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

with Dan Chandre

KPI Examples

Source: http://www.hoteliermiddleeast.com/8378-dead-sea-spas-under-utilised-claims-survey/

with Dan Chandre

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

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 guest has arrived

• Does not indicate customer acquisition performance

• Ignores current consumer trends mitigating purchase decisions

with Dan Chandre

Times Have Changed

with Dan Chandre

• 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


• 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


• 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


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


with Dan Chandre


with Dan Chandre


• Emergence of mobile commerce

• Real-time offers via mobile advertising

• Location based services & the new LAST MILE

with Dan Chandre


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


• 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

New Generationof Evaluation

with Dan Chandre

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

with Dan Chandre

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

with Dan Chandre

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

=

with Dan Chandre

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

with Dan Chandre

Thank You!

[email protected]

Business

The Next Generation of KPIs