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The Next Generation of KPIs
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Transcript of The Next Generation of KPIs
with Dan Chandre
The Next Generation of KPIs
with Dan Chandre,Vice President, OperationsGramercyOne
with Dan Chandre
Agenda
• Introduction
• Current Landscape of KPIs
• Change in Consumer Behavior
• Impact on the Spa Industry
• 5 New KPIs for the Spa Industry
with Dan Chandre
What Am I Doing Here?
• Insight into spa business
• Aggregated data
• We see behavioral trends emerge
• Perspective
with Dan Chandre
Perspective
• 700,000+ transactions per month
• More than $1.25MM per day
• Over 85,000 online bookings per month
• 33%+ of online bookings 8pm-8am
• Approx 1,350 of our clients have run daily deals
with Dan Chandre
TraditionalSpa Analysis
with Dan Chandre
What is a KPI (Key Performance Indicator)?
• A set of quantifiable measures to compare performance in terms of meeting strategic and operational goals
• According to Intelligent Spas, KPIs enable a spa to
measure and monitor its business and financial performance
• Spa benchmarking measures aspects of a spa and compares these against the industry average
• Measuring KPIs allow business owners and managers to make informed decisions
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KPI Examples
Source: http://www.hoteliermiddleeast.com/8378-dead-sea-spas-under-utilised-claims-survey/
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Key KPIs
• Revenue Per Sq Ft
• Hotel Capture Rate
• Revenue Per Occupied Room (RevPOR)
• Treatments per Guest
• Retail Success/Retail Capture Rate
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What Data is Used to Measure Success?
• Room
• Employee
• Service
• Retail
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Are We Measuring the Correct Data?
• Only for operational efficiency
• Current KPIs provide analysis of performance once guest has arrived
• Does not indicate customer acquisition performance
• Ignores current consumer trends mitigating purchase decisions
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Times Have Changed
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• Social commerce
• Online to Offline (O2O) commerce
• SMBs harnessing cloud computing power
• Selling of services next frontier
Why Re-Evaluate How We Measure Success?
with Dan Chandre
Why Re-Evaluate How We Measure Success?
• Global e-commerce sales growing 19% per year
• Worldwide retail web sales $1TN by 2013
• 45% of consumers follow brands on social networks
to receive discounts & special offers
• Brand followers are 52% more likely than the average adult to
download a web coupon and 9% more likely to shop online
with Dan Chandre
Why Re-Evaluate How We Measure Success?
• Half a BILLION people accessed mobile Internet in 2009
• 350,000,000+ mobile Facebook users
• Mobile commerce growth:$3B in 2010 to $31B in 2016
• Social commerce growing 93% per year to $14B by 2015
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Why Re-Evaluate How We Measure Success?
We have seen:• 2010 - 1.0% of all customer initiated Booker reservations
were through mobile devices• 2011 - 3.3% of customer initiated Booker reservations
YTD through mobile devices - 230% growth.
An example of a client who implemented a mobile booking app:• August – before app - 6.8% of all
customer initiated bookings were mobile• October – with app - 19.8% of all
customer initiated bookings were mobile• With a dedicated app - 40% of all
appointments are customer initiated
with Dan Chandre
Why Re-Evaluate How We Measure Success?
with Dan Chandre
Why Re-Evaluate How We Measure Success?
with Dan Chandre
Why Re-Evaluate How We Measure Success?
• Emergence of mobile commerce
• Real-time offers via mobile advertising
• Location based services & the new LAST MILE
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Why Re-Evaluate How We Measure Success?
How consumers use Smartphones to shop in 2010:
60.2% Browse for gifts50.7% Checked store hours or locations32.5% Received text messages and offers34.6% Read product reviews26.0% Made purchases
with Dan Chandre
Why Re-Evaluate How We Measure Success?
• 33,000+ deals in Sept’ in US
• 38% of deal buyers already loyal to brand
• Only 20% of customers become repeat business
• Over 40% of our clients have run multiple deals
• Health, Wellness & Beauty is the 2nd largest sector for daily and searchable deals
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New Generationof Evaluation
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Goal of The Next Generation of Evaluation
• To understand the relevance of changes in consumer behavior
• Measure your success as a marketer, not just an operator
• Incorporate the growth of O2O commerce
• Track success at capitalizing on these trends
• Identify opportunities for greater capture rate of O2O commerce
with Dan Chandre
% of Customer Initiated Bookings
• Calculates customer initiated bookings versus traditional bookings requiring reservationist input
• Illustrates impact of online marketing effortsdriving traffic to online booking
• Additional metrics to track• % of online bookings net new customers• % of online bookings outside of operating hours
Year 2008 2009 2010 2011Booking % 3.9% 6.1% 10.1% 11.5%
1
with Dan Chandre
Online Bookings by Channel
• % of online bookings generated from:•Website•Mobile• Social media• Deal sites/3rd parties• Promotion Specific
• Clear sign of marketing channel effectiveness• Add breakdown of new versus returning client
2
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Retention % by Online Channel
• Determine your retention period(90 days typical retention period)
• Calculate % of clients that returnduring that retention period
• Segment by online channel• Further segment by new versus returning
3
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Final Appointment Factor by Channel
Value of final ticket at check outOriginal booking value
• Tracks the true value of an individual reservation by channel
• Recognizes the ability to up-sell and add-on
• Defines the likelihood of additionalsales opportunity by channel
• If discounting, use discounted value
4
=
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Future Value Factor per Channel
• Comparative ROI across channel
• POS data is critical to accurate analysis
• Provides projected ROI that can easily be weighed against channel spend
• Understanding true customer value
5Final Appointment
FactorX Retention
Percentage=
with Dan Chandre
Goal of The Next Generation of Evaluation
• How good is your spa at capturing the online consumer?
• New KPIs should be used in conjunction with traditional KPIs
• Are your O2O marketing efforts effective across all channels? Including mobile?
• Target channels resulting in the highest Future Value Factor
with Dan Chandre
Tracking
• Weekly is useful, daily is ideal
• Comparative Analysis
• Target effective channels
• Improve marketing efforts towards less-effective channels
• Identify opportunities for greater capture rate of O2O commerce