By: Camala C. Bailey, CPA, CVA
Part 1: Keeping Clients When Visits Drop
Industry data gurus as well as other reliable sources indicate veterinary client visits are continuing to trend down. This troubling statistic is likely having a direct impact on your practice’s profitability.
Margin squeeze is occurring in many successful practices, not only because visits are down, but also due to a mix of recent environmental and economic impacts—political and world unrest, inflation, high interest.
And while it’s true reports show gross revenue has increased year‑to‑date by 3.2%[1] compared to 2025, the decrease in visits, along with increases in cost of goods sold, labor expenses and other operating costs equates to, at best, static profit and for some, an actual decline in profit.
This increase in revenue is largely a direct result of increased fees, not additional invoices, as evidenced by reduced client visits. In a time when affordability is a critical concern for pet owners, many in the profession—including myself—do not believe that repeatedly increasing fees is sustainable.
What is crucial now is retaining loyal, compliant clients who will continue to bring their pets in for appropriate care.
Retention is key, and that leads to the question: “Do you know your client retention rate?” If not, you should! While tracking periods may vary by clinic, a typical time frame is 12 months. Here is a straightforward way to calculate your retention rate:
(Ending Customers – New Customers) ÷ Beginning Customers
Sample calculation for a typical 2 FTE‑doctor practice:
– Beginning Customers (start of period): 3,000
– Ending Customers (end of period): 3,200
– New Customers during the period: 500
Step 1: Ending Customers – New Customers = 3,200 – 500 = 2,700
Step 2: Retention Rate (%) = 2,700 ÷ 3,000 = 0.90
Step 3: As a percentage: 0.90 × 100 = 90% retention rate
Where do you stand? Benchmarks suggest most small‑animal practices see annual client retention in roughly the 75–85% range, and healthy, sustainable practices aim for 85–90% or better.
The best way to address decreased client visits from a retention standpoint is three‑fold:
– Tighten up your recalls and reminders
– Make forward booking standard, not optional
– Communicate well—before, during, and after appointments
Recalls and Reminders
Be rigorous with your recalls. Thirty days before the pet’s exam, vaccine, recheck or lab monitoring is due, send the client a reminder using their preferred method of communication.
On the due date, if no appointment has been booked, follow up with an additional reminder. If no booking occurs within the next 15–30 days, it’s time to pick up the phone and make that call—personal outreach significantly increases the likelihood of reactivation and shows genuine concern for the pet.
Systematize this as part of the appointment workflow in your practice software for every item due so no patient “falls through the cracks.”
Track your success by calculating the percentage of patients completing their appointment within 60 days of the due date; over time, improvements to this metric will translate directly into more stable number of client visits and ultimately gross revenue.
Forward Booking
I always know when my next dental appointment is—and I appreciate that! Forward booking is common in human healthcare and dentistry, yet it is still underused in veterinary medicine, despite being one of the easiest retention levers you can introduce. It should be a consistent step in your appointment workflow.
At the end of every visit, staff should have a short script such as: “Let’s go ahead and book Squeak’s next appointment now so you don’t have to remember later.”
Letting clients know they will receive a reminder before the next visit helps ease any discomfort about scheduling far in advance, and reassures them that they can adjust the appointment if needed.
Track your success by calculating the percentage of eligible visits where a future appointment is booked. Practices that embrace forward booking typically see higher compliance with wellness care and more predictable schedules, which directly support retention and margin stability.
Communication
It’s no secret that veterinary medicine is relationship‑driven, and a key part of that relationship is communication. To tackle the “low‑hanging fruit” related to retention, start by reactivating at‑risk clients through thoughtful, personalized communication.
Run a report to identify patients who have not visited in over twelve months and develop a “bring‑them‑back” campaign. This can begin with a simple check‑in message via their preferred communication channel, referencing the pet by name and what they are due for. For those who don’t respond, follow up in about 15 days with a friendly phone call.
Keep the tone low‑pressure—your aim is to show you care and want what is best for their pet, not to push services. This process will either bring them back or confirm they should be removed as an active client. Track reactivation rates of lapsed clients before and after the campaign to measure impact.
Owners want to feel their pet is genuinely cared for, which is why post‑visit follow‑up is essential for deepening their bond to your practice. For complex cases, surgeries, or sick visits, reach out within one to two days to ask how the pet is doing, using the pet’s name and specific details of the visit—for example: “How is Squeak doing after her dental surgery on Tuesday?”
For wellness visits, a simple calendar invitation confirming the next appointment (which you have already forward‑booked) along with a brief follow‑up survey can reinforce trust and highlight your focus on their pet’s care.
Lastly, consider adding a loyalty or recognition layer. It does not have to be complex. Simple gestures—such as a free nail trim after a certain number of preventive visits or priority scheduling for long‑standing clients—can meaningfully strengthen loyalty when communicated clearly. Make this a topic for your next team meeting and you’ll likely identify several inexpensive yet impressive ways to recognize and reward client loyalty.
Conclusion
In 2026, many practices are seeing revenue inch upward on the back of fee increases while visit volume and profit margins are squeezed by rising costs and client price sensitivity. Extended survival won’t come from continually raising fees; it will come from keeping more of the clients you already have; by measuring retention, tightening recalls, embracing forward booking, and communicating with genuine, consistent care. When you treat client retention as a core financial metric—not an afterthought—you protect your margins, support your team, and ensure your practice can continue delivering high‑quality, affordable care to the pets and people who trust you most.
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Byline: Camala “Cammi” Bailey, CPA, CVA, is the founding partner and director of tax services at CPA 4 Vets, a nationally recognized accounting and advisory firm serving veterinary practices.
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To follow:
Part 2: Cost of Goods Sold – Controlling What You Can
Part 3: Payroll, Productivity, and Profit
[1] July 22, 2026 Industry Summary from Vetsource