Home' INSTYLE Magazine : INSTYLE NOVDEC 2015 Contents THE REVENUE EQUATION:
Number of clients visiting X average amount spent per visit =
prosperity for your business and your staff.
Before spending extra time, energy and money trying to convince
new clients to give you a chance, remember that there are countless
opportunities sitting in your salon chair every day – to both grow an
existing client’s value and to gain new clients through referrals (word
One of the simplest metrics to look at to increase the number of
clients who walk through your door each week, month and year is:
your visit rate – and the impact this has on your bottom line.
YOUR VISIT RATE:
The average number of times per year a client returns for an
appointment (you can see this number on your Kitomba business
HOW THIS IMPACTS YOUR REVENUE:
Reduce the time between visits: Annual revenue increases by:
Every five weeks to four weeks
Every six weeks to five weeks
Every seven weeks to six weeks
Increase the time between visits: Annual revenue falls by:
Every five weeks to six weeks
Every six weeks to seven weeks
Every seven weeks to eight weeks 13%
The regularity of your client visit rate has a huge impact on how
busy your appointment book looks overall. Just a small improvement
will make a substantial impact on the success of your business.
INCREASE YOUR CLIENT VISIT RATE WITH
Rebooking and reminders
Most clients want and appreciate your professional advice on how
soon to return for a haircut, colour, facial or wax to maintain the look
you’ve helped them achieve. Don’t be afraid of starting the rebooking
discussion at the very start of the consultation process – once the
client is paying for their appointment, they’re already mentally out
the door and less likely to rebook. Based on the Benchmark data we
collect, the average industry rebooking rate sits at around 40 per cent
- give or take. The top rebookers will have a rebooking rate of anything
upwards of 70 per cent. Many clients can shy away from rebooking
simply because they’re worried they might forget the appointment,
so it’s worth mentioning that you send out appointment reminders. If
this isn’t a service your salon offers – it should be!
Identify your 5 -star clients
Identifying your best clients and biggest spenders means you can
direct lower value clients towards booking during off-peak times
and your 5 -star clients to your prime-time spots. This simple practice
alone keeps your top clients happy and has a greater impact on
client visit rates and salon profitability overall as you’re focusing on
the visit rate that counts – that of your top spenders.
Vouchers and Loyalty
Setting an expiry date on gift vouchers and loyalty points is a great
prompt to get clients coming back regularly.
Once you’re familiar with your average client visit rate, you’ll start
to have an idea of the ‘golden’ visit rate your salon or spa should
shoot for. Let’s say you decide you’d like your clients to see you,
on average, every seven weeks. Open your appointment book
to seven weeks ago from today and look at all the clients on that
page. How many have come back or rebooked? Hopefully all of
them! But if not, setting up an automated email or text message
reminder to your clients that haven’t come in for a while is a gentle
way to keep on their minds and remind them to book.
More than 50 per cent of all online bookings via Kitomba happen
outside business hours. The benefit of setting up an online booking
system in your salon is that you’re still generating new and repeat
business, even when your doors are closed – and your clients will
love the convenience. A good online booking system should be
dynamically linked with your appointment book, so that clients
are only able to request times that are still available. This reduces
any back and forth between you and your client and avoids the
potential for disappointment.
Find out which members of your team achieve the best revisit rates
and get them to share ideas on how they do it. Keep what works, and
lose what doesn’t.
Tom Murphy is the founder & CEO of Kitomba Salon & Spa
Software, Australia’s fastest growing salon and spa software
provider. To learn more about Kitomba, visit www.kitomba.com
or call 1800 161 101
Whether you have a love or a hate relationship
with numbers, understanding your key
revenue drivers can be the difference between
success and failure as a business owner and
business-minded stylist or therapist.
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