Did you know that the healthcare industry brings in $1.68 trillion in revenue annually? As a profitable industry, many companies want to break into this market segment through innovative new solutions.
However, ensuring the business is performing effectively and profitably is imperative to its long-term success. If you offer Software as a Service (SaaS) applications for the medical field, you need to keep an eye on several critical key performance indicators.
Customer Acquisition Cost
As a fast-growing healthcare startup, you probably depend on investor funding to fuel your expansion. One area that stakeholders pay close attention to is your customer acquisition cost (CAC). This KPI covers the overall expenses associated with onboarding a customer. If your CAC increases over time, you are not successfully reaching your target audience or are using inappropriate ways to bring in your ideal medical professionals and practices.
Customer Churn Rate
Customer retention is necessary to grow your revenue and reach business goals in the healthcare industry. Your churn rate indicates how many clients cancel their subscription during the month. Ideally, you keep this percentage as low as possible, but this metric gives you valuable insight in determining how well your healthcare startup is doing.
Medical professionals have busy careers, and they don’t have a lot of time to spare learning a new system or software. If you discover clients not engaging with your SaaS application, use a customer success team to proactively uncover the problem. You can retain practices that may have jumped ship to another company by reaching out directly, rather than waiting for someone to call customer support with questions.
Are you helping healthcare companies succeed with your solution? Keep an eye on the number of patients served and the monthly claim count to see if your clients are growing. You may need to create specific size tiers to accommodate unique needs or discover ways your software can improve their operations.
Monthly Recurring Revenue
How much revenue does your SaaS company bring in on a monthly basis? Since you have a set subscription cost, this metric gives you an easy reference point to see whether you’re bringing in more customers over time.
Direct Medical Practice Referrals
When your application frees up healthcare professionals’ time, they’re more inclined to spread the word wherever they go. Keep track of how many direct referrals you receive from existing customers.
The medical field has many areas that can be improved with the right technology. When you bring your SaaS product into this competitive industry, track the right KPIs to position yourself for long-term success.
Whether you’re a new or long-standing business, a mid-market company or startup, understanding KPIs and acting upon the results is important, but often difficult to produce objective results. In addition to its finance, HR, technology and CFO services, vcfo provides financial benchmarking reports to assist businesses in identifying KPIs specific to them and develop actionable plans to optimize performance and improve in underperforming areas.