Unlock the Secrets to Museum Success: Mastering the Top 7 KPI Metrics

As a seasoned entrepreneur, I know the importance of tracking business performance metrics. The museum industry is no exception. In today's tech-driven world, museum managers need to keep track of key performance indicators (KPIs) to stay ahead of the game.

• Number of attendees is one of the most important KPIs for any museum. It provides valuable insights into the popularity of the museum and its exhibits. In addition, it helps to measure the effectiveness of marketing and promotional efforts.
• Membership sales are a crucial revenue stream for museums. By tracking membership sales, museum managers can determine the success of their membership programs and make informed decisions about pricing and benefits.

Other KPIs that you'll read about in this article include gift shop revenue, school partnership revenue, visitor satisfaction rating, exhibit popularity ranking, and repeat visitation rate.

Read on for a comprehensive guide to tracking and calculating the top seven museum KPI metrics. Whether you're a museum manager, marketer, or business owner, this guide will provide you with the insights you need to optimize your museum's performance.

Number of attendees

One of the most common KPIs used by museums is the number of attendees, which is essentially a measure of foot traffic. This metric is an important indicator of a museum's popularity and can help identify trends in attendance over time. In this chapter, we will explore how to define, use, and calculate this KPI, as well as some industry benchmarks that you can use to compare your museum's performance to others in the field.

Definition

The number of attendees KPI refers to the total number of visitors who enter a museum's doors during a given period. This can include both paid and unpaid visitors, as well as members and non-members. It is a simple, yet powerful metric that can provide valuable insights into a museum's success.

Use Case

The number of attendees KPI is largely used as a measure of overall museum performance. It can help museum administrators assess how many people are coming through the doors, how often, and from what areas or demographics. It allows museum managers to monitor attendance trends, measure visitor satisfaction, and evaluate the success of exhibitions and programs.

How to Calculate KPI

The formula for calculating the number of attendees KPI is relatively straightforward:

Calculation Example

Let's say that your museum was open for 30 days in a given month and had a total of 12,000 visitors during that time. Using the formula above, we get:

So the number of attendees KPI for that month would be 400.

KPI Advantages

• Easy to understand: As a simple metric, the number of attendees is easy to calculate and easy for museum staff to understand.
• Provides a benchmark for success: Knowing how many visitors come through your doors can help you set goals and evaluate success over time.
• Useful in funding applications: Funding agencies often ask for attendance numbers as a way to assess the impact of a museum on the community.

KPI Disadvantages

• Doesn't measure engagement: While attendance numbers can tell you how many people are coming through the doors, they don't necessarily measure engagement or visitor satisfaction.
• Can be influenced by external factors: Attendance numbers can be impacted by factors outside of a museum's control, such as weather or seasonality.
• Doesn't provide insight into visitor demographics: While you can track overall attendance, you may not know who your audience is, which can make targeting programs or exhibitions challenging.

KPI Industry Benchmarks

• According to the American Alliance of Museums, the median attendance per year for all museums in the US is around 26,000 visitors. However, this number varies widely depending on the size and type of museum.
• A study by the Association of Science-Technology Centers found that the median attendance at science centers and museums in the US in 2019 was around 200,000 visitors.
• The Louvre, one of the most visited museums in the world, received around 9.6 million visitors in 2019.

Membership Sales

As a museum owner, membership sales are a key performance indicator (KPI) that measures the number of memberships sold to visitors.

Definition

Membership sales KPI tells you how many visitors are interested in supporting your museum over a more extended period of time.

Use Case

The use case of the membership sales KPI is to assess the effectiveness of a museum's membership program.

How to Calculate KPI

To calculate membership sales KPI, you need to divide the total number of memberships sold for a specific period by the total number of visitors.

Calculation Example

Suppose your museum sold 200 memberships during the month and had a total of 10,000 visitors. In that case, the membership sales KPI would be:

KPI Advantages

• Membership sales KPI helps museum owners understand how many visitors are interested in supporting their museum.
• Museum owners can use the KPI to make data-driven decisions, such as offering discounts on memberships to attract more visitors.
• This KPI can also assess how well your marketing campaigns are working in attracting visitors to become members.

KPI Disadvantages

• Membership sales KPI may not present the entire picture of how effective the membership program is in retaining members.
• This KPI does not guarantee that all members will return, so it may not indicate long-term success.

KPI Industry Benchmarks

According to industry benchmarks, the average membership sales KPI for museums is between 1.5% to 2%.

Gift shop revenue

As museums continue to evolve, there has been an increase in the number of visitors who not only come to admire art or artifacts but also make purchases from gift shops located within the museum. The revenue generated from the sale of products in a museum’s gift shop is vital to the museum’s financial success and sustainability.

Definition

Gift shop revenue is the total amount of money generated from the sale of products in a museum's gift shop. This includes all sales, including merchandise, tickets, and food and beverage purchases.

Use Case

Knowing the amount of revenue generated from the gift shop can help museum managers and operators keep track of how well the gift shop is performing. It can also provide insights into which products are selling more, whether there is a seasonal pattern to sales, and how external factors such as promotions or exhibitions influence sales.

How To Calculate KPI

To calculate gift shop revenue, the formula is:

Calculation Example

For example, if a museum had total sales of $100,000, returns of $5,000, discounts of $2,000, and taxes of $10,000, then the gift shop revenue would be:

KPI Advantages

• Helps managers understand the performance of the gift shop.
• Provides insights into which products are selling more and the factors that influence sales.
• Helps in the planning of future exhibitions and promotions.

KPI Disadvantages

• Does not take into account the cost of goods sold or the associated expenses related to running the gift shop, such as rent, utilities, and employee salaries.
• Can be affected by external factors such as location and competition that are beyond the museum's control.
• Can be affected by seasonal fluctuations, making it challenging to use as a benchmark.

KPI Industry Benchmarks

According to a report by the American Alliance of Museums, the average revenue for museum retail operations is approximately 25% of the total earned revenue for museums across the United States. However, these benchmarks will vary depending on the location, size, and type of museum.

School partnership revenue

School partnership revenue is a KPI metric that measures the revenue generated from partnerships with local schools. This can include revenue from ticket sales, educational programs, and other collaborative initiatives. As a museum, partnering with schools can provide several benefits, such as increased exposure, higher attendance, and the potential for additional revenue streams.

Definition

School partnership revenue measures the total revenue generated from partnerships with local schools. This can include revenue from ticket sales, educational programs, and other collaborative initiatives.

Use Case

Partnering with schools can provide several benefits to museums. By collaborating with local schools, museums can increase their exposure and reach a broader audience. This can lead to higher attendance and the potential for additional revenue streams through partnerships and collaborations.

How To Calculate KPI

The formula for calculating school partnership revenue is:

Calculation Example

Let's say a museum generated $50,000 in revenue from school partnerships in a given year. The school partnership revenue KPI would be:

KPI Advantages

• Increased exposure and reach through partnerships with local schools
• Higher attendance and potential for additional revenue streams
• Opportunity to provide valuable educational experiences for students

KPI Disadvantages

• Revenue generated from school partnerships can vary from year to year
• Partnerships may require additional resources and staff time
• The success of partnerships may depend on external factors such as the local school district and economic climate

KPI Industry Benchmarks

Industry benchmarks for school partnership revenue can vary significantly based on the size and scope of the museum's partnerships. However, museums can benchmark their performance against other museums in their same area or region to assess the effectiveness of their school partnership programs.

Visitor Satisfaction Rating

Definition: Visitor satisfaction is a measure of the overall experience visitors have when they visit a museum. This KPI measures the extent to which visitors are satisfied or dissatisfied with their visit, taking into account factors such as accessibility, cleanliness, staff friendliness, exhibit quality, and overall experience.

Use Case: Tracking visitor satisfaction is critical for museums because it helps them identify areas where they are excelling and areas where they need to improve. Armed with this information, museums can make data-driven decisions to enhance the visitor experience, which can result in increased attendance, improved word-of-mouth referrals, and ultimately, greater profitability.

How to Calculate KPI: To calculate visitor satisfaction, divide the number of visitors who rated their experience positively by the total number of respondents and multiply by 100.

Calculation Example: A museum has 1,000 visitors in a month. Of those visitors, 750 rate their experience as positive. The visitor satisfaction rating for the month is:

KPI Advantages:

• Visitor satisfaction is a strong indicator of the overall health of a museum's business.
• By tracking visitor satisfaction, museums can make data-driven decisions that increase attendance and profitability.
• Visitor satisfaction is a metric that can be easily tracked using surveys, social media, and other feedback mechanisms.

KPI Disadvantages:

• Visitor satisfaction is a subjective measure that can be difficult to quantify.
• Visitor satisfaction ratings may fluctuate based on external factors outside of a museum's control, such as weather or traffic.
• The visitor satisfaction rating may not reflect the opinions of all visitors, as not all visitors may be willing to provide feedback.

KPI Industry Benchmarks: According to a study by the American Alliance of Museums, the average visitor satisfaction rating for museums is 83%. However, this rating can vary widely based on the individual museum and the demographics of its visitors.

Exhibit Popularity Ranking

As a serial entrepreneur, I understand the importance of tracking Key Performance Indicators (KPIs) to monitor business performance. In the museum industry, exhibit popularity ranking is a crucial metric for measuring the success of exhibits. In this chapter, we will look at how to define, use, and calculate this KPI, along with its advantages, disadvantages, and industry benchmarks.

Definition

Exhibit popularity ranking measures the relative popularity of a museum exhibit based on visitor engagement and attendance. This KPI helps museums to understand which exhibits are most successful, which can inform future investment and planning.

Use Case

For a museum, exhibit popularity ranking is an important metric for measuring the success of exhibits. By understanding which exhibits are most popular, museums can make informed decisions about future investment, exhibit design, and marketing strategies. This KPI can also help museums to identify potential areas for improvement, such as more effective visitor engagement or better exhibit design.

How To Calculate KPI

The formula for calculating exhibit popularity ranking is:

For example, if a museum had a total attendance of 100,000 and an exhibit had an attendance of 10,000, the exhibit popularity ranking would be:

Calculation Example

Let's say a museum had four exhibits in a given year, with the following attendance figures:

• Exhibit A: 10,000
• Exhibit B: 7,500
• Exhibit C: 5,000
• Exhibit D: 2,500

The total attendance for the museum during this year was 50,000. Using the exhibit popularity ranking formula, we can calculate the popularity ranking for each exhibit:

• Exhibit A: (10,000 ÷ 50,000) × 100 = 20%
• Exhibit B: (7,500 ÷ 50,000) × 100 = 15%
• Exhibit C: (5,000 ÷ 50,000) × 100 = 10%
• Exhibit D: (2,500 ÷ 50,000) × 100 = 5%

This shows that Exhibit A was the most popular exhibit, followed by B, C, and D, in that order.

KPI Advantages

• Allows museums to understand which exhibits are most popular and successful
• Can inform future investment and planning decisions
• Helps museums identify areas for improvement

KPI Disadvantages

• Does not measure visitor satisfaction or engagement beyond attendance figures
• Does not account for differences in exhibit size or duration
• Can be affected by random factors such as weather or events

KPI Industry Benchmarks

There are no widely recognized industry benchmarks for exhibit popularity ranking, as this can vary depending on factors such as museum size, location, and exhibit themes. However, museums can set internal benchmarks based on previous exhibit popularity rankings and the overall attendance figures for the museum.

Repeat Visitation Rate

If you're running a museum, increasing your number of return visitors should be a top priority. The repeat visitation rate KPI is a metric that can help you track how many visitors are coming back to your museum. Here's what you need to know:

Definition

The repeat visitation rate is a KPI that measures the percentage of visitors who return to a museum more than once within a given time period.

Use Case

Knowing your repeat visitation rate can provide valuable insights into how visitors perceive your museum. If your repeat visitation rate is high, it suggests that visitors are satisfied with their experience and view your museum as a destination worth visiting multiple times. On the other hand, if your repeat visitation rate is low, it could be a sign that visitors are not finding your museum engaging enough to warrant a return visit.

How To Calculate KPI:

To calculate your repeat visitation rate, follow this formula:

Calculation Example:

Let's say your museum had 10,000 visitors last year and 2,500 of them returned for a second visit within the same year. To calculate your repeat visitation rate, use the formula:

This means that 25% of the visitors to your museum returned for a second visit within the same year.

KPI Advantages:

• Helps to identify what aspects of the museum are working well
• Provides insights into visitor satisfaction
• Assists in predicting future demand and revenue

KPI Disadvantages:

• Doesn't distinguish between frequent and occasional visitors
• Doesn't account for the impact of external factors, such as seasonality or tourism trends

KPI Industry Benchmarks

The repeat visitation rate can vary widely depending on factors such as the museum's location, type, size, and exhibit offerings. However, according to the American Alliance of Museums, the industry benchmark for a good repeat visitation rate is around 20-30%.