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Are you making the most out of vaccination
and check-up reminders?
By Greg Robinson, co-founder and business development
director, RxWorks
How
many times have we heard that the fastest and most cost effective
way of generating additional revenue is through regular communication
with existing and previous clients? Informing your clients
of up-coming treatments, check-ups or new services is widely
recognised as a highly effective means of generating repeat
business.
Veterinary practices have long embraced the idea of sending
out letters to remind clients when their pets were due for
their annual vaccination. However, having advised practices
for over 15 years, I have encountered many who are not making
the most of their existing client base. When I have asked
veterinary surgeons in the UK what their response rates are
to their vaccination and check up reminders, I am told regularly
that these rates are in the region of 75-80 per cent. However,
when this is subjected to close, critical scrutiny I tend
to find that in reality these response rates are closer to
50 per cent for a first reminder run and the remaining responses
generated with second or even third reminders.
Keeping track of and sending out reminders to clients is
a time consuming and involved process, which can also be costly.
The process can also be prone to compromising errors and inconsistency
that could actually lose you business. Most businesses recognise
the impact of sending a client a vaccination reminder for
one of their pets that had recently died. Initially, reminders
were a manual process and even though this was time consuming,
veterinary practices made the investment because the value
to the business was recognised clearly. In the late 1980s
and early 1990s it became apparent that computers could
create and send reminders far more efficiently and this became
one of the criteria for computerisation. So if you are providing
your clients with top quality service and advising them adequately,
via a computer system, as to when their pets require treatments,
why are reminder response rates not improving? In addition,
what practical measures can you implement to improve on response
rates?
Many veterinary practices have now recognised that multiple
vaccination reminders are of significant value in addressing
low response rates. RxWorks own statistical analysis
has shown that the average UK small animal practice achieves
a 55% response to a first reminder within two months. However,
if a second reminder is sent within two months, a further
20% response can be achieved resulting in a total response
rate of 75% within four months. Your computer system should
allow you to measure these response rates accurately and then
allow you to determine if further reminders are of value.
So what are the implications of these figures for the revenue
streams of your practice?
First reminders and second reminders
We will assume that a practice sends out 100 first vaccination
reminders each month for a pet and that you charge £25
for a standard vaccination. You may expect the following results
and associated additional revenue simply by having sent out
a second reminder:
| Response |
Number (monthly) |
Value (potential) |
12 monthly |
| Sent |
100 |
£2,500 |
£30,000 |
| |
|
|
|
| Response to first |
55 |
£1,375 |
£16,500 |
| Response to second |
20 |
£500 |
£6,000 |
| Total Response |
75 |
£1,875 |
£22,500 |
Non Vaccination Reminders
These can be very hard to value because each practice uses
different reminders and charges different amounts for each
service. Nevertheless, a good example that is commonly used
in many practices is dental reminders. When a dental examination
is performed, computer systems should be able to automatically
generate a reminder typically in 6 or 12 months. Response
rates to these reminders tend to be lower, but are of greater
value if the reminder succeeds in getting a positive response
from the client. We will assume that the value of a dental
examination is £40, that a response rate is 25% to first
reminder and then 10% to the second reminder. The following
table will illustrate the impact that the second reminder
will have on revenue.
| Response |
Number (monthly) |
Value (potential) |
12 monthly |
| Sent |
20 |
£800 |
£9600 |
| |
|
|
|
| Response to first |
5 |
£200 |
£2400 |
| Response to second |
2 |
£80 |
£960 |
| Total Response |
7 |
£280 |
£3360 |
The above figures show that it is definitely worthwhile to
send reminders followed up by second reminders for many types
of situation. It is up to veterinary practices to make sure
that their computer systems are capable of performing this
task cost effectively.
Both hardware and software technology have advanced rapidly
and we have found that all too often, existing computer systems
in veterinary practices are simply not geared up to cope with
the task of multiple reminders. As more practices become aware
of the value of multiple reminders, we are beginning to see
an increased demand for upgraded or replacement computer systems.
Systems that can help you to improve customer service will
not only help you to stay ahead of the competition, but will
also help you to improve the bottom line. Whether or not you
are computerised, it is important to keep up to date with
what is available and what the various systems on offer can
handle.
In the UK there are over 12 different suppliers of veterinary
management software. Some of these have been around for many
years whilst others have been developed recently to suit the
future needs of veterinary practices. An up to date software
package should now offer the following capabilities:
- The ability to send vaccination reminders this
is nowadays expected of any credible computer system
- Automatically cease all reminders once a pet dies or is
euthanased you should also expect this of any computer
system
- Send non-vaccination reminders these may, for
example include dental, geriatric, neutering, blood glucose
(diabetics), worming, grooming, diet, weight check, flea
control or any other reminder that you may desire. In the
case of large animals these could include follicle testing,
pregnancy testing etc
- Send second and third reminders for vaccination and other
reminders.
- So that the process is as time efficient as possible,
it needs to be fully automated. In this way, a practice
manager should only have to send reminders once
to trigger the search of all patient records and process
all reminders. It should not be necessary to make multiple
requests for different reminders or separate steps to process
first reminders, then second reminders, third reminders
etc.
- Create a safety net this means that
if a client fails to respond to all reminders, then you
should have the ability to specify if a reminder system
continues in the future. For example if you send a vaccination
reminder and a client does not respond, you may still choose
to send another reminder next year
- Send reminders on your choice of media for example,
postcards (printed directly), letters, mail labels, or telephone
lists or any combinations of these. For example you may
choose to print your first vaccination reminders for a patient
on postcards but the second on a letter and perhaps the
third as a phone list to check who has not responded. Again,
this should be fully automated
- Print multiple reminders on one page now that
computer systems are sending multiple reminders it is reasonable
to expect that a client who has several patients due for
various reminders should be able to receive notification
on one letter or postcard
- Design your own documents in a word processor like Microsoft
Word. this an absolutely essential feature that enables
you to brand your materials
- Ability to include a picture of the clients pet
on the reminder. One of the new advances is the ability
to store digital images of patients. As we all know, clients
love to see pictures of their pets, so why not print their
pictures on the reminders?
- View accurate statistics of response rates to all reminders
it is essential these days to assess if your response
process is working. It is therefore essential that todays
veterinary computer system automatically keeps accurate
response statistics to all reminders
Veterinary software developers understand the important role
that reminders play in generating repeat business. So they
should also understand that producing reminders can be time
consuming and detract from the other essential tasks involved
in running a practice. A comprehensive reminder facility ensures
that you do not have to worry about missing out on valuable
repeat business and can concentrate on treating your patients.
Veterinary software packages should give you unlimited automated
reminder systems on your choice of media be it letters, lists
or postcards.
In todays competitive climate, clients are expecting
improved levels of information and advice on how and when
to take action to care for the health of their pets. This
desire for information has been fuelled by popular mainstream
television programmes and printed media about pets and pet
care. As a result, clients are now looking to their practice
both actively and passively to provide that information. Software
systems are at hand to help practices to cope with and satisfy
this demand. As the competition intensifies, if your practice
fails to live up to your clients expectations and needs,
it is more than likely that they will move to another practice
that does.
About the author
Greg Robinson is a co-founder and director of business development
for RxWorks. Greg formed VetAid (now RxWorks) in 1985 when
he saw the need for a total veterinary practice management
system. Prior to this, Greg was a business analyst for MLC,
one of Australia's largest insurance companies. Greg applied
his analytical skills to the business of veterinary medicine
and produced VetAid software, a solution that made a real
impact on the revenues, expenses, and management of many veterinary
practices. Today, RxWorks is a leading supplier of veterinary
practice management systems and is used in 13 countries around
the world.
For more information visit www.rxworks.com
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