Get ahead of the competition with these top 7 driving school KPIs

Introduction

If you’re a driving business owner, you understand the importance of knowing your key performance indicators (KPIs). Knowing these KPIs can help you make informed decisions about your current business and where it is headed in the future. KPIs can help you track performance, plan for the future, and measure your success. Here are the top seven key performance indicators for driving school activity and how to track and calculate them.

• % of customer retention
• Average customer duration
• Operating expense ratio
• Customer Satisfaction Score
• Training completion rate
• Average cost per acquisition of new students
• Average revenue per customer

% of customer retention

Definition

% Customer Retention (or Customer Retention Rate) is the metric used to measure the number of existing customers who continue to use the services of a driving school over a given period of time. This metric is an important indicator of customer loyalty, customer satisfaction, and overall driving school success.

Benefits of Tracking

Tracking customer retention % is important for driving schools to understand the success of their business. By understanding the number of existing customers who remain loyal to their services, school leadership can make the necessary changes to improve customer satisfaction, loyalty, and overall success.

• Understanding Customer Loyalty and Satisfaction
• Identify areas for improvement
• Boost customer loyalty
• Improve overall success

Industry Benchmarks

The industry benchmark for % customer retention varies by business type. Generally, a driving school should aim for a customer retention rate of 70-80%.

How to calculate

% Customer Retention is calculated using the following formula:

Calculation example

For example, if a driving school had 100 customers at the start of the period, 80 customers at the end of the period, and 20 new customers during the period, the customer retention % would be calculated as follows:

Tips and tricks

• Focus on customer satisfaction and loyalty
• Collect customer feedback
• Identify areas for improvement
• Provide customer retention incentives
• Analyze customer data

Average customer duration

Definition

Average Client Duration (ACD) is a Key Performance Indicator (KPI) used to measure the length of a client’s duration with a driving school, from the time they start to the time they complete the service. This is an important metric to track, as it can help identify the school’s success in retaining customers and providing quality service.

Benefits of Tracking

• ACD tracking allows the driving school to identify and address any areas where clients may drop out of the program prematurely.
• It helps the school measure customer satisfaction and determine its success in providing quality service.
• It can also help identify any emerging trends in customer behavior that can be used to adjust the school’s strategy.

Industry Benchmarks

The industry benchmark for average client duration is typically between 8 and 12 weeks. However, this can vary depending on the type of driving school and the market in which it operates.

How to calculate

The formula for calculating ACD is:

Calculation example

For example, if the driving school had 20 customers over the course of 10 weeks, their ACD would be 2 weeks.

Tips and tricks

• Regularly monitor the ACD to ensure that the driving school is providing satisfactory service.
• If the ACD is significantly lower than the industry benchmark, investigate why customers may give up prematurely.
• Use ACD data to identify any emerging trends in customer behavior that can be used to adjust school strategy.

Operating expense ratio

Definition

The operating expense ratio (OER) is a metric used to measure the efficiency of a school business to drive by comparing operating expenses to total business revenue. This metric helps business owners identify areas where they can reduce costs and increase their bottom line.

Benefits of Tracking

Tracking the operating expense ratio offers driving school businesses the opportunity to identify areas where expenses can be reduced or eliminated, which can lead to increased profits. Additionally, tracking the operating expense ratio can help companies stay competitive in their respective industry by keeping costs in line with industry standards and benchmarks.

Industry Benchmarks

The industry benchmark for operating expense ratio is between 40-50%. This means that 40-50% of the company’s total income should be allocated to operational expenses. This benchmark can help businesses determine if they are operating efficiently and if there is room for improvement.

How to calculate

The operating expense ratio can be calculated by dividing the total operating expenses by the total revenue of the business. This number can then be expressed as a percentage. The formula to calculate the operating expense ratio is as follows:

Calculation example

Let’s say a driving school has total operating expenses of ,000 and total revenue of 0,000. We can calculate the operating expense ratio by plugging these numbers into the formula:

KPI Tips and Tricks

• Analyze the data regularly to determine if there are areas where spending can be reduced.
• Use industry benchmarks to determine if your business is operating effectively.
• Focus on reducing the operating expense ratio to increase profits.
• Use the operating expense ratio to identify areas of business improvement.

Customer Satisfaction Score

Definition

A customer satisfaction score is a metric used to measure the amount of overall satisfaction customers have with a driving school. This metric can be used to assess customer loyalty and the effectiveness of company services.

Benefits of Tracking

Tracking customer satisfaction scores can be beneficial for a tuition business as it can help them identify areas for improvement and track progress over time. Additionally, having a good customer satisfaction score can be beneficial for marketing purposes, as satisfied customers are more likely to recommend the driving school to friends and family.

Industry Benchmarks

The industry benchmark for customer satisfaction scores may vary depending on the type of driving school. Generally, any score above 80 is considered good and any score below 70 is considered unsatisfactory. However, it is important to keep in mind that the benchmark may vary depending on the industry and the specific driving school.

How to calculate

The customer satisfaction score can be calculated by taking the number of satisfied customers and dividing it by the total number of customers. The formula for this calculation is as follows:

Calculation example

For example, if a driving school has 100 customers and 80 of them are satisfied with the services, the customer satisfaction score would be 80%.

Tips and tricks

• It is important to regularly track and monitor customer satisfaction scores to identify areas for improvement.
• Encourage customers to provide feedback and listen to their feedback to improve the services provided by the driving school.
• Be sure to provide incentives to customers who provide positive feedback.
• Communicate regularly with customers to ensure they are satisfied with the services provided.

Training completion rate

Definition

The training completion rate is one of the key performance indicators (KPIs) to measure the success of a driving business. This is the percentage of students who have successfully completed their training within a given time frame. This is an important metric to track, as it helps identify areas for improvement in the training process and measure the effectiveness of the training program.

Benefits of Tracking

• Tracking the training completion rate helps identify any weaknesses in the training program and make necessary changes to improve performance.
• It helps identify areas where students are struggling, so that specific help can be provided.
• It can be used to measure the effectiveness of the training program and ensure that the program is meeting its goals and objectives.

Industry Benchmarks

The average training rate for driving schools is around 85%. However, this may vary depending on the type of training provided and the quality of the training program.

How to calculate

The training completion rate can be calculated by dividing the number of students who successfully completed their training by the total number of students enrolled in the program. The formula is:

Calculation example

If a driving school has 10 students enrolled in the program and 8 of them successfully complete their training, the training completion rate would be:

Tips and tricks

• Regularly review the performance of the training program and identify areas for improvement.
• Provide support and assistance to struggling students to help them complete their education.
• Set clear goals and objectives for the training program and measure results against those goals.

Average cost per acquisition of new students

Definition

Average cost per new student acquisition (ACNSA) is a metric used to measure the profitability of new student acquisition for a driving school business. It is calculated by dividing the total cost of acquiring new students by the total number of new students acquired.

Benefits of Tracking

ACNSA tracking is beneficial to the conduct of school businesses as it allows them to measure the effectiveness of their marketing efforts to acquire new students. It can also be used to measure the effectiveness of their marketing budget by comparing the cost of acquiring new students to the revenue generated from those new customers.

Industry Benchmarks

The average ACNSA for tuition businesses can vary based on a variety of factors such as business size, location, type of marketing used, and overall cost of acquiring new customers. However, the industry benchmark for ACNSA is usually between and 0.

How to calculate

ACNSA can be calculated using the following formula:

Calculation example

For example, if a driving school company spent ,000 on marketing to acquire 100 new students, its ACNSA would be calculated as follows:

Tips and tricks

• ACNSA should be tracked and monitored regularly to measure the effectiveness of a driving company’s marketing efforts.
• If CASSA is below the industry benchmark, it could be an indication that marketing efforts are not as effective as they could be.
• If the ACNSA is higher than the industry index, it could be an indication that driving school activities are spending too much on marketing.

Average revenue per customer

Definition

Average revenue per customer (AIPC) is a KPI metric that measures the average revenue generated by a single customer over a given period of time. It is also known as average revenue per customer (ARPC).

Benefits of Tracking

The follow-up of the AIPC has many advantages for the conduct of school enterprises. It allows the company to identify their most profitable customers and understand how much revenue each customer generates. It also helps the company identify areas of potential growth and develop strategies to increase customer spending. Finally, it can provide insight into customer behavior, allowing the company to optimize its pricing and marketing strategies.

Industry Benchmarks

The average AIPC varies by industry. Typically, companies in the driving school industry can expect an AIPC of between 0 and 0. This range can be used as a benchmark to measure business performance.

How to calculate

AIPC is calculated by dividing the total revenue generated by customers over a given period by the total number of customers.

Calculation example

For example, if a driving school business generated 0,000 in revenue from 1,000 customers over a six-month period, the AIPC would be calculated as follows:

Tips and tricks

• Track AIPC over time to identify customer spending trends.
• Compare AIPC to industry benchmarks to measure business performance.
• Use AIPC to identify areas of potential growth and develop strategies to increase customer spend.
• Optimize pricing and marketing strategies based on customer behavior.

Conclusion

With the right knowledge of KPIs, you can learn more about your tuition business and track its growth and success. Tracking these metrics regularly can help you identify and address areas for improvement and make more informed business decisions. If you have questions or want additional help, you can consult industry experts who can provide additional information.