12 YMCA Processes That May Be Hurting Your ROI (and How You Can Optimize Them) Presenter: Vishal...

12 YMCA Processes That May Be Hurting Your ROI (and How You Can Optimize Them)

Presenter: Vishal Dhir, YMCA Sales Manager

12 PARKS & REC PROCESSES THAT MAY BE HURTING YOUR ROI (AND HOW TO OPTIMIZE THEM)

Moderator: David Fleck, Product Marketing


DON’TThe Difficulty of Measuring ROI

- Not all costs and benefits are easily quantifiable or apparent

- Must be measured over a span of time

- Disparate systems

- Lack of agreement on goals


DON’TMethodology

- Independent, third-party research

conducted by Hobson & Company

- Identified constraints and benefits

via in-depth interviews with

ACTIVE Net customers

- Measurable costs and benefits

based on key metrics validated

with existing ACTIVE Net

customers


DON’T4

YMCA of Gotham City

- $16 million in revenue

- 64,000 registrations/year

- $4 million in credit card

transactions annually

- Previously used a client-server

solution

- Previously spent $30,000/year on

PCI compliance


DON’TChallenges Impacting ROI

ROI

Operations managementCumbersome processes in managing registrations and memberships, taking away from customer service

ParticipationLack of online experience and social media presence, especially among younger members of the community

Data insightInability to access current and past

program and membership data to understand member interests

Total cost of ownershipLack of internal staff resources to manage technology and PCI compliance


DON’T12 Factors That May Be Hurting (or Growing) Your ROI

Are you increasing operational efficiency?1. Registrations2. Reporting3. Memberships4. Member communication5. Cash and credit card transactions

Are you increasing participation?6. Online bookings7. Social media


DON’T12 Factors That May Be Hurting (or Growing) Your ROI

Are you improving revenue with better data insight?8. Better data insight

Are you reducing total cost of ownership?9. IT time managing solution10. IT infrastructure costs11. PCI compliance costs12. Risk and exposure of processing credit cards


Are you improving operational efficiency?


DON’T1 Registrations

Common Challenges

• Information is stored in different online and offline systems, causing confusion

• Some processes (private lessons, waiting lists, etc.) are managed manually on spreadsheets or different systems

Optimization

• Centralize program information and availability online

• Integrate offline and online registrations

• Automate private lessons, waiting lists, withdrawals, etc.


DON’T1 Registrations

Annual Cost

= # staff managing registrations

x # hours/week each staff spends on registrations

x registrations staff salary (fully burdened/hour)

ACTIVE Net Efficiency Impact:Improve staff efficiency for managing registrations by 20%


DON’T2 Reporting

Common Challenges

• Lack of variety and/or granularity in reports

• Inability to compare historical data

• Difficult to share regular reports

• Credit card fees must be manually reconciled

Optimization

• Track and compare revenue by date, session, program, membership, and utilization statistics

• Automatically send scheduled reports to stakeholders

• Automatically reconcile credit card fees


DON’T2 Reporting

Annual Cost

= # staff creating and managing reports

x # hours/week each staff spends on reporting

x reporting staff salary (fully burdened/hour)

ACTIVE Net Efficiency Impact:Improve staff efficiency for managing reporting by 15%


DON’T3 Memberships

Common Challenges

• Limited number of membership types

• Manual pass creation, validation, and renewal process

• Member information is not centrally located, slowing service

Optimization

• Easily create pass cards, instantly validate membership status, automatically renew memberships

• View all member info on one screen

• Allow members to access their accounts online

• Create an unlimited number of membership types


DON’T3 Memberships

Annual Cost

= # staff managing memberships

x # hours/week each staff manages memberships

x membership staff salary (fully burdened/hour)

ACTIVE Net Efficiency Impact:Improve staff efficiency for managing memberships by 5%

(10% vs. Manual)


DON’T4 Member Communication

Common Challenges

• Inability to send automated or mass emails or text messages

• Inability to track email metrics (opens, clicks, unsubscribes)

• Difficulty identifying target audiences

Optimization

• Identify recipients based on past activity, gender, age, etc.

• Schedule emails to go out to specified groups automatically

• Track email effectiveness to improve future communications (opens, clicks, unsubscribes)


DON’T4

We send out mass emails or

texts to cancel classes for

weather events, which has

improved the perception of the

YMCA. This is something we

could never have done with

our old system.”

Operations Manager,

Mid-Sized YMCA

“


DON’T4 Member Communication

Annual Cost

= # staff who communicate with members (phone, email, text)

x # hours/week each staff spends communicating with members

x front desk staff salary (fully burdened/hour)

ACTIVE Net Efficiency Impact:Improve staff efficiency for member communication by 50%


DON’T5 Cash Handling and Credit Card Processing

Common Challenges

• Managers have limited oversight on cash handling, therefore increasing the risk of theft

• Point of sale is not integrated with cash handling

• Expired credit cards

• Failed accounts

Optimization

• Integrate all cash handling, so managers can see who is logged in, what transactions are processed, and reduce theft

• Automatically update expired credit cards

• Automatically retry failed accounts


DON’T5 Cash Handling and Credit Card Processing

Annual Benefit

= ( total # hours/week staff spends managing cash handling + # hours/week all staff spend

on credit card transactions and reporting for credit cards )

x revenue staff salary (fully burdened/hour)

+ Average annual revenue from payments

+ Average annual revenue from credit cards and electronic check payments

ACTIVE Net Efficiency Impact:Improve revenue by 2% and productivity by 5% (10% vs. Manual)


DON’T Are you improving operational efficiency?

ACTIVE Net Impact Benefits forYMCA of Gotham City

Registrations 20% $68,344

Reporting 15% $3,645

Memberships 5% $30,375

Member communication 50% $34,172

Cash handling and credit card processing 2% revenue, 5% productivity $404,134

Total Benefits $540,670


Are you increasing participation?


DON’T6 Online Bookings

Common Challenges

• Members are not able to register online, therefore having to drive to the Y, call during open hours, or register elsewhere

Optimization

• Members can view and book programs online

• All activities and programs are housed in a single system


DON’T6 Online Bookings

Annual Benefit

= # registrations per year

x average $ revenue per registration

ACTIVE Net Online Participation Impact: Increase registrations due to online bookings by 5%

(10% vs. Manual)


With ACTIVE Net, any device

can be turned into a

registration tool.”

VP Knowledge Management, Large

West Coast YMCA

“

Better customer service and

excellent online experiences

will help with member

retention. ACTIVE Net has

made it an easier, smoother

experience.”

SVP Technology,

Large Mid-West YMCA

“


DON’T7 Social Media

Common Challenges

• Difficulty targeting specific groups of members

• Registration is not integrated with social media

• Limited reach to new potential members

Optimization

• Target specific segments of their membership, such as former program participants

• Allow members to share information with friends on social media (Twitter, Facebook, etc.)

• Reach potential new members by posting programs on online portals like ACTIVE.com


DON’T7 Social Media

Annual Benefit

= # registrations per year

x average $ revenue per registration

ACTIVE Net Social Media Impact:Increase member participation due to social media by 1%


We published our 5K event on

the ACTIVE.com site and

there were more participants

as a result. Publishing on

Twitter and Facebook has

helped us reach people we

never would have been able

to touch before and

represents an additional

revenue stream for us.”

SVP Technology,

Large Mid-West YMCA

“


DON’T Are you improving participation?


Online bookings 5% $160,000

Social media 1% $32,000



Are you improving revenue with better data insight?


DON’T8 Better Data Insight

Common Challenges

• Lack of variety in reports

• Difficult to pull insights from data

• Difficult to share regular reports

Optimization

• Review revenue reports by program, manage wait lists for full programs, and track reservations, deposits, payments, and refunds

• Review real-time reporting on facility usage to help increase utilization rates

• Automate reports


DON’T4

We use the reports to

understand our programming

better. We now understand

which programs consistently

have wait lists (and

subsequently open up another

class), which ones are not

popular (and discontinue

them) and we review trends.”

Operations Manager,

Mid-Sized YMCA

“


DON’T8 Better Data Insight

Annual Benefit

= average $ revenue managed by the new solution

ACTIVE Net Data Insight Impact: Improve revenue by 2% with better data insight


DON’T Are you improving revenue with better data insights?


Better data insights 2% $320,000



Are you reducing total cost of ownership?


DON’T9 IT Time Managing Solution

Common Challenges

• On-premise servers need to be maintained

• Updates need to be manually installed

• Need to manage multiple systems for different functions

Optimization

• SaaS model managed through one user-friendly system

• Access solution through the Internet or mobile device

• Get updates automatically


DON’T9 IT Time Managing Solution

Annual Cost

= # hours/month IT staff spends managing database infrastructure (upgrades,

application server, payment server, web server)

x IT staff salary (fully burdened/hour)

ACTIVE Net Impact on IT Time:Reduce IT time managing solution by 25%


DON’T10 IT Infrastructure Costs

Common Challenges

• Need to purchase software, licenses, servers, and data backup solutions

Optimization

• You no longer need to purchase software, servers, and data backup solutions


DON’T10 IT Infrastructure Costs

Annual Cost

= $ spent over 3 years on database and web servers for client-server solution

ACTIVE Net Impact on IT Cost: Reduce IT infrastructure costs by 100% for database and web servers


DON’T11 PCI Compliance Costs

Common Challenges

• Minimum PCI compliance has 6 major objectives and requires 12 major steps, making it difficult and expensive to meet standards

Optimization

• Vendor-owned PCI infrastructure, equipment redundancy and system virtualization to allow for complete data protection


DON’T11 PCI Compliance Costs

Annual Cost

= $ per year spent on PCI compliance costs

+ # hours/week all staff spend on credit card transactions and reporting

x # hours/year IT staff spends securing computers to be PCI compliant

+ Revenue (POS, cred card) staff annual salary (fully burdened/hour)

x IT staff salary (fully burdened/hour)

ACTIVE Net PCI Compliance Impact:Reduce PCI compliance costs by 75%


DON’T12 Risk and Exposure of Processing Credit Cards

Common Challenges

• YMCA is liable if there is a security breach and members’ credit card data is exposed

• 50% of organizations suffer 1 security incident in the last 12 months

Optimization

• Vendor with PCI Level 1 Compliance – vendor is now liable and you no longer need to purchase software, servers, and data backup solutions


DON’T12 Risk and Exposure of Processing Credit Cards

Annual Cost

= chance of a security breach

x # individual records in the system (potential security risk)

x $ cost per lost record

ACTIVE Net PCI Compliance Impact: Reduce risk and exposure of processing credit cards by 100%


Are you improving operational efficiency?


IT time managing solution 25% $4,253

IT infrastructure costs 100% $6,000

PCI compliance costs 75% $45,889

Risk and exposure of processing credit cards 100% $29,000



DON’T4

How It All Adds Up

- Payback Period: 7.9 months

- 3-Year NPV: $1,216,632


DON’THow It All Adds Up

-

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

1 Year Investment1 Year Return3 Year Investment3 Year Return5 Year Investment5 Year Return


DON’T4

How It All Adds Up

- Payback Period: 7.9 months

- 3-Year NPV: $1,216,632

- 3-Year ROI: 92%



48%

17%

28%

7%

Benefits by Value Driver

Improved Operations ManagementImproved ParticipationImproved Data InsightReduced Total Cost of Ownership



Cost Savings

Productivity Improvements

Revenue Gains

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

4%

13%

83%

Benefits by Benefit Type


Questions?


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12 YMCA Processes That May Be Hurting Your ROI (and How You Can Optimize Them) Presenter: Vishal...

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