Definition
This is the average amount of money generated from a Individual Appointments (excluding GST).
Formula
This is a raw number (Average Revenue) that Allie collects from a Practitioner Performance Report in your Practice Management System (Cliniko).
Example
Allie, a practitioner, had 30 Appointments scheduled over the time period in review (e.g. 1 week). At the end of each Appointment there is an Invoice created which the client is required to pay for the services they received. The total revenue from all 25 Appointments is $4,500. Allie's Average Revenue can be calculated as:
Average Revenue: [4500] / [25] = $180
Learn how to improve Average Revenue
Importance and Relevance
Client Investment Insight: Average Revenue provides clarity on what clients are willing to invest per appointment, reflecting the perceived value of services offered.
Value Exchange: This metric helps practitioners gauge if the value they deliver is appropriately reciprocated financially, fostering a balanced value exchange.
Service Valuation: A higher Average Revenue may signify a practitioner’s ability to deliver premium services, enhancing their professional reputation.
Qualification Representation: Often, Average Revenue can mirror a practitioner’s level of qualification, with more qualified practitioners potentially commanding higher fees.
Strategic Revenue Growth: By employing strategies like fee adjustments and reducing discounts, practitioners can see a direct impact on their Average Revenue.
Funding Optimisation: Tapping into higher value funding sources can elevate Average Revenue, offering more robust financial health.
Clientele Focus: Targeting treatment for more 'ideal clients'—those who see the intrinsic value in the services—can naturally increase Average Revenue.
Complementary Offerings: Incorporating additional products or services that complement treatment can boost overall revenue per client encounter.