- How to Open this Business: Guide
- Running Expenses List
- Startup Costs List
- Pitch Deck Example
- How To Increase Business Profitability?
- How to Sale More?
- How To Raise Capital: Guide
- How to Value this Business?
Introduction
Running a successful beauty school can be tricky business, and measuring the success of beauty school performance is an important metric. While there is a range of KPIs or Key Performance Indicators beauty schools can use to measure their effectiveness, seven of the most important are: Number of active licenses, student/instructor retention rate, cost per student, revenue per student, graduation rate, customer satisfaction score and overall student success rate. To ensure that these KPIs are tracked and calculated accurately, there are a few essential steps that beauty business leaders must follow.
Number of active licenses
Definition
The number of active licenses is a key performance indicator (KPI) that measures the total number of active licenses held by beauty school graduates.
Benefits of Tracking
Tracking this KPI provides a number of benefits, including:
- Measure the effectiveness of the school’s career services team in helping graduates obtain a license.
- Provide valuable data for use in marketing, recruiting, and other decision-making processes.
- Allow the school to assess the success of its graduates in the beauty industry.
Industry Benchmarks
The industry benchmark for the number of active licenses held by beauty school graduates is typically around 75%. This means that 75% of graduates should have an active license within the first year after graduation.
How to calculate
To calculate the number of active licenses, use the following formula:
Calculation example
If a beauty school has 100 graduates and 80 of them are licensed, the number of active licenses can be calculated as follows:
KPI Tips and Tricks
- Regularly track the number of active licenses, such as monthly or quarterly, to better monitor school performance.
- Aim to exceed the industry index of 75% for active licenses.
- Analyze data to identify opportunities for improvement, such as providing more career services or creating more comprehensive programs for students.
Student/Instructor Retention Rate
Definition
The student/instructor retention rate is a KPI that measures the percentage of students who remain enrolled in the school, and instructors who remain employed in the school, over a certain period of time. This metric is important for beauty schools because it allows them to see how well the school is doing in retaining students and instructors, which is a key indicator of success.
Benefits of Tracking
- The student/instructor retention rate helps beauty schools identify areas for improvement.
- This gives the school insight into student and instructor satisfaction with the school.
- It helps the school measure the success of its initiatives.
- It helps the school track its progress over time.
Industry Benchmarks
The industry benchmark for student/instructor retention rate is usually between 75-90%. However, this may vary depending on the type of beauty school and the region in which it is located.
How to calculate
The student/instructor retention rate formula is:
Calculation example
For example, if a beauty school started the period with 100 students and 10 instructors, and ended the period with 90 students and 8 instructors, the student/instructor retention rate would be:
Tips and tricks
- Track student/instructor retention rate over long periods of time to better understand trends.
- Look for patterns in the data to identify areas for improvement.
- Compare your student/instructor retention rate with industry benchmarks to get an idea of how well you are performing.
- Consider offering incentives to students and instructors to help improve retention.
Cost per student
Definition
Cost per student is a metric used to measure the cost of running a beauty school divided by the number of students enrolled in the school. This KPI helps measure the efficiency of a beauty school in terms of its operations and costs.
Benefits of Tracking
Tracking cost per student helps beauty schools effectively understand their operational costs. With this metric, beauty schools can benchmark their costs against industry benchmarks and adjust their operations accordingly. Additionally, tracking cost per student can help beauty schools determine their pricing structure and measure the return on investment (ROI) of their programs.
Industry Benchmarks
The industry benchmark for cost per student varies depending on the type of beauty school and its location. Generally speaking, the average cost per student ranges from ,000 to ,000. However, some schools may have higher or lower costs depending on the size and scope of their operations.
How to calculate
The formula to calculate the cost per student is:
Calculation example
For example, if a beauty school has a total operating cost of ,000 and the number of students enrolled is 40, the cost per student is:
Tips and tricks
- Beauty schools should regularly track the cost per student metric.
- Beauty schools should benchmark their cost per student against industry benchmarks to ensure they are operating efficiently.
- Beauty schools should adjust their operational costs accordingly to ensure they generate a positive return on investment.
Revenue per student
Definition
Revenue per student (RPS) is a key performance indicator that measures the amount of money generated per student enrolled in a beauty school. It is calculated by dividing the total net income generated by the total number of students enrolled in a given term.
Benefits of Tracking
PR tracking can be very beneficial for beauty schools as it can help them track their performance and identify areas for improvement. It can also be used to compare their performance against industry standards or benchmarks. Additionally, tracking PR can help beauty schools understand the impact of their marketing efforts and the effectiveness of their recruitment strategies.
Industry Benchmarks
The industry benchmark for RPS varies depending on the type of beauty school. For example, cosmetology schools typically have an RPS of around ,000, while aesthetic schools typically have an RPS of around ,500. It is important to note, however, that these benchmarks may vary depending on the location and size of the school.
How to calculate
To calculate RP, divide the total net income generated by the total number of students enrolled in a given term. The formula for RPS is:
Calculation example
For example, if a beauty school generated ,000 in net revenue and had 10 students enrolled in a given term, the RPS would be ,000 (,000 / 10 students = ,000).
KPI Tips and Tricks
- Track RPS regularly to ensure the school meets industry benchmarks.
- Monitor PR trends to identify areas for improvement.
- Use RPS to compare the performance of different beauty schools.
- Calculate RPS for different terms to understand school performance over time.
Graduation rate
Definition
The KPI graduation rate measures the percentage of students who successfully complete their beauty school program. This is an important metric for beauty schools to track as it can provide insight into the quality of the school, the effectiveness of its curriculum, and student satisfaction.
Benefits of Tracking
Tracking a beauty school’s graduation rate can provide important insights that can help improve school efficiency. By tracking graduation rate, beauty schools can understand the quality of their programs and the satisfaction of their students. This can help them make decisions about curriculum and other aspects of school that can improve student achievement.
Industry Benchmarks
The average beauty school graduation rate is usually around 80-90%. However, this may vary depending on the type of program and the purpose of the school. For example, cosmetology schools may have higher graduation rates than esthetician schools.
How to calculate
The KPI graduation rate can be calculated using the following formula:
Calculation example
For example, if a beauty school had 100 students enrolled and 88 of them graduated, the graduation rate would be 88%.
Tips and tricks
- Beauty schools should look for a high graduation rate as it can indicate program quality and student satisfaction.
- It is important to track graduation rate over time to identify trends or changes in student success rate.
- Beauty schools should also consider the type of program and the goal of the school when comparing their graduation rate to industry benchmarks.
Customer Satisfaction Score
Definition
Customer Satisfaction Score (CSS) is a metric used to measure the level of customer satisfaction with the services, products, and overall experience provided by a beauty school. This is a valuable tool for understanding how a school is meeting the needs of their customers, and helps illuminate where improvements and changes need to be made.
Benefits of Tracking
Tracking a customer satisfaction score allows beauty schools to better understand their clientele’s needs and tailor their services accordingly. It also allows schools to measure the effectiveness of their customer service and marketing efforts. By monitoring this metric over time, beauty schools can identify trends in customer satisfaction and make necessary changes to ensure customers continue to have a positive experience.
Industry Benchmarks
The industry benchmark for customer satisfaction score is 85%. A score lower than this indicates that the school should take steps to improve its customer experience. A score above this indicates that the school is doing a good job of meeting customer needs and expectations.
How to calculate
The customer satisfaction score is calculated using the following formula:
Calculation example
For example, if a beauty school surveyed 100 customers and found that 80 of them rated their experience as “good” or “excellent”, their customer satisfaction score would be:
Tips and tricks
- The customer satisfaction score should be tracked regularly to ensure customer needs are being met.
- Surveys should be sent to customers regularly to get an accurate view of customer satisfaction.
- The customer satisfaction score should be compared to industry benchmarks to identify areas that need improvement.
- Beauty schools should take steps to ensure their customer service is up to scratch and their customers have a positive experience.
Overall success rate
Definition
The overall student pass rate is a metric that tracks the number of students who have successfully completed the program and achieved the necessary qualifications to practice their profession. This metric helps measure the success of beauty schools in providing quality education and training.
Benefits of Tracking
Tracking the overall student pass rate can help beauty schools assess the effectiveness of their curriculum, identify areas for improvement, and ensure their students receive the highest quality of care. education. Additionally, tracking this metric can provide value to potential beauty school students as it can help them decide which schools are likely to deliver the best results.
Industry Benchmarks
The exact industry benchmark for overall student pass rate will vary depending on the type of beauty program offered and level of difficulty. Generally, a higher pass rate indicates that a beauty school offers quality education and training.
How to calculate
The formula for calculating the overall student pass rate is:
Calculation example
For example, if a beauty school had 100 students enrolled and 80 of them successfully completed the program, the overall student pass rate would be calculated as follows:
Tips and tricks
- Be sure to regularly track overall student pass rates to identify areas for improvement.
- Remember to consider the difficulty of the program when evaluating the overall student success rate.
- Look for ways to improve the curriculum and student support to ensure a higher success rate.
- Encourage students to stay engaged and motivated throughout their program to increase the chances of success.
Conclusion
In conclusion, tracking and calculating beauty school KPIs is a critical task for beauty managers, who need to know how their programs are doing. Knowing the seven critical KPIs – number of active licenses, student/instructor retention rate, cost per student, revenue per student, graduation rate, customer satisfaction score, and overall student pass rate – empowers school leaders to make informed decisions and guide the school in a beneficial direction. By following the steps outlined in this article, beauty business leaders should have the tools they need to measure and track key performance indicators.
- Home
- Number of active licenses
- Student/Instructor Retention Rate
- Cost per student
- Revenue per student
- Graduation rate
- Customer Satisfaction Score
- Overall success rate