How Can You Make Money Through Analyzing Your MedSpa’s Data

As the world-famous management consultant Peter Drucker once said, “You can't manage what you can't measure.” Running a business becomes infinitely easier when you have key performance indicators and financial benchmarks to review because it takes a lot of the ‘guesswork’ out of your decision-making. Of course, data is only useful if you actually use it, so this blog post will show you some simple steps you can use to start analyzing your medical spa data in order to improve profitability. 

You can’t manage what you're not measuring! 

Good medspas track their metrics while GREAT MedSpas analyze their tracked metrics. If success is going to drive your business decisions, then you need to understand just how well your operations are doing. As a Medspa owner, we recommend asking these two important questions to see how you can make more money by understanding your data: 

  1. Who is bringing in the revenue to your practice? How much are they producing?

  1. You should always know who your most valuable players are in your practice. Questions that can be asked once you’ve determined who your key players are may include:

  • Do you have some providers producing significantly more than others? If so, can we help the underperforming providers improve by training with your high-performers?

  • Are your providers maintaining some level of consistency with their production, or do they yo-yo back and forth from month to month? If they are inconsistent, what are the drivers that differentiate the high-performing months from the low?

Assessing provider performance allows you to create more informed decisions when it comes to setting new goals for your staff, managing revenue expectations for your business, and hiring/firing team members.

  1.  How many patients do you see each month/week/day/hour? Are a majority of your patients existing/returning or new?

  1. If you do not already know, it is imperative to have a good understanding of how many patients you are seeing on a daily basis. Once you have nailed down what your hourly averages are, it will be a cakewalk to project what your total daily, weekly, and monthly patient visits look like. This information is key when it comes to determining your scheduling, inventory management, and hiring.

  2. Once you have a good idea of your total patient counts, dig in a bit more to see how many are new vs. returning patients. Tracking not only how many new patients you are gaining, but also how many loyal clients you’ve established can give you insight as to how quickly you can grow your practice. If you are regularly booked up, but a majority of your patients are ‘new’ and you are not regularly seeing a lot of returning patients - this can be a big problem (depending on the types of services you are offering)! Ideally, you will have a healthy mix of new and returning patients because new patients help the practice grow (but often require more marketing spend to attract) while existing patients help keep the lights on with their loyalty. Too many new patients might mean they are not returning for a reason (i.e. bad service/outcomes/etc.) but too few new patients mean if you lose existing patients for any reason you will be scrambling to keep your schedule full!

Quantifying these financial metrics will allow you to understand where your money is coming from and where it’s going. If you need help creating your data, visit our website to schedule a financial assessment. This is what we do!