Winning at Multi-Sport Complex Management: 7 Must-Track Metrics

As a seasoned entrepreneur, I know that tracking performance is key to success. In the multi-sport complex industry, monitoring the right KPIs is crucial to ensure growth and profitability. In this article, we'll explore the top seven metrics you need to track and calculate to stay on top of your game.

First on our list is the monthly membership growth rate. This KPI provides insight into the effectiveness of your marketing efforts and member retention strategies. Next up, we have the average revenue per member, which helps you understand the value your facility brings to each customer.

• Monthly membership growth rate
• Average revenue per member

Facility occupancy rate is another critical KPI for multi-sport complexes, as it gauges the efficiency of your operations. Keeping your customers satisfied should also be a top priority, and the customer satisfaction score KPI will help you measure just that.

• Facility occupancy rate
• Customer satisfaction score

With the number of tournaments hosted per quarter KPI, you can track the engagement of your customers and identify areas for improvement. Cost per acquisition of new members is essential for determining your marketing spend effectiveness, and the number of repeat customers KPI takes customer satisfaction a step further.

• Number of tournaments hosted per quarter
• Cost per acquisition of new members
• Number of repeat customers

By tracking these seven KPIs, you'll have a complete picture of your multi-sport complex's performance. Let's dive into each of these metrics to learn how to track and calculate them, and ultimately improve your business's success.

Monthly Membership Growth Rate

As a multi-sport complex owner, you understand the importance of tracking KPI metrics to measure the performance of your business. One of the essential KPIs to monitor is the monthly membership growth rate, which indicates the number of new members acquired during a particular month.

Definition

The monthly membership growth rate measures the percentage increase or decrease in the number of new members added to the sports complex during the month compared to the previous month. It indicates the growth rate of the customer base and helps identify the business's market penetration.

Use Case

The monthly membership growth rate is a crucial KPI for tracking the business's customer acquisition and retention strategies. A higher growth rate indicates that the marketing and advertising efforts are reaching more customers, while a negative growth rate indicates problems with customer retention and satisfaction.

How To Calculate KPI

The formula to calculate the monthly membership growth rate is:

Calculation Example

Suppose you added 50 new members in January and 75 new members in February. To calculate the monthly membership growth rate, use the formula:

Therefore, your monthly membership growth rate for February is 50%, which indicates that you are acquiring new members at a faster rate than in January.

KPI Advantages

• Helps measure customer acquisition and retention efforts
• Indicates market penetration and growth potential
• Enables proactive management of membership acquisition activities

KPI Disadvantages

• Does not consider the impact of factors outside the business's control, such as seasonality
• May not capture the nuances of customer behavior and satisfaction
• Can be influenced by short-term promotions or discounts, which may not be sustainable

KPI Industry Benchmarks

The monthly membership growth rate benchmark varies by the type of sports complex and location. However, a growth rate of 5-10% per month is generally considered good. Some of the leading multi-sport complexes have reported monthly growth rates of over 20% in some months.

Average Revenue Per Member

As a serial entrepreneur who has started and run many businesses, I know firsthand that measuring Key Performance Indicators (KPIs) is essential for success. One important KPI for multi-sport complexes is average revenue per member. In this chapter, I will explain what this KPI is, its use case, how to calculate it, its advantages and disadvantages, industry benchmarks, and provide a calculation example.

Definition

Average revenue per member is a KPI that measures the average amount of revenue generated per member in a given time period. This KPI is critical for multi-sport complexes as it provides insights into how effectively the business is monetizing its members.

Use Case

By tracking this KPI over time, multi-sport complex operators can gain a better understanding of how to monetize their members better. Understanding how much revenue each member generates can provide insights into pricing structures, retention efforts, and the overall effectiveness of marketing and advertising campaigns. Additionally, comparing revenue per member between seasons or years can help identify trends and potential areas for improvement.

How To Calculate KPI

Calculating average revenue per member is straightforward. Simply divide the total revenue by the number of members in a given time period:

Calculation Example

Suppose the multi-sport complex generated $100,000 in revenue during the last quarter, and the business had 500 members during this same period. Using the above formula, we can calculate the average revenue per member:

In this example, the multi-sport complex generated an average of $200 per member during the last quarter.

KPI Advantages

• Easy to calculate and understand
• Provides a metric for measuring the effectiveness of pricing and marketing strategies
• Identifies areas for potential revenue growth

KPI Disadvantages

• Does not account for differences in membership tier or usage patterns
• May not be as useful for businesses that generate significant revenue from non-member activities, such as events or merchandise sales
• Calculating this KPI may be challenging if revenue is not tracked by member

KPI Industry Benchmarks

The average revenue per member varies by the type and size of the multi-sport complex. According to IHRSA's Health Club Consumer Report, the average revenue per member in 2020 was $576 per year for multi-sport clubs with competition-sized pools.

Facility Occupancy Rate

Welcome to the multi-sport complex KPI metric series where we are discussing the top seven KPI metrics that are critical to the success of multi-sport complexes. In this chapter, we will be discussing the facility occupancy rate KPI and why it's important to track and calculate.

Definition

The facility occupancy rate is a KPI metric that measures the percentage of available space being utilized by customers in a multi-sport complex. It can be calculated for a specific time period and for the entire operating period of the complex.

Use Case

The facility occupancy rate KPI is an important metric for multi-sport complex owners and managers as it provides insight into how effectively they are using their available space. By monitoring this metric, owners and managers can determine whether they need to increase marketing efforts, attract new customers or add new features or services to their facility.

How To Calculate KPI

The facility occupancy rate can be calculated by taking the number of users utilizing the facility in a given period divided by the total number of available space.

Calculation Example

Let's assume a multi-sport complex has a total of 100,000 square feet of space available for use. In one month, 15,000 people use the facility. Therefore, the Facility Occupancy Rate would be:

KPI Advantages

• The facility occupancy rate is an excellent indicator of how the facility is performing
• Helps managers and owners to identify trends and make informed decisions
• Allows for accurate monitoring of facility usage and capacity

KPI Disadvantages

• May not take into account seasonal and weekend variations
• Does not account for external factors such as nearby competition and weather conditions
• May not be representative of the entire multi-sport complex as certain areas may be particularly more popular than others

KPI Industry Benchmarks

The industry benchmark for the facility occupancy rate KPI varies depending on the type of multi-sport complex. For example, a popular indoor sports facility may have a higher occupancy rate than a traditional outdoor sports complex due to its year-round availability. Generally, a facility occupancy rate of 70% is considered a good benchmark across all multi-sport complexes.

That concludes our discussion on the facility occupancy rate KPI metric for multi-sport complexes. Stay tuned for our next chapter where we will be discussing another critical KPI metric for multi-sport complexes, the membership retention rate.

Customer satisfaction score

As a multi-sport complex owner, it is crucial to track your customer satisfaction score. This KPI is the best way to measure how your visitors are enjoying the facilities and services that you provide. Here's a detailed explanation of how to track and calculate the customer satisfaction score.

Definition

Customer satisfaction score (CSAT) is a KPI that measures how satisfied your customers are with your multi-sport complex. It helps you understand how likely your customers are to continue using your complex and recommend it to others.

Use Case

The customer satisfaction score KPI is useful for multi-sport complex owners because it allows them to identify areas of their business that need improvement. By measuring customer satisfaction, you can ensure that your complex is meeting your visitors' expectations and providing an excellent experience.

How To Calculate KPI

Calculation Example

KPI Advantages

• Allows you to track customer satisfaction over time
• Helps identify areas where improvements can be made
• Provides insights into customer experience and expectations

KPI Disadvantages

• Survey fatigue can lead to inaccurate results
• Results may be influenced by the timing or placement of the survey
• Some customers may provide biased or false responses

KPI Industry Benchmarks

The average customer satisfaction score for multi-sport complexes is around 75%. However, this can vary depending on factors such as location, competition, and services provided.

Number of tournaments hosted per quarter

As a multi-sport complex, one of the most critical Key Performance Indicators (KPIs) to track is the number of tournaments hosted per quarter as it directly impacts the revenue generated. Below is a detailed explanation of the KPI:

Definition

The number of tournaments hosted per quarter refers to the total number of sports events organized and held on your multi-sport complex per quarter.

Use Case

This KPI allows multi-sport complex owners to determine the level of utilization of the center, the effectiveness of marketing and sales, and the potential revenue generated by the events.

How To Calculate KPI

To calculate the number of tournaments hosted per quarter, use the below formula:

Calculation Example

Suppose a multi-sport complex organized and hosted 20 tournaments in the first quarter of a year. In that case, the KPI would be:

KPI Advantages

• Allows owners to determine the effectiveness of their marketing campaigns.
• Helps in identifying the most suitable time for organizing sports events to minimize competition.
• Determines how well resources are being allocated to support event organization.

KPI Disadvantages

• Does not provide information about the quality, attendance, and revenue generated from the events.
• Does not consider events hosted off the center by teams or independent organizers.
• May not provide a clear picture of seasonal trends that could affect the results.

KPI Industry Benchmarks for the KPI: ' Number of tournaments hosted per quarter '

The industry benchmark for this KPI varies based on the size and type of the multi-sport complex. However, the goal is generally to maximize the number of events to increase revenue and minimize the number of empty slots.

Cost per acquisition of new members

As a multi-sport complex owner, it's important to know the cost you are spending on bringing in new customers to your facility. The cost per acquisition of new members is a key performance indicator (KPI) that measures precisely that.

Definition

The cost per acquisition of new members determines the amount you spend to acquire each new member to your multi-sport complex. This metric helps you to analyze the efficiency and effectiveness of your marketing campaigns and, ultimately, helps you to make data-driven decisions.

Use Case

With this KPI, multi-sport complex owners can understand the effectiveness of their marketing spend by demonstrating user acquisition efficiency. By tracking the cost of acquiring new members, multi-sport complex owners can determine which marketing strategies to optimize to attract more users.

How To Calculate KPI

To calculate the cost per acquisition of new members, you must take the total marketing cost in acquiring new members and divide it by the number of new members acquired. The formula for the cost per acquisition of new members is:

Calculation Example

Let's say you have spent $10,000 on marketing campaigns over the past month, and as a result, you have acquired 500 new members. The calculation for the cost per acquisition of new members would be:

This means that it costs $20 to acquire each new member.

KPI Advantages

• It helps you understand user acquisition costs precisely.
• You can determine what steps you need to make to reduce the cost per acquisition of new members in the future.
• Crete an accurate budget for future marketing campaigns.

KPI Disadvantages

• It does not consider the lifetime value of members in the calculations.
• May lead to sacrificing quality to lower acquisition costs.
• It does not account for the B2B channels or other acquisition mechanisms that may become active in the future.

KPI Industry Benchmarks for the KPI: ' Cost per acquisition of new members '

Industry benchmarks for this KPI depend on various factors such as market size, location, target audience, and competing facilities. The KPI that is held in high regard in a particular region may not be of much importance in a different territory. Therefore, a multi-sport complex owner must analyze and set benchmarks suitable for their respective market.

Number of repeat customers

As a multi-sport complex owner, one of the most important KPIs to track is the number of repeat customers. Repeat customers are loyal patrons who come back to your complex time and time again. It is crucial to keep track of this metric, as repeat customers are a sign of customer satisfaction and loyalty, which is vital for the long-term success of your business.

Definition

The number of repeat customers is the count of customers who have visited your complex more than once within a specific period.

Use Case

A high number of repeat customers is a strong indicator of customer satisfaction and loyalty. Loyal customers are essential for any business, and retaining them can lead to increased revenue and long-term success.

How To Calculate KPI

To calculate the number of repeat customers, use the following formula:

Calculation Example

Suppose your multi-sport complex had a total of 500 customers, and 150 of them were new customers. To calculate the number of repeat customers, use the following formula:

Therefore, you have 350 repeat customers.

KPI Advantages

• Repeat customers are a sign of customer satisfaction and loyalty.
• They are more likely to spend more money than new customers and are less likely to need promotions to get them to come back.
• Tracking the number of repeat customers can help you identify areas for improvement in your business and increase customer retention.

KPI Disadvantages

• Tracking the number of repeat customers does not offer insight into why customers are returning or why they are not returning.
• It does not provide insight into how to attract new customers, but rather focuses on retention.
• Some businesses may have a high number of repeat customers, but those customers may not be spending enough money to make the business profitable.

KPI Industry Benchmarks

The industry benchmark for the number of repeat customers varies by business type and location. However, on average, a business should aim to have at least a 20% to 30% rate of repeat customers.