Top 7 KPIs for leisure centers

Introduction

The success of a leisure center is highly dependent on its ability to effectively track the most important Key Performance Indicators (KPIs). Knowing the metrics and how to analyze them is key to monitoring the progress of any installation. Understanding these metrics helps guide decisions that maximize investments and improve the overall customer experience.

Here are the top 7 leisure center KPIs that need to be tracked and calculated:

• Member Renewal Rates
• Customer retention rate
• Average income per member
• Participation in programs / events
• Average income per participant
• Use of facility/equipment
• Net Promoter Score (NPS)

Member Renewal Rates

Definition

Membership renewal rate is a key performance indicator (KPI) used to measure the number of members who renew their membership at a recreation center. It looks at both the percentage of members who renew and the total number of members who renewed.

Benefits of Tracking

Tracking and calculating membership renewal rates offers many benefits to recreation centers. It helps identify the success of the membership program and is a good indicator of customer satisfaction. It can also be used to measure the effectiveness of marketing and promotional activities. Additionally, it can provide insight into customer loyalty and help identify trends in customer behavior.

Industry Benchmarks

The industry benchmark for membership renewal rates is typically 70% or higher. A lower turnover rate may indicate that the recreation center is not providing a satisfying experience for its members.

How to calculate

Calculation example

For example, a recreation center has 500 members and 400 of them have renewed their membership. The renewal rate would be calculated as follows:

Tips and tricks

• Encourage members to renew by offering incentives such as discounts.
• Offer rewards to members who refer friends and family to join the recreation center.
• Provide excellent customer service and make sure members feel valued.
• Make the renewal process easy and convenient for members.
• Send renewal reminders to members in advance.

Customer retention rate

Definition

Customer retention rate is a metric used to measure the percentage of customers who remain loyal to a recreation center. It is calculated by taking the total number of customers who are still actively engaged with the center over a given period of time divided by the total number of customers who visited the center during the same period.

Benefits of Tracking

Tracking customer retention rate is beneficial for recreation centers as it provides valuable insights into customer satisfaction and loyalty. It can help determine how well the center is retaining customers and provide insights on how to improve the customer experience. Additionally, this metric can help inform decisions on marketing campaigns, product offerings, and pricing.

Industry Benchmarks

The average customer retention rate for leisure centers is around 75%. However, this varies depending on the type of center and the demographics it serves. For example, a small local center may have a higher rate than a more popular and larger center.

How to calculate

Calculation example

If a recreation center had 500 customers who visited last month and 400 of them are still actively engaged, the customer retention rate would be:

Tips and tricks

• Regularly monitor customer retention rate to get an accurate understanding of customer loyalty.
• Look for ways to increase customer engagement, such as offering loyalty programs or discounts.
• Use customer feedback to identify areas for improvement and proactively address customer concerns.
• Analyze customer retention rate by different demographic segments to understand customer preferences.

Average income per member

Definition

Average revenue per member (ARPM) is a key performance indicator (KPI) used to measure the total revenue generated by a recreation center divided by its total number of members. This is an important metric for determining a recreation center’s financial performance and profitability.

Benefits of Tracking

Tracking ARPM is beneficial to recreation centers because it allows them to assess the financial performance of their business and identify areas for improvement. Tracking this metric is also beneficial for budgeting and pricing decisions, as it provides a benchmark for how much revenue the center can expect from a given number of members.

Industry Benchmarks

The average ARPM for a recreation center is usually between and 0 per member. However, this may vary depending on the type of membership offered, the services provided and the location of the center.

How to calculate

The formula for calculating ARPM is as follows:

Calculation example

Let’s say a recreation center generated 0,000 in total revenue and had 1,000 members. The ARPM of this center would be:

KPI Tips and Tricks

• Track ARPM over time to identify trends in revenue and member growth.
• Evaluate the price of subscriptions to ensure they are aligned with the ARPM.
• Analyze the ARPM of similar leisure centers to understand industry benchmarks.
• Look for ways to increase ARPM, such as offering additional services or increasing prices.

Participation in programs / events

Definition

Attendance at programs and events is a key performance indicator (KPI) metric for recreation centers. It measures the number of people who have participated in programs and events offered by the Recreation Centre. This metric is important for evaluating the effectiveness of recreation center programs.

Benefits of Tracking

Tracking program and event attendance is beneficial for recreation centers because it helps them measure the success of their programs. This metric can also help the center identify popular programs among attendees and allow them to adjust their programming accordingly. Additionally, tracking attendance at programs and events can help the center allocate resources and maximize the impact of their programs.

Industry Benchmarks

The industry benchmark for program and event attendance varies by type of recreation facility. Typically, the benchmark is determined by comparing the number of attendees to the number of people who have attended recreation center programs in previous months. A healthy attendance rate should be at least 80% of the previous month’s attendance.

How to calculate

The formula for calculating participation in programs and events is as follows:

Calculation example

Let’s say a recreation center had a total attendance of 100 people for a program and 50 people attended. The participation rate of the program would be calculated as follows:

Tips and tricks

• Keep track of total attendance for all programs and events held at the Recreation Center.
• Be sure to count all participants, including those who attended multiple programs.
• Consider using surveys or polls to get attendee feedback on their experience.
• Analyze data to identify trends in participation and use it to adjust programming accordingly.

Average income per participant

Definition

Average revenue per attendee (ARP) is a key performance indicator (KPI) that measures the total revenue generated by the number of attendees at a recreation center. This metric helps recreation centers track the success of their activities by measuring the amount of money they generate per attendee.

Benefits of Tracking

Tracking average revenue per attendee is an effective way to measure the success of a recreation center. It helps center managers identify areas where they can increase revenue and maximize profits. Additionally, ARP tracking can also help identify areas for improvement, such as cost reduction measures and better pricing models.

Industry Benchmarks

The average recreation center ARP is . However, this number can vary considerably depending on the type of activities offered and the area in which the center is located. For example, centers in more affluent areas may have higher arps, while those in more rural areas may have lower arps.

How to calculate

To calculate the average revenue per attendee, divide the total revenue generated by the number of attendees.

Calculation example

For example, a recreation center that generates ,000 in revenue and had 500 attendees would have an ARP of .

Tips and tricks

• Regularly monitor the PRA to identify areas for improvement.
• Offer discounts and specials to attract more attendees.
• Focus on providing high quality services and activities to increase customer satisfaction.
• Offer package deals to encourage customers to purchase multiple activities at once.
• Analyze data to determine the most profitable activities.

Use of facility/equipment

Definition

Facility/Equipment Utilization is a metric used to measure how often the facilities and equipment in the recreation center are used. It is a measure of the facility’s resource efficiency and the effectiveness of the Recreation Center’s programs and events.

Benefits of Tracking

Tracking facility/equipment usage can provide a recreation center with invaluable insight on how to improve its services. By measuring usage, facilities can identify areas for improvement and develop strategies to increase usage. Additionally, usage tracking can help recreation centers make decisions about resource allocation and program planning.

Industry Benchmarks

The industry benchmark for facility/equipment utilization is 50%. This means that the leisure center should aim to have its facilities and equipment used 50% of the time.

How to calculate

To calculate the use of facilities/equipment, divide the total time of use by the total time available for use.

Calculation example

For example, if the recreation center basketball court is open 10 hours a day and used for 8 hours a day, the utilization rate would be 80%.

Tips and tricks

• Keep track of time available for use versus time actually used.
• Track the usage of each facility and equipment separately.
• Set goals to increase usage.
• Compare usage over time.

Net Promoter Score (NPS)

Definition

Net Promoter Score (NPS) is a customer retention metric used to measure customer satisfaction and loyalty. It is a simple measure of customer loyalty that asks customers to rate their level of satisfaction with a service or product on a scale of 1 to 10, with 10 representing the highest level of satisfaction.

Benefits of Tracking

NP monitoring has many advantages for leisure centres. It offers a measure of customer loyalty and satisfaction that can be used to identify areas for improvement and opportunities to increase customer satisfaction. It also provides insight into customer behavior, which can be used to inform marketing and sales efforts. Additionally, NP tracking helps identify customer segments, so recreation centers can tailor their offerings to better meet the needs of each segment.

Industry Benchmarks

The average NPS for recreation centers is fairly consistent across all industries, ranging from 50 to 70. This range indicates that most recreation centers provide a satisfactory level of service to their customers.

How to calculate

To calculate NPs, subtract the percentage of customers who rate the service or product a 6 or less from the percentage of customers who rate the service or product A 9 or 10. The resulting number is the promoter’s net score.

Calculation example

For example, if 20% of customers rate the service or product A 9 or 10 and 10% of customers rate the service or product 6 or less, the NPS would be 10 (20 – 10 = 10).

KPI Tips and Tricks

• Track NPs over time to identify trends.
• Compare NPS scores to industry benchmarks to identify areas for improvement.
• Identify customer segments and tailor offers to better meet their needs.
• Focus on providing excellent customer service to increase customer satisfaction.

Conclusion

Monitoring these KPIs is key to understanding customer trends and optimizing recreation center operations. By understanding these KPIs and how they impact each other, recreation centers can better assess where their limitations lie and how to use their resources most effectively.

Keeping these KPIs in mind will help recreation centers stay ahead of the curve, maximize their investments, and provide the best customer experience.