Introduction
A preschool can be an excellent base for a child’s first learning experiences. At the same time, please note the importance of managing and measuring overall performance. This article will cover the most important Key Performance Indicators (KPIs) that preschool principals and owners should keep on top when evaluating their schools. We will explain the following seven KPIs and provide more knowledge on how they can be tracked and calculated: retention rate, percentage of tuition payments received, profitability of tuition fees, number of early learning systems used, number of participants in the parent series program, percentage of positive parent satisfaction surveys and number of ongoing annual enrollments.
Retention rate
Definition
Retention rate is a metric used to measure the success of a preschool in keeping its students enrolled. It is calculated by dividing the number of students who remain enrolled in the school in a given period by the total number of students enrolled in the same period. The result is expressed as a percentage.
Benefits of Tracking
Tracking retention rate is beneficial for preschools because it allows them to identify areas for improvement, such as student satisfaction and program quality. It also provides valuable insight into the effectiveness of marketing strategies and recruitment tactics.
- Provides insight into student satisfaction
- Provides insight into the quality of the curriculum
- Allows the school to identify areas for improvement
- Provides valuable insight into the effectiveness of marketing and recruitment strategies
Industry Benchmarks
The average retention rate for preschools is around 90%. However, this figure may vary depending on the type of school and its location. For example, urban schools tend to have higher retention rates than rural schools.
How to calculate
The retention rate is calculated by dividing the number of students who remain enrolled in the school in a given period by the total number of students enrolled in the same period. The result is then expressed as a percentage.
Calculation example
For example, if a preschool had 500 students enrolled in a given period and 400 of them remained enrolled at the end of the period, the school’s retention rate would be calculated as follows:
Tips and tricks to improve the KPI
- Provide an enjoyable and stimulating learning environment
- Develop effective communication with parents and guardians
- Focus on student engagement and satisfaction
- Stay up to date with industry trends and best practices
Percentage of tuition payments received
Definition
The percentage of tuition payments received measures the success of the preschool in collecting tuition from parents. It is calculated as the total payments received divided by the total amount due.
Benefits of Tracking
Tracking this metric helps preschools understand their financial health and the effectiveness of their payment collection system. By monitoring the percentage of tuition fees received, preschools can take steps to improve their collection efforts and maximize their revenue.
Industry Benchmarks
The industry benchmark for the percentage of tuition payments received is usually around 95%. However, this may vary depending on the kindergarten and region.
How to calculate
To calculate the percentage of tuition payments received, use the following formula:
Percentage of tuition payments received = (total payments received / total amount due) x 100
Calculation example
For example, if a preschool receives payments of ,000 from parents for a total amount owing of ,500, the percentage of tuition payments received can be calculated as follows:
Percentage of tuition payments received = (,000 / ,500) x 100 = 95.24%
Tips and tricks
- Include late fees when calculating the total amount due.
- Keep track of unpaid tuition payments and track parents.
- Offer flexible payment options to make paying tuition easier.
- Use automated systems to streamline the payment collection process.
Cost Effectiveness of Tuition and Fees
Definition
Tuition and fee profitability is a key performance indicator (KPI) that measures the amount of money a preschool receives from tuition and fees relative to its total revenue. This KPI is often used to assess the financial health of a preschool.
Benefits of Tracking
Tracking tuition and fee profitability KPIs is important for many reasons. It can help preschools monitor their financial performance and identify areas for improvement. By tracking this metric, preschools can also adjust their tuition and fees to ensure they remain successful and profitable.
Industry Benchmarks
Industry benchmarks for cost effectiveness of tuition and fees vary by size and type of preschool. Generally, the higher the percentage of tuition and fees to total revenue, the healthier the finances of the preschool finances are. For example, a large preschool may have a benchmark of 50% while a small preschool may have a benchmark of 40%.
How to calculate
The KPI formula for tuition and fee profitability is as follows:
Calculation example
For example, if a preschool had total revenue of 0,000 and tuition and fees of ,000, its tuition and fee profitability KPI would be calculated as follows:
Tips and tricks
- Monitor this KPI regularly to ensure that the preschool remains profitable.
- Compare the KPI to industry benchmarks to ensure the preschool is performing at the same level as other schools in the industry.
- Adjust tuition and fees as necessary to maximize profitability.
Number of early learning systems used
Definition
The number of early learning systems used measures the total number of early learning systems (ELSS) used by a preschool.
Benefits of Tracking
Tracking the number of ELS used by a preschool gives administrators insight into the quality of their educational offerings. Knowing how many ELS are used helps administrators determine if they are providing students with a well-rounded education that meets their needs.
Industry Benchmarks
The average number of ELSS used by kindergartens is five. However, this number may vary depending on the size and scope of the school.
How to calculate
The number of early learning systems used is calculated by dividing the total number of ELS used by the total number of students enrolled in preschool.
Calculation example
For example, if a preschool has 10 ELSS and 20 students enrolled, the number of early learning systems used would be 0.5 (10/20).
Tips and tricks
- Be sure to keep track of the number of ELS used. This can help you better understand the quality of your educational offerings.
- Periodically review the number of ELS used to ensure that you are providing students with a well-rounded education.
- It is important to keep the number of ELS in use within industry benchmarks.
Number of participants in the parental series program
Definition
The number of parent series program participants is a metric that measures the number of parents who attend educational programs or series organized by a preschool. This is an important KPI because it indicates the level of commitment and involvement of parents in the education of their children.
Benefits of Tracking
Tracking the number of participants in the parent series program has many advantages. It allows preschool owners to understand the level of engagement and involvement of parents in their children’s education. It also provides valuable insight into the effectiveness of the school’s communication and marketing efforts. Additionally, tracking this KPI can provide insight into overall parent satisfaction with the school, as well as inform decision-making on future programs and initiatives.
Industry Benchmarks
The industry benchmark for the number of parent series program participants depends on the size of the preschool. Generally, a preschool with more than 100 students should aim for an average of at least 10-15% of parents attending educational programs or series. A small preschool may aim for a higher percentage, while a larger preschool may aim for a lower percentage.
How to calculate
Calculation example
For example, if a preschool invites 100 parents to attend an educational program and 20 parents attend, the number of parent series program attendees would be calculated as follows:
Tips and tricks to improve the KPI
- Send reminders to parents before the program.
- Include more engaging activities in the program.
- Invite more parents to the program.
- Encourage parents to provide feedback after the program.
- Encourage parents to bring friends and family members to the program.
Percentage of positive parent satisfaction surveys
Definition
The percentage of positive parent satisfaction surveys is a metric that measures the percentage of parents who are satisfied with their preschool experience. It is calculated by dividing the number of positive responses to parent satisfaction surveys by the total number of surveys returned.
Benefits of Tracking
Tracking the percentage of positive parent satisfaction surveys is important for preschools because it provides valuable feedback on how well the school is meeting the needs of parents and students. By measuring this metric, preschools can identify areas where they can improve, as well as areas where they excel.
Industry Benchmarks
The industry benchmark for the percentage of positive parent satisfaction surveys is usually around 80-90%. This means that 80-90% of parents respond to the survey report that they are satisfied with their kindergarten experience.
How to calculate
The percentage of positive parent satisfaction surveys is calculated by dividing the number of positive responses on parent satisfaction surveys by the total number of surveys returned.
Percentage of positive parent satisfaction surveys = (number of positive responses / total number of surveys returned) x 100
Calculation example
For example, if a preschool received 500 parent satisfaction surveys and 450 of them were positive, the percentage of positive parent satisfaction surveys would be calculated as follows:
(450/500) x 100 = 90%
Tips and tricks
- Encourage parents to complete the survey by providing incentives such as discounts or prizes.
- Make sure the survey is easy to understand and doesn’t take too long to complete.
- Analyze the survey results and use the data to make improvements in the preschool.
- Follow up with parents who responded to the survey to ensure their concerns are addressed.
Number of continuous annual registrations
Definition
The number of continuous annual enrollments is a key performance indicator (KPI) used to measure the number of children who have enrolled in a preschool for several consecutive years.
Benefits of Tracking
It is important to measure the number of continuous annual enrollments to assess the success of a preschool. Tracking this metric can help identify trends in enrollment and retention, which can provide insight into the overall health of the school. This metric can also be used to identify areas for improvement and make changes that could increase the number of students enrolled in the school.
Industry Benchmarks
The average number of continuing annual enrollments for preschools in the United States is around 70%. This means that on average, 70% of students enrolled in a preschool will remain enrolled for several years.
How to calculate
The formula to calculate the number of continuous annual registrations is:
Number of continuous annual enrollments = number of students enrolled in year n / number of students enrolled in year n-1
Calculation example
For example, if a preschool had 50 students enrolled in the previous year (year N-1) and 40 students enrolled in the current year (year N), the number of continuing annual enrollments would be calculated as follows:
Number of continuous annual registrations = 40/50 = 0.8 or 80%
Tips and Tricks for KPIs
- Make sure the data used for calculations is accurate and up to date.
- Track the number of ongoing annual enrollments over time to identify trends and areas for improvement.
- Compare the number of continuous annual enrollments to industry benchmarks to gauge overall school performance.
Conclusion
Preschool owners and operators are faced with a number of different KPIs that they need to monitor in order to ensure the long-term success and growth of their school. The seven KPIs described in this article are some of the most important and should be carefully monitored in order to understand the overall performance of the preschool. By tracking these KPIs, such as retention rate, percentage of tuition received, and profitability of tuition and fees, administrators and owners can make informed decisions on how to improve the performance of their kindergarten and reach new heights.
- Home
- Retention rate
- Percentage of tuition payments received
- Cost Effectiveness of Tuition and Fees
- Number of early learning systems used
- Number of participants in the parental series program
- Percentage of positive parent satisfaction surveys
- Number of continuous annual registrations