7 Must-Track KPI Metrics for Successful Drone Photography Entrepreneurship

Welcome to the world of drone photography! As a professional entrepreneur, you know that the joy of capturing captivating visuals with modern-day drones is unbeatable. The global market for drone services is expected to grow to $100 billion by 2020, which proves the technology's increasing adoption across industries. However, as a savvy business person, you may want to track the Top Seven Drone Photography KPI Metrics to understand your operations' success. Let's dive into these metrics below:

• Repeat business rate: Do your clients rehire you for their end-to-end needs? Understanding your repeat business rate is one of the ways to gauge customer satisfaction and retention. After all, happy clients lead to more profitable businesses.

• Average turnaround time for delivering visuals: With the right systems, processes, and technology in place, you'll want to know your turnaround time for producing high-quality drone visuals. A fast turnaround time may mean happy clients, and happy clients usually mean repeat business and glowing recommendations.

Let's explore additional KPIs to see which are most important to track.

Repeat business rate

Welcome to the chapter about the 'Repeat business rate' KPI metric. This metric measures the percentage of customers who return to use your services or buy products.

Definition

Repeat business rate, also known as customer retention rate, shows the percentage of customers who return to do business with your company after their first purchase or service experience. A loyal customer base is critical to the long-term success of any business as repeat customers usually create more revenue and require less outreach than new customers.

Use case

For a drone photography business, a repeat business rate metric demonstrates how often clients return to use its services. A high percentage of repeat customers suggest customer satisfaction, and they are likely to leave positive feedback or recommend your service to others.

How to calculate KPI

The formula to calculate the Repeat business rate is quite simple:

Calculation example

Suppose that in a particular period (such as a year), a drone photography business has worked with a total of 100 unique customers. Of those, 45 customers returned in the same period, that would be:

The repeat business rate for this period is 45%.

KPI Advantages

• It demonstrates customer satisfaction.
• Repeat customers often generate more revenue per purchase.
• Higher repeat business rates suggest that the business is more efficient in its operations.

KPI Disadvantages

• A low repeat business rate could indicate a lack of investment in customer service or quality control.
• It doesn't consider the length of the period between purchases, which could skew the data.

KPI Industry Benchmarks

The benchmark for the repeat business rate varies according to industry, business type, and market conditions.

As a general rule, a repeat business rate of 20% to 40% suggests that a company attracts loyal customers regularly, while a rate of 60% or more is considered very high.

Customer satisfaction rate

As a drone photography company, ensuring customer satisfaction should be your top priority. One way to measure your success in this aspect is through tracking and calculating customer satisfaction rate (CSR) as a key performance indicator (KPI). Here are the different aspects to consider for CSR:

Definition

Customer satisfaction rate is a metric that represents the percentage of customers who are satisfied with your drone photography services.

Use Case

CSR is an important KPI for any drone photography business to track as it helps to understand how well your business is meeting customers' expectations. Tracking this KPI over time can help you identify areas for improvement and ensure that your customers remain satisfied with your services.

How To Calculate KPI

The formula for calculating the customer satisfaction rate is:

Calculation Example

Let's say you have 50 customers and 45 of them reported being satisfied with your drone photography services. To calculate your CSR, you can use the formula as follows:

KPI Advantages

• Provides insight into customer feedback and satisfaction levels.
• Helps identify areas requiring improvement.
• Provides a way to measure customer loyalty and retention.

KPI Disadvantages

• Can be subjective, as customer satisfaction perceptions vary.
• Can be difficult to measure without proper data collection methods in place.
• Can be impacted by external factors such as competition, industry changes, and the economy.

KPI Industry Benchmarks

Industry benchmarks for CSR may vary depending on the industry, but a general benchmark for customer satisfaction rate is around 85% or higher.

Number of events covered

As a drone photographer, the number of events you cover is a crucial metric to track. It helps you to determine your business's profitability and understand your target audience's needs. Additionally, this KPI enables you to evaluate your team's performance and identify opportunities to improve your service delivery and overall customer satisfaction. Here's what you need to know about the Number of events covered KPI:

Definition

The Number of events covered KPI refers to the total number of events that you or your team have photographed using drones. An event can be any occasion where drone photography is required, such as weddings, corporate events, real estate photography, or sports events.

Use Case

By tracking the Number of events covered KPI, you can determine the viability of your business. It helps you determine if you're charging the right price per event, and if your team is efficient at covering events. You can also use this KPI to attract new clients by displaying the number of events covered on your portfolio or social media platforms - this is often an excellent indicator of your experience and expertise.

How To Calculate KPI

The formula for calculating the Number of events covered KPI is as follows:

You can measure this KPI monthly, quarterly, or annually, depending on your business's activity level.

Calculation Example

Let's say, in the last quarter of the year, your business covered 50 events. However, there were 200 events in the same period. To calculate the Number of events covered KPI, you'll divide the total number of events covered by the total number of events in the same period:

The result is 0.25.

KPI Advantages

• Helps you to determine your business's profitability
• Assists you in identifying areas for improvement
• Useful for displaying experience and expertise to attract new clients
• A great metric for evaluating team performance

KPI Disadvantages

• The Number of events covered KPI does not reveal the quality of the work done
• It can be misleading, especially if you cover many low-paying events as opposed to fewer high-paying events

KPI Industry Benchmarks

The benchmark for the Number of events covered KPI varies depending on your business's size, service offerings, and location. However, as a drone photographer, you should aim to cover between 10 and 20 events per month to remain profitable.

Average project fee

As a drone photographer, it's important to understand how much you should charge for your services. The average project fee is a key performance indicator (KPI) that can help you determine if you are pricing your services competitively.

Definition

The average project fee is the average amount of money that a drone photographer charges for a project. This KPI takes into account all of the projects that a photographer has worked on during a specific time period.

Use Case

The average project fee KPI is useful for both drone photographers and their clients. For photographers, it can help them determine if they are charging the right amount for their services. For clients, it can help them compare pricing between different photographers.

How To Calculate KPI

To calculate the average project fee KPI, you need to add up the total amount of money earned from all of your projects during a specific time period and divide that number by the total number of projects. The formula for calculating the average project fee KPI is:

Calculation Example

Let's say that you worked on 10 projects during the month of January and earned a total of $5,000. To calculate your average project fee KPI, you would divide $5,000 by 10, which equals $500. So your average project fee for the month of January is $500.

KPI Advantages

• Helps drone photographers determine if they are charging competitive prices
• Helps clients compare pricing between different photographers
• Can help photographers identify pricing trends over time

KPI Disadvantages

• Does not take into account variations in project complexity or the amount of work required
• May not reflect the quality of the photographer's work
• May not be a useful KPI for photographers who specialize in a niche market

KPI Industry Benchmarks

The average project fee KPI can vary depending on the market you are serving. However, according to our research, the average project fee for drone photography in the United States is around $400 to $500 per project.

Lead conversion rate

Lead conversion rate is a critical KPI metric for businesses in the drone photography industry. It measures the percentage of potential customers who take the desired action to become a lead, such as filling out a contact form or providing their email address.

Definition

Lead conversion rate is the percentage of visitors that become leads.

Use Case

Businesses in the drone photography industry can use lead conversion rate to measure the effectiveness of their marketing and advertising efforts. By keeping track of the number of website visitors that become leads, businesses can identify which marketing channels are working and which need improvement.

How to Calculate KPI

To calculate lead conversion rate, divide the number of leads generated by the number of website visitors and multiply by 100 to get a percentage. The formula is:

Calculation Example

Suppose a drone photography business has 10,000 website visitors in a month and generates 500 leads. The lead conversion rate would be:

KPI Advantages

• Measures the effectiveness of marketing and advertising efforts
• Provides insight into visitor behavior and conversion rates
• Helps identify areas for improvement in the sales funnel

KPI Disadvantages

• Does not measure the quality of leads generated
• May not reflect the entire sales process or customer journey
• Not a standalone metric and requires context to be useful

KPI Industry Benchmarks

The average lead conversion rate for businesses in the drone photography industry is around 4-5%. However, lead conversion rates can vary widely depending on the industry, target audience, and marketing strategy.

Number of new clients acquired

As a drone photography business owner, one of the most important metrics that you need to track is the number of new clients you acquire over a certain period of time. This metric is critical for measuring the success of your marketing and sales efforts and helps you understand how to grow your business organically.

Definition

The number of new clients acquired is simply the number of customers who have paid for your services for the first time during a specific period. This metric provides insight into your business's ability to attract new customers and expand its customer base.

Use Case

For a drone photography business, the number of new clients acquired is essential in measuring the success of its marketing and sales strategies. For instance, if the business runs a marketing campaign, it can track the number of new clients acquired during that period to evaluate the campaign's effectiveness and identify areas that need improvement.

How To Calculate KPI

The formula for calculating the number of new clients acquired is:

Calculation Example

Let's say, in the first quarter of the year, five new clients bought services from your drone photography business. During the same period, you had two returning clients. Therefore, your calculation would be:

So in this example, you have acquired three new clients.

KPI Advantages

• Allows you to measure your business's ability to attract new customers
• Helps you evaluate the effectiveness of marketing and sales programs
• Enables you to spot areas that require improvement

KPI Disadvantages

• This metric does not provide insight into the quality of the new clients you acquire
• A low number of new clients could lead to poor business decisions despite the high quality of acquired clients
• This data alone doesn't offer insight into a business's overall revenue growth

KPI Industry Benchmarks

According to a study by HubSpot, companies with less than $5 million in revenue averaged 20 new customers per month while those with over $5 million did 9 new customers per month. Data by Statista has revealed that the median return rate for the photography industry is 43%. These numbers can serve as benchmarks for your drone photography business to set goals and measure its progress.

Average turnaround time for delivering visuals

As a drone photographer, time is of the essence, and timely delivery of images is critical to your business's success. Therefore, measuring and improving your turnaround time for delivering visuals is an important key performance indicator (KPI) for your drone photography business.

Definition

The average turnaround time for delivering visuals is the amount of time it takes to deliver a completed project from the moment the client approves the proposal to the time the visuals are delivered to the client.

Use Case

The use case for tracking this KPI is simple and straightforward: the faster you can deliver completed projects with high-quality images, the happier your clients will be, and the more likely they are to recommend your services or return for future business.

How To Calculate KPI

To calculate the average turnaround time for delivering visuals, you will need to keep track of the number of days it takes to complete each project. The formula for calculating the average turnaround time is:

Calculation Example

Let's assume you completed ten projects in the last month, taking 5, 7, 8, 4, 6, 5, 6, 7, 9, and 8 days to complete, respectively. To calculate the average turnaround time, you would use the formula as follows:

KPI Advantages

• The average turnaround time for delivering visuals KPI helps you identify areas where you can improve your workflow to complete projects faster.
• By reducing your turnaround time, you create a positive customer experience, leading to increased customer satisfaction, loyalty, and repeat business.

KPI Disadvantages

• Tracking the average turnaround time for delivering visuals requires time and attention, adding administrative duties to your workflow.
• The KPI does not account for variations in project difficulty or client expectations, making it difficult to compare across projects accurately.

KPI Industry Benchmarks

According to industry standards, the average turnaround time for delivering visuals should be between three to five days. However, this may vary depending on the client's needs, project difficulty, and turnaround time for competing photographers in your market.

As a professional in the drone photography industry, it's essential to understand the key performance indicators (KPIs) that can help you track and measure the success of your business. With a projected market value of $100 billion by 2020, the industry is experiencing rapid growth, making it more important than ever to keep an eye on your operations.

• Repeat business rate is a crucial KPI for any company as it highlights their customer satisfaction and retention levels. Happy clients are the cornerstone of a profitable business, so it's essential to track this metric to understand your business's success.

• Average turnaround time for delivering visuals is another KPI that deserves attention as it measures the efficiency of your operations. Fast turnaround time can lead to happy clients and repeat business, but it's essential to maintain quality while achieving speed.

While these are two critical KPIs that require constant monitoring, it's important to track other metrics like lead conversion rate, number of new clients acquired, customer satisfaction rate, number of events covered, and average project fee. All these metrics provide valuable insights into different aspects of your business, making it easier to identify areas that require improvement.

Overall, tracking KPIs is crucial for achieving business growth and success in the fast-paced drone photography industry. By regularly tracking and analyzing your KPIs, you can make informed decisions that improve your business's efficiency, profitability, and reputation.