Top Helicopter Taxi KPI Metrics to Keep Your Business Flying High

Welcome to the world of helicopter taxi businesses - a fast-growing industry! As someone who has started and run many businesses, I can say with certainty that measuring performance is crucial for success. Hence, it is essential to identify the key performance indicators (KPIs) that determine the robustness of your operations.

Today, we will dive into the Top Seven Helicopter Taxi KPI Metrics that you should track and calculate. This industry has experienced significant growth in the past decade with a compound annual growth rate (CAGR) of 3.5%. However, with increased competition, it is vital to keep a pulse on important metrics to remain competitive and provide quality services to your customers.

• Number of high net worth individuals as clients: This KPI measures the number of clients who earn more than $1 million annually. It is crucial to track this metric since high net worth clients make up a significant portion of your revenue.
• Percentage of on-time arrivals and departures: This is the percentage of flights within acceptable delays to a client. Monitoring this KPI will ensure that your company is providing quality services to your clients.
• Customer retention rate: This KPI measures the percentage of customers who have done business with you multiple times. A high customer retention rate indicates that your company is providing a high-quality service and creating a positive customer experience.

In the remaining parts of this article, we will explore the remaining KPIs that you should track to maintain your competitive advantage in the helicopter taxi business. Are you ready to sharpen your metrics tracking? Let's dive in!

Number of High Net Worth Individuals as Clients

As a helicopter taxi service provider, one of the key KPI metrics to track is the number of high net worth individuals (HNWIs) as clients. In this chapter, we will define this KPI, its use case, how to calculate it, industry benchmarks, advantages, and disadvantages.

Definition

The number of HNWIs as clients measures the total number of high net worth individuals who use our helicopter taxi service over a specified time period.

Use Case

Tracking this KPI is essential for the growth and success of our helicopter taxi business. It allows us to identify the segment of our clientele that provides the highest value. It helps us to focus on the right marketing channels and strategies to target the high net worth market segment effectively.

How to Calculate KPI

The formula to calculate the number of HNWIs as clients KPI is:

For example: In a month, we had a total of 100 clients, 30 of whom were HNWIs. Therefore,

Calculation Example

Suppose our helicopter taxi service had 200 clients last month, and during this time, we had 60 high net worth clients. Then, the number of HNWIs as clients KPI would be:

KPI Advantages

• Allows us to identify a significant customer segment with high business value.
• Helps to formulate effective marketing strategies for high net worth individuals.
• Provides insight into the overall performance of the business by tracking changes in HNWI clients over time.

KPI Disadvantages

• May not accurately reflect the overall performance of our helicopter taxi business if there is a significant variance in travel patterns of HNWIs.
• May exclude other market segments that could also be valuable for business growth.
• Could be affected by seasonality or other external factors that influence HNWI travel patterns.

KPI Industry Benchmarks

As a helicopter taxi service provider, it is useful to know where we stand in comparison to the industry benchmarks for this KPI. According to industry reports, the average percentage of HNWI clients for helicopter taxi services is around 35%. However, the percentage may vary according to geographic location, demographics of the client base, and other factors specific to the business.

Percentage of On-Time Arrivals and Departures

Definition

The Percentage of On-Time Arrivals and Departures KPI measures the percentage of flights that arrived or departed on time. This KPI is important for helicopter taxi companies that want to provide reliable and consistent services to their customers.

Use Case

The Percentage of On-Time Arrivals and Departures KPI is crucial for helicopter taxi companies to ensure customer satisfaction and maintain a competitive advantage in the market. It helps to identify potential issues in operations, such as scheduling or maintenance, that may impact the company's ability to provide reliable services.

How to Calculate KPI

To calculate the Percentage of On-Time Arrivals and Departures KPI, divide the number of flights that arrived or departed on time by the total number of flights, and then multiply by 100. The formula is:

Calculation Example

If a helicopter taxi company operated 100 flights in a month and 90 of them arrived or departed on time, the calculation would be:

Therefore, the Percentage of On-Time Arrivals and Departures KPI for the company would be 90%.

KPI Advantages

• Provides insights into the company's ability to provide reliable services to customers
• Helps to identify potential issues in operations that may impact the company's ability to provide reliable services
• Enables the company to compare its performance with industry benchmarks

KPI Disadvantages

• Does not measure the quality of the service provided
• May not reflect external factors that may impact the company's ability to provide reliable services, such as weather conditions or air traffic control

KPI Industry Benchmarks

The industry benchmarks for the Percentage of On-Time Arrivals and Departures KPI for helicopter taxi companies are:

• 80-90%: Good performance
• 70-80%: Average performance
• Below 70%: Poor performance

Customer Retention Rate

As a helicopter taxi business, one of the most important metrics to track is your customer retention rate. This KPI calculates the percentage of customers who have continued to use your services over a set period of time.

Definition

Customer retention rate is the percentage of previous customers who continue to use your service after a certain period of time.

Use Case

The customer retention rate is a valuable metric to track as it indicates whether or not your business is able to keep customers coming back. High retention rates suggest that your business is providing a valuable service, while low retention rates may indicate that there are issues with the quality of service or overall customer experience.

How To Calculate KPI

To calculate the customer retention rate, you will need the number of customers who used your service during a specific period (N), and the number of customers who have used your service in the following period (R). The formula for calculating customer retention rate is as follows:

Calculation Example

Let's say that your helicopter taxi business had 100 customers in January and 80 of those customers continued to use your service in February. To calculate the customer retention rate for February, you would use the following formula:

KPI Advantages

• Provides insight into customer loyalty and satisfaction
• Helps identify areas for improvement in customer experience and service quality
• Indicates the potential for revenue growth and repeat business

KPI Disadvantages

• May not account for customers who have not had the opportunity to use the service again
• May not reflect changes in the market or industry which may impact retention rates
• Does not indicate the reasons why customers may have stopped using your service

KPI Industry Benchmarks

• In the helicopter taxi industry, a customer retention rate of 70% or higher is considered excellent.
• Retention rates below 50% may indicate serious issues with customer satisfaction or service quality.

Top Seven Helicopter Taxi KPI Metrics: How to Track and Calculate

Average revenue per client

Definition: The average revenue per client calculates the average amount of revenue generated from each client during a specific period. It is a critical metric in the helicopter taxi industry as it indicates the company's ability to attract high-paying clients and generate profits.

Use Case: Understanding the average revenue per client helps helicopter taxi companies identify high-value clients and develop targeted marketing campaigns to attract more customers with similar profiles. By increasing the average revenue per client, the company can drive profits and grow the business.

How To Calculate KPI: The formula for calculating the average revenue per client is:

Calculation Example: Suppose a helicopter taxi company generated $100,000 in revenue during the last quarter and had 50 clients. The average revenue per client would be:

KPI Advantages: Monitoring the average revenue per client is crucial in identifying highly profitable customers and understanding the company's revenue streams. By focusing on attracting high-revenue clients, the company can increase profits and growth.

KPI Disadvantages: The average revenue per client metric may not always give a complete picture of customer value, as some clients may use the company's services more frequently than others. Additionally, external factors such as the economy, competition, and industry trends may impact the metric.

KPI Industry Benchmarks: The average revenue per client varies significantly among helicopter taxi companies, depending on factors such as the company's location, fleet size, and customer base. A benchmark could be around $1,500-$2,500 per client, but it varies across the industry.

Top Seven Helicopter Taxi KPI Metrics. How to Track and Calculate

Number of customized packages sold

Customized packages sold is one of the most important KPI metrics for helicopter taxi companies. It shows the number of unique and tailor-made packages sold to customers. These tailored packages may include VIP transportation, medical emergencies, industrial and construction services, wedding transportation, and aerial tours with specific routes and locations. Offering customized packages can distinguish a helicopter taxi company from competitors, leading to increased customer satisfaction, client retention, and ultimately more revenue.

Definition

• Number of customized packages sold is the count of unique and customized packages sold to customers within a specific period (day, week, month, quarter, or year).

Use Case

• This KPI helps the company understand the demand for customized packages and assess the performance of the sales and marketing departments in promoting this type of service.
• It can also help the operations team to optimize the allocation of resources, such as pilots, helicopters, and ground staff, to meet the demand of customized packages.

How To Calculate KPI

Calculation Example

• Company A sold 60 customized packages in the first quarter of the year.
• Therefore, the KPI for the Number of customized packages sold is 60.

KPI Advantages

• It can help differentiate from competitors.
• It can increase customer satisfaction and retention.
• It provides insights into the demand for customized packages, allowing the company to optimize its resources and overall strategy.

KPI Disadvantages

• It may require additional resources to create unique and customized packages, which can increase operational costs.
• It may be influenced by seasonal or external factors that are beyond the company's control.
• The definition of a customized package may vary among customers.

Industry Benchmarks

• Industry benchmark for the Number of customized packages sold varies depending on the location, size, and type of the company. For a small or medium-sized helicopter taxi company, selling 30-60 customized packages per year could be considered good.

Customer Satisfaction Rating

Definition

A customer satisfaction rating (CSR) is a metric that measures the satisfaction level of customers with a product or service provided by a company. It is a crucial performance indicator that determines how well a company is delivering its services to its customer base.

Use Case

Measuring CSR is important for any helicopter taxi company because it informs the management team about the overall satisfaction of their customers. This metric helps to identify areas of improvement and drives the decision-making process for the company.

How To Calculate KPI

To calculate the CSR, collect customer feedback through surveys or direct feedback complaints, and then determine the average rating given by customers over a specific period. The formula for calculating CSR is:

Calculation Example

Suppose your helicopter taxi company collected feedback from 50 respondents and the total satisfaction rating was 3,800. The CSR calculation for this scenario:

KPI Advantages

• Helps to improve customer retention rates
• Drives customer loyalty
• Increases overall company reputation and revenue

KPI Disadvantages

• Difficult to interpret qualitative feedback
• Customer surveys may not always represent the entire customer base
• Average satisfaction ratings do not account for extreme ratings or differences in sentiment

KPI Industry Benchmarks

The helicopter taxi industry benchmark for CSR is approximately 80%. However, it varies depending on the company's target market and competition level.

Cost of Sales per Flight

Definition

The cost of sales per flight is a key performance indicator (KPI) that measures the direct costs associated with providing helicopter taxi services for each flight.

Use Case

The cost of sales per flight KPI is a critical metric for helicopter taxi companies as it enables them to determine the direct costs associated with each flight, which can help to optimize pricing strategies, control costs and improve operational efficiency.

How to Calculate KPI

The cost of sales per flight KPI is calculated by dividing the total cost of sales for a specific period (including direct labor, fuel, maintenance, and other operational expenses) by the total number of flights undertaken during the same period.

Calculation Example

Let's say a helicopter taxi company generated a total cost of sales of $750,000 for the year and undertook a total of 2,500 flights during the same period. To calculate the cost of sales per flight, we would divide $750,000 by 2,500, resulting in a cost of sales per flight of $300.

KPI Advantages

• Enables companies to optimize pricing strategies based on direct costs incurred for each flight.
• Helps to identify areas for cost control and operational efficiency improvements.
• Enables companies to compare their cost of sales per flight against industry benchmarks and competitors.

KPI Disadvantages

• Does not take into account indirect costs such as marketing and administrative expenses.
• Factors such as weather conditions and flight delays can affect the accuracy of the KPI.

KPI Industry Benchmarks

The cost of sales per flight benchmark varies depending on the type of helicopter taxi services provided and geographical location. However, according to industry experts, a cost of sales per flight of $350-$400 is considered reasonable for the industry.