Blogs

VHMA Insiders’ Insights Commentary July 2024
Brittany Yost, CVPM, CCFP
Senior Manager, Customer Implementation and Engagement, Vetsource

Insiders' Insights: Navigating the VHMA Key Performance Indicators Dashboard - Patients

As Quarter 2 comes to a close, let’s continue our series exploring the VHMA Insiders’ Insights Key Performance Indicators (KPI) dashboard. Last quarter, we explored the Revenue Dashboard and looked at effective strategies to boost your practice’s financial performance. Next, we’re shifting our focus to the Patients Dashboard. This essential tool provides insights into patient visit data and the composition of your client base. By examining patient-related KPIs, you can identify areas of strength and opportunities for improvement.

Understanding the Change in Patient Visits Year-over-Year Chart

First, let’s break down the different aspects of the Change in Patient Visits Year-over-Year chart:  

There are four filters at the top of the chart that allow you to tailor your analysis by practice size, region, species, and visit type.

• It’s important to note that the trend lines indicate the percent change in patient visits over 12 months, not a percent increase in visits.
• Blue trend lines represent the percentage change in visits experienced by VHMA practices, while gray trend lines show the percentage change seen by non-member practices.
• Both VHMA and non-member practices have experienced similar trends over the past year which includes a negative percent change in patient visits during many months.
• For detailed information, hover over any data point to view the actual change in patient visit numbers. 

Why Have Patient Visits Declined Most Months?

Veterinary patient visits have been declining as pet owners become increasingly price-sensitive, with many delaying or reducing visits to manage expenses.  The rising costs of pet ownership are also causing financial strain.  As a result, more pet owners are seeking less expensive alternatives and extending the time between veterinary appointments.  Many households have experienced a decrease in their disposable income as a result of rising inflation.  According to recent figures released by IDEXX, a decrease in patient visits is being experienced across the industry with visits falling 1.2% in the fourth quarter of 2023 compared to the second quarter of 2022.  As we touched on last quarter, practices are still seeing a revenue increase due to price hikes that often surpass the rise in operating costs.

In addition to price sensitivity, pet ownership is becoming increasingly more expensive.  Owning a dog in 2024 costs between $1,000 and $5,225 annually, an increase of $100 from last year.   This increase is largely due to pricier pet food.  We have seen some brands charging up to 80% more year-over-year.  The 2024 Cost of Dog Parenthood Study found that a new dog’s first-year expenses can range from $870 to $4,565, including:

• Adoption and breeder fees: $0 to $600
• Spay/neuter: $250 to $525
• Microchipping: $20 to $95
• Initial veterinary exam and vaccinations: $165 to $515
• Supplies: $72 to $1,675

Additionally, the average dog owner spends $80 to $440 each month after year one.  The good news is the rise in these costs is slowing.  April 2024 data showed that pet industry inflation rose at a lower rate (1.7%) than the national consumer price index.

Boosting Retention in Veterinary Practices

One way to overcome these hurdles is to focus on client retention.  This includes focusing on your current client base and bringing lapsing patients back into your practice.  Acquiring a new customer can cost five times more than retaining an existing customer, making it critical to focus on those you’ve already brought into your business.  In addition to the cost-saving advantage, promoting products and services to current clients has proven to be much more successful than promoting those same services to new clients.  The likelihood of successfully marketing products and services to an existing client is 60-70%, compared to just 5-20% with a new client.  As the pool of lapsing patients continues to increase, implementing effective strategies to protect your current clients and reconnect with those who have not visited recently is crucial. Here are some actionable steps to boost retention and re-engagement in your practice:

Maintain your current clients

• Make it easy for your clients to do business with you in ways they’ve grown accustomed to outside of veterinary medicine by offering online services and telemedicine.  Telemedicine in particular can allow your veterinarians to expand their reach by offering their services to a larger audience.  It can also help your practice run more efficiently by reducing the need for in-person consultations for minor issues such as incision rechecks or larger issues such as behavioral consultations.  Telemedicine appointments only require 1-2 staff members and also eliminate the need to load rooms and clean up between appointments helping your practice to run more efficiently.
• Remove scheduling barriers by allowing pet owners to request appointments 24/7 via mobile apps and online portals.  This expands your client’s access to scheduling from 40-60 hours each week to 168 hours.  Include scheduling links in digital health service reminders and consider adding QR codes to postcards to direct clients to these online options.
• Host client appreciation events virtually or in person. Halloween pet costume contests or holiday pet photo sessions go a long way in bonding with your clients outside of the exam room and make them feel as though they are a part of your practice’s family.  

Reconnect with lapsing clients

• If your clinic doesn’t already have a program targeting lapsed patients, establish one now. Third-party services can automate the process by contacting clients who haven’t visited in 14, 16, or 18 months.  Monthly reports indicate the number of returning patients and the resulting generated revenue, effectively showcasing how the program pays for itself.
• When digital and postcard reminders don’t result in a scheduled appointment, pick up the phone.  Have your staff make friendly reminder calls to check on clients’ pets and offer to schedule an appointment.  Data shows that 78% of past-due digital health service reminders result in an appointment being scheduled within 30 days, so the list of phone calls should be manageable each month.
• Given that clients are bringing their pets in less frequently, particularly in the 14 to 18-month category, it is important to consistently remind clients of overdue health services to prevent their pets from falling too far behind.  A lot of practices worry about overcommunicating with their clients, but many would benefit from more frequent outreach.

Understanding the Percentage of Visits by New Patients Chart

Let’s move on by looking at various parts of the Percent of Visits by New Patients chart:

• This chart displays what portion of each month’s visits are attributed to new patients.
• It can be inferred that the remaining percentage of visits are from current patients.
• The blue bars on the graph represent VHMA practices while the gray bars represent non-member practices.  Both groups’ patient visits have consisted of 11 to 13% new patients during the last 12 months.

Expanding Your Client Base with New Patient Attraction

Expanding your client base is crucial for the growth of your veterinary practice, especially as we continue to see a sharp decline in new clients and new patients. According to Dr. Ernie Ward, the top considerations for choosing a new business or service are proximity and accessibility, followed by recommendations, reputation, and alignment with needs. Here are some strategies to attract new patients effectively:

• Because proximity and accessibility top the list of considerations, it’s important to become involved in your local community.  Participating in local events can significantly boost your visibility and reputation. Consider sponsoring an "oops" station at the local dog park that includes free cleanup bags and information about your practice, hosting tours for Girl Scout and Boy Scout troops, and connecting with your community's Welcome Wagon program to introduce your services to new residents.
• Steer clear of offering discounts and free services.  While it might be tempting to use this strategy to attract new clients, these tactics can be counterproductive. They often attract those looking for the lowest cost rather than those seeking high-quality service. Instead, focus on showcasing the value and quality of your care.
  Consider a more targeted social media strategy.  More than 10,000 businesses have paid for Meta ads on Facebook, with the majority of those being small to medium-sized companies.  These ads offer 80% greater discovery for new brands and products than through a business’s website.  Meta can also help you build targeted lists to find the people most likely to respond to your ad.
• Maintain a positive online presence through your website, social media, and online reviews.  Ensure that all information on your practice website is up-to-date and mobile-friendly, as outdated websites are not uncommon in the veterinary industry.  Also, actively engage with clients on social media platforms by prioritizing high-engagement posts like “Selfie Saturday” or “Tongue-out Tuesday” that encourage clients to share photos of their pets.  Focus on soliciting positive feedback and testimonials by encouraging satisfied clients to leave positive reviews online.

Understanding Share of Patient Age Chart

Lastly, let’s take a look at the Patient Age Chart:

• This chart helps gauge the health of your overall patient base by breaking patients down by age group.
• The blue bars on the graph represent VHMA practices while the gray bars represent non-member practices.  The average patient age among the the two groups is close at 6.58 years and 6.38 years respectively.
• Hover over the bars on the graph to see the actual percent makeup of each age group.

Engaging Your Client Base with Lifecycle Marketing

Understanding the age makeup of your patient base enables you to target your marketing efforts more effectively.  Lifecycle marketing for veterinary patients involves creating tailored strategies that engage owners at each stage of their pet's life. This approach ensures continuous and relevant communication, fostering long-term loyalty. Here are some lifecycle marketing ideas for veterinary patients at each life stage:

New Pet Stage (Puppies and Kittens)

• Provide new pet owners with a welcome kit that includes a free dose of parasiticide prevention and treats that can be purchased at your practice or through your online store, as well as pet insurance information and a personalized welcome letter.
• Offer comprehensive puppy and kitten wellness plans that cover initial exams, vaccinations, deworming, and spay/neuter services, encouraging the client to remain with your practice for these services.
• Host training and socialization classes to help new pet owners with the basics of pet care.  During these classes, provide educational content including blog articles and videos on basic training and nutrition.  Promote your in-house behavioral services if available.

Juvenile / Adult Stage 

• Focus on dental education to prevent serious health issues such as infections and organ damage.  Make clients aware that early detection of dental problems can lead to more effective and less costly treatments, making regular dental cleanings vital.
• Offer personalized nutritional advice and diet plans based on the pet's breed, size, and health status.  Direct clients to purchase your recommended diets through your online store to prevent them from making these purchases elsewhere.  When clients are set up with auto-ship, they purchase an average of 8 -12 bags of food from your practice each year, while others purchase only 1-3 bags annually.
• Recommend baseline bloodwork to establish normal values for individual pets, providing a reference point for future tests.

Senior Stage

• Develop specialized wellness programs for senior pets that include more frequent exams, blood work, and screenings for age-related conditions.
• Discuss ways to enhance the comfort and quality of life for senior pets, including alternative therapies and palliative care.  Share information and offer services for managing arthritis, pain, and mobility issues.
• Offer support and counseling for pet owners facing end-of-life decisions.  Share resources and support groups for pet owners dealing with the loss of a pet.

What Comes Next

As you continue to monitor patient data over the coming months, I encourage you to integrate regular reviews of the Insiders’ Insights dashboard into your practice strategy. Staying informed about your region’s patient visit data enables you to make well-informed decisions by identifying emerging trends and patterns. Keeping a close eye on your practice’s patient base provides a competitive edge by highlighting opportunities that can help you outperform your competitors. 

Looking ahead to next quarter, we’ll delve deeper into Practice Health KPIs. Our focus will be on additional strategies for recapturing lapsing patients, attracting new clients, and improving client bonding rates within your practice. By understanding and implementing these insights, you'll be better equipped to foster long-term relationships with your clients and continue growing your practice. 

Review VHMA Insiders' Insight KPI June 2024 Report

Would you like to compare your practice’s performance head-to-head with other VHMA member practices and the national average in one convenient KPI dashboard?  VHMA members can receive this report for free!  Not a VHMA member?  No fear, you can still sign up for this dashboard for only $41/month.  Learn more here.

Sources

Data on file at Vetsource.

DeWilde, Caitlin. “Fill in the Blanks.” Today’s Veterinary Business, vol. 8, no. 2, February/March 2024, pp. 84-85.

Gibbons, John. “Petflation 2024 – April Update: Drops to +1.7% vs 2023.” Pet Business Professor, 20 May 2024, https://petbusinessprofessor.com/petmarket/petmarketsegments/petflation-2024-april-update-drops-to-1-7-vs-2023/.

“Meta Ads.” Meta. https://www.facebook.com/business/ads

Ross, Kelly. “Visits to Veterinarians Decline as Pet Boom Fades.” VIN News, 5 March 2024, https://news.vin.com/default.aspx?pid=210&Id=11964383&f5=1.

Ward, Ernie. “Q&A: Absenteeism, Invoice Errors and Attracting Clients.” Today’s Veterinary Business, vol. 8, no. 2, February/March 2024, pp. 12-13. 

Zirkle, Kate. “How Veterinary Practices can Fix their Leaky Bucket and Retrieve Valuable Lapsing Patients.” Vetsource Blog, https://vetsource.com/blog/how-veterinary-practices-can-retrieve-valuable-lapsing-patients/.

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