Top 5 KPIs Ketamine Clinics Need to Track

No one wants to be the next Ketamine Wellness Centers…

In mid-March, the ketamine clinic operator unceremoniously went out of business… shuttering its 13 facilities across nine states… leaving its employees jobless and its clients without access to the ketamine treatment they’d come to rely on.

While the email CEO Kevin Nicholson sent the staff announcing the closure was light on specifics, it seems that a deal they’d made to be acquired by Delic Holdings Corporation had gone bad—leaving Nicholson on the hook for the company’s expanding overhead. (You can read the email here.)

Without more details, it’s hard to say what exactly went wrong with the Delic deal… but we can extrapolate an important lesson from this story.

Investment capital is the lifeblood of the psychedelic medicine space—and attracting the right investors can make or break a business. 

When it comes to performing due diligence and deciding whether to invest in a ketamine clinic, investors are really only interested in a few key metrics…

The ones that tell them about the company’s financial health—and its ability to scale.

That’s why—for those looking to attract new capital—it’s crucial to stay diligent about these key performance indicators (KPI).

Here are the top 5 KPIs ketamine clinics should make sure to track:

Basically, you should know how much it’s costing you to acquire each new client.

That means looking at the price tag for your marketing efforts… understanding the responses you’re getting to your marketing… how your leads are converting to paying clients… and what the ending figure is.

So let’s say you’re spending $2,000 a month on marketing, and adding an average of 100 new email addresses to your list based on those efforts. Of those 100 new leads, 50 seek consultations. Of those 50 consultations, 10 made appointments at your clinic. So out of $2,000 spent on marketing, you acquired 10 new clients. In short, you’re spending $200 on each new acquisition. 

Understanding how these numbers break down can do a few things… First, it can help you figure out if your marketing efforts are paying off, depending on how much you’re charging for services. 

If each appointment is earning you $2,000, then the $2,000 on marketing might be worthwhile for the $20,000 in revenue. 

These numbers can also help you determine your funnel’s effectiveness and where it has room for improvement. For instance, how could you increase your conversion rate from leads to consultations, or from consultations to appointments?

In short, it helps you figure out how to scale your marketing efforts—ultimately bringing in more clients, and more revenue.

You need to keep a thumb on the pulse of your online presence to see how it’s paying off and how it could be optimized/scaled. Here are some key metrics to keep an eye on:

Again, these data points should inform your web strategy moving forward, and how it can be scaled to attract even more visitors, who can then be converted into paying subscribers.

New clients are obviously critical to any growing business, but existing clients shouldn’t be ignored. For one thing, they’re proven payers. For another, it can cost as much as five times more to sign a new client than to retain an existing one. In fact, a 5% increase in customer retention can translate to a 25–95% increase in profits.

Make sure to keep track of the following:

Your operating cash flow is the money your business generates when you factor in operational costs, including staff salaries, supply costs, rent, utilities, and other overhead.

Operating cash flow can tell you a lot about where you can afford to trim the budget, whether your services are priced efficiently to cover the costs of the business, and how economic factors like inflation are impacting your bottom line.

Obviously, this is a number that investors want to see trending upward, showing you have the flexibility to invest in new growth opportunities.

Net profit margin is how much of your revenue turns into actual “take-home” profits. In short, it’s your bottom line.

Again, investors will want to see this number trending upward—it shows a growing business with a healthy financial model.

Psyrise has sales management software and a lead generation engine specifically tailored for ketamine clinics. It helps you easily track all these KPIs… build your marketing funnels… drive customer conversions… and much more—all within one easy-to-use platform.

And the best part: You can do it all yourself… do it with Psyrise… or have Psyrise manage the whole thing for you.

You can visit the Psyrise website to get started.