Benefits of KPIs for Your Wellness Business
Learn how using key performance indicators can benefit your wellness business. Read about relevant business KPIs with Healthie.
When growing a wellness business, you are responsible for running both the back-office and client-facing aspects of your practice. While you are likely an expert in creating positive health outcomes for your clients, tracking the performance of your business can feel foreign. However, consistently evaluating the performance of your business is crucial to growth and future success. Introducing Key Performance Indicators to your business strategy allows you to efficiently improve all areas of your business.
Key Performance Indicators, better known as KPIs, are metrics that are used to measure the success of a business’ goals and objectives over a period of time. KPIs allow you to evaluate past performance, and also predict future trends for your business. Here, we’ve outlined our best practices for tracking KPIs within your business, including how to identify individual KPIs and examples of wellness business KPIs.
Identifying Wellness Business KPIs
Align KPIs With Your Business Goals
While there are hundreds of KPIs you could potentially track, you must identify those that are directly related to your business goals. Before choosing your KPIs, be sure to do an in-depth review of the goals you have set for your business. When evaluating your business goals, also consider the stage of your business. The KPIs you choose to measure will be dependent on the current needs of your business. Once you’ve clearly identified your business goals, you must decide how you will measure the success of these goals over a period of time. The way you measure the goals’ outcomes becomes your key performance indicators.
Focus on the Most Relevant Business KPIs
Nowadays, it is possible to track almost every data point regarding your business. However, this doesn’t mean you should track every indicator available. Monitoring too many indicators at once takes focus away from measuring those that are actually crucial to the strategy and success of your business. While every business has different needs, it is recommended that you focus on between four and ten KPIs for your business.
The KPIs you select may be based on the goals that are most relevant to your organization at this point. It’s realistic that your KPIs may change periodically based on the focus of your business at any given time; it’s actually best if they adapt to the current needs of your business. As you grow, the data you rely on to determine your performance will change depending on what you are looking to improve.
Leading vs. Lagging Indicators
When choosing KPIs for your business, it is beneficial to track both leading and lagging indicators. Lagging indicators measure the output of something that has already happened, such as the number of new clients you gained last month. Lagging indicators solely measure results and outputs. Leading indicators, meanwhile, measure inputs and progress. These include data such as website traffic and lead conversion rates. Leading indicators have the ability to predict upcoming trends and success within your business.
Both of these types of key performance indicators are important in measuring the success of your business. Lagging indicators are a concrete way to determine if your organization met its set goals over a period of time. Leading indicators are crucial, however, to the future of your business. While they do not guarantee an improvement in lagging indicators, they are strategic initiatives taken by the business in hopes of a positive outcome. A combination of leading and lagging indicators is sure to result in the most success for your business, as it allows you to keep track of business analytics while also pushing your organization forward towards new achievements.
Types of KPIs to Track in Your Wellness Business
In order to effectively assess these aspects of your business, you can track KPIs such as:
- New leads per month → Once you start tracking the number of new leads you have per month, you can expand this strategy further. Tracking your number of new monthly leads is a key component in discerning your conversion rate.
- Conversion rate → This is the percentage of prospects who inquire about your services that turn into paying clients. This may help you determine where to allocate your marketing budget or even continuing education credits.
- Cost per new lead → Regardless of your marketing budget, it’s important to know how much it costs for every new lead you gain so you can ensure you’re working towards a good return on your investment.
As a healthcare practitioner, the overall goal of your business should be to improve the health of your clients. The success of your clients is directly related to the success of your business. You can use KPIs to measure the overall success of your clients at any point when working with you. KPIs regarding your clients may include:
- Appointments attended → Client success can be directly tied to the number of appointments they attend. Each appointment offers a chance for you and your client to work through any struggles and build your relationship and rapport.
- Engagement rate → Client engagement has been shown to improve health ouctomes. Tracking the touch-points with clients, whether it be chat messages, journal entries, or metrics logged, can be an accurate predictor of future progress.
- Client satisfaction → If clients are satisfied with your services, they will be more motivated to show you they can achieve the goals you’ve set together.
When offering programs in your practice, wellness KPIs can be extremely helpful in determining the effectiveness of the program. Similar to business KPIs, indicators regarding your wellness programs can help you identify areas for improvement, as well as effective strategies to continue. Wellness program KPIs can include:
- Participant feedback → Receiving feedback regarding the program is a surefire way to assess your program as a whole. Participants can identify what worked well for them and what didn’t; and you can relate this feedback directly to their program outcomes.
- ROI → Wellness programs are a great way to gather new leads for your wellness business. Therefore, you can measure the return-on-investment for your business, based on the number of new clients you receive, packages purchased, follow-ups scheduled, etc.
Using Healthie to Track Business KPIs
Healthie’s Reports are leveraged by providers and organizations that seek to have critical metrics at their fingertips and can be used to draw business insights, better market services to prospective clients, share outcomes with stakeholders and partners, and aggregate survey responses to assess client engagement and satisfaction.
Each business is unique and may have individual reporting needs. Healthie’s team is able to generate custom reports as well as visual healthcare data analytics and business KPI dashboards for your organization. Custom reports can help you analyze initiatives and outcomes specific to your organizations, such as the popularity of different appointment types, the effectiveness of programs on client outcomes, and more.
In a forthcoming update, Healthie’s Reports business KPI dashboard will undergo a redesign, allowing providers to view even more key data and insights into their business performance.
Interested in learning more about data-driven healthcare reporting in Healthie, or custom reports? Reach out to our team today email@example.com.