t push on all at the same time. Knowing which pedal to push is key to avoiding burnout for dentists and team. Scroll down to rate each pedal’s effectiveness with our 5 minute 5 engine CEO effectiveness Quiz to see for yourself if you have the systems you need to drive your practice profits. Then set a call to create a complementary 3 month plan to push profitability pedals. Here are the five pedals and how we can objectively measure their results:
1. Finance
Effective financial management is the backbone of a profitable dental practice. To ensure long-term sustainability, dentists must monitor key financial metrics and optimize cash flow, revenue, and expenses.
Key Performance Indicators (KPIs):
- Revenue per Patient – Measure the average revenue generated per patient visit.
- Overhead Costs Ratio – Assess the percentage of revenue spent on operational expenses.
- Net Profit Margin – Calculate the percentage of total revenue that results in profit.
- Accounts Receivable Turnover – Track how efficiently patient invoices are being collected.
- Average Treatment Acceptance Rate – Monitor the percentage of treatment plans accepted by patients.
Which Pedal to Push?
If overhead costs are too high, focus on cost reduction and efficiency. If revenue per patient is low, consider adjusting pricing structures or increasing service offerings. Strengthening collections and cash flow management ensures financial stability and improvement depends on the other 4 pedals working well.
2. Marketing
A strong marketing strategy is essential to attract new patients and retain existing ones. Dentists should leverage both digital and traditional marketing techniques to build their brand and grow their practice.
Key Performance Indicators (KPIs):
- New Patient Acquisition Rate – Track the number of new patients per month.
- Patient Retention Rate – Measure how many patients return for follow-up treatments.
- Website Conversion Rate – Assess the percentage of website visitors who book appointments.
- Social Media Engagement – Monitor likes, shares, comments, and reach.
- Cost per Lead (CPL) – Determine how much is spent on acquiring each new lead.
Which Pedal to Push?
If patient acquisition is slow, increase investment in digital marketing, local SEO, and referral programs. If retention is low, enhance patient communication and loyalty programs. Tracking CPL ensures efficient marketing spend. The number of new patients needed depends on the sales system and your practice model.
3. Sales
Sales in dentistry revolve around case acceptance and upselling additional services to improve patient outcomes. Educating patients and building trust is key to increasing treatment acceptance rates.
Key Performance Indicators (KPIs):
- Case Acceptance Rate – Measure the percentage of recommended treatments accepted.
- Average Revenue per Appointment – Evaluate the financial value of each visit.
- Upsell Rate – Track the number of patients who opt for elective or premium services.
- Referral Rate – Measure how many new patients come from existing patient referrals.
- Consultation-to-Treatment Ratio – Assess how often initial consultations convert into treatment.
Which Pedal to Push?
If case acceptance is low, improve patient education and communication starting with your new patient process. If upsell rates are low, offer more financing options or bundle services. Increasing referrals enhances organic practice growth. and should be 80% for an established dental practice.
4. Operations
Operational efficiency ensures smooth workflows and high patient satisfaction. Streamlined processes reduce wait times, improve appointment scheduling, and optimize resource utilization.
Key Performance Indicators (KPIs):
- Patient Wait Time – Measure the average time patients spend waiting before treatment.
- Chair Utilization Rate – Assess how efficiently treatment rooms are used.
- Appointment No-Show Rate – Track the percentage of missed appointments.
- Average Treatment Time – Monitor the duration of common procedures.
- Supply Cost per Procedure – Measure material costs against revenue generated.
Which Pedal to Push?
If wait times are high, optimize scheduling and staff efficiency. If chair utilization is low, adjust appointment structures. Reducing no-shows with reminders and follow-ups boosts revenue and efficiency.
5. Human Resources
A motivated and well-trained team is crucial for delivering excellent patient care. Employee satisfaction and performance directly impact patient experience and practice success.
Key Performance Indicators (KPIs):
- Employee Satisfaction Score – Assess staff morale and engagement.
- Staff Turnover Rate – Track how often employees leave the practice.
- Training Hours per Employee – Measure investment in professional development.
- Productivity per Employee – Assess efficiency and workload distribution.
- Patient Satisfaction Score – Gather feedback on staff interactions and service quality.
Which Pedal to Push?
If turnover is high, improve workplace culture and benefits. If productivity is low, invest in training and better delegation. Enhancing employee satisfaction ensures high patient care quality.
By monitoring these KPIs and adjusting strategies accordingly, dentists can optimize their practice’s profitability and growth. Each pedal must be pushed strategically based on performance data to achieve sustainable success.
Leave A Comment
You must be logged in to post a comment.