The 5 Metrics That Predict Dental Practice Growth
These 5 metrics are what top-performing dental practices obsess over daily. Are you tracking them?
In this video, I’ll explain each one and show you how to use it for your dental practice growth predictably.
As the Chief Strategy & Growth Officer, I personally obsess over these dental metrics, and they’re the reason our top dental clients are seeing millions of dollars in production value, opening new locations, and smashing their sales goals.
But here’s the thing: most dental practices rely on gut feelings. And that guesswork? It’s costing you big time.
Focusing on these key performance indicators for dentists can make the growth of your practice much more predictable and affordable.
Let’s dive into metric number 1:
Metric 1: Cost Per Acquisition (CPA)
Definition: CPA is much better than CPL (Cost-per-lead) because CPA measures how much you spend to acquire each new patient, not just the opportunity to acquire a new patient.
To calculate your CPA, divide your total marketing spend by the number of new patients you’ve acquired for the month.
The average CPA for a dental practice ranges typically from $150-$350, depending on your physical location and saturation.
Why It Matters: Knowing your CPA ensures you’re not overspending on marketing efforts that don’t deliver.
It also allows you to identify which marketing channels are worth scaling and which need optimization or cutting.
How to Track It: Use tools like Google Ads, Facebook Ads Manager, or your CRM to monitor your ad spend and track conversions.
Ensure your dental marketing agency properly sets up tracking to avoid inaccuracies.
Action Tips:
- Optimize your marketing campaigns—focus on high-performing platforms that bring consistent results.
- Test different ads and offers to see what resonates most with your target audience.
- Regularly review your CPA by campaign and refine your strategy to lower costs.
- Consider working with a marketing expert to uncover hidden opportunities to improve efficiency.
Metric 2: Patient Lifetime Value (PLV)
Definition: PLV, or LTV, is the total revenue a patient brings to your practice over their lifetime, including treatments, maintenance, and referrals.
Why It Matters: This metric helps you understand the long-term impact of patient retention and loyalty. When you know each patient’s true value (which most practices only think they know), you can justify spending more on acquisition and focusing on retention strategies.
How to Track It: Calculate the average annual revenue per patient (the national average is $980) and multiply it by the average number of years they stay with your practice (the national average is 7). Use your practice management software or our Marketly Practice Metrics dashboard to make this calculation easier.
Action Tips:
- Build strong patient relationships by providing personalized care and excellent experiences.
- Offer loyalty programs and regular follow-ups to keep patients engaged and coming back.
- Educate patients on the value of preventive care and complementary treatments.
- Monitor your PLV regularly and strategize ways to increase it through patient satisfaction and retention efforts.
Metric 3: Lead Source
Definition: Lead source identifies where your new patients are coming from—Google, Facebook, word of mouth, email campaigns, or other channels.
Why It Matters: Knowing your lead sources allows you to invest in marketing efforts that deliver the best ROI while cutting back on those that don’t.
How to Track It: Use tools like your CRM, call tracking software, website analytics, or simply ask patients during intake how they found your practice. Make sure this data is consistently recorded.
Action Tips:
- Focus your marketing budget on your top-performing lead sources for better returns.
- Experiment with new platforms or channels and analyze their performance.
- Encourage referrals by creating a referral rewards program and promoting it actively.
- Use an integrated CRM system to simplify tracking and reporting across multiple channels.
Metric 4: Front Desk – Speed to Lead
Definition: Speed to lead measures how quickly your team responds to inquiries from potential patients, whether they come from phone calls, online forms, or social media.
Why It Matters: A quick response can be the difference between booking a new patient or losing them to a competitor. Responding to leads within the first minute has been shown to increase conversions by 391%. Speed to lead directly impacts conversion rates and reflects your
team’s efficiency. Did you know that after five minutes pass, the odds of connecting and qualifying with the lead drop 80%?
How to Track It: Monitor response times using a CRM or call-tracking tool like Marketly Practice Metrics. Review logs regularly to identify patterns or bottlenecks.
Actionable Tips:
- Set a goal to respond to all leads within 5 minutes—the faster, the better.
- Train your front desk team to prioritize new patient inquiries and handle them professionally.
- Implement automated tools like chatbots or email responders for after-hours inquiries to keep leads engaged until your team can follow up.
- Review your team’s performance regularly and provide coaching to improve response times.
Metric 5: New Patient Appointments Per Month
Definition: The total number of new patients scheduled monthly is a clear indicator of your practice’s growth and dental marketing success.
Why It Matters: Each practice will have different new patient goals. However, consistently tracking this metric helps you understand the effectiveness of your marketing campaigns and front desk processes.
How to Track It: Use your practice management software to monitor appointment bookings. Cross-check with marketing data to correlate campaigns with patient inflow.
Actionable Tips:
Promote new patient specials or limited-time offers to boost bookings.
Review your online booking process to ensure it’s user-friendly and mobile-optimized.
Follow up with no-shows and reschedule their visits to maintain momentum.
Analyze trends—if numbers drop, work with a marketing expert to identify and address the issue.
Use these metrics to predict your dental practice growth
These five metrics are the heartbeat of any successful dental practice growth strategy. You build a rock-solid foundation for predictable growth by tracking and optimizing them.
If you’re ready to take control of your numbers and see REAL results, let’s talk.
Schedule a free strategy session with me and my team. We’ll analyze your metrics and craft a custom roadmap to help you crush your growth goals.
