Even the best parking lot won't turn a profit, if it is managed poorly. But what makes parking management truly successful? How can success be measured and which potentials can be gathered this way? This article will guide you through the most important Key Performance Indicators (KPIs) in the world of parking, how they can be monitored and used for your gain.
Contents
Common Key Figures In Parking
How Modern Parking Systems Can Tell You More About Your Customers
How Potential For Improvement Can Be Recognized And Used For Your Parking Lot
Common Key Figures In Parking
3 key figures are especially important in parking management: occupancy, revenue per parking space and the customer base. Managing a parking lot efficiently and profitably requires a lot of know-how and the right tools. While many operators think of parking spaces as easy and automated streams of revenue, a lot of potential hides in the details.
The baseline is the general occupancy of the lot. The first metric for success is when parking spaces are regularly occupied and the facility is well frequented. If the lot however barely attracts parkers and stands empty for longer than it is occupied, quick action is needed.
If the occupancy is satisfactory, the next step is optimization. The best metric for this is the revenue per parking space. Through this it can be determined whether the lot is truly economical. In this process not only inherent infrastracture has to be considered, a look at the competition in the area and their pricing is equally important.
Furthermore it is advisable to get to know your customer base better. The quota of short-term to long-term parkers and the time spent on the lot give a deep insight into the clientel. From this, further strings of action can be determined to raise the profitability of the facility as a whole.
How Modern Parking Systems Can Tell You More About Your Customers
In most parking systems, a great deal of anonymity is present. Operators rarely know much about their customers. Oftentimes the right tools for ensuring customer loyalty are simply missing. Equally the correct calculations for occupancy and revenue are time-intensive. This complicates the analysis of the most important KPIs further.
In addition, long-term parking contracts are often still processed manually and through physical mailing. Quick changes to contracts and customer-specific discounts thus become more complex to realize, which negatively affects customer loyalty further.
All of this is remedied by a modern system using license plate recognition instead of tickets for entry and exit to the lot. In the background of such systems, powerful software like the Arivo Parking OS gives valuables insights into the parking infrastructure. Occupancy, revenue and the customer base are quickly and easily accessible. In addition parking contracts can be conveniantly managed digitally, which brings further savings in time and money with it.
How Potential For Improvement Can Be Recognized And Used For Your Parking Lot
With the right data in hand, the KPIs of the parking lot can be improved more easily. Just like in the process of analysis, implementation also starts at occupancy. A common method for optimization is a cheap starting rate. Attractive long-term parking contracts have also proven effective and additionally lead to more customer loyalty. These factors yield more satisfied customers and occupancy in the facility.
Making each parking space more econimical will eventually warrant a raise in parking fees. In this process, having a close eye on the competition is advisable. Raising costs too high can lead to parkers choosing a cheaper alternative in the immediate region. Too cheap pricing however will prevent a profitability of the lot. Finding the perfect balance is aided by modern software with practical tools for easier analysis. More about ideal pricing can be found in our Blog.
Lastly turning anonymous customers into regulars is key for long-term profitability. License plate recognition can also help in this process. Parkers can easily register and pay in the associated online portal with the help of their plate numbers. This way, a big time save is achieved for the customer the next time they park at the lot.
This solution brings you closer to your clientel than ever and makes it easy to create incentives for regular parking at your facility. Cheaper rates at distinct times, discounts and advantages at local partner businesses additionally aid in making short-term parkers into regularly returning customers.
Conclusion
Vacancy and poorly chosen rates are among the most common revenue killers in parking. To gain the maximum from a parking lot, it's important to actively monitor the key figures and react accordingly. This is facilitated by a modern and digital parking system. With the right measures, a simple parking facility can be turned into a profitable stream of revenue.
Ready to make the most of your parking lot? Trust the innovative solutions made by Arivo. Get your offer now!
