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Here’s a quick question: When was the last time you pulled a report from your dental practice management software… and actually knew what to do with it?
All professionals know they need data to work better. Yet few know how to make the most of the data they have. If you’re like most, you probably:
Most practices collect mountains of data (cancellation rates, production reports, new patient numbers), but their teams are stuck in the same cycles of reactive management.
Rather than allowing the data to point forward to new opportunities, many see the numbers as reflections of past underperformance.
The problem isn’t a lack of information. It’s knowing which numbers actually matter and, more importantly, what to do about them. Because there’s a world of difference between pulling reports and driving growth.
Want to learn more? Check out our recent Dawson Academy webinar to unlock more insights into measuring the right metrics in dentistry.
In every dental practice, there are three types of people who handle data analysis. Understanding which one you are is the first step toward transforming your practice performance.
"I went to Dentrix today and pulled a report on cancellations. We had 160 cancellations this month." This is likely most people in your practice. The report pulled, box checked, no further action. These team members know how to use the software and generate reports, but the insight stops at the printer.
"We had 563 patients scheduled this month and 160 cancelled, which is a 28% cancellation rate. That's 8% above our target." Better. In fact, the ability to interpret the data and understand what it means in context is a great next step! These individuals can see patterns and can identify when something's off. But knowledge without action is just an interesting conversation..
"Our 28% cancellation rate is costing us approximately $43,000 in lost production monthly. Let’s consider creating a three-step SMART goal: 1. Reduce cancellations from 28% to 25% within 90 days by implementing confirmation scripts
2.Establish a 48-hour confirmation window
3.Create a first-warning system for chronic cancellers.
Do you see the difference? This is where practice transformation happens. A Strategic Actor is someone who sees beyond just data points. They identify opportunities and create strategies.
Most practices are staffed entirely with Type 1s and a few Type 2s. Without a Type 3 leading the charge, all those reports are just expensive paper.
But becoming a Type 3 is possible. It starts by turning your focus to the right numbers and having a clear action framework. And that begins with understanding the difference between metrics and KPIs.
There’s a key difference between looking at data backwards and forwards. While some data is better than no data, knowing what to do with it matters.
Metrics are general measurements. They are the raw data of what’s happening in your practice. This can include:
Metrics tell you what happened. They act as a scoreboard without an actual strategy. Are you growing? Stalling? Exceeding patient expectations? Seeing higher practice employee satisfaction?
To get a better idea of where you’re heading, you need a compass to help you point in the right direction.
KPIs (Key Performance Indicators) are your strategic weapons—specific measurements that directly impact your success:
See the difference? If metrics are ingredients, KPIs are the recipe for success.
Tracking “40 new patient calls” is a metric. But knowing your conversion rate is 50% – meaning you need 40 calls to get 20 new patients – that’s a KPI. One tells you what happened; the other tells you what to fix.
The practices that thrive don’t track more numbers. They track the right numbers. They focus on 5-7 KPIs that, when improved, create a cascade of positive changes throughout the practice.
This KPI reveals whether you’re actually capturing the value you create.
This KPI is calculated by dividing total collections by total production. For example, if you produce $100,000 but only collect $92,000, your ratio is 92%. The gap exposes inefficiencies in everything from insurance verification to patient payment processes.
When this number drops below 95%, you’re essentially working for free several days each month. Common culprits include excessive write-off or the dreaded “we’ll bill insurance and see what they pay” approach that trains patients to wait rather than pay.
Your retention rate measures how many active patients return for their recommended care. This acts as your “report card” on whether patients value what you provide. Calculate it by dividing patients who returned within their recommended timeframe by total active patients.
A retention rate below 90% signals that patients see your services as optional rather than essential. This often stems from behaviors that unconsciously communicate that dental care isn’t a priority.
This KPI tracks the percentage of treatment plans that patients accept and schedule. But note – this target varies dramatically. Comprehensive rehabilitation cases might see 30-40% acceptance, while single-tooth restorations should achieve 75-85%. The key is knowing your baseline and improving from there.
Beyond the percentage, track the total value of accepted treatment. A practice accepting 90% of single fillings might be less healthy than one accepting 40% of comprehensive cases.
Your cancellation rate directly impacts practice stability and team morale. This is the percentage of scheduled appointments that patients cancel or no-show.
Every percentage point above 5% represents lost production, wasted time, and increased stress for your entire team.
High cancellation rates often indicate weak commitment systems. When your team is lax on last-minute cancellations or fails to communicate the value of appointments, they inadvertently train patients that your schedule is flexible and your time isn’t valuable.
While the other four KPIs are lagging indicators that confirm what already happened, this forward-looking KPI predicts future success.
For instance, if your monthly goal is $200,000 and you have $150,000 scheduled with 10 days left, you know exactly where you stand and what actions to take.
Unlike other KPIs that tell you what happened, this one predicts what will happen. Successful practices maintain 10-15 days scheduled to goal, allowing them to be strategic rather than desperate.
When this number drops below 7 days, practices shift into reactive mode, pressuring patients and stressing teams.
Are you ready to go beyond basic metrics and data pulls and start creating a more data-driven practice? KPIs are a great place to start, but they are only one tool in a much larger practice toolkit.
The Dawson Academy’s practice management curriculum goes deeper into these concepts, providing the systems, tools, and support you need to upgrade and enhance your practice performance.
Learn more about how you can take active steps to create sustainable growth that benefits both your patients and your bottom line. It starts with you!
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