Next year’s success at your child care, daycare or preschool depends on the actions you take now. A crucial step to take at the end of the year is to look at metrics from the past year to figure out success points and stress points. This will help you to formulate goals for next year and assist you in designing a plan to help you reach those goals.
The metrics to look at are called key performance indicators. In child care these include revenue stream by income, marketing performance, operations, and, what we call in child care, your enrollment funnel.
I have been tracking and analyzing key performance indicators in my own business for years, so now it’s even possible to look at trends. This has been instrumental in my own success and looking at metrics can help you with success as well! Let’s take a look at the key performance indicators at a child care or preschool center.
Income by Revenue Stream. At your child care center you can segment out your business by programs, age groups, rooms, etc. to see what is working for you and what needs improvement. Think about different ways you can divide up your business to give you a full picture of what contributes to your income at your center.
Marketing Performance. Key areas to look at include:
• Performance of the various marketing campaigns for your child care center.
• Return on investment in the marketing dollars you’ve spent.
• Google Adwords campaign performances
• Performance of Facebook ads and campaigns
• Email open rate
• Number of visitors to your website
• Number of repeat visitors as opposed to new visitors on your website
Many of these metrics you can get from your Google Analytics report or from your webmaster.
Operations. Take a look at your financial statement. How did it compare to prior years? Take a look at percentages of your income. For example, what is the percentage of the cost of food or labor when compared to your income? This will help you look at your costs and see where you have managed to cut down and what needs some work.
Enrollment Funnel. When looking at child care, I often times talk about the enrollment funnel. It has four key steps – inquiries, tours, enrollment, and retention/withdrawal. It’s important to take a look at each piece of your enrollment funnel to see how you are performing.
For example, when I took a look at my own sales funnel, I learned that my Google Pay Per Click advertising is down in terms of lead generation. Now I know need to dig in and figure out why! You can use the same strategy with your child care center.
Take a couple hours out of your schedule by the end of the year or very early at beginning of 2014 to use these metrics to get some clarity and be able to set some goals for you child care center. This is such an important key to finding success at your business!