One Metric that Spurs Growth in your Dental Practice

In my experience as a multi-practice dental practice owner, there was always one metric we chased, lived by, constantly focused on and many times simply baffled us. But let me back up. This month we’re looking at measuring success in your dental practice. There are a myriad KPIs or Key Performance Indicators that dental practices monitor: Daily Gross Production; how many patients got booked vs. your monthly goal; number of new patients; and even EBITDA for the entrepreneurial-minded dentist looking to grow his or her dental practice. And so many more metrics it makes your head swim.  

Why Patient Retention Rate Matters in your Dental Practice

Metrics drive success, period. You can’t improve what you don’t measure. We all know that by now. However, there is one key metric that dentists and specifically dental practice owners must master for a successful dental practice to thrive. That one metric is Patient Retention. PR is the most vital metric in your practice. And I’m going to tell you why and how to use it.  

Cost-Effectiveness 

Retaining existing patients is significantly more cost-effective than acquiring new ones. The expense of marketing campaigns and advertising to attract new patients can be substantial. In contrast, keeping your current patients satisfied and loyal requires comparatively less investment. 

Revenue Stability 

Regular patients provide a steady stream of revenue through routine check-ups, treatments, and other dental services. High retention rates ensure a more predictable and stable income, essential for your practice’s financial health. We’ll get into how offer a better patient experience below.  

Patient Lifetime Value (PLV) 

Patients who stay with your practice over the long term have a higher lifetime value. They are likely to spend more on dental services over time, especially as they develop trust in your practice and are more open to accepting higher-value treatments and services. And giving them an outstanding patient experience from the moment they pick up the phone to call you for the first time begins that invaluable relationship they are looking for.  

Referrals 

Satisfied, long-term patients are your best advocates. They are more likely to refer friends and family to your practice, helping you grow your patient base organically without the need for expensive marketing efforts. You can also offer your long-term patients incentives for their referrals. This is typically called a referral program and can be a lucrative part of your marketing strategy.  

Feedback and Improvement 

Long-term patients provide valuable feedback that can be used to enhance services and the overall patient experience. Positive word-of-mouth from happy patients boosts your practice’s reputation and attracts new patients. But you also must provide easy avenues for leaving feedback. Things like an anonymous feedback box or anonymized feedback form on your website work great. Having a robust reviews system is also key to improvement.  

Reviews systems provide a proper way for patients to find you and review you on social networks as well as search engines like Google. You can also generate a QR code specifically for your business that you can place on your website and around your office to make it easy for patients to review you. You can gain powerful feedback and insights from a reviews system.  

How to Measure and Improve Patient Retention Rate 

Figuring out how to measure patient retention used to be a much more time-consuming process. But there are many tools and trackers available online now to help the dental entrepreneur really dig into the data and find what they’re looking for. Companies like Carestack, Jarvis and Dentrix all have software that allows you to track and measure KPIs and arrange and filter them according to your needs.  

Calculate Patient Retention (PR) Rate 

To track patient retention, you need to know how many patients return for follow-up appointments or ongoing treatments over a specific period. By regularly calculating this metric, you can monitor trends and identify areas needing improvement in the patient journey. The formula to calculate retention rate is: 

 

Strategies for Patient Retention

Enhance Patient Experience 

Delivering exceptional patient care is paramount. This includes minimizing wait times, providing a comfortable and welcoming environment, and ensuring that all staff members offer professional and compassionate service. But enhancing the patient experience goes beyond the superficial. Questions to ponder for your practice may include:  

• Do you offer a comprehensive Ortho program?  
• Do you have an in-house lab for quicker turnaround times 
• Do you offer competitive rates? Do you know what competitive rates for your area are?  
• Do you offer enhanced services like Cosmetic Dentistry?  
• Does your marketing program include a comprehensive reviews and feedback system?  
• Is your team happy and fulfilled? Happy and satisfied teams give back tenfold to their customers.  
• These are all important questions to address when enhancing the patient experience.  

Follow-Up Strategies 

Implement effective follow-up strategies to keep your patients engaged. This could include appointment reminders via text or email, personalized follow-up calls to check on patients after treatments, and periodic check-ins to ensure they are satisfied with their care. Staying in touch is key to retention.  

Loyalty Programs 

Consider offering loyalty programs or incentives to encourage regular check-ups and treatments. This can include discounts on services, special promotions for long-term patients, or a points-based reward system where patients can earn points for each visit that can be redeemed for services or products. You can also offer gift bags to new patients with trial size products you recommend and offer in your practice.  

Feedback Mechanisms 

Regularly solicit feedback from your patients and act on it. Use surveys, comment cards, and direct communication to understand their needs and identify areas for improvement. Showing patients that their feedback is valued and acted upon can significantly enhance their loyalty. It shows them that they are heard and seen and that their input is invaluable to the success of the practice. There are many company out there that create a and support reviews channels for your patients, as well as listings, social media, messaging and referrals. We think one of the best is Birdeye. But there are several very good services to choose from in this space.

Measure What Matters Most 

Focusing on patient retention is the key to building a successful dental practice. It ensures cost-effectiveness, revenue stability, higher patient lifetime value, increased referrals, and valuable feedback. By measuring and improving your patient retention rate through exceptional patient care, effective follow-up strategies, loyalty programs, and feedback mechanisms, you can create a loyal patient base that will sustain and grow your practice for years to come. 

Build a Resilient Practice by Measuring What Moves You Forward

One of the most powerful ways to sustain growth—and maintain balance as you scale your practice—is to track the numbers that truly matter. While patient retention is the cornerstone of long-term success, it’s just one part of the bigger picture. Sustainable growth comes when you consistently monitor not only your retention rates, but also metrics like new patient flow, case acceptance, production, collections, scheduling efficiency, and no-show rates.

That’s why we created the OPA KPI Tracker, built specifically for dental entrepreneurs who want clarity and confidence in their decision-making. With this simple, practical tool, you can see at a glance how your practice is performing, where you’re gaining momentum, and where you can take action for even greater results.

Ready to take control of your practice’s future?
Download our free KPI Tracker now and start tracking the metrics that will sustain your growth, empower your team, and keep your practice moving forward.