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 consultations into procedures. Then calculate potential revenue growth when conversion improves and your average revenue per procedure increases. Examine specific types of procedures, such as breast augmentation or liposuction, or a broad spectrum of surgical volume as modeled in the sample below. To customize, simply enter your data into the white fields.
Click for detailed instructions.
Step 1: Determine your true consultation conversion rate by dividing the number of new patients who have a procedure by the number of consultations conducted (sample: 46%).
Step 2: Set a realistic target conversion goal (sample: 60%).
Step 3: Calculate the target procedure volume by multiplying the current number of consults by the new target conversion rate (sample: 57 consults x 60% = 34 procedures).
Step 4: Project incremental revenue when conversion rate increases. Multiply the incremental number of procedures to be performed (sample: 34 – 26 = 8 procedures) by your average revenue per procedure (sample: 8 x $4,310 = $34,480).
Step 5: Project revenue by increasing your average revenue per procedure (sample: increase $4,310 by 10% to $4,741). Multiply this new figure by the current number of procedures being performed (sample: $4,741 x 26 = $123,266 total, $11,206 incremental) or by your new target volume (sample: $4,741 x 34 = $161,194 total, $49,134 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. Median conversion rate sourced from BSM Consulting study.1 Weighted average revenue per cosmetic surgical procedure calculated from surgeon fees and procedural volumes presented within the ASPS Plastic Surgery Statistics Report.2
Aiming to reach a specific revenue goal per month? Calculate the number of procedures that would need to be performed to reach your goal. Target revenue may be set as a percentage or incremental dollar amount.
Click for detailed instructions.
Step 1: Enter current practice performance data including number of consults and procedures performed, along with total gross revenue generated by the surgeon fees for these procedures.
Step 2: Set a target increase of surgical revenue (sample: 20%) and calculate potential incremental revenue ($112,060 x 20% = $22,412). If preferred, you can set the desired incremental revenue amount directly and the percentage increase will be displayed ($20,000 incremental revenue desired = 18% increase). When setting a revenue goal, it is important to consider your current volume of consultations and procedures and the opportunity for growth.
Step 3: Determine how many additional procedures will need to be performed to meet the revenue goal. Divide the target incremental revenue by the average revenue per procedure (sample: $22,412 / $4,310 = 5.2, which will require 6 procedures).
Step 4: If you increase the average revenue per procedure (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. Weighted average revenue per cosmetic surgical procedure calculated from surgeon fees and procedural volumes presented within ASPS Plastic Surgery Statistics Report.2
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 patient conversions and the average ticket sale. In fact, did you know that $5,125 is the average out-of-pocket spend for a patient opening a CareCredit account in a cosmetic practice?3
Contact your CareCredit Practice Development Team at 800.859.9975 (press 1, then 6) to request a custom Performance Review. Discover how your practice 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.
1 Aesthetic Industry Conversion Benchmarks & Secrets from the Top 10%, BSM Consulting, 2018
2 ASPS Plastic Surgery Statistics Report, 2019
3 CareCredit average 2020 1st ticket sale in cosmetic practices 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.
