Measuring Practice Performance & Setting Goals for Growth
CareCredit’s free interactive Performance Calculators can help you evaluate your practice data and determine potential outcomes of setting specific target goals.
Use this tool to review how effectively your practice converts leads into aesthetic consults and consults into procedures. Then calculate potential revenue growth when your lead conversion improves and your average revenue per procedure increases. You may examine specific types of treatments, such as injectables or laser hair removal, or a broad spectrum of services as is modeled in the sample below. To customize, simply enter your own data into the white fields below.
Click for detailed instructions.
Step 1: Determine your true lead to consult conversion rate by dividing the number of new patient consults by the number of leads received (sample: 60%). Then enter the total number of procedures performed on new patients. (As new patients may have multiple procedures on their initial visit, this total may exceed the number of consults. Be sure to exclude consults and procedures provided to established patients who may either be crossing over into new service areas or receiving repetitive treatments.)
Step 2: Set a realistic lead to consult conversion goal (sample: 70%).
Step 3: Calculate the target number of new patient consults by multiplying the number of leads by the new conversion goal (sample: 120 leads x 70% = 84 consults). Then estimate the target number of procedures to perform by applying your current ratio of procedure volume to consult volume (sample: 65 / 72 = 90%. 84 consults x 90% = 76 procedures).
Step 4: Project incremental revenue generated by increasing conversions. Multiply the incremental number of procedures (sample: 76 – 65 = 11) by the average revenue per procedure (sample: 11 x $460 = $5,060).
Step 5: Project revenue by increasing your average revenue per procedure (sample: increase $460 by 10% to $506). Then multiply this new figure by the current procedure volume (sample: $506 x 65= $32,890 total; $2,990 incremental) or by your new target volume (sample: $506 x 76 = $38,456 total; $8,556 incremental).
Note: For optimal display, enter data into calculator as whole numbers.
For illustrative purposes only. Data represents observed industry averages; however, figures can vary greatly between individual practices. The average number of procedures performed and average revenue per procedure were derived from the AmSpa 2019 Medical Spa State of the Industry Report.†
Aiming to reach a specific revenue goal per month? Calculate the productivity required to reach your desired revenue. Revenue goals may be set as a percentage or incremental dollar amount
Click for detailed instructions.
Step 1: Enter the number of leads, new patient consults and procedures performed, along with the total gross revenue generated by these procedures.
Step 2: Set a target increase of revenue generated by procedures (sample: 20%) and then calculate potential incremental revenue (sample: $29,900 x 20% = $5,980). If preferred, you can set the desired incremental revenue amount directly and the percentage increase will be displayed ($5,000 incremental revenue desired = 17% increase). When setting a revenue goal, it is important to consider the number of incoming leads, consultations and opportunity for growth.
Step 3: Determine how many additional procedures will need to be performed to meet the revenue goal. Divide the desired incremental revenue by the average revenue per procedure (sample: $5,980 / $460 = 13 procedures).
Step 4: If you increase the average revenue per device (sample: 10%), the number of procedures required to reach the revenue goal will decrease.
Note: For optimal display, enter data into calculator as whole numbers.
For illustrative purposes only. Data represents observed industry averages; however, figures can vary greatly between individual practices. The average number of procedures performed and average revenue per procedure were derived from the AmSpa 2019 Medical Spa State of the Industry Report.†
Break It Down for Patients
Illustrating total out-of-pocket cost as an estimated monthly payment using financing options with the CareCredit credit card can help increase both your patient conversion and average ticket sale. In fact did you know that $2,025 is the average out-of-pocket spend for a patient opening a CareCredit account in a med spa?**
Contact your CareCredit Practice Development Team at 800.859.9975 (press 1, then 6) to request a custom Performance Review. Discover how your business has been utilizing patient financing, ways to integrate it more effectively and the new contactless tools available to help further streamline the application and transaction processes.
^ Number of new patient procedures performed may include one or more treatments provided to a new patient and may exceed number ot new patient consultations.
* Target number of new patient procedures to perform utilizes your current ratio of new patient consults to the total number of new patient procedures generated, in which some new patients may receive multiple treatments.
† AmSpa Medical Spa State of the Industry Report, p.40, American Med Spa Association, 2019
** CareCredit average 2020 1st ticket sale in med spas that accept CareCredit
This content is subject to change without notice and offered for informational use only. You are urged to consult with your individual business, financial, legal, tax and/or other advisors with respect to any information presented. Synchrony and any of its affiliates, including CareCredit, (collectively, “Synchrony”) make no representations or warranties regarding this content and accept no liability for any loss or harm arising from the use of the information provided. Your receipt of this material constitutes your acceptance of these terms and conditions.
