What are Key Performance Indicators?
A performance indicator or key performance indicator (KPI) is a type of performance measurement. KPIs evaluate the success of a location at a particular activity. Monitoring KPIs allow businesses to make data-driven improvements. Businesses with a membership based business model need to know if they are growing and if their members are active. Member Owl's dashboard provides KPIs to let you know if you are growing, if your members are active and your conversion rates.
Memberships
The dashboard for each location contains KPI data for members:
The Enrollments gauge is an indicator of how the location is performing against their new membership goals (see below for how to set goals). Likewise the Cancellations gauge indicates performance against the cancellation or retention goals. In the above case, this location has enrolled 5 new members while they have lost 1 member for a new gain of 4 members. A location that generally has more enrollments than cancellations is growing.
The pie chart provides the break down for this location's members based upon their attendance. Active indicates the member has attended within the last two weeks. Hold indicates the member is absent for a known reason and has an expected return date. The total of all the slices provides the current number of memberships. Pay close attention to the Inactive (red) slice. These could quickly turn into cancellations.
Sales & Marketing
The dashboard for each school also contains KPI data for sales & marketing:
The Upgrades and Renewals gauges are indicators for marketing and sales performance within your current membership base. Again these gauges are comparisons against the location's goal (see below how to set goals). Renewal of expiring memberships or upgrading members to a premium plan helps drive financial performance and keeps members active.
The pie chart provides a break down of all leads with activity in the last month. Leads fall into the following stages: inquiry, appointment, introductory, trial, member. This represents your marketing funnel. The total of all slices indicate your funnel size. Generally the larger the funnel size, the more opportunities to convert the inquiry into a member. Conversion rates are a KPI for how effective you marketing & sales process is at each of the stages.
Goal Setting
Each school can dial in their KPI goals in the Setup area under the Settings menu item. There you will find a form that allows you to configure each gauge. Here is a screenshot for the Enrollments and Cancellations gauges:
Each gauge has a minimum and maximum value. The thresholds are the values when a gauge transitions colors (e.g. red to yellow, yellow to green). This allows locations to set goals for each KPI.
Actionable Data
A very important point about KPIs is understanding what they are measuring and how you can improve performance. The KPIs that were presented above represent a few fundamental health metrics for your membership based business. Depending upon the phase of your business (startup, growth, maturity) your KPI goals may by different. Knowing which "lever" to pull allows you to drive your business success.