IT’S JUST BUSINESS By Micah Salazar, CEO, Salazar Systems, LLC By analyzing key performance indicators, adventure parks are better equipped for success.
As many readers can attest, adventure parks have gained immense popularity, offering all kinds of unique experi - ences to visitors seeking outdoor adventure. However, successful operations require careful management and monitoring of a variety of key performance indicators (KPIs)—quantifiable measures that show how successful an organization is in meeting performance objectives. KPIs provide valuable insights into efficient park operations, and by effectively measuring and analyzing them, adventure park stakeholders and managers are better equipped to ensure business success, employee and guest satisfaction, and safety. That said, what are the “essential KPIs” for aerial adventure attractions? 1. BUSINESS SUCCESS Essential number one, business success, goes beyond reve - nue and expenses, taking into consideration customer loyalty, retail add-ons, and the cost of attracting new business. Revenue Growth. Revenue growth serves as a vital KPI for any adventure park. While revenue can be a lead indicator, by focusing on earnings (revenue less expenses), managers can track the overall financial health of the park. Monitoring earn - ings growth helps identify trends and assess the impact of marketing efforts, and can inform decisions regarding pricing, promotions, and investment in new attractions. By comparing revenue and earnings growth over time, park operators can evaluate the effectiveness of their business strategies. To achieve consistent revenue and earnings growth, park op- erators should adopt a multi-faceted approach: identify and capitalize on expansion opportunities, and diversify revenue streams through expanding sales channels, adding premium services (i.e., private access or party areas; food options; merchandise packaging), and implementing pricing strategies that consider peak and off-peak times. Additionally, optimiz - ing your schedule of operating hours may be the simplest tool to optimize staff costs while maximizing throughput. It doesn’t make sense to open at 7 a.m. if your general admis- sion guests don’t typically arrive until 10—unless you can find a way to fill those empty hours with paying guests. Average Transaction Value (ATV). The average transaction value is the total spending per guest. This figure goes beyond the base ticket price to include such items as upgrades, retail products, and food and beverage. Increasing the ATV is cru- cial to boost revenue. To achieve this, offer enticing add-ons
and packages, enhance the overall guest experience, and ensure effective merchandising and pricing strategies.
More specifically, adventure parks can introduce premium experiences or upgrade options that provide added value to visitors. If operators carefully curate merchandise and offer high-quality products that align with their parks’ themes, they can encourage guests to make additional purchases. More - over, strategic placement of F&B outlets as well as offering diverse dining options can further increase ATV. Keep in mind that ATV will be affected negatively by offering discounts, but this can be countered by increasing volume. Customer Acquisition Cost (CAC). In a watch store recently, I witnessed a man get turned away because the staff “did not have time” to install a new band. They offered for him to come back the next day, but he was unhappy and seemed un- likely to return. I questioned how much the store must have spent to attract the customer, only to lose him completely. Customer acquisition cost refers to the expenses incurred to attract new customers. Understanding different customer types and their associated CAC can help optimize marketing efforts and allocate resources effectively. By identifying the most cost-efficient customer acquisition channels, i.e., digital advertising or partnerships with local tourism agencies, parks can streamline marketing strategies and maximize ROI.
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BUSINESS SUCCESS:
Current Target
Revenue Growth Average Transaction Value (ATV) Customer Acquisition Cost (CAC) Customer Lifetime Value (CLTV) EMPLOYEE RETENTION: Employee Turnover Rate Employee Satisfaction Index Training and Development
Current Target
SAFETY:
Current Target
Incident Rate Safety Training Compliance
GUEST SATISFACTION:
Current Target
Customer Feedback Response Rate Online Review Ratings
^ A chart like this helps track key performance indicators.
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