Are you planning to open a multiplex cinema, or running one already but struggling with measuring its success? Understanding Key Performance Indicators (KPIs) is critical to evaluating and improving your cinema's performance. In this article, we have listed the top seven essential KPIs that every cinema owner should know.

  • Revenue per screen: One of the most crucial KPIs, it measures how much money your cinema generates per screen.
  • Occupancy rate: It measures the percentage of seats booked, and how well you use your invested capacity.

These KPIs form the core measurements of your cinema's success. However, there are other KPIs you should keep an eye on to gain deeper insights into your cinema's business. We will discuss them in detail in the following sections.

  • Average ticket price: It indicates the average price of tickets sold, and whether the pricing strategy in place is effective.
  • Concession sales per customer: It refers to the amount of revenue generated by your concession sales, a vital component of a multiplex cinema's income.
  • Customer satisfaction score: It shows how well your customers are enjoying their time, which is critical to building repeat customer-ship and word-of-mouth marketing.

These KPIs are integral to streamlining your business and optimizing it for higher revenue and better customer experience. By tracking each of these metrics, you can make better decisions about running your cinema, engaging your patrons, and driving sales. Keep reading to learn how you can track and calculate these metrics more efficiently.



Revenue per screen

As a business owner in the multiplex cinema industry, you understand that profitability is key. One metric that can help you track the financial performance of your business is revenue per screen. In this chapter, we will explore what revenue per screen is, how to calculate it, and industry benchmarks for this KPI.

Definition

Revenue per screen is a KPI that measures the amount of money a cinema generates per screen. In other words, it shows how much money the cinema makes per movie shown on the screen.

Use Case

Revenue per screen is a valuable KPI for cinema owners as it can help them identify areas of improvement in their operations. By understanding the performance of their screens, cinema owners can optimize ticket prices, movie schedules, and other factors that can impact revenue.

How To Calculate KPI

Revenue per screen = Total Revenue / Number of Screens

Calculation Example

Let's say your cinema generated $100,000 in revenue last month, and you have 10 screens. Your revenue per screen would be:

Revenue per screen = $100,000 / 10 = $10,000

Therefore, your cinema generated an average of $10,000 per screen in the past month.

KPI Advantages

  • Enables cinema owners to assess screen performance and optimize pricing strategies.
  • Helps cinema owners understand the financial impact of movie scheduling on their business.
  • Enables cinema owners to identify trends and patterns in screen performance that can help them make informed business decisions.

KPI Disadvantages

  • Does not consider other sources of cinema revenue, such as food and beverage sales.
  • May not provide a complete picture of overall cinema performance.
  • Does not account for differences in screen sizes and seating capacities that can impact revenue.

KPI Industry Benchmarks

According to industry data, the average revenue per screen for multiplex cinemas in the US is $10,000-$14,000 per screen annually. However, this number can vary greatly depending on location, ticket prices, and other factors.

Tips & Tricks

  • Consider implementing dynamic pricing strategies to optimize revenue per screen based on movie genre, showtime, and other factors.
  • Track revenue per screen over time to identify trends and patterns that can help you make more informed business decisions.
  • Compare your revenue per screen to industry benchmarks to assess your cinema's performance relative to others in the market.


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Average ticket price

The average ticket price (ATP) is a KPI that measures the average amount of money customers spend on a single movie ticket at a multiplex cinema during a specific time period. Tracking ATP can provide valuable insights into the average spending behavior of customers and assist the management in making informed decisions.

Definition

The ATP is the amount of revenue earned by a cinema during a specific period divided by the total number of movie tickets sold during the same period. It is a vital KPI used by cinema owners to measure the success and profitability of their business.

Use Case

ATP helps cinema owners and managers track pricing strategies and ticket trends to generate higher revenue. By monitoring ATP, management can determine the effectiveness of promotional offers, identify opportunities to improve customer service, and monitor the performance of different movies, screens, and showtimes.

How To Calculate KPI

The formula for calculating average ticket price is:

ATP = Total revenue / Total number of tickets sold

Calculation Example

Suppose ABC Multiplex has a total revenue of $50,000 and has sold 10,000 movie tickets in the last month. The ATP for the multiplex can be calculated as follows:

ATP = $50,000 / 10,000 = $5

KPI Advantages

  • ATP helps cinema owners make informed pricing decisions that can boost revenue and profitability.
  • It enables cinema owners to compare their ATP against industry benchmarks and identify areas where they are underperforming.
  • ATP assists cinema owners in identifying popular movies and showtimes and scheduling them accordingly for maximum revenue.

KPI Disadvantages

  • The ATP metric does not take into account different pricing strategies employed by different cinemas. Therefore, it may inaccurately reflect price sensitivity.
  • ATP does not give insights into customer preferences or showtimes that attract more customers.

KPI Industry Benchmarks

The industry benchmark for ATP is around $8 per movie ticket. However, this number can vary depending on various factors such as location, time of year and competition, among others.

Tips & Tricks

  • Regularly monitor ATP to assess the effectiveness of pricing strategies and promotional offers.
  • Compare ATP to industry benchmarks to identify opportunities for improvement.
  • Utilize historical ATP data to forecast future revenue trends and determine future showtimes and movie schedules.


Concession sales per customer

Concession sales per customer is a crucial Key Performance Indicator (KPI) in the cinema industry since it measures the revenue generated by the sale of food and drinks sold to a customer on average.

Definition

Concession sales per customer calculates the average amount of money that each customer spends on food and drinks during their cinema visit.

Use Case

The primary use case for concession sales per customer is to track the revenue generated by food and drink sales, which represents a significant portion of a cinema's total income.

How to Calculate KPI

To calculate concession sales per customer, divide the total concession revenue by the number of customers served.

Concession sales per customer = Total concession revenue / Number of customers served

Calculation Example

If a cinema has total concession revenue of $5,000 and has served 1,000 customers, the calculation would be as follows:

Concession sales per customer = $5,000 / 1,000 = $5 per customer

KPI Advantages

  • Concession sales per customer can help cinemas understand customer buying patterns, preferences, and interests.
  • It helps cinema owners adjust their food and drink prices, product mix, and promotional strategies to increase revenue.

KPI Disadvantages

  • The KPI does not consider the customer experience, such as the quality of the products sold, the level of service provided, or the cleanliness of the cinema.
  • The KPI can be distorted by outliers, such as customers who make high or low purchases.

KPI Industry Benchmarks for the KPI: 'Concession sales per customer'

According to industry benchmarks, a good concession sales per customer ratio for cinemas ranges from $4 to $6 per customer. However, this can vary based on factors such as cinema location, competition, and target audience.

Tips for improving Concession sales per customer KPI

  • Offer combo deals such as a meal deal at a discounted price
  • Improve the quality, availability, and presentation of food and drinks
  • Introduce new trending food items to the menu


Occupancy Rate

Occupancy rate is one of the most important KPI metrics for multiplex cinemas. Let's dive into its definition, use case, how to calculate KPI, calculation example, KPI advantages, KPI disadvantages, and KPI industry benchmarks.

Definition

Occupancy rate measures the percentage of seats occupied per screening, show, or showtime. It provides a clear picture of the utilization of a multiplex cinema's capacity. A high occupancy rate means that the cinema is operating at optimal levels while a low occupancy rate could indicate issues with movie selection, pricing, or location.

Use Case

Occupancy rate is used to determine whether the cinema is generating revenue efficiently, whether there are opportunities to improve service delivery, and whether the cinema is meeting customer needs.

How to Calculate KPI

To calculate occupancy rate:

Occupancy Rate = Number of seats occupied / Total number of seats x 100%

Calculation Example

Suppose a cinema has a seating capacity of 1000, and on a screening evening, 800 seats are occupied. The occupancy rate will be:

Occupancy Rate = 800/1000 x 100% = 80%

KPI Advantages

  • Provides insights into revenue-generating opportunities
  • Helps optimize capacity utilization and reduce operating costs
  • Helps increase profitability by identifying growth opportunities through the analysis of data

KPI Disadvantages

  • Occupancy rate doesn't account for the number of screenings for the individual movie. A high occupancy rate for a single screening doesn't necessarily mean anything
  • The occupancy rate can fluctuate depending on the time of day, day of the week, and time of the year.

KPI Industry Benchmarks

The best way to determine your cinema's occupancy rate is to compare it with the industry benchmark. In the US, the average occupancy rate is around 20%. In Europe, the average rate is about 29%, while in the Asia Pacific region, the average rate is about 30%. Remember, these were pre-pandemic rates. With Covid 19, the whole average occupancy rate has plummeted.

Tips & Tricks

  • Compare occupancy rate with other KPI metrics such as Average Ticket Price and Concession Sales to get a clearer picture of revenue generation and efficiency.
  • Adjust occupancy rates according to peak and off-peak times to identify issues around resource allocation.
  • Analyze occupancy rates over time to identify trends and growth opportunities.


Customer satisfaction score

A multiplex cinema's customer satisfaction score is an essential KPI metric that measures how satisfied customers are with the cinema's services. It is a critical indicator of how well the cinema is performing and can also provide insights into areas that require improvement.

Definition

The customer satisfaction score measures the overall satisfaction of cinema patrons with the services provided. It takes into account various factors such as the quality of service, cleanliness, seating comfort, ticket prices, food and beverage offerings, and many others.

Use Case

Movie-goers want to enjoy their movie experience. The satisfaction score determines how well the multiplex cinema is meeting their needs, considering the range of factors that affect their experience during the movie. An effective customer satisfaction score system offers an excellent insight into market preferences, potential crowd favorites, and exclusive unique offerings.

How To Calculate KPI

Customer satisfaction score can be calculated using the following formula:

(Number of satisfied customers/Total number of customers)*100

Calculation Example

Suppose a multiplex cinema has 1,000 customers in a month, and out of them, 850 are satisfied. The customer satisfaction score would be calculated as:

(850/1000)*100 = 85%

KPI Advantages

  • It offers insight into how the cinema's services are meeting patrons' needs.
  • It provides an indication of how likely customers are to return to the cinema.
  • It measures the effectiveness of the cinema's marketing strategies, giving a glimpse of customer lifetime value.

KPI Disadvantages

  • The survey metrics are subjective and depend on respondents' attitudes and responses.
  • The survey metrics may not comply with universal standards.
  • The calculation analysis is time-consuming and somewhat complicated.

KPI Industry Benchmarks for the KPI: ' Customer satisfaction score '

Benchmark values for some of the top-performing multiplex cinemas globally is as follows:

  • AMC: 83%
  • Cinemark: 79%
  • Regal Cinemas: 78%

Tips and Tricks

  • Constantly evaluate the factors that affect customer experience, as they may vary from one location to another.
  • Consider feedback collection at various intervals or after specific events as it can provide crucial insights to improve upon.
  • Implement an effective feedback-collection system that caters to grievances, comments, and suggestions.


Repeat customer rate

Definition: The repeat customer rate measures the percentage of customers who have visited the multiplex cinema more than once within a given period.

Use Case: The repeat customer rate KPI is essential for cinema owners to understand customer loyalty and engagement. By tracking this KPI, they can determine if their services, offers, and amenities are captivating enough to bring customers back to the cinema.

How To Calculate KPI: The formula for calculating the repeat customer rate is:

Number of repeat customers in a given period / Total number of customers in the same period * 100

Calculation Example: In Q1 2021, a multiplex cinema had 1000 unique customers, out of which 200 visited the cinema more than once. The repeat customer rate for the given period would be:

200 / 1000 * 100 = 20%

KPI Advantages:

  • Helps to determine customer retention rate and loyalty.
  • Indicates the effectiveness of customer engagement strategies and initiatives.
  • Provides insight into the quality of services, offers, and amenities offered by the cinema and helps reconceptualize marketing strategies.

KPI Disadvantages:

  • Does not reflect customer satisfaction or the overall quality of the cinema's services.
  • May be affected by external factors such as competitor attraction, external events, or seasonality.
  • There is no industry benchmark, and performance may vary depending on the cinema's location, size, and audience segment.

KPI Industry Benchmarks: There are no established industry benchmarks for the repeat customer rate KPI due to variations in location, audience, and cinema size. As a rule of thumb, a repeat customer rate above 15% is considered healthy, while a rate between 10% to 15% indicates room for improvement, and anything below 10% may signify a significant customer retention challenge.

Tips & Tricks:

  • Invest in loyalty programs and rewards to incentivize customers to visit the cinema again.
  • Track the repeat customer rate KPI for different customer segments to identify patterns and adjust the marketing strategy accordingly.
  • Regularly survey customers to gain feedback on services, offers, and amenities and act upon the results to improve the cinema experience.


Online booking conversion rate

Online booking conversion rate is a metric that is used to determine how well a multiplex cinema's website converts visitors into customers who make a booking. As online bookings become more prevalent, measuring this KPI is essential for cinemas to understand how well their website is performing and identify any areas for improvement.

Definition

The online booking conversion rate measures the percentage of website visitors who make a booking. This KPI helps cinemas determine how successful their online booking system is in converting website visitors into customers.

Use Case

Measuring the online booking conversion rate is particularly important for cinemas with online booking options. Understanding how well the cinema's website converts visitors into paying customers is critical for gauging the website's success. By measuring the online booking conversion rate, cinemas can identify areas of improvement, such as website design, user experience, and booking processes, which can increase customer satisfaction and ultimately drive more revenue.

How To Calculate KPI

To calculate the online booking conversion rate, divide the number of bookings made by the number of website visitors, then multiply by 100 to convert to a percentage.

(Number of Bookings / Number of Website Visitors) x 100

Calculation Example

For example, if a cinema has 10,000 website visitors in a month and receives 500 bookings, the online booking conversion rate would be:

(500 / 10,000) x 100 = 5%

KPI Advantages

  • Measuring the online booking conversion rate can help multiplex cinemas identify areas for improvement and optimize their website to increase conversion rates.
  • Tracking this KPI can improve the overall customer experience by identifying potential roadblocks to the booking process, such as complicated booking processes or poor website design.
  • The online booking conversion rate can also provide an indication of customer loyalty and satisfaction by measuring the percentage of people who return to make bookings after visiting the cinema's website.

KPI Disadvantages

  • The online booking conversion rate does not consider how much revenue is generated by the booking or the customer's booking history.
  • The metric may not reflect the actual customer experience or the customer's intentions since a booking may be abandoned for various reasons besides website performance.
  • Comparability across businesses or industries is limited as factors like the size of the cinema, location, and customer demographics may affect the online booking conversion rate.

KPI Industry Benchmarks

Industry benchmarks for the online booking conversion rate vary depending on the cinema's size, location, and audience. As a general rule of thumb, a good online booking conversion rate is between 2% and 5%, while a great conversion rate is over 5%. However, cinemas should focus on comparing their conversion rates with their previous performance rather than benchmarking against other cinemas or industries.

Tips & Tricks

  • Quick and easy booking processes with intuitive design and fewer steps can encourage customers to book online.
  • Using promotional incentives such as discounts or loyalty programs can increase online bookings and the online booking conversion rate.
  • Cinemas can analyze the customer journey on their website and identify potential issues that may hamper the overall user experience.

That's all for online booking conversion rate KPI. Keep reading to learn more about the top seven multiplex cinema KPI metrics!


In conclusion, understanding and tracking Key Performance Indicators (KPIs) is essential for the success of a multiplex cinema. KPIs such as revenue per screen and occupancy rate are critical measurements that provide a broad picture of a cinema's performance. However, to gain deeper insights into the business, cinema owners must keep an eye on other KPIs such as average ticket price, concession sales per customer, customer satisfaction score, and repeat customer rate. By tracking and analyzing these metrics, cinema owners can make informed decisions about their pricing strategies, marketing campaigns, and customer engagement initiatives. This will help them streamline their business operations, optimize customer experience, and drive higher revenue growth. Ultimately, the success of a multiplex cinema hinges on its ability to deliver a memorable movie experience to its patrons. With the right KPIs in place, cinema owners can achieve this and more.

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