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Do You Have a Healthy Pharmacy Business? Know the KPIs

KPIs, or ‘key performance indicators’ provide insight to pharmacy owners on how their business is performing. Knowing these indicators helps pharmacy owners make informed business decisions, solve problems, and take action to make the most out of any opportunities that should arise

There are three areas within a pharmacy that KPIs need to address: Sales, pay, and inventory.


Everything comes back to sales - in one way or another, all other indicators within a pharmacy come back to sales, which makes it the most important indicator related to a pharmacy’s performance.

The simplest formula for business revenue is: Revenue = # of customers x average sale x transaction frequency

You can express the number of customers in whatever way feels right for your pharmacy, whether that’s the amount you get in a day, a week, or another time period of your choice.

Average sales can either be discovered through average basket size, prescriptions per customer, or gross profits.

Transaction frequency shows how many times on average that a customer bought something within a designated time constraint. This can also clue you in how many customers return to your pharmacy and how frequently they buy something within a delineated time period.


KPI includes wages because wages end up being the most major expense for a pharmacy. Because of this, they should be closely monitored. If your wages are too low, no one’s going to want to work for you and you’ll have a hard time keeping employees on board.

Conversely, if wages are too high, it will cut into your profits.


Tracking inventory as a KPI allows your business to boost sales and increase cash flow. In order to make this happen, we recommend optimizing your pharmacy’s layout and the inventory that it already offers, along with switching it up now and again to keep customers interested.

Your Pharmacy’s KPIs

In order for your pharmacy to thrive and succeed, you have to know your KPIs - because when you know your KPIs, you have a better grip on understanding how they can improve your pharmacy as a whole.

Looking to increase your provider outreach in your regional market? Zillscript offers Provider Engagement Services. The most tried and true way to increase a pharmacy’s script volume. Schedule a discovery call with a member of our sales team to get started.


Innovative pharmaceutical supply chain solutions built just for you.

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