Presented by Dan Chandre at ISPA Conference & Expo 2011, an introduction to the Next Generation of KPIs, which help you track how technology trends are impacting your business.
2. 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
3. What Am I Doing Here?
• Insight into spa business
• Aggregated data
• We see behavioral trends emerge
• Perspective
with Dan Chandre
4. 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
6. 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
with Dan Chandre
8. Key KPIs
• Revenue Per Sq Ft
• Hotel Capture Rate
• Revenue Per Occupied Room
(RevPOR)
• Treatments per Guest
• Retail Success/
Retail Capture Rate
with Dan Chandre
9. What Data is Used to Measure Success?
• Room
• Employee
• Service
• Retail
with Dan Chandre
10. 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
with Dan Chandre
12. Why Re-Evaluate How We Measure Success?
• Social commerce
• Online to Offline (O2O) commerce
• SMBs harnessing
cloud computing power
• Selling of services
next frontier
with Dan Chandre
13. 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
14. 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
with Dan Chandre
15. 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
18. Why Re-Evaluate How We Measure Success?
• Emergence of
mobile commerce
• Real-time offers via
mobile advertising
• Location based services
& the new LAST MILE
with Dan Chandre
19. Why Re-Evaluate How We Measure Success?
How consumers use Smartphones to shop in 2010:
60.2% Browse for gifts
50.7% Checked store hours or locations
32.5% Received text messages and offers
34.6% Read product reviews
26.0% Made purchases
with Dan Chandre
20. 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
with Dan Chandre
22. 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
23. % of Customer Initiated Bookings
• Calculates customer initiated bookings versus
traditional bookings requiring reservationist input
• Illustrates impact of online marketing efforts
driving 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 2011
Booking % 3.9% 6.1% 10.1% 11.5%
with Dan Chandre
24. 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
with Dan Chandre
25. Retention % by Online Channel
• Determine your retention period
(90 days typical retention period)
• Calculate % of clients that return
during that retention period
• Segment by online channel
• Further segment by new versus returning
with Dan Chandre
26. Final Appointment Factor by Channel
Value of final ticket at check out
= Original 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 additional
sales opportunity by channel
• If discounting, use discounted value
with Dan Chandre
27. Future Value Factor per Channel
Retention Final Appointment
= X
Percentage Factor
• 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
with Dan Chandre
28. 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
29. 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
with Dan Chandre
