Key Performance Indicators (KPIs) enable Spa Management to see how they are performing at any given moment in time – generally on a monthly basis. However, technology is evolving and if being tracked in real-time by Management, the information is at their fingertips to easily answer the how, what, why, and when of their operation and enable them to make real-time decisions based on hard numbers rather than a “gut feeling” for the betterment of their business.
For Spa Managers to move beyond being an overpaid Supervisor and into a genuine management role, making actual management decisions that affect the profitability of the business, they must be able to access the numbers and have a reasonable understanding of them. Knowing how to calculate and utilise these numbers is a valuable business tool, and while often talked about they frequently remain clouded in mystery – mostly because the calculation of the numbers takes time. We all know that we are increasingly “time poor” and have difficulty in justifying the manhours required to input sufficient data in order to get any usable data output.
SpaTx, a spa reservation system built on business intelligence seems to be in a world of its own in terms of the numbers it has the ability to generate for spa operators. It is suggested that the business intelligence (the KPIs) is the cake and the reservation system is the cream on top, making it a very attractive (and user-friendly) consideration.
With over 40 Key Performance Indicators available for review at the click of a button, Spa Managers can attend their next department head or owners meeting confidence and real-time information to back up their discussions.
Spa Managers no longer have to wait weeks if not months for core reports from their Accountants to laboriously calculate their own KPIs – as they can now be available in real-time.
SpaTx provides a QR code for easy ‘touchless’ reservations, immediately blocking the time, the treatment room, and the therapist. To help with added value sales items retail items can be linked to a treatment, as an easy prompt for staff to maximise upselling opportunities.
However, while the spa reservation system may be the most visual part of the system the most valuable part of the software from the operator’s perspective is 40+ Key Performance Indicators in ten categories which produce the gold. From Capture Rates to Complimentary KPIs, Guest, Retail, Revenue, Rooms, Treatments, Therapist and Turn away KPIs the numbers are instantly available enabling the Spa Manager to make real-time business decisions.
At first glance, having access to over 40 KPIs may seem rather daunting especially when you have had little interaction with them in the past, but not to worry, you will quickly determine which are the most important KPIs for your business operation to focus on. Each business has its own anomalies, so no need to get bogged down in numbers that are “too much information” for your operation, just focus on the ones that you need, when you need them, knowing with confidence that they truly represent your business.
Eg. Revenue per Therapist, Therapist Utilization, and Capture Rate may be important to you, but Room Utilization by Treatment or Blocked Room Hours may have less significance. Regardless, you have the numbers and you get to decide which ones are most important to your operation, and which ones will impress your Owner or General Manager and highlight your detailed knowledge of the business.
Once you have access to these numbers and start to use them, their importance as a business management tool grows markedly. When you have the ability to select KPIs to make quick comparisons with the same period last week or last month, the value of the intelligence to the operator is further heightened.
The software can be used as a complete stand-alone system with immediate access to the business intelligence, or it can be run side by side with current programming, and just export the data at the end of each day to secure the necessary business intelligence. The only negative is that if you are exporting the data, the smallest comparison you can make is on a per day basis, whereas if inputting direct you can make comparisons on an a per hour basis.
In a post COVID-19 world where “everything is touchless”, the production of a unique QR code to be used on all your marketing collaterals to enable seamless and accurate bookings is invaluable.
KPIs are an important business tool ask they ensure business objectives are at the forefront of decision making, and when the manager knows that he or she is responsible for their own KPIs, it ensures that the company’s bottom line is at the forefront of their mind.
Planned with intent, KPIs ensure that business performance is measured in relation to the business’s objectives and not just blindly objectified in the pursuit of a fantasy KPI that has no meaning to the operation.
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