9 KPI tattoo metrics to track and how to calculate

Tattoo shops are taking over the world, and that’s a good thing. Many people see tattoos as an art form, but for others it’s just another way of expressing themselves. Whether you’re a tattoo artist or own a shop, it’s important to keep track of key performance indicators (KPIs) so you know how your business is doing and can make adjustments accordingly.

Determining your KPI metrics is the first step to measuring tattoo shop business success.

Your KPI metrics are the first step in measuring tattoo shop business success, but they can be difficult to understand. Let’s take a look at how you can define, calculate and use your tattoo shop KPIs.

What is a Key Performance Indicator (KPI)?

A Key Performance Indicator (KPI) is a metric that shows how well you are doing in your business. It should be measurable and actionable so you can use it to improve your overall business performance.

1. Number of tattoos per year

The number of tattoos per year is a great metric to track because it shows how much business you do and how many people you serve. It is also one of the most important metrics because it directly correlates with revenue. The more tattoos, the more money your shop will make!

2. Average tattoo price

The average tattoo price is the average price of all tattoos sold in a given time period. This metric can be tracked by calculating the total sales and dividing it by the number of customers that arrived during that time period.

You can use this metric to track success in your tattoo shop because it shows you how much each customer is spending on their tattoo. If your average customer spends 0, you know they’re getting value for money and your shop has a strong reputation for quality work!

The formula for calculating an average is:

AVG Price per Tattoo = Sales ($) ÷ Customer Count

If you have a lot of customers coming in but spending very little on their tattoos, your average price per tattoo is low. If you only have a few customers who spend a lot on their tattoos, your average price per tattoo is high. The best way to increase the average price per tattoo is to create consistent pricing across all artists and promote yourself as an affordable option for people looking for quality work at an affordable price.

3. Customer Acquisition Cost

Cac is the average cost to acquire a new customer. It can be calculated by dividing the total advertising cost by the number of new customers acquired. If your business relied on advertising, this would tell you how much it costs to get a new customer:

Cac = Total marketing spend / number of new customers acquired

If the CAC is high, it means that your marketing campaigns are not effective in bringing in enough leads and sales. You may need to cut costs or increase sales volume through more advertising or other means. Conversely, if CAC is low, then you are doing something right!

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4. Lifetime Value

Lifetime Value (LTV) is the total profit you can expect from a customer over their lifetime, and it’s calculated by dividing your average revenue per customer by your average cost per customer. If you’re just starting out with a new clientele, LTV is a great way to predict how much sales will increase over time as your tattoo shop grows.

But it is important to note that LTV is not just a number. It is a useful tool that can help you make better trading decisions. If you know your LTV, you will be able to tell if it makes sense to continue working with certain clients or if they are actually costing more money than they are worth.

5. New customers per year

As a tattoo artist, it’s important to track how many new clients you get each year. This will help you determine if your business is growing and where new customers are coming from.

The first step to tracking your new customer stat is to make sure you have a database of everyone who enters your store.

If you don’t have a database, you can use a spreadsheet or even just a laptop. The important thing is that your new customer metrics are accurate and easy to track.

6. Percentage of returning customers

A Customer who returns for a second tattoo is loyal. They are also likely to be satisfied with the service they received, and you can use their repeat business as an indication of the quality of your work. Your goal should be to keep this percentage as high as possible, so that you have a supply of returning customers when some time comes around to redo or replace an old tattoo design.

To calculate customer loyalty, simply divide your total number of returning customers by your total number of initial customers (those who visited your store once). To get an idea of ​​how much customer satisfaction influences return visits, note the number of people with multiple tattoos visiting your business more than once in a given year. Then divide that number by those who only went once for their first piece of body art – add it all up and compare! Finally, look at how often new clients return for another appointment after receiving their very first body art experience from you – it’s pretty easy to add up each person’s individual visits if there isn’t. doesn’t have too many guests at a time (but keep in mind that most stores won’t see many).

7. Cost per Lead

Cost per advance is a metric you can use to determine how much a specific marketing or advertising method is costing you. You can also use this data to see if your current methods are working, and if not, what will work for your store. Cost per lead should be calculated by looking at all the expenses associated with drafting a new customer from an advertising or marketing campaign. The total amount spent on advertising divided by the number of customers who came through that particular source gives you your cost per lead number.

Cost per lead gives tattoo shops the ability to objectively analyze their marketing campaigns and decide which are most effective in bringing in new business – without being biased towards certain methods because they may have worked well for others. stores! That way, when deciding where to invest more time and energy in growing your business (and where not), we’ll always have hard numbers backing us up so there’s no guesswork involved!

8. Average time in store per customer

The average time a customer spends in your tattoo is an easy metric to track. By keeping track of how long each customer is in the store, you can get a good idea of whether or not there are issues with your business.

9. Gross profit margin

You may be familiar with gross profit margin or the difference between revenue and cost of goods sold. This is one of the most important KPIs for a tattoo shop because it tells you how profitable your business is.

Here’s how to calculate it:

Gross Margin = (Revenue – Cost of Goods Sold) / Revenue

For example, if you had 0,000 in revenue and spent ,000 on tattoo supplies, your gross profit would be (100k – 40k) / 100k = 60%

Conclusion

If you are looking to grow your tattoo business, having a clear understanding of your KPI metrics is essential. You want to be able to measure how well your marketing strategies and other efforts are working so you can make changes that will improve performance. With these metrics in hand, it will be much easier for you to identify weak areas or weaknesses so they can be addressed quickly before they get too big.