Revenue is Vanity, Profit is Sanity
Most pet business owners can tell you their revenue. Fewer can tell you their profit margin. Almost none can tell you their client retention rate or their revenue per available slot.
But these are the numbers that tell you whether your business is actually healthy, or just busy.
Here are the 7 KPIs (Key Performance Indicators) that every pet business should track. You don't need a finance degree. You just need to measure the right things.
1. Slot Utilisation Rate
What it measures: What percentage of your available appointment slots are actually booked?
How to calculate it:
Booked slots / Available slots x 100 = Utilisation %
Example: If you have 8 grooming slots per day and average 6 bookings, your utilisation is 75%.
Target: 80-90%. Below 70% means you have capacity to fill. Above 95% means you're probably overbooked or have no buffer for emergencies.
Why it matters: Revenue is capped by capacity. If you're only filling 60% of your available slots, you don't need more marketing. You need better booking conversion and client retention.
2. Average Transaction Value
What it measures: How much does the average client spend per visit?
How to calculate it:
Total revenue / Number of appointments = Average transaction value
Example: $8,000 in weekly revenue from 80 appointments = $100 average transaction value.
How to increase it:
- Add-on services (nail trim, teeth cleaning, flea treatment, de-shedding)
- Package upsells at checkout
- Size-appropriate pricing (make sure large dog prices reflect the extra work)
Why it matters: Increasing your average transaction value by even $10 per appointment adds up fast. At 80 appointments per week, that's $800 per week, or $41,600 per year.
3. Client Retention Rate
What it measures: What percentage of clients rebook within a reasonable timeframe?
How to calculate it:
Clients who rebooked within 8 weeks / Total clients x 100 = Retention %
(Adjust the timeframe for your service. Grooming clients should return every 4-8 weeks. Daycare clients book weekly. Boarding is seasonal.)
Target: 70-80% for grooming, 85%+ for daycare, variable for boarding.
Why it matters: Acquiring a new client costs 5-7x more than retaining an existing one. A 5% increase in retention can increase profitability by 25-95% (these figures are widely cited across service industry research). Your most profitable clients are the ones who keep coming back.
4. Package Conversion Rate
What it measures: What percentage of eligible clients purchase prepaid packages?
How to calculate it:
Clients with active packages / Total active clients x 100 = Package conversion %
Why it matters: Prepaid packages represent guaranteed future revenue. They reduce no-shows (clients already paid), increase lifetime value, and improve cash flow.
Target: 30-50% for daycare clients, 15-25% for grooming clients. If your package rate is below 10%, your packages may not be visible enough, priced right, or easy enough to purchase.
5. No-Show Rate
What it measures: What percentage of booked appointments result in a no-show?
How to calculate it:
No-shows / Total bookings x 100 = No-show %
Target: Below 5%. Industry average is typically 5-10%.
The financial impact: If your average appointment is worth $100 and you do 400 appointments per month, a 10% no-show rate costs you $4,000 per month, or $48,000 per year. Our no-show cost calculator breaks this down in detail.
How to reduce it: Automated reminders, card-on-file policies, and pre-authorisation holds all reduce no-shows significantly. See our guide on 5 ways to reduce no-shows.
6. Revenue Per Team Member
What it measures: How much revenue does each team member generate?
How to calculate it:
Total revenue / Number of service-delivering staff = Revenue per team member
Why it matters: This tells you whether adding staff is profitable. If a groomer generates $4,000 per week in revenue and costs $1,500 in wages, the economics work. If they generate $2,000 and cost $1,500, something needs to change (pricing, utilisation, or efficiency).
What to watch for: Revenue per team member should increase (or at least stay stable) as you add staff. If it drops significantly, you may be adding staff faster than demand justifies.
7. Customer Acquisition Cost vs Lifetime Value
What it measures: How much does it cost to acquire a new client, compared to how much that client spends over their lifetime?
How to calculate it:
Marketing spend / New clients acquired = Acquisition cost
Average spend per visit x Visits per year x Average years as client = Lifetime value
Example: If you spend $500/month on marketing and acquire 10 new clients, your acquisition cost is $50. If the average client spends $100 per visit, visits 10 times per year, and stays for 3 years, their lifetime value is $3,000.
A $50 acquisition cost for a $3,000 lifetime value? That's excellent.
Why it matters: If you don't know these numbers, you can't make informed decisions about marketing spend. Some channels (like Google ads) may look expensive per click, but if they bring high-value clients, the maths works.
How to Start Tracking
You don't need sophisticated software to start. A simple monthly review of these 7 numbers will transform how you understand your business.
Monthly check-in template:
| KPI | This Month | Last Month | Trend |
|---|---|---|---|
| Slot utilisation | ___% | ___% | ↑↓→ |
| Average transaction value | $___ | $___ | ↑↓→ |
| Client retention rate | ___% | ___% | ↑↓→ |
| Package conversion rate | ___% | ___% | ↑↓→ |
| No-show rate | ___% | ___% | ↑↓→ |
| Revenue per team member | $___ | $___ | ↑↓→ |
| Acquisition cost vs LTV | $:$ | $:$ | ↑↓→ |
Key Takeaways
- Slot utilisation tells you if you have a demand problem or a conversion problem
- Average transaction value is the easiest lever to pull for more revenue
- Client retention is more profitable than client acquisition
- Package conversion predicts future revenue stability
- No-show rate has a direct, measurable dollar cost
- Revenue per team member tells you whether growth is profitable
- Acquisition cost vs lifetime value guides smart marketing spend
Track these 7 numbers monthly. Within 3 months, you'll make better decisions than 90% of pet business owners.