If you have a dental membership program or are thinking about creating and growing your own dental membership program then you need to understand the metrics that power your program and how to gauge if it is healthy or unhealthy. In this article I will be sharing the Key metrics of your membership program and why they are important. If you are managing a membership program manually this is just as important because most practices that manage a membership program manually have a higher cancellation rate compared to practices that use a software program like BoomCloud. Let’s dive into some of the key metrics of managing a membership program!
MRR: Monthly recurring revenue is such an important metric, this will measure your automated monthly cash flow each month. I love this metric because I can budget my revenue and forecast or control my cash. This is the metric that lets you sleep well at night if you have a good amount of recurring revenue that is coming in.
ARR: Annual recurring revenue will tell you how much automated yearly recurring revenue that you will collect each year.
Both the above metrics are amazing and help you form a budget and cash flow forecasting for your practice. It’s also important to track these metrics as you sell your practice you want to be able to prove to the next buyer that you actually have recurring revenue – this will help you increase the value of your practice
Active patients: Knowing your active patients and who they are is critical to keep track of for your dental membership program. Much like insurance you want to be able to verify that your patients are active paying members of your membership program before they can get access to your benefits and discounts.
Case Acceptance/expansion revenue: This tracks the amount of revenue a member spends with your practice after the membership fees? I also call this expansion revenue from patients. This is critical to understand as this is where a lot of revenue is generated. We looked at thousands of member patients from across the nation and we found that once they became a members they spent between 2X to 3.5X more than a non-member in a year’s time. Your membership program is a massive driver of revenue growth for your dental practice.
Churn/Cancellation: Churn is a critical metric to measure each month as this will hurt your growth if you have a high churn or help your growth if you have lower churn. Did you know that if you manage you membership program manually that it is expected that 20% – 30% of those patients will not renew the following year whereas if you automate your membership program like Amazon Prime with BoomCloud, you will retain 99.5% of your members vs only 70% – 80% with a manual system.
Average Membership Price: What is the average pricing for monthly and yearly membership programs? We get access to a lot of data from successful dental membership programs and the average pricing for yearly plans is $360/yr! Monthly members plan average at $33/mo ($396 for 12 months). These are great to compare with your own pricing, if you are charging too high you might need to adjust the subscription fee or at least you should add enough benefits on the plan to justify the higher pricing. When you add benefits be sure to add them because your patients need or want them and not because you think it would be better.
New members each month: If you are a growth-minded dentist you should be tracking how many sign-ups your staff is getting as well as signups via your website. This will help you to understand how much you are growing each month and if your team is doing their job in regards to educating your patients about your program!
Conclusion
if you use BoomCloud we track all of the metrics to help you run a successful membership program. I know too many dental practices that manage a membership program manually and have no idea how much revenue their membership program is generating how much revenue from treatment it is influencing, how much churn or attrition is caused by members or how many patients they are signing up per month. this is why most manually run membership programs have a challenging time growing because the office is not tracking these critical metrics and holding people accountable to the goals and metrics to help grow the membership program and practice.
