Alan Robinson B.V.Sc. MRCVS DMS
As the economy remains uncertain competition within the veterinary sector will be hotting up. Veterinary businesses are facing some tough times with a declining client base, increased competition from within, competition from the retail sector and the Internet and uncertain government bureaucracy. Even if turnover is going up, profits are static or decreasing in many practices.
An increasing number of practices are exploring different ways of benchmarking the performance of key areas of their operation against others in their sector. They’re keen to stay abreast of latest trends affecting the sector to ensure that they maximise their productivity and profitability and, most importantly, maintain a competitive edge.
Benchmarking is the process of identifying, understanding and adapting outstanding practices and processes from other organisations in order to help your own organisation improve its performance.
Benchmarking provides an ideal tool for measuring and monitoring practice performance and measuring your performance against other practices. In practical terms it can also be an excellent tool for practice strategy planning and business development.
Benchmarking enables practice decision-makers to learn from their peers by analysing trends in their own practice, recognise the “critical numbers” identifying “where they can do better”, focus on the most significant, important or profitable factors and to set realistic goals against which their progress can be measured.
It also helps to minimise complacency by challenging the acceptability of current performance. Practices which become complacent with their performance tend not to make the necessary changes to maintain and improve it in a more challenging commercial environment.
Financially and qualitatively practices that set goals, benchmark and measure performance do better financially in all areas of practice.
3 Levels of Benchmarking
1) External Benchmarking – what everyone else is doing
Vet Dynamics Index, SPVS Survey, BVA Survey, wholesalers
2) Internal Benchmarking – what you are doing
Vet Dynamics Index, Management Accounts, Annual Accounts, PMS
3) Strategic Decision Making – what to do about it
Vet Dynamics Index
Benchmarking Parameters
Four Types of Parameters
- Descriptive – tell you WHAT you are doing – Give Numbers and Quantify
e.g. Turnover, ATV, Transaction volume, Client numbers
- Diagnostic – Tell you WHY you are doing it – give Processes and Qualify
e.g. Vaccinations, Healthcare initiatives, Marketing, Diagnostics
- Predictive – Tells you WHAT HAPPENS if you set targets for growth and change
e.g. turnover growth %, client growth %
- Prescriptive – Tell you HOW TO make it happen – the ‘Rules of Business’
Vet Dynamics Index is a benchmarking database service designed to assist practitioners and practice managers in tracking their practice’s progress across several key financial, marketing, and veterinary performance indicators. It allows them to compare their performance against other participating practices, including the most successful ones. This tool offers a clear overview of how each individual practice, branch, and veterinarian is performing, enabling owners and managers to refine their campaigns and concentrate on critical areas essential for ongoing growth.
The Index delivers practice decision-makers a comparison of their financial and marketing performance against the previous 12-month period, forming the foundation for a three-month rolling performance review aligned with the annual business plan. Additionally, it enables comparisons with other practices in the same region.
Vet Dynamics Index provides concrete statistics rather than unfounded opinions, facilitating focused discussions within practices about their priorities. By concentrating on the most significant issues, it helps direct limited resources to areas where they will have the greatest impact. The data and analysis offered equip practice managers with the insights needed to identify key areas for improvement or development, as well as to recognize major trends and challenges within the veterinary sector.
Quantitative Data Trends
- Revenue Growth %
- Transaction Growth %
- Active Clients Growth %
- Active Patient Species – Dog, Cat.
- Average Transaction Value
- Average Client Spend
Qualitative Data
- Clients new
- Patient new
Preventative Marketing
- Vaccinations
- Primary – New clients
- Boosters – Retained Clients
- Boosters: Primary = Vaccination Retention LTV
- Preventative Health Care – Compliance
- Wormers and Flea control
- Diets
- Dentals
Clinical Performance
- Cons 2: Cons 1 Ratio
- Diagnostic Ratios
- Laboratory
- Imaging – X-ray & Ultrasound
- Anaesthetics (proxy for Surgery)
- Pre-An bloods
- Fluids
- Post-op Care Packages
- Euthanasia
For more information log into www.vetdynamics.co.uk/Index
Vet Dynamics Index
Each monthly update provides a statement of actual performance, trends and comparisons with other practices using a standard format. Vet Dynamics Index will:
- Benchmark performance against the Lower Median, Median and Upper Median in the profession.
- Provide a discussion document to focus staff on ways to improve the overall health status of animals under care and business performance.
- Stimulate debate on the crucial issues that need to be tackled.
- Measure the result of client education initiatives.
- Enable practice decision-makers to measure practice progress at regular intervals against that of other like-minded practices.
Vet Dynamics Index provides an ideal tool for measuring and monitoring practice performance and benchmarking yourself against other practices. In practical terms it can also be an excellent tool for practice strategy planning and business development. Data measured by the Index provides practices with a quantifiable individual benchmark on their financial and general business performance during the previous 12 to 24 months and also compares them with the averages of other participating practices located in the same region.
