KPI’s are key performance indicators. They are defined as quantifiable measurements used to gauge your overall long term performance. They specifically help determine strategic, operational, and financial achievement compared to your own studio, and others in the same sector or industry.
KPI’s are exactly what they sound like! They’re going to tell you how you’re doing financially, how your classes are going, how your staff is performing etc.
You can use KPI’s if you’re a small studio with a handful of teachers, or a studio with enrollment in the triple digits. KPi’s can help you identify potential issues, capitalize on strengths, and provide data aimed towards growth.
Here are two important KPI’s to start you off:
Client Retention Rate: This is a big one! Your CRR measures students who continue their enrollment over a specific period of time. That can be yearly, monthly, or by your season.
How to measure: Take the number of students you have at the end of the period, subtract that by the number of new students you gained in that time frame. Then, divide that by the number of students you had at the start, and then multiply by 100 to get your percentage. We encourage you to aim for a goal of 70% or higher. With percentage, you can easily benchmark other studios in the area.
2. Revenue Per Student: This measures the average amount of revenue generated from each enrolled student over a specific period. This is important if you offer discounts! It directly affects revenue per class, as with discounts not everyone will be playing the same amount.
How to measure: Take the total revenue and divide by the total number of enrolled students. The target goal for this is affected by many variables, so the benchmark is simply consistent growth.
You can run reports for all different things to organize your data! We wanted to start off CRR and RPS as they can really help you gauge if your pricing structure is correct, or hurting you.
After all, if you want accurate data you have to start with accurate numbers. If that’s not correct, what you output won't be correct either.