Smartmockups Kfmitw9s


5 Key Financial Benchmarks To Keep Your Audiology Business Healthy

Effectively converting visitors to clients means creating and executing an effective business strategy. Focusing on the conversion of appointments to sales and how those sales stick is a good place to begin. Low conversion rates and high return rates cost you money, so you must take steps to address them. Learn the key financial benchmarks to keep in mind when you turn your attention to the bottom line.

1. Gross hearing aid revenue as a percentage of gross revenue.

Hearing aid sales generate more revenue per clinical hour than follow-up services or other product sales. Between 70% and 90% of your business’s gross revenue should be generated by hearing aid sales.

2. Gross margin percentage of net hearing aid revenue.

The percentage of profit your business makes on the sale of a hearing aid should be around 65%. That margin allows your business to operate at a profit even after expenses like payroll, rent, and supplies.

3. Net profit percentage of net hearing aid revenue

Your net profit is the defining metric for any business. This is essentially the measure of whether your business is making money. Generally speaking, audiology businesses should aim for a 20% net profit, substantially higher than the industry average of 12%.

4. Average patient net revenue

Knowing the fiscal value of each patient allows your business to set key performance indicators and determine marketing budgets. The ideal value per patient is around $4,200, although the industry average is closer to $3,000 per patient.

5. Conversion rate percentage

In audiology, your conversion rate is generally measured by the number of curious or casual clients who actually purchase a hearing aid. Depending on how you choose to define a conversion – percentage of visitors who make a purchase following a hearing aid evaluation appointment, for instance – you should target converting around two-thirds of potential clients.


Set Effective Objectives And KPIs For Different Staff Types in Hearing Care

Setting and discussing key performance indicators (KPIs) for hearing care is a tricky business. KPIs require time, effort, and employee buy-in to live up to their high expectations.

Don't Miss Out On the Latest Insights On Audiology 

Sign up today to receive exciting updates, tips, and the latest newsletters from Auditdata.