Do you actually know what’s working in your practice right now?
Not just a general sense of “things seem busy” — but the real numbers that tell you whether your marketing is paying off, whether your clinicians are fully booked, or whether clients are sticking around long enough for therapy to really work.
In this episode of the Private Practice Elevation Podcast, Daniel talks with Madeline Larsen, co-founder of PracticeVital, about how to track the most important KPIs in your therapy practice so you can make smarter decisions about growth, hiring, and marketing — without needing a data science degree.
If you’ve been running your practice on instinct and want to start making more informed decisions, this conversation will give you a clear, practical starting point.
This Episode Answers…
1. What KPIs should every group practice track?
Madeline highlights three foundational metrics every practice owner should monitor: client retention, clinician utilization, and average revenue per session. These metrics help you understand how effectively your practice is operating and whether your systems are supporting sustainable growth.
2. Why is client retention such an important metric?
Retention reveals whether clients are staying in therapy long enough to benefit from treatment and for the practice to remain financially sustainable. Many practices don’t break even until a client’s third or fourth session, so early drop-offs can signal important issues with onboarding, communication, or client-clinician fit.
3. How can practice owners use data without feeling overwhelmed?
Rather than tracking dozens of metrics, Madeline recommends focusing on a few key indicators and reviewing them regularly. With the right dashboard and workflows in place, data becomes a helpful guide for decision-making rather than a confusing spreadsheet exercise.
Other Key Takeaways:
- Therapists often become business owners without formal training in operations or analytics.
- Data helps practice owners move from gut decisions to informed decisions.
- Client retention is often the first “red flag” metric to investigate.
- Low retention can act like a “leaky bucket,” where clients are constantly coming in but quickly dropping out.
- Utilization rates help determine whether it’s time to increase marketing or hire new clinicians.
- Tracking average revenue per session helps you understand client lifetime value and marketing ROI.
- Data can actually make difficult conversations with clinicians easier by providing objective context.
- Metrics are most powerful when used together, not in isolation.
Links mentioned in this episode:
- PracticeVital Website
- $30 off your first month with PracticeVital — use promo code PrivatePracticeElevation
Watch The Video:
This Episode Is Brought To You By The Following Sponsors:
Alma is on a mission to simplify access to high-quality, affordable mental health care by giving providers the tools they need to build thriving in-network private practices. When providers join Alma, they gain access to insurance support, teletherapy software, client referrals, automated billing and scheduling tools, and a vibrant community of clinicians who come together for education, training, and events.
Learn more about building a thriving private practice with Alma at helloalma.com/elevation.
About Madeline Larsen
Madeline Larsen is the co-founder of PracticeVital, a software platform that helps therapy practices understand and improve their business performance through data. Before founding PracticeVital, Madeline spent more than 15 years in brand strategy and marketing at a global advertising agency, helping companies navigate technological change and develop effective go-to-market strategies. For PracticeVital, Madeline leads marketing and design efforts. She lives in Evanston, Illinois with her husband and two daughters.
About Daniel Fava
Daniel Fava is the owner and founder of Private Practice Elevation, a website and SEO agency focused on helping private practice owners create websites that increase their online visibility and attract more clients. Private Practice Elevation offers web design services, SEO (search engine optimization), and WordPress support to help private practice owners grow their businesses through online marketing.
Daniel lives in Atlanta, GA with his wife Liz, and two energetic boys. When he’s not working he enjoys hiking by the river, watching hockey, and enjoying a dram of bourbon.
