The 7 Most Important Trampoline Park KPIs

Introduction

Trampoline parks are an exciting and increasingly popular form of recreation. They provide endless opportunities to bounce, run, play and have fun. As such, it’s important to stay up-to-date on your trampoline park’s Key Performance Indicators (KPIs) to measure and analyze the success of your operations. By tracking the right KPIs, you can understand what’s working and not working in your fleet and make the necessary changes to improve performance.

This article will discuss the top seven trampoline park KPI metrics and how to track and calculate them. We will look at: gross income; Monthly revenue growth; Average revenue per customer; Cost of goods sold; Customer retention rate; Average length of visit; and gross profit margin.

Gross revenue

Definition

Gross revenue is the total amount of revenue generated from all sources, before any deductions or allowances are made. This is the total money received from sales of goods and services.

Benefits of Tracking

Tracking gross revenue is important for any business because it helps determine the financial performance of the business. Knowing the total amount of money your business is raising can provide insight into the success of your business and how well it is performing over time.

Industry Benchmarks

The typical industry benchmark for gross revenue is the average amount of money generated per visitor. This helps to benchmark the performance of other companies in the industry and determine how your business is performing in comparison. The industry average benchmark can be used as a guide to measure the success of your business.

How to calculate

Gross revenue can be calculated by taking the total revenue generated from all sources, such as sales and services, and subtracting any deductions or allowances. The formula for calculating gross income is:

Calculation example

For example, if the total revenue from a trampoline park is ,000,000 and the deductions and allowances are 0,000, the gross revenue would be:

Tips and tricks

• It is important to accurately track your gross earnings to determine the financial performance of your business.
• Compare your gross earnings to industry benchmarks to measure the success of your business.
• Track your gross earnings over time to determine if your business is improving or declining.

Monthly revenue growth

Definition

Monthly revenue growth is a key performance indicator (KPI) used to measure how much a trampoline park’s monthly revenue has increased or decreased over the same month compared to the previous year. This is an important metric for understanding overall financial performance and can help indicate whether a trampoline park is meeting its financial goals.

Benefits of Tracking

Tracking monthly revenue growth can provide trampoline park owners with valuable insight into their financial performance. It is an important indicator of business health and can help owners identify areas of growth and opportunity.

• Gives an indication of overall financial performance
• Helps identify areas of growth and opportunity
• Provides insight into financial trends

Industry Benchmarks

Industry benchmarks for monthly revenue growth vary depending on the size and type of trampoline park. Typically, for larger parks, 5-10% monthly revenue growth is considered good, while for smaller parks, it could be double that amount.

How to calculate

Monthly revenue growth is calculated by subtracting the same month’s revenue from the previous year from the current month’s revenue, then dividing that number by the same month’s revenue from the previous year. The formula is:

Calculation example

For example, if a trampoline park’s revenue in January 2021 was ,000 and its revenue in January 2020 was ,000, its monthly revenue growth would be calculated as follows:

Tips and tricks

• Track monthly revenue growth over time to identify trends and adjust operations accordingly.
• Compare monthly revenue growth to industry benchmarks to ensure the trampoline park is performing as expected.
• Monitor monthly revenue growth alongside other KPIs, such as customer satisfaction and total visits, to get a more complete picture of business performance.

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Average revenue per customer

Definition

Average revenue per customer (ARPC) is a key performance indicator (KPI) that measures the total revenue generated by an individual customer over a particular time period. It can be used to measure the success of a trampoline park’s marketing and promotional efforts, as well as its overall profitability. ARPC is a critical metric to track and optimize in order to maximize revenue.

Benefits of Tracking

Tracking ARPC is a great way to measure the performance of a trampoline park. This is a simple metric that allows park owners to quickly understand the total revenue generated by a customer over a season or other time period. By tracking ARPC, park owners can make informed decisions about their pricing and promotional strategies, as well as their overall business performance.

Industry Benchmarks

The average ARPC for trampoline parks is around . This can vary greatly depending on the size and type of park, as well as the local market. Some parks may have an ARPC of or more, while others may have an ARPC of less than . By tracking ARPC over time, fleet owners can compare their performance to industry benchmarks and make adjustments as needed.

How to calculate

ARPC is calculated by dividing the total revenue by the total number of customers. The formula for ARPC is:

To calculate ARPC, you will need to determine the total revenue generated by the trampoline park during the time period. This may include ticket sales, food and beverage sales, and other revenue streams. You will also need to determine the total number of customers who visited the park during the same period.

Calculation example

Let’s say a trampoline park had total sales of ,000 in one season and had 10,000 customers during the same period. The ARPC for the park would be:

This means that the average revenue generated by each customer was .

Tips and Tricks for Tracking

• Track ARPC over time to monitor performance and make adjustments as needed.
• Compare your ARPC to industry benchmarks to gauge the overall performance of your trampoline park.
• Analyze customer behavior to understand how promotional efforts and pricing strategies impact ARPC.
• Use customer segmentation to identify high-value customers and target them with special offers.

Cost of Goods Sold

Definition

Cost of Goods Sold (COGS) is the direct cost of producing goods sold by a business. This amount includes the cost of materials and labor directly used to create the good. It excludes indirect expenses such as distribution costs, sales force costs and research and development.

Benefits of Tracking

Tracking cost of goods sold is important for a trampoline park business because it allows the business to accurately measure the profitability of each product. It also helps identify areas for improvement and cost savings, which can reduce expenses and increase profitability.

Industry Benchmarks

The industry benchmark for cost of goods sold is usually between 50-60% of sales. However, this may vary depending on the type of product and the operating costs associated with production.

How to calculate

To calculate the cost of goods sold, use the following formula:

Calculation example

For example, if a trampoline park has the following data for its inventory:

• Beginner inventory: ,000
• Purchases: ,000
• Ending inventory: ,000

The cost of goods sold would be calculated as follows:

Tips and tricks the KPI

To ensure that the cost of goods sold is calculated accurately, it is important to maintain accurate records of all purchase and inventory levels. Additionally, it is important to review the cost of goods sold periodically to ensure that the business is running efficiently and costs are not being incurred unnecessarily.

Customer retention rate

Definition

Customer retention rate is a metric that measures the rate at which customers stay with an organization or service over a certain period of time. It is used to measure the success of a trampoline park to retain customers and identify areas that need improvement.

Benefits of Tracking

Tracking customer retention rate is important for trampoline parks because it can help them understand customer loyalty, identify customer service issues, and make changes to improve the customer experience. Additionally, tracking customer retention rate can better understand the overall customer base and how to better target potential customers.

Industry Benchmarks

The industry benchmark for customer retention rate is usually between 70-80% for trampoline parks. It is important to note that this may vary based on fleet size, customer demographics, and other factors.

How to calculate

Customer retention rate is calculated by dividing the number of customers who stayed in the trampoline park for a certain period of time by the total number of customers. The formula for calculating customer retention rate is as follows:

Calculation example

For example, if a trampoline park had 100 customers during the month of January and 80 customers stayed in the month of February, the customer retention rate would be 80%.

Tips and tricks

• Be sure to track customer retention rate over time to identify trends and patterns.
• Identify customer segments and track customer retention rate for each segment.
• Analyze customer feedback to identify customer service issues that may be driving customers away.
• Develop strategies to increase customer retention rate.

Average visit duration

Definition

The average visit duration metric is the measure of the average length of time a customer spends in the trampoline park. This KPI is a good indicator of how long customers will last with the fleet and services.

Benefits of Tracking

Tracking the average visit duration metric can help trampoline park owners better understand the overall engagement level of their customers. This information may be used to make improvements to the park, such as adding more attractions or activities, or improving the guest experience. Additionally, tracking this metric can help owners identify any potential issues that may be causing customers to leave the park earlier than expected.

Industry Benchmarks

The industry benchmark for average visit duration metric is typically around 2-3 hours. However, this may vary depending on the park type and location. For example, an indoor trampoline park may have an average visit time of 2.5 hours, while an outdoor park may have an average visit time of 3 hours.

How to calculate

The average visit duration metric can be calculated by dividing the total number of visits by the total number of hours spent in the park. The formula is:

Calculation example

For example, if a trampoline park had 1000 visits in a month and the total number of hours spent in the park was 2000, the average visit duration would be calculated as follows:

KPI Tips and Tricks

• Make sure the customer experience is positive and engaging to encourage longer visits.
• Regularly analyze the data to identify any areas for improvement.
• Create incentives to encourage customers to stay longer in the park.
• Consider adding additional attractions or activities to keep customers engaged.

Gross margin

Definition

Gross profit margin is a measure of the profitability of a trampoline park business. It is calculated by dividing gross profit (total revenue less cost of goods sold) by total revenue.

Benefits of Tracking

Tracking gross profit margin is one of the most important metrics for trampoline park owners. It provides valuable insight into overall business performance and can be used to identify areas for improvement. Additionally, it can be used to compare company performance to industry benchmarks.

Industry Benchmarks

The average gross profit margin for trampoline parks is around 25%. However, this can vary greatly depending on the size and location of the park. It’s important to keep in mind that higher profit margins aren’t always better, as they may indicate that the park isn’t charging enough for its services.

How to calculate

The formula for calculating gross profit margin is:

Calculation example

For example, if a trampoline park has total revenue of 0,000 and cost of goods sold of ,000, the gross profit margin would be:

Tips and tricks

• Regularly monitor gross profit margin to ensure it is in line with industry benchmarks.
• Use the gross profit margin to identify areas where the park can improve its efficiency and profitability.
• Compare gross profit margin to past performance to identify trends and areas for improvement.

Conclusion

Tracking the right KPIs for your trampoline park is essential to monitoring and maximizing the success of your business. The seven main Trampoline Park KPI metrics to track and calculate include: gross revenue; Monthly revenue growth; Average revenue per customer; Cost of goods sold; Customer retention rate; Average length of visit; and gross profit margin. By understanding how these KPIs behave, you can identify areas for success and improvement.