A Guide to Dashboard Reporting for Your Spa
Companies generate huge amounts of data related to their customers, sales, and industry. Analyzing this data allows leaders to make informed decisions that reduce costs, save time, increase profits, and can even lead to game-changing industry breakthroughs.
Introduction
What is a Reporting Dashboard?
- Improve efficiency and productivity
- Make faster, more effective decisions
- Drive better financial performance
- Identify and create new revenue streams
- Reinvent existing business models and create new ones
Companies that have used data analysis to grow and thrive
Netflix
Uber
Uber Eats
Benefits of reporting dashboards and data analysis in your spa
Better Decision Making
- Dashboards show data reports from a wide range of sources and display them in an easy-to-read interface to provide a detailed overview of your business. This allows leaders to gain the insight required to make the best decisions regarding operations. You can’t decide how to increase revenue and occupancy, which retail products to stock, and which of your service providers to promote or give additional support to without proper information.
Saved Time
- Manually inputting data into spreadsheets and calculating metrics yourself leaves a lot of room for error and is very time consuming. A spa software system with a reporting dashboard is a game changer. Shane Bird, EVS Operations at Turning Stone Resort and Casino Casino, who oversees the resort’s Skana and Ahsi spas said in an interview a few years ago that, before he started using the Book4Time system, it was taking 5-6 hours every day for someone in finance to sit and audit the spas’ transactions. Bird said, “Book4Time has eliminated all of that.” Time saved is money saved.
Improved Performance & Efficiency
- Reporting Dashboards allow you to measure operational performance and make appropriate changes. They allow you to see the times when your spa is busy and when it’s not. They show which service providers and which times of day, week, month, and year are most in demand. They show you which retail items are selling and which ones are not. This data allows you to make changes and adjustments that improve efficiency and productivity.
Increased Motivation
- When team members are able to see their own performance represented in numbers it can increase motivation to work harder, do better, improve results, get more bookings, and increase retail sales and add-ons.
Increased Revenue
- All of these things listed allow you to increase revenue and profits while decreasing stress, time spent, and effort. Your dashboard shows you exactly where your business is performing well and where it is not doing as well. Armed with this information, you know where you need to focus your time and energy to make improvements.
How to Use Reporting Dashboards in Your Spa
Let’s take a look at 13 important spa KPIs (Trent Munday also has a list here)..
13 important spa KPIs
01. Total Daily/Weekly/Monthly/Annual Revenue Growth
- Total revenue generated by the spa during any given period of time compared year-over-year, month-over-month, etc.
02. Capture Rate
- The number of spa guests as a percent of guests who are staying at the hotel or resort where the spa is located during a period of time.
03. Retail Capture Rate
- How many of guests purchased retail products as a percent of spa guests. Potentially more useful if kept specific to spa guests who book aesthetic appointments, such as facials or microdermabrasion, and body-treatments.
04. Repeat Guest Rate
- The number of people who return to the spa after an initial visit as a percent of the number of spa guests over a period of time.
05. Return Request Rate
- A deeper dive into your returning customers providing information about your frequent guests and an understanding of their customer profiles, including the service providers they request.
06. Add-On Revenue
- Calculation of additional revenue that adds no more time to a service, like aromatherapy, CBD upgrades, and eye masks. Can be facilitated with online booking, where a spa allows guests to build on top of a basic service.
07. Average Transaction Amount
- Total revenue generated over a period of time divided by the number of guests during that period. For example, $1,500 in sales in a day divided by 10 customers is an average transaction of $150.
08. Average Monthly Retail Sales
- Total retail sales revenue generated by month and compared month over month.
09. Therapist Utilization Rate
- Amount of time a practitioner is booked as a percent of their available time. If John is working a six hour day and is booked for five of those hours, that’s an 83% utilization rate.
10. Spa Occupancy
- The number of booked appointments as a percent of available total treatment hours. Total available treatment hours is calculated using the number of treatment beds (and possibly chairs), rather than rooms in your spa, multiplied by the number of operating hours.
11. Treatment Room Utilization
- Total treatment hours sold divided by total treatment room hours available (a spa with eight treatment rooms open for 10 hours = 80 available treatment hours)
12. Revenue per available treatment hour
- Total treatment revenue divided by the number of available hours (treatment rooms multiplied by numbers of business hours ).
13. Outside customer percentage
For hotel and resort spas, the percent of guests who are not hotel guests.
Reports like these are generated in a comprehensive reporting dashboard and will inform all of your business decisions. These KPIs will help you create strategies for marketing, customer acquisition and retention, and revenue and yield management. They can help inform your loyalty and membership program strategies. For example, knowing who is coming to your spa, and when, allows you to schedule accordingly, and facilitates creating personalized experiences. Your occupancy and revenue per hour numbers will help you make decisions about revenue and yield management. You might, for instance, offer your highest revenue generating services only during peak hours and lower revenue generating services during less busy hours. Your outside guest percentage can influence your revenue management strategy, perhaps in the form of different pricing or offers for different types of guests. Members, for example, or hotel guests, may get a percent off of spa services while local residents pay a different price. Your add-on revenue can influence decisions about additional treatment offerings.
Your therapist utilization rate, repeat request rate, and retail sales can help inform your training and performance management strategies.
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Book4Time’s spa software solutions have helped the best, most awarded spas around the world analyze and improve their operations and can do the same for you. Schedule a demo today!