Presented by Dan Chandre at ISPA Conference & Expo 2011, an introduction to the Next Generation of KPIs, which help you track how technology trends are impacting your business.

1. The
Next Generation
of KPIs
with Dan Chandre,
Vice President, Operations
GramercyOne
with Dan Chandre

2. Agenda
• Introduction
• Current Landscape of KPIs
• Change in Consumer Behavior
• Impact on the Spa Industry
• 5 New KPIs for the Spa Industry
with Dan Chandre

3. What Am I Doing Here?
• Insight into spa business
• Aggregated data
• We see behavioral trends emerge
• Perspective
with Dan Chandre

4. Perspective
• 700,000+ transactions per month
• More than $1.25MM per day
• Over 85,000 online bookings per month
• 33%+ of online bookings 8pm-8am
• Approx 1,350 of our clients have run daily deals
with Dan Chandre

5. Traditional
Spa Analysis
with Dan Chandre

6. What is a KPI (Key Performance Indicator)?
• A set of quantifiable measures to compare performance
in terms of meeting strategic and operational goals
• According to Intelligent Spas, KPIs enable a spa to
measure and monitor its business and financial performance
• Spa benchmarking measures aspects of a spa and
compares these against the industry average
• Measuring KPIs allow business owners and managers to
make informed decisions
with Dan Chandre

7. KPI Examples
Source: http://www.hoteliermiddleeast.com/8378-dead-sea-spas-under-utilised-claims-survey/
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8. Key KPIs
• Revenue Per Sq Ft
• Hotel Capture Rate
• Revenue Per Occupied Room
(RevPOR)
• Treatments per Guest
• Retail Success/
Retail Capture Rate
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9. What Data is Used to Measure Success?
• Room
• Employee
• Service
• Retail
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10. Are We Measuring the Correct Data?
• Only for operational efficiency
• Current KPIs provide analysis of
performance once guest has arrived
• Does not indicate
customer acquisition performance
• Ignores current consumer trends
mitigating purchase decisions
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11. Times Have
Changed
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12. Why Re-Evaluate How We Measure Success?
• Social commerce
• Online to Offline (O2O) commerce
• SMBs harnessing
cloud computing power
• Selling of services
next frontier
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13. Why Re-Evaluate How We Measure Success?
• Global e-commerce sales growing 19% per year
• Worldwide retail web sales $1TN by 2013
• 45% of consumers follow brands on social networks
to receive discounts & special offers
• Brand followers are 52% more likely than the average adult to
download a web coupon and 9% more likely to shop online
with Dan Chandre

14. Why Re-Evaluate How We Measure Success?
• Half a BILLION people
accessed mobile Internet in 2009
• 350,000,000+ mobile Facebook users
• Mobile commerce growth:
$3B in 2010 to $31B in 2016
• Social commerce growing
93% per year to $14B by 2015
with Dan Chandre

15. Why Re-Evaluate How We Measure Success?
We have seen:
• 2010 - 1.0% of all customer initiated Booker
reservations were through mobile devices
• 2011 - 3.3% of customer initiated Booker reservations
YTD through mobile devices - 230% growth.
An example of a client who implemented a mobile booking app:
• August – before app - 6.8% of all
customer initiated bookings were mobile
• October – with app - 19.8% of all
customer initiated bookings were mobile
• With a dedicated app - 40% of all
appointments are customer initiated
with Dan Chandre

16. Why Re-Evaluate How We Measure Success?
with Dan Chandre

17. Why Re-Evaluate How We Measure Success?
with Dan Chandre

18. Why Re-Evaluate How We Measure Success?
• Emergence of
mobile commerce
• Real-time offers via
mobile advertising
• Location based services
& the new LAST MILE
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19. Why Re-Evaluate How We Measure Success?
How consumers use Smartphones to shop in 2010:
60.2% Browse for gifts
50.7% Checked store hours or locations
32.5% Received text messages and offers
34.6% Read product reviews
26.0% Made purchases
with Dan Chandre

20. Why Re-Evaluate How We Measure Success?
• 33,000+ deals in Sept’ in US
• 38% of deal buyers
already loyal to brand
• Only 20% of customers
become repeat business
• Over 40% of our clients have
run multiple deals
• Health, Wellness & Beauty is the
2nd largest sector for daily and searchable deals
with Dan Chandre

21. New Generation
of Evaluation
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22. Goal of The Next Generation of Evaluation
• To understand the relevance of
changes in consumer behavior
• Measure your success as a marketer,
not just an operator
• Incorporate the growth of O2O commerce
• Track success at capitalizing on these trends
• Identify opportunities for
greater capture rate of O2O commerce
with Dan Chandre

23. % of Customer Initiated Bookings
• Calculates customer initiated bookings versus
traditional bookings requiring reservationist input
• Illustrates impact of online marketing efforts
driving traffic to online booking
• Additional metrics to track
• % of online bookings net new customers
• % of online bookings outside of operating hours
Year 2008 2009 2010 2011
Booking % 3.9% 6.1% 10.1% 11.5%
with Dan Chandre

24. Online Bookings by Channel
• % of online bookings generated from:
• Website
• Mobile
• Social media
• Deal sites/3rd parties
• Promotion Specific
• Clear sign of marketing channel effectiveness
• Add breakdown of new versus returning client
with Dan Chandre

25. Retention % by Online Channel
• Determine your retention period
(90 days typical retention period)
• Calculate % of clients that return
during that retention period
• Segment by online channel
• Further segment by new versus returning
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26. Final Appointment Factor by Channel
Value of final ticket at check out
= Original booking value
• Tracks the true value of an
individual reservation by channel
• Recognizes the ability to up-sell and add-on
• Defines the likelihood of additional
sales opportunity by channel
• If discounting, use discounted value
with Dan Chandre

27. Future Value Factor per Channel
Retention Final Appointment
= X
Percentage Factor
• Comparative ROI across channel
• POS data is critical to accurate analysis
• Provides projected ROI that can easily be
weighed against channel spend
• Understanding true customer value
with Dan Chandre

28. Goal of The Next Generation of Evaluation
• How good is your spa at capturing the online consumer?
• New KPIs should be used in conjunction with
traditional KPIs
• Are your O2O marketing efforts effective across
all channels? Including mobile?
• Target channels resulting in the highest
Future Value Factor
with Dan Chandre

29. Tracking
• Weekly is useful, daily is ideal
• Comparative Analysis
• Target effective channels
• Improve marketing efforts
towards less-effective channels
• Identify opportunities for greater
capture rate of O2O commerce
with Dan Chandre

30. Thank You!
Dan@GramercyOne.com
with Dan Chandre