New Zealand
This article was added by the user . TheWorldNews is not responsible for the content of the platform.

Use Key Performance Indicators To Measure The Success Of Your Western Bar

Hugh Grant

Owning a Western bar means constantly observing and measuring the success or failure of all performances within the bar. What are the advantages of measuring the progress or success/failure rate at a bar? There are multiple indicators that suggest either, 1. The bar is doing well and no further improvements are needed, or 2. Make improvements or change strategies if the results of any measurement are low or non-performing. If you do not currently have a structure for your bar, use this business plan for a bar to set one in place. Consider the following metrics that can be applied to a bar and determine whether or not your bar is on the high-performing side or could benefit from improvements.

Before measuring key performance indicators, set your standard for the performance of your Western bar. There are numerous metrics to measure; choose the ones that will best inform the performance and offer serious data to consider for change. Opt for metrics that measure future performance occasionally, as well, due to the helpful vision that may change your perspective, as well. If a metric cannot be accurately measured, put it aside; you are looking for accurate data with performance-driven results. Here is the list of key performance indicators to measure the success of your bar:

  1. Net Sales Revenue - The most important indicator of all, this metric will present an accurate picture of the net sales revenue of your bar. There are factors to consider, of course, however the results can indicate where to concentrate your marketing efforts, improve staff, or increase sales in specific areas.
  2. Growth Rate - If you are curious about the health of your bar business and want an overall picture, measuring the growth rate will quickly let you know how well the bar is doing. You can measure year-over-year growth or work within a 6-month time period, whatever you believe are the best indicators of growth. The outcomes will suggest the sales team is either performing poorly and this area needs improvement, or they will suggest how well the sales team is doing and indicate no changes are in order.
  3. Churn Rate - This key performance indicator is the percentage of customers who are “lost” or don’t return again during a set period of time. The metric measures the factor, which can indicate either a loss or increase in customers, a sales team that is performing well, or not; along with a host of other metric measurements.
  4. Marketing Effectiveness Patterns - There are several ways for businesses to conduct marketing efforts across several platforms. These include direct mail, websites, social media feeds, and direct contact, as well. Marketing effectiveness, performed to suit the needs of your particular bar, will indicate either a need for change in leaders or a satisfactory performance, which should lead to an increase in salary or a bonus.
  5. Customer Acquisition Cost - Every customer represents a cost to the company, whether a bar is steadily acquiring customers or not. Measuring this metric offers a clear picture of the combination of costs: marketing, advertising, special offers, etc. that drive business to the door of the bar.
  6. Customer Retention Rate - Measuring the number of customers added during a certain period of business leads to the results of this measurement. How many customers visited once and returned? This metric will give the answers.
  7. Customer Lifetime Value - This formulaic measurement is crucial to understanding the tactics that build customer loyalty to the brand. A customer who returns frequently is a solid investment on the part of the bar; customers who visit and never return indicate a need for change or a need for a performance evaluation.
  8. Website Traffic - Over time, this key performance indicator has taken on a greater role in informing the bar business of the traffic driven to the bar as a result of the website messaging. For example, if your bar has a website that is visited by 500,000 people yearly, Your bar website should tell the story of your bar, the history of ownership, the unique offerings of the bar, and include the testimonials of patrons from all over the neighborhood.
  9. Conversion Rate - A helpful key performance indicator is the conversion rate measurement that informs the interest and ability of the bar customer to remain on site and involved.
  10. Net Income - This is the “bottom line” metric or key performance indicator that accurately spells out the current health of the company. To measure the net income, one takes into the equation all of the metrics in the business and determines the next steps for the business.

After examining the key performance indicators offered here, you’ll want to consider which apply to your business. Looking into the future with some of the outcomes may determine the long-term growth rate and success in the years to come.

© Scoop Media

Did you know Scoop has an Ethical Paywall?

If you're using Scoop for work, your organisation needs to pay a small license fee with Scoop Pro. We think that's fair, because your organisation is benefiting from using our news resources. In return, we'll also give your team access to pro news tools and keep Scoop free for personal use, because public access to news is important!

Go to Scoop Pro Find out more