Key Performance Indicators (KPIs) are essential for understanding and improving business performance.
In my 20+ years of experience as an accountant, I’ve seen businesses that devote substantial time to financial reporting but neglect to monitor the metrics that drive growth. For team-building and events businesses, tracking the right KPIs is critical to understanding client satisfaction, marketing effectiveness, operational efficiency and financial health. These businesses often operate in a dynamic environment where success depends on delivering memorable experiences and efficient operations. Tracking KPIs helps to ensure you stay on top of customer demand, optimise resources and ultimately maximise profitability.
This blog has been split into the business areas that are essential to understand in order to continue to grow – being the customer; marketing; operations; and finance.
Customer Metrics
Customer metrics are central to understanding the quality of the experience you offer and how clients view your services. Positive customer relationships can drive repeat business, referrals and deliver long-term growth. Tracking these metrics helps you maintain a high level of customer satisfaction, which is especially important in team-building and events, where word-of-mouth recommendations and online reviews play a key role.
Feedback & Reviews – In an increasingly digital world, customer reviews on platforms like Google, TripAdvisorand social media can significantly impact your reputation. Positive feedback builds trust, while negative reviews highlight areas for improvement. By regularly monitoring reviews, you can quickly respond to issues, resolve complaints, and adapt your services to customer preferences. How do you choose where you’re going to eat or what activity to do for an occasion? If you’re not pushing for reviews on the platforms your ideal customers are using to make these decisions, how much business might you be missing out on?
Error Log & Resolution Time – In the events industry, problems can arise unexpectedly. Whether it’s a delay, technical difficulty, or an issue with event logistics, tracking complaints and how long it takes to resolve them can provide insights into operational weaknesses. By reducing resolution time, you can improve service quality and ensure a smoother event experience for your clients. What’s your average customer service response timeframe? What might happen if you halved it?
Repeat Customers & Referrals – Tracking repeat business and referrals is essential for understanding customer loyalty. Repeat customers are often more profitable, as they require less marketing spend to convert. In a team-building business, the value of referrals cannot be overstated – they are a testament to your brand’s trustworthiness and success in delivering memorable experiences. By tracking these metrics, you can tailor marketing strategies to encourage repeat business and strengthen your referral program.
Marketing Metrics
Marketing is the lifeblood of any business, and team-building and events companies are no exception. These businesses must stay ahead of competitors in an ever-evolving market by employing effective marketing strategies. Monitoring the right marketing metrics helps ensure your efforts are yielding the best return on investment (ROI) and allowing your business to reach new clients.
Email Engagement – Email marketing remains a powerful tool for building relationships with potential and existing clients. By analysing open rates, click-through rates and conversion rates from email campaigns, you can assess the effectiveness of your messaging and calls to action. This is especially important for team-building businesses, which often rely on repeat customers or corporate clients who need regular engagement. Have you evolved the way in which you speak to your customers in email campaigns in reaction to campaign success metrics?
Social Media Performance – For events and team-building companies, social media serves as both a marketing tool and a way to engage directly with clients (alongside ensuring you pass a simple credibility check). Monitoring metrics such as engagement, shares and audience growth on platforms like TikTok, Instagram, and LinkedIn can help you gauge brand awareness and how well your content resonates with potential clients.
Website Analytics – Your website is the centrepiece of your online presence, so understanding how visitors interact with it is key to converting leads into clients. By tracking organic traffic, referral traffic, conversion rates and key user interactions (such as time spent on the page and bounce rates), you can optimise your site to enhance the user experience and improve conversion rates. Does one page get increased engagement? Can you replicate the drivers across the website?
Google My Business Insights – In the competitive events industry, visibility is crucial. Tracking Google My Business metrics such as visibility, search queries and customer actions (calls, directions, website visits) can help you understand how well your business is performing in local searches and how clients are engaging with your business online.
Search Engine Optimisation (“SEO”) Performance – For team-building and events businesses, SEO is essential for organic growth. Tracking organic website traffic, monitoring backlinks and assessing domain ratings helps you gauge the effectiveness of your SEO strategy. The better your SEO, the higher you’ll rank in search engines, making it easier for potential clients to find your services. For a business that relies on local clients or large events, this can significantly impact your client acquisition strategy.
Paid Marketing Performance – Paid marketing campaigns such as Google Ads or Facebook Ads can drive immediate traffic, but it’s essential to measure their effectiveness in terms of brand awareness and conversions to bookings. By tracking impressions, reach and the cost per conversion, you can refine your paid marketing strategy and ensure you’re getting the best ROI.
Operational Metrics
The success of any event, particularly in the team-building sector, hinges on operational efficiency. Tracking operational KPIs ensures that your business runs smoothly, maximising efficiency, reducing errors and optimising resource allocation.
Event Attendance & Capacity Utilisation – In the events industry, the ability to optimise event capacity is crucial to profitability. Tracking actual attendance against planned capacity allows you to make adjustments in real-time and better forecast demand for future events. This KPI helps avoid overbooking or underutilising venues and resources.
Game Completion Rates – In team-building businesses, it’s important to track how many teams complete experiences. This data helps you identify which activities or challenges are more engaging or highlighting where participants tend to drop off. Understanding this helps improve event design, ensuring participants stay engaged throughout the experience.
Time Efficiency – Efficiency is key to profitability, especially in events with tight schedules. By evaluating the time it takes to set up, run, and close down events, you can streamline processes, reduce costs and increase the overall quality of service. This is particularly relevant in team-building, where each minute counts to ensure a seamless experience. Neither the corporate nor individual attendees want to be waiting around twiddling their thumbs when they’ve managed to get some time away from their desks!
Staff Utilisation – In team-building and events businesses, your team is one of your most valuable assets. Monitoring how effectively team members are allocated based on demand and workload ensures you’re not overstaffed or understaffed, which can impact both customer experience and profitability.
Finance Metrics
Financial health is the backbone of any successful business, in particular a thorough understanding the financial metrics that drive profitability are essential. Team building and events businesses often deal with seasonal fluctuations in bookings and revenue, making it even more important to closely track financial KPIs.
Revenue Tracking Setup – Setting up accurate and relevant revenue tracking is vital. Categorising revenue by customer types or platforms helps you understand where your income is coming from, making it easier to allocate resources and make informed decisions (such as inking to appropriate marketing campaigns discussed earlier). Clear tracking ensures accurate financial reporting without the need to manipulate bookkeeping methods.
Profit Metrics – Identifying your key profit metric, whether gross profit, net profit, or another measure, helps you understand the true financial health of your business. Profitability is especially important in the competitive events industry, where margins can be thin. Excluding factors like depreciation gives a clearer picture of the actual profitability of the services you offer.
Bookings vs. Players – For team-building and events businesses, it’s important to distinguish between bookings made and actual players attending. This distinction helps track revenue in the pipeline, account for deferred revenue and predict future cash flow, which is critical for managing cash flow gaps between bookings and actual payments.
Balance Sheet (BS) Metrics – Monitoring balance sheet metrics such as assets, liabilities, and equity allow you to assess the financial stability of your business, which is especially important when considering future investments or expansion.
Cash Flow – Monitoring cash inflows and outflows helps ensure your business can meet its financial obligations, pay employees, and reinvest in growth. Cash flow management is particularly important in team-building and events businesses where seasonality or upfront payment schedules can create financial pressure. People often talk about different profit measures, EBITDA etc, but Cash is always King!
Forecasting Revenue – By updating forecasts based on confirmed bookings and conversion probability, you can project future income and better manage resources.
Revenue from New vs. Repeat Business – This metric helps assess customer loyalty and optimise marketing efforts. By tracking new versus repeat clients, you can tailor your strategy to retain loyal clients while attracting new ones.
Final Thoughts
Focusing on all of the above KPIs allows small businesses in the team-building and events industry to make informed decisions, improve operations, and drive sustainable growth.
Whether you’re managing corporate events, team-building activities, or social gatherings, tracking the right metrics ensures long-term success. By closely monitoring customer feedback, marketing performance, financial health, and operational efficiency, businesses can gain actionable insights to refine their strategies and optimise performance. The ability to track and respond to KPIs will help your business thrive, ensuring that every event, every booking, and every customer experience is a step toward greater success.
Whilst I know it sounds like a lot, once you develop good processes and systems these get easier and easier to update, track and compare. Using actual data to drive decisions, rather than relying on gut feel, will speed your company’s path to success!
Get on touch if you’d like to discuss further or understand the processes we’ve used at StreetHunt Games to track our KPI’s.
Read more:
Effective KPIs for Team-Building and Events Businesses