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TheNext Generationof KPIswith 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 t...
What Am I Doing Here?• Insight into spa business• Aggregated data• We see behavioral trends emerge• Perspective           ...
Perspective• 700,000+ transactions per month• More than $1.25MM per day• Over 85,000 online bookings per month• 33%+ of on...
TraditionalSpa Analysis               with Dan Chandre
What is a KPI (Key Performance Indicator)?• A set of quantifiable measures to compare performance  in terms of meeting str...
KPI ExamplesSource: http://www.hoteliermiddleeast.com/8378-dead-sea-spas-under-utilised-claims-survey/                    ...
Key KPIs• Revenue Per Sq Ft• Hotel Capture Rate• Revenue Per Occupied Room  (RevPOR)• Treatments per Guest• Retail Success...
What Data is Used to Measure Success?• Room• Employee• Service• Retail                                      with Dan Chandre
Are We Measuring the Correct Data?• Only for operational efficiency• Current KPIs provide analysis of  performance once gu...
Times Have  Changed     with Dan Chandre
Why Re-Evaluate How We Measure Success?• Social commerce• Online to Offline (O2O) commerce• SMBs harnessing  cloud computi...
Why Re-Evaluate How We Measure Success?• Global e-commerce sales growing 19% per year• Worldwide retail web sales $1TN by ...
Why Re-Evaluate How We Measure Success?• Half a BILLION people  accessed mobile Internet in 2009• 350,000,000+ mobile Face...
Why Re-Evaluate How We Measure Success?We have seen:• 2010 - 1.0% of all customer initiated Booker  reservations were thro...
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...
Why Re-Evaluate How We Measure Success?How consumers use Smartphones to shop in 2010:60.2% Browse for gifts50.7% Checked s...
Why Re-Evaluate How We Measure Success?•   33,000+ deals in Sept’ in US•   38% of deal buyers    already loyal to brand• O...
New Generation  of Evaluation        with Dan Chandre
Goal of The Next Generation of Evaluation• To understand the relevance of  changes in consumer behavior• Measure your succ...
% of Customer Initiated Bookings• Calculates customer initiated bookings versus  traditional bookings requiring reservatio...
Online Bookings by Channel• % of online bookings generated from:   • Website   • Mobile   • Social media   • Deal sites/3r...
Retention % by Online Channel• Determine your retention period  (90 days typical retention period)• Calculate % of clients...
Final Appointment Factor by Channel       Value of final ticket at check out   =       Original booking value• Tracks the ...
Future Value Factor per Channel     Retention                Final Appointment=                     X    Percentage       ...
Goal of The Next Generation of Evaluation• How good is your spa at capturing the online consumer?• New KPIs should be used...
Tracking• Weekly is useful, daily is ideal• Comparative Analysis• Target effective channels• Improve marketing efforts  to...
Thank You!Dan@GramercyOne.com                  with Dan Chandre
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The Next Generation of KPIs

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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.

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The Next Generation of KPIs

  1. 1. TheNext Generationof KPIswith Dan Chandre,Vice President, OperationsGramercyOne with Dan Chandre
  2. 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. 3. What Am I Doing Here?• Insight into spa business• Aggregated data• We see behavioral trends emerge• Perspective with Dan Chandre
  4. 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
  5. 5. TraditionalSpa Analysis with Dan Chandre
  6. 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
  7. 7. KPI ExamplesSource: http://www.hoteliermiddleeast.com/8378-dead-sea-spas-under-utilised-claims-survey/ with Dan Chandre
  8. 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. 9. What Data is Used to Measure Success?• Room• Employee• Service• Retail with Dan Chandre
  10. 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
  11. 11. Times Have Changed with Dan Chandre
  12. 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. 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. 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. 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
  16. 16. Why Re-Evaluate How We Measure Success? with Dan Chandre
  17. 17. Why Re-Evaluate How We Measure Success? with Dan Chandre
  18. 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. 19. 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
  20. 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
  21. 21. New Generation of Evaluation with Dan Chandre
  22. 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. 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 hoursYear 2008 2009 2010 2011Booking % 3.9% 6.1% 10.1% 11.5% with Dan Chandre
  24. 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. 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. 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. 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. 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. 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
  30. 30. Thank You!Dan@GramercyOne.com with Dan Chandre

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