It’s Time for a KPI Check-in
Key Performance Indicators (or KPIs) are metrics that help track measurements of success. Regardless of how you define success, your KPIs are some of the best quantifiable ways to measure it. Now that we’re over halfway through the year, it’s the perfect time to check in on the metrics that matter most.
1. Define your business goals
You can’t measure something that doesn’t exist. What goals do you have set for your business for the remainder of 2022? What do you want your business to look like in the next year? Write them down, create a vision board, or do anything that serves as a visual reminder of your business goals.
2. Use your goals to create SMART business objectives
Now that you have defined business goals, make them into SMART business objectives:
- Specific: What exactly are you trying to accomplish? Be clear and concise!
- Measurable: How will you know when you've accomplished your objective?
- Achievable: Is your objective genuinely possible to achieve?
- Realistic: How does this objective benefit your studio?
- Timely: What date do you want to achieve your objective?
3. Align KPIs with your business tactics
There are endless KPIs you can choose to measure for your business. That said, don’t get carried away with trying to measure too many things or numbers that aren’t absolutely critical to your business needs right now. It’s great to have long-term goals in mind, but your 15-year goals shouldn’t influence the KPIs for this mid-year checkup. It’s all about getting through the year strong without getting some of the paralysis of analysis that longer-term goals and tactics can bring up.
Trending KPIs for 2022
Not sure where to start? As a Mindbody-Certified Consultant, I work with clients to define their key metrics on a daily basis. Here are a few of the numbers they’re paying particular attention to this year:
How many cancellations are you receiving on a daily, weekly, and monthly basis? What’s in your cancellation policy? If you're having trouble with a lot of last-minute cancellations, it’s time to consider whether your current pricing options meet the needs of your target clientele. Is it an area of opportunity to make changes to services and pricing in order to keep revenue consistent and recurring?
Many people suspended or canceled their memberships during the height of the pandemic, and understandably so. Since then, how many people have returned to your business? Consider what you've done to bring back former customers. A win-back campaign can help you determine if it’s time to find a new client base, or if your former clients are (finally!) ready to come back in and enjoy your services.
3. First visit conversions
These days, people are taking their health and wellness more seriously than ever. You’ve done the work to draw people into your business, but how many people have converted into paying customers? Depending on your conversion rate, you might need to focus more on sales training for your team, better client acquisition marketing, or systems that can make welcoming clients more turnkey (hint: perhaps all of the above!).
4. Client satisfaction
Eighty percent of companies believe they provide a superior customer service experience. Meanwhile, only 8% of customers agree. This is a huge discrepancy that must be addressed. Client feedback is invaluable to the success of your business. Survey your clients to learn more about their needs, wants, and expectations. Evaluate where your business stands in comparison to the feedback you receive and make necessary adjustments—now is the time!
5. Online reputation
In today’s world, people can access information on the internet within seconds. Take time to Google your business to see the same results that potential clients are viewing. What are people saying about your business on Google reviews, Yelp, and other platforms? How is your response time to questions, comments, or concerns posted online? Are you responding at all? Are you gathering client testimonials and feedback in other ways so you can show off that all-important social proof?
6. Recurring revenue
As a business owner, the best thing you can do is make sure your business has multiple, consistent streams of revenue. Consider ways you can diversify the revenue portfolio for your business. This could be in the form of better online sales, offering (more) online services, or even adding to your membership options to allow for greater flexibility.
This list is a great way to get started on revamping your KPIs, but only you can determine what should be monitored to track the progress of your goals. Regardless of what KPIs you choose, doing a mid-year checkup allows you to evaluate your progress while providing plenty of time to adjust. Now is the time to plan for future success, better understand what your opportunities and gaps are, and grow your business.