International Benchmarking and Financial KPI's Paul Kuebler,
Co-Owner Master Franchisee- Eastern Europe/Russia
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Course Summary & Objective o In this course, attendees will
learn about Financial benchmarks and how they apply to clubs
internationally. While this course will have some general KPIs and
benchmarking information, it will also focus on the indicators that
we use internationally that seem to translate well from country to
country and remove currency issues and differences due to having
clubs in multiple jurisdictions. o Take-aways Template for
comparing several financial performance indicators and how use the
template. How to compare KPIs from club to club and over time.
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Financial KPIs & Benchmarking o Ways we benchmark- club vs.
club; club vs. norms (GG and IRHSA); quarter vs. quarter, year vs.
year o Why benchmark? o Choosing KPIs o Areas to use KPIs that are
not financial o Frequency of Reporting of KPIs o Examples used by
our company
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Accurate & consistent measurement Essential to be able to
compare between periods or clubs Detailed description of KPI for
financial people, check and recheck data until you are sure that
they know how to compile information properly
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Areas to use KPIs o Membership Sales- MAL tracking stats,
InTouch, results vs. monthly plan o EFT collection and retention
stats; overall retention o Orientation, Intro-pack, and PT-
conversion rate stats o Auxiliary sales- versus budget, vs.
members, vs. prior year o Financial- versus budget, prior year-
percent of sales o Employee performance- versus check list, versus
objectives o Club inspections- versus checklist o Customer
feedback- Medallia
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Our KPI Dash Board Go to File Go to File Go to File Go to
File
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Financial KPIs o Gross Income- % change from Prior Period (PP)
o PT Net Revenue- % change PP; % of Gross Inc. o Marketing &
Sales Expense- % change PP; % of Gross Inc o Payroll- % change PP;
% of Gross Inc. o Occupancy Costs- % change PP; % of Gross Inc. o
EBITDAR-(Earnings before Interest, Taxes, Deprec., Amort., and
Rent) - % change PP; % of Gross Inc. o EBITDA- % change PP; % of
Gross Inc. o Unit Sales-% change PP o Annual Attrition- percentage
and % change from PP o Net Members- % change PP
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Financial Benchmarking Financial Metrics Other Metrics Club
trailing 12 monthsGross IncomePT Net RevenueMarketing & Sales
ExpensePayrollOccupancy CostsEBITDAREBITDAUnit SalesAnnual
AttritionNet Members Ending March 31, 2014% Change % of Gross
Income% Change % of Gross Income% Change % of Gross Income% Change
% of Gross Income% Change % of Gross Income% Change % of Gross
Income% Change% Clubs CLUB
A13.8%33.2%10.3%6.7%9.8%4.5%16.2%0.2%15.5%-1.1%39.9%-2.0%27.7%10.9%39.6%5.8%10.7%
CLUB B13.2%-2.0%19.0%2.0%6.0%-2.6%17.0%-4.2%7.0%38.5%21.0%12.0%
-13.1%49.0%1.7%-4.0% CLUB
C3.5%4.2%13.3%9.0%4.0%10.0%11.6%26.2%20.7%12.0%27.4%-67.4%6.8%12.2%62.8%-2.5%9.9%
CLUB
D1.2%25.2%3.0%-12.0%15.0%-0.1%27.0%1.0%26.0%1.0%13.0%-2.0%17.4%1.1%52.6%3.3%0.6%
AVERAGE7.9%15.2%11.4%1.4%8.7%3.0%18.0%5.8%17.3%12.6%25.3%-14.8%16.0%2.8%51.0%2.1%4.3%
Doc
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Financial KPIs Definitions 1 of 2 o Gross Income(A) is the
total revenue generated by your company from all sources within
your 4 walls. This column is calculated as A from the current LTM
(1 Feb- 31 March 2014) period divided by A from the prior LTM (1
Feb- 31 March 2013) period, so it is only the percentage change
from the two years. o PT Net Revenue (B) is the total revenue
generated from all forms of personal training, including small
group training, less all direct costs, including payroll,
associated with delivering the personal training. This allows a
comparison of this metric between companies that hire and pay
personal trainers as employees, and those who collect "rent" from
personal trainers. This column is calculated as B from the current
LTM period divided by B from the prior LTM period. o PT Net Rev
Change: This column is calculated as B from the current LTM period
divided by A from the current LTM period. o Marketing and Sales
Expense (C) is the total of all direct and indirect costs,
including advertising, marketing payroll, sales payroll,
commissions and management, associated with generating Gross
Income. This column is calculated as C from the current LTM period
divided by C from the prior LTM period. o Marketing Change: This
column is calculated as C from the current LTM period divided by A
from the current LTM period. o Payroll (D) includes all payroll,
other than payroll related to the delivery of personal training
that was deducted in arriving at B, payroll paid to sales in C, and
any head office payroll. This column is calculated as D from the
current LTM period divided by D from the prior LTM period. o
Payroll Change -This column is calculated as D from the current LTM
period divided by A from the current LTM period. o Occupancy Costs
(E) include rent, utilities and any other charges, such as CAM or
taxes, that are passed through by a landlord under the lease. This
column is calculated as E from the current LTM period divided by E
from the prior LTM period. o Occupancy Costs Change This column is
calculated as E from the current LTM period divided by A from the
current LTM period.
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Financial KPIs Definitions 2 of 2 o EBITDAR (F) is earnings
before interest, income-related taxes, depreciation, amortization
and rent. It is a measure of operating income that attempts to
exclude the effects of financing decisions, including the decision
to rent or buy the space from which the business is operated. It
also normalizes for the differing income tax levels of various
locations. This column is calculated as F from the Current LTM
period divided by F from the prior LTM period. o EBITDAR Change
This column is calculated as F from the current LTM period divided
by A from the current LTM period. o EBITDA (G) is earnings before
interest, income-related taxes, depreciation and amortization. It
is a measure of cash flow from the business in its current
location, since rent is subtracted from EBITDAR to arrive at
EBITDA. This column is calculated as G from the current LTM period
divided by G from the prior LTM period. o EBITDA Change This column
is calculated as G from the current LTM period divided by A from
the current LTM period. o Unit Sales (Z) is the total number of
non-short-term memberships sold by your company. This column is
calculated as Z from the current LTM period divided by Z from the
prior LTM period. o Annual Attrition % (H) is calculated as the
total number of members who cancelled in the LTM, divided by the
membership total at the beginning of the LTM period. Eg., a group
with 100,000 members on 1 February 2013 that loses 40,000 members
during the twelve months ended 31 March, 2014 would have Annual
Attrition of 40%. Short-term memberships of three months or less
should not be included in the membership balance or counted as
cancelled members when they leave. o Annual Attrition Change This
column is calculated as H% from the current LTM period divided by
H% from the prior LTM period. o Net Members (J) is the change in
the membership balance from the beginning of the LTM period to the
end of the LTM period. Eg., a group with 100,000 members on 1
February 2013 that has 110,000 members on 31 March 2014 would have
+10,000 Net Members. This column is calculated as J from the prior
LTM period divided by J from the current LTM period. In this
example, that would result in a Net Members % of 10%. Short-term
memberships of three months or less should not be included in the
membership balance or counted as cancelled members when they
leave.
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Membership KPIs o Team and Individual o Leads, Referrals, WIs,
Calls, Appts., Shows, Sales o Calls/Op ratio- o Calls to
Appointment ratio o Show ratio o Close ratio o Renewal % trailing
twelve months. Membership Activity Log KPI's (In Touch) How did you
do yesterday?2Sales (Membership & PT) Are you ready for
today?3Appointments Are you ready for the week ahead?2Appointments
(day 2-7) Do you have enough leads?84Added this week Membership
Opps Added26Month to date Opportunities Added11309 Leads Added6187
Referrals Added468 Walk-Ins Added154 Calls Made26Month to date
Total Calls1301,979 Calls to Not Visited Guest63%59% Calls to
Missed Guest29%22% Calls to Members8%19% Calls to PT Leads0% Sales
Appts26Month to date Sales Appt Added393 Sales Appts290 Guests for
Memberships26Month to date Total Guests5181 Showed-Up Sales Appt169
New Walk-Ins154 Drop-In Guests358 Total Guest Sales176 Membership
Sales Breakdown26Month to date Closing Percentage20%42% Total
Membership Sales197 Leads159 Referrals036 Walk-Ins02 Make
Sale26Month to date Referrals Added/Sale40.7 Orientations
Booked5%7% Doc
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EFT Billing KPIs o New Sales vs. Budget o % Cancelled to EFT
run o % Failed to EFT run o % increase on net EFT run o % Collected
(after manual collection) to EFT run o Net rejections as percent of
EFT run EFT (Direct Debit) KPI Tracking Jan/2014Feb/2014Mar/2014
Sale (heads) - budget46 Sale(heads)424741 Sale % to the
budget91.30%102.17%89.13% Cancel (heads)121712 Cancel % to the EFT
run1.40%1.91%1.31% Cancel % to the sale heads28.57%36.17%29.27% EFT
Run Heads - total (sent to bank) 856 890 915 EFT Run Revenue -
total 85,600 89,000 91,500 EFT Run Revenue - actual collected
amounts 78,600 82,100 84,400 Rejected Heads from EFT Run 70 69 71
Returns / Rejected Revenue from EFT run 7,000 6,900 7,100 Returns /
Rejections in EFT Run Revenue (%)8.18%7.75%7.76% Initial Fee
Revenue Collected 7,350 8,225 7,175 Initial fee for 1 new sale 175
Manual collection - Recovered Revenue 3,000 3,500 3,700 Manual
collection - Recovered Heads303537 Manual collection - revenue per
head 100.00 Heads - rejected not recovered 40 34 Revenue - rejected
not recovered 4,000 3,400 Lost (rejected not recovered) Heads in
%4.67%3.82%3.72% Lost (rejected not recovered) Revenue in
%4.67%3.82%3.72% 10 Month Anniversary Members (month by month) 50
33 49 TOTAL EFT Heads at end of month (input from MP Report) 890
920 949 TOTAL EFT Heads at end of the month (formula from table)
890 920 949 Total EFT members not in current month EFT Run 56 60 54
TOTAL EFT MEMBERS IN CURRENT MONTH RUN 856 890 915 Total EFT Run
Revenue Collected for the Month (no initial fees) 81,6008560088100
Actual % collected from total sent to the bank95%96% TOTAL EFT
Revenue Collected per Month 88,950 93,825 95,275 Not canceled in
heads353739 Debt in Revenue (Not Writen Off)6,85080707490
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New Member (MOB) KPIs o % of Intro packs (IP) to new members
sold- goal 30% o % of IP used-goal 80% o % of IP converted to PT
client- goal 20% o % of orientations (free) booked (not IP
clients)-goal 20% o % of orientations used-goal 50% o % of
orientations converted to PT-goal 20% 2014 Intro Pack and Fitness
Orientation KPI's JanuaryFebruaryMarchApril No. of New Members10583
No. of IP Sold in heads26 in percentage (goal 30%)24.76%31.33%#DIV/
No. of IP Used in heads2618 in percentage (goal 80%)100%69%#DIV/0!
No. of IP Converted to PT in heads103 in percentage (goal
20%)38.46%11.54%#DIV/0! No. of Orientations Booked in heads in
Intouch00 In Heads in IP Folder (sayd yes)03 Total in heads0300 in
percentage (20%)0.00%3.61%#DIV/0! No. of Orientations Used in heads
(w/out Intro Packs)02 in percentage (goal 50%) 67%#DIV/0! No. of
Orient. Converted to PT in heads01 in percentage (goal 20%)
33.33%#DIV/0! Doc
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Budget KPIs o Actual versus budget o Actual versus PY o Actual
versus forecast (revised budget) Doc
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Employee Performance o Versus checklist o Versus Objectives o
Annual reviews Doc
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Club Inspections Doc
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Customer Feedback - Medallia Doc o Benchmark against our clubs
and all clubs o Take into account cultural biases o GM calls or
emails all responses o Positively received by members
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Thank you for your attention- Please fill out survey Paul J.
Kuebler- Intl benchmarking & financial KPIs Please fill out
survey through the mobile app!!!Please fill out survey through the
mobile app!!! I will make all excel files, the dashboard template,
and this presentation available in the mobile app download area.I
will make all excel files, the dashboard template, and this
presentation available in the mobile app download area.