How does your Salon business look like? Is it generating enough revenue? If yes, how do you even measure it? If we talk about reality, there are a few who use a straight-forward and measured approach to determine the success of their salon, and an intelligent salon and spa software become a helpful guide for them.
Because the salon’s success is not only about more money but also depends upon the client metrics. Your clients are the mirror of your business and they can only tell you the real story. So, we have compiled some of the factors responsible for salon success and which can easily be accessed through the reporting tool of a practical salon and spa software.
Customer Metrics
Existing Customers Vs New Customers
In any business, customers act as a parameter to calculate the loyalty of clients towards the business. But it is very important to look at the new clients. Both new, as well as existing clients, are the spine of any business as they directly impact the revenue. The gradual increase in the number of clients assures business growth and mouth-to-mouth branding.
Have a look at your new client rate. It must be something around 10%, minimum. Do you know why? It is so because normal attrition is about 10% so as to balance, you need to have 10% of clients coming in should be new, at minimum. If you are observing a low percentage or a substantial gap between the appointments then it is the right time to shoot up some advertising campaigns.
For example, referral schemes or online methods such as Facebook/Instagram ads, Adwords, digital promotions, etc. On the contrary, if you are seeing a low new client retention rate but a higher rate of advance booking then you should expand your team as it is a sign that your business has reached a higher level and it needs bigger space.
3R Formula
Rebooking Rate
Let’s understand “Rebooking” first, it is considered as a future appointment booked within 24 hours of the previous/on-going appointment. As a salon owner, you must encourage clients to rebook before walking through the exit door and you can do that by offering quality service and some additional benefits.
Rebooking is one of the highly effective aspects of the salon business. It determines the probability of client’s revisit, secure future income, motivates staff for being in demand, and automatically boosts business performance. Moreover, if the frequency of visit will increase, it automatically will save time, energy and money spent on finding new clients.
Revisit Rate
So, to understand this let’s take an example. Suppose I go to a salon every 15 days a month. So, what will be the revisit period for my salon owner? It’s so simple, 15 days! Basically, the average period of time between your client’s appointments is your revisit period. The length of the time between appointments creates a huge impact on your revenue. However, reducing it by even a minimal amount of time can result in a massive jump on your business revenue.
At first, we suggest you to reduce the revisit period by just 1 day to analyze results. We assure you that you’ll be amazed by the results and feel even more confident about reducing the revisiting period even more.
Retention Rate
Customer Retention is about making loyal clients by offering high-quality services which can enhance the whole customer experience and excite them to come back. Loyal customer is an important aspect of salon business because they trust you, they take your services more frequently and bring new potential customers along.
Similar to rebooking, retention can also be measured in time. If your customer does or doesn’t make bookings for future with 24 hours but they book frequently or whenever they want to avail a service, they are considered as retained customers. As a business owner, you must encourage your clients to make bookings by treating them special with exclusive discounts and rewards, remind them for upcoming offers and appointments, and personalized texts and emails. To make it more convenient, you must take the help of a salon and spa software that can send automated reminders and personalized text to all your clients within seconds.
Your Customer is Your Success!
When it comes to client metrics, it is always important to remind yourself that it is not as hard as you think. Because with an interactive and handy salon software like Jeavm, you are an expert!
You can manage all your operational tasks with ease. Whether it is staff, client, inventory, or finance, all can be done smoothly. Once you integrate this smart salon management system, it will cut down your manual efforts and produce effective and error-free results; and that’s all you need to run a successful salon business.
You can also schedule a demo with Jeavm to know how it works and how it can make everything even simpler.
