Are you working hard to fill your books with clients who then don’t return? While it can be difficult to determine why, some clues may already exist in your appointment books.
Most businesses have employees, but few industries have revenue streams that are as reliant on their entire staff as is the case with salons and spas. Sure, most local businesses rely on a small staff of sales people to create the revenue that pays everyone’s salary. But spas & salons are staffed lean, and whether or not a staff member is performing a service, they’re still likely to be heavily involved in each sale, whether it’s answering the phone to book the appointment, giving a tour, or assisting with closing a retail sale. And yet, many spa and salon owners don’t pay enough attention to the performance metrics of individual staff members, relying instead on daily reports that show service and retail sales or sales by department.
Those are important metrics, of course; understanding how each department is performing as compared to the others, or as a function of their square footage allotment, or staffing costs, is a great thing to know. But when you’re interested in growing your business, you want to be able to isolate each portion of your performance and look for growth opportunities. And that often comes down individual staff performance.
Part of the beauty of using business management software is that it allows you to collect additional data points that can help you understand what’s going on beneath the surface. Of course, you have hunches about staff performance; you can probably name who has the most clients and who sells the most retail, and those two roles are probably filled by the same 2 or 3 people every month. But what about everyone else? Who has the highest client retention? Who saw the most new clients this month? You, your managers, and your technicians should know the answers to these questions, and you should use this information to adjust how appointments are distributed among your staff.
On a monthly basis, it’s worth examining the performance data of each service provider. This will allow you to benchmark their performance and then collaborate with them on monthly goals. Some crucial statistics to track would be average ticket revenue and percent of sales from retail vs. service. These stats are both strong indicators of sales ability, and both within the control of the technicians themselves.
The number of clients who’ve requested a particular technician is also an important indicator of that tech’s ability to create rapport and establish a relationship with a client. The quantity of clients serviced, clients per hour or shift, and number of clients purchasing retail are also helpful. If you begin noticing that a particular technician is not having success in retaining clients, that’s something you want to take action on. There are a number of reasons why that might happen, and not all are the fault of the technician, but whatever the cause, the situation shouldn’t be ignored. The last thing you want to do as a business owner or manager is to work hard to attract new clients, only to have them never to return. When you discover a trend like this, you might put a moratorium on booking new clients with that technician until you have identified, and rectified, whatever is causing this result.
Your support staff has metrics that can be examined as well. Are you having too many “no-show” appointments because confirmations are not being completed? Are you seeing recurring errors such as cash drawer discrepancies, retail sales that are rung under a miscellaneous key because they didn’t look up the department or barcode, or even just simple booking mistakes? All of these issues can all be trained away once they’ve been discovered.
A business management system is only as helpful as the data it captures. That’s why it’s important for you to train your team on how to use your system to its fullest advantage. They need to understand that their care and accuracy in creating bookings and recording customer notes has an impact on the business, and on the income of each service provider.
Imagine how great it would be if you had 7 or 8 stylists and a different one led the way every month—and you couldn’t predict the highest retailer without having to look at your numbers. Sound like a pipe dream? Not necessarily. When you’re tuned in to the details of your staff members’ individual statistics, you’ll be able to coach each person to higher performance and earning levels, which is good for everyone.
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