The numbers game: improve business with reporting
Posted on 5th June 2014 by Lisa Conway
Why do you keep score when you play a game? From football to Monopoly, scoring helps you see how you’re doing!
It’s the same in your salon. Scoring shows your strengths and weaknesses so you can find ways to work better.
Many salons use software to automatically track sales, appointments and revenue, but they don’t actually use this information to improve the way they do business.
Tracking key numbers and sharing them with your team lets you set realistic targets and pinpoint where your weaknesses are.
Ultimately, your salon is about making people feel fantastic. Your software provides all the information you need to find out if you’re achieving this goal.
Key metrics to track
Rebookings. Rebooking helps you as much as it does your client. The number of rebookings is a good indicator of future revenue, and it is also a great way to see whether clients are satisfied with your service. Your clients can secure the appointment time they want, on the date they need to maintain their style.
Retail sales. When a client buys the product they need to keep their hair looking great between salon visits they’re more likely to use it, and enjoy the results.The research also shows clients that buy retail are much more likely to stay loyal.
Non-returning clients. This is probably the most important number of all! You really need to know why clients don’t come back, but if you don’t ask, you’ll never know. This is why re-booking at the time of your appointment is critical – it may be your only chance to ask them.
How to use these numbers
Use your numbers or industry averages to set goals for your salon and for each team member and then turn it into a challenge or game.
It’s not a question of telling low performers how poorly they’re doing, it’s about watching every team member improve.
Focus on the positive, “Ok, last week you managed to re-book 15 clients, let see if we can get that to 18 this week.” Or, “Let’s see if we can sell product to 50% of clients this week, rather than 40%.”
You’ll soon start to see the results, and can continue to track your progress and set new goals to keep your business growing.
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