Top Seven Essential KPIs for Running a Successful Dog Kennel

Welcome to this comprehensive guide on the Top Seven Dog Kennel KPI Metrics. How to Track and Calculate them? Let's get straight to the point, if you're running a dog kennel, you need to keep track of some vital performance metrics to ensure the success of your business. However, with so many metrics to choose from, it can be challenging to know which ones to prioritize and track. That's where we come in!

• Customer Satisfaction Level: To ensure pet owners are satisfied with the services provided, feedback surveys are crucial. Knowing what you're doing right or wrong from your clients can make all the difference.
• Average Length of Stay per Dog: This metric helps you to gauge your capacity and occupancy rates and understand how long your kennel reserves can maintain dogs.
• Occupancy Rate of the Kennel: Tracking your kennel's occupancy rate would allow you to optimize your space utilization and develop an accurate pricing strategy.

According to recent statistics by the American Pet Products Association, pet owners in the US spent over $100 billion on pet products and services in 2020. The pet industry's revenue has been steadily climbing, and with that, so does the growth of dog kennels. As with any business, tracking metrics play a crucial role in monitoring growth, improving services, and maintaining a stable ROI. Read on to learn more.

Customer satisfaction level

As a dog kennel owner, customer satisfaction is a key metric to ensure the growth and success of your business.

Definition

Customer satisfaction level measures how happy your customers are with the services provided by your dog kennel. It is an essential metric to evaluate the overall performance and reputation of your business.

Use Case

By measuring customer satisfaction, you can identify areas where your kennel can improve. Addressing customer complaints and improving overall satisfaction can lead to increased customer retention and word of mouth referrals.

How To Calculate KPI

The simplest way to calculate customer satisfaction is by using a customer satisfaction survey. This survey can ask customers to rate their overall satisfaction with the kennel's services as well as specific aspects such as cleanliness, staff friendliness, and dog healthcare. The survey can be sent via email, text message, or included in a customer's checkout documents.

Calculation Example

Let's say you received 50 survey responses, and 40 of your customers responded with satisfied ratings. Using the formula above:

KPI Advantages

• Provides insight into customer perceptions and opinions about your business
• Easy to understand and implement
• Helps to identify areas of improvement for your kennel

KPI Disadvantages

• Results can be skewed if the sample size is not large enough or is biased
• Customers may not always provide honest answers in surveys
• Surveys can add to the overall cost and time taken to analyze KPI

KPI Industry Benchmarks

According to a survey by the American Pet Products Association, the overall satisfaction rate of pet owners who use kennels orboarding facilities was 86% in 2020.

Average length of stay per dog

One of the key performance indicators (KPIs) that dog kennels should track is the average length of stay per dog. This metric gives an indication of how long a typical dog stays at the kennel before being picked up by its owner.

Definition

The average length of stay per dog is a KPI that measures the average number of days a dog stays in a kennel before being picked up by its owner.

Use Case

This KPI is important for dog kennels because it helps them plan and allocate resources better. If the average length of stay is shorter than expected, the kennel may be overbooked, leading to a shortage of resources like food, water, and space. Conversely, if the average length of stay is longer than expected, the kennel may have unused resources that could be better utilized.

How To Calculate KPI

To calculate the average length of stay per dog, divide the total number of days all dogs stayed by the number of dogs. The formula looks like this:

Calculation Example

Let's say a kennel has 20 dogs staying for a total of 120 days. The average length of stay per dog would be:

KPI Advantages

• The average length of stay per dog provides useful insight into resource utilization at the kennel.
• It helps kennels ensure they have enough resources to accommodate all dogs.
• It enables kennels to plan their staffing, facilities, and supplies better.

KPI Disadvantages

• This metric can be skewed by individual outliers, like dogs who stay for an exceptionally long time.
• It can also be affected by seasonal or unexpected factors, like weather, kennel accidents, or sudden changes in owners' plans.

KPI Industry Benchmarks

The average length of stay per dog varies depending on the breed, age, and size of the dog, as well as the location and season. However, as a general rule, most kennels aim for an average length of stay between 3 and 7 days.

Occupancy rate of the kennel

As a serial entrepreneur who has started and run several businesses, I understand the importance of tracking key performance indicators (KPIs). In the pet industry, measuring the occupancy rate of your kennel is a crucial KPI that can help you optimize your business operations.

Definition

The occupancy rate of a kennel is the percentage of total kennel spaces that are filled with dogs at a given time. This KPI is essential in determining the capacity of your kennel and optimizing its use.

Use Case

Tracking the occupancy rate of your kennel can help you understand the utilization of your resources and make informed decisions about staffing, pricing, and other operational strategies. By analyzing this KPI, you can maximize your revenue by balancing the number of dogs in your kennel with your capacity.

How To Calculate KPI

Calculation Example

Suppose your kennel has a total of 50 spaces, and 35 spaces are occupied by dogs. The occupancy rate of your kennel would be:

KPI Advantages

• Helps you optimize your kennel's capacity based on demand.
• Allows you to identify inefficiencies in your operational strategies.
• Can help you make informed decisions about pricing, staffing, and other resources.

KPI Disadvantages

• Does not provide insight into the quality of customer experience.
• May not be applicable to kennels that offer specialized services.

KPI Industry Benchmarks

The average occupancy rate for kennels in the pet industry is typically between 60-80%. However, this can vary based on the location, season, and other factors specific to your business.

Number of Repeat Customers

Repeat customers are critical to the success of any business. In a dog kennel, repeat customers are the ones who leave their pet with you time and time again. Measuring the number of repeat customers is essential to monitor the loyalty of your customer base.

Definition

The number of repeat customers is the percentage of customers who have used your dog kennel more than once over a specified period of time.

Use Case

A high number of repeat customers means a loyal customer base that trusts your services. The repeat customers are likely to promote your dog kennel through word-of-mouth and social media, giving your business a good reputation. This metric is a clear indicator of customer satisfaction.

How To Calculate KPI

Divide the number of repeat customers by the total number of customers over a specified period of time and multiply by 100.

Calculation Example

Suppose that in the previous month, you had 150 customers, and 45 of those customers used your kennel twice or more. The calculation would be as follows:

KPI Advantages

• Indicates customer loyalty
• Measures customer satisfaction levels
• Helps predict future revenue

KPI Disadvantages

• Does not factor in new customers who have not had the opportunity to become repeat customers
• Not a clear predictor of future growth

KPI Industry Benchmarks

According to industry data, the average repeat customer rate for dog kennels is around 20-30%. If your dog kennel's repeat customer rate is below the industry benchmark, you may need to identify the factors that are affecting customer loyalty.

Revenue from additional services offered

As a dog kennel owner, it is important to not only offer boarding services but to also consider other sources of revenue. One of the KPIs that can help you track the effectiveness of these additional services is the revenue from additional services offered.

Definition

The revenue from additional services offered KPI measures the total income generated from supplementary services that are not part of the regular boarding service offered by the kennel. These services include things like grooming, training, and daycare.

Use Case

This KPI is useful for kennel owners who want to ensure that their supplementary services are profitable. It can also help identify which services are in high demand and which ones need improvement or should be discontinued.

How To Calculate KPI

To calculate the revenue from additional services offered, use the formula:

Calculation Example

Let's say your kennel generated a total revenue of $50,000 for a given period, while revenue from boarding services was $40,000. The revenue from additional services offered would be:

KPI Advantages

• Helps kennel owners identify the most profitable supplementary services
• Highlights areas for improvement or discontinuation of services
• Provides an overall picture of the effectiveness of supplementary services offered

KPI Disadvantages

• Does not take into account the cost of providing supplementary services
• Revenue from additional services offered may be impacted by external factors such as seasonality or economic conditions

KPI Industry Benchmarks

According to industry data, the average revenue from additional services offered for a dog kennel is around 20% of total revenue.

By tracking and analyzing the revenue from additional services offered, you can make informed decisions about the supplementary services you offer and maximize profitability for your dog kennel.

Cost of Goods Sold

As a dog kennel owner, keeping track of performance metrics is essential to ensure your business is profitable. One of the most critical KPI metrics for kennels is the cost of goods sold (COGS). COGS is an essential financial indicator that relays the direct cost of producing your services. In the following sections, we will explore the definition, use case, calculation, advantages, disadvantages, and industry benchmarks for COGS.

Definition

COGS is a financial metric that tracks the direct costs incurred in producing services or goods offered by a business. For dog kennels, these costs include dog food, dog treats, grooming supplies, veterinary expenses, and wages for kennel attendants.

Use Case

COGS is a crucial financial gauge for dog kennels for identifying the direct costs incurred in providing their services. Understanding COGS helps kennel owners to determine their profit margins, evaluate their pricing strategies, and sustain their business operations.

How To Calculate KPI

To calculate COGS, a kennel owner must do the following:

• Determine the total cost of goods involved in services rendered
• Subtract the cost of returned goods or allowances from the total cost

Calculation Example

Suppose a kennel owner spent $2,000 on dog food, $500 on treats, $1,000 on grooming supplies, paid $3,500 in salaries to kennel attendants, and $1,500 on veterinarian bills. In the same period, there were returns worth $100, and allowances of $50.

KPI Advantages

The advantages of tracking COGS include:

• Provides an accurate estimate of profitability by capturing the direct costs incurred in producing services.
• Helps create a pricing strategy to ensure profitability.
• Helps optimize inventory management by determining the quantities needed to produce services and minimize waste.

KPI Disadvantages

Despite the benefits of tracking COGS, there are some drawbacks:

• COGS does not include indirect or secondary expenses, such as marketing, rent, utilities costs etc. This makes it difficult to calculate the overall profitability of the business.
• COGS is only applicable in situations where a kennel's products or services are entirely distinguishable from other alternative products and services available to customers.

KPI Industry Benchmarks for COGS

Benchmarks for COGS depend on the type of dog kennel and the range of services offered. As a general rule of thumb, kennels should aim to keep their COGS at or below 60% of their gross revenue.

Average revenue per dog per day.

As a dog kennel owner, one of the most important metrics to track is the average revenue per dog per day. This KPI provides valuable insight into how effectively you are monetizing your resources and can help you identify opportunities for improvement.

Definition

The average revenue per dog per day is a KPI that measures the average amount of money generated by each dog in your kennel on a daily basis. It takes into account all revenue streams, including boarding fees, grooming services, and retail sales.

Use Case

This KPI is useful for identifying areas where your kennel is underperforming, such as low utilization rates or inadequate pricing strategies. By monitoring and optimizing your average revenue per dog per day, you can increase profitability and improve the overall health of your business.

How To Calculate KPI

Calculation Example

For example, if your kennel generated $5,000 in revenue over the course of a week from 50 dogs, the average revenue per dog per day would be $14.29.

KPI Advantages

• Helps identify underperforming areas
• Provides valuable insights into pricing strategies
• Can lead to increased profitability and overall business health

KPI Disadvantages

• Does not take into account other expenses, such as payroll or rent
• May not be relevant for kennels with highly varied services or pricing structures

KPI Industry Benchmarks

According to industry benchmarks, the average revenue per dog per day for a dog kennel is $10 to $30, depending on location, services offered, and other factors.

In conclusion, tracking key performance metrics in a dog kennel is vital for ensuring its success. As the pet industry continues to grow, it's crucial to stay ahead of the competition by maintaining a high level of customer satisfaction. Feedback surveys can help businesses to identify areas of strength and areas where improvements are needed.

Metrics such as the average length of stay per dog and the occupancy rate of the kennel allow the business to optimize space utilization and pricing strategies. It's essential for kennels to balance occupancy rates to ensure that the services provided are of high quality and provide value for money.

Other metrics such as the number of repeat customers, revenue from additional services offered, cost of goods sold, and the average revenue per dog per day should not be overlooked. Monitoring these metrics can help businesses to identify opportunities for growth and areas where expenses can be reduced.

Overall, tracking dog kennel metrics can help business owners to make data-driven decisions, implement changes, and ensure long-term success. By regularly measuring and analyzing these metrics, businesses can stay ahead of the competition in what is a rapidly growing industry.