Did you ever think that your chiropractic business model resembled the Ritz Carlton? I recently watched an excellent presentation given by Mr. Horst Schultz about the principles that has made the Ritz Carlton one of the top hotel brands in the world. Schultz talked about “creating loyal customers” and why that is the #1 job of any business. Having customers who want to return to you is more important than getting new customers, more important than selling more to your existing customers, and more important than your business management practices. Of course, all those aspects are very critical too, but they are a distant priority to creating loyal customers.
Loyalty is the Key
How do you measure loyalty? I believe it’s through how often a patient or client returns to see you on a yearly basis. It’s called your PVA and it’s something that should be measured in your chiropractic business model. So many docs are focused on getting NEW BUSINESS (new patients) and yes – that it important. More so the focus of the doctor should be on improving PVA. Your PVA is about honoring and caring in EVERY interaction that you and your staff have with your patients. It’s about exceeding the needs and expectations of your patients. It about caring more and paying more attention to their needs, than your own. It’s what will make them be your patient for life.
What gets measured, gets managed. Measurements may reflect your day-to-day flow but often measurements can reveal something about your business that may need to change. Pearson’s law (it’s a law, not a theory) states “That which gets measured will improve, but that which gets measured and reported, improves dramatically”. Are you only measuring and reporting your stats, but also reflecting on what that statistics means? Even If you only measured 3 statistics in your chiropractic business model on an on-going basis and reflected on their trends, it would be invaluable to your business.
What Are Those 3 Critical Stats?
- Patient Visit Average (PVA – rolling 6-month average of patient visits/new patients)
- New Patients per Month (NP)
- Collections per Patient Visit Average (OVA – total collections/total patient visits).
Check this out, if you saw 28 new patients on average per month, saw the patient 50 times over their lifetime of care in your office, and collected on average for ALL their services in your office $60 per visit, you would be collecting $1,080,000 in your business every year. Those are doable and realistic goals and metrics to shoot for and each month (NP’s, PVA, and OVA collected) represent something much bigger if you reflect on them. These metrics of your chiropractic business model reflect how much trust, how much attraction and how much business your community wants to do with YOU and your team.
You must run your practice like a business and any great business knows it’s critical KPI’s (Key Performance Indicators). Once you know what to measure, understand what that measurement reveals about your business, and work to improve that KPI, you can get to growing your business towards what it should be. Focus on improving the behaviors and practices in your practice that will grow your business into a million-dollar practice, business, and brand. We are in the business of saving lives through the Chiropractic Lifestyle and business should be BOOMING!
Become the Ritz of Chiropractic
Contact us today to get started!