Home' INSTYLE Magazine : INSTYLE JULAUG 2016 Contents D
o you know how successful your business is? How do
you measure that success?
Client metrics are a great alternative as they tell the
real story. We’ve put together our top five client metrics
which are all accessible using salon software reporting.
Rebooking your client after their appointment is hugely beneficial to
all aspects of your business. For your team, it ensures a pre-booked
column, job security and motivation from constantly being in demand.
For your business, you’re securing future income so you can make
important decisions with confidence. Plus an increase in visit frequency
and a reduction in time, energy and money spent finding new clients
will result in boosted profits. For your clients, regular visits mean you’ll
develop better relationships, they’ll get appointment times that suit
them and overall their hair and beauty maintenance will be improved.
However, the most important part of measuring your rebooking
rate is how you’re defining it. Rebooking is deemed as a future
appointment made within 24 hours of the previous appointment.
So rebooking your client before they leave the salon should be
priority as once they walk through the door, the chances they’ll
book within that period dramatically decreases. If your client
books multiple appointments in advance that’s also counted as
rebooking and it’s a massive bonus for your business!
Kitomba’s Benchmark product shows the average rebooking rate
to be just below 50 per cent for the Australian hair industry. So use
that as a starting point and become one of the savvy salons and
spas that achieves well above that!
Client retention is all about creating loyal clients through providing
high quality service and a fantastic experience. Loyal, long term
clients are important to a business as they tend to spend more, cost
less and make valuable referrals to new potential clients.
Just like rebooking, retention is also measured in time. If your
client doesn’t make a future booking within 24 hours of their last
appointment but they do book again, they are considered retained.
It’s important for your retention rate that you encourage your clients to
make an appointment when they get home, so remind them of all the
ways they are able to do so. We recommend having online booking as
it gives your clients the convenience of being able to book whenever
- even outside of business hours. If you think they still need reminding,
a personalised text or email will do the trick.
The average period of time between your client’s appointments is
your revisit period. The length of time between appointments has
a huge impact on your annual revenue and reducing it by even the
shortest amount of time will result in a massive jump in revenue.
If you’re not quite convinced, here’s an example:
If your annual revenue is $400,000 and your average revisit period
is 8 weeks, reducing it by just one day (7 weeks and 6 days) will
increase your annual revenue by $7,200. That’s pretty amazing but
imagine if you moved it by one week? Your annual revenue would
increase by a massive $56,000!
When starting out we recommend trying to reduce your revisit
period by one day, then analyse the results. We’re sure you’ll be
impressed and as you become more confident you can reduce
the period even further.
NEW CLIENT RATE
Retaining clients and creating loyal ones is really important, but you
can’t forget new clients. They’re the lifeblood of any business as
they tie directly to revenue. A consistent increase in clients allows
you to be certain of business growth and it also ensures that more
potential clients are hearing about your business.
Take a look at your new client rate. It should be sitting at 10 percent,
minimum. Why? Because natural attrition sits at around 10 per cent so
to balance this, you need at least 10 percent of the clients stepping
through your door to be new. If your percentage is low and you
regularly have gaps in your appointment book, maybe it’s time to
kick off some marketing activities like running an ‘introduce a friend’
promotion or try some online advertising such as Google AdWords
or Facebook ads. On the flipside if you find your new client rate is low
but you’re fully booked weeks in advance, your business has reached
capacity. It ’s time to grow, so look at growing your team or if you don’t
have the space, you might need to move to a bigger premises.
CLIENT RETAIL ATTACHMENT
Increasing the percentage of clients that purchase retail
can seriously change your bottom line. This is because you’re
focusing on the opportunity to charge your clients more for
We suggest you take a look at your client retail attachment
percentage and determine a goal for how much you want to
increase this. For example, if it’s sitting at 10 per cent, why not
challenge your team to increase this to 25 per cent. That’s just a
quarter of their clients that they need to convert, so it’s definitely
achievable. To make it work, be creative. Perhaps you can run a
friendly competition between your stylists or beauticians to see
who can increase their percentage the most.
Andrus Nomm is the Marketing Manager at 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.
JUST HOW MUCH
In reality there are probably few businesses that have
a solid, measured approach to determining their
success. Sure healthy revenue and breaking even
are a helpful guide, but how can you tell that your
business is really working, that it’s truly successful?
Writes Andres Nomm.
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