It’s a numbers game. Are you counting?
What are your business numbers telling you? Not much? Then it’s likely you’re not hearing them properly. Knowing your numbers and what they mean is crucial to the success and growth of your salon business.
We are creative individuals and as such don’t have time to get bogged down in the nitty-gritty of the figures. But finding a more manageable solution that helps you to hear exactly what your figures are telling you will be the best thing you could ever do for your salon. By learning to act on the facts and key growth indicators that are there in front of you, and not just on what you think is right, will help you develop a plan of action and keep you moving in the right direction. Just having a pretty salon won’t guarantee you success.
KEEP SCORE AND YOU DO MORE
At BOOSTmySALON we have created a Key Results Achievement (KRA) Sales Chart that pinpoints the ten key numbers you need to focus your business on. By analysing these ten figures, you will be able to set better targets for your team, better financial objectives and see exactly how you may go about achieving the goals set. You will learn the valuable lessons your numbers are telling you and discover how to act on these facts.
Our KRA Sales Chart will help you to efficiently map-out and understand everything you need to know, use and share with your team to achieve salon success.
You can purchase and download the sales chart for only £99. The KRA Sales Chart is A0 in size (customisable with your logo and big enough to fit all your important number goals on). We recommend you print and gloss laminate the sales chart so it can be reused time after time using a dry marker pen. Keep it somewhere your team can see it daily to keep everyone on track with the business targets and see your results grow. Call us Today and order your KRA Sales chart on 01344 834987.
Are you ready to try something new to BOOST your sales and improve the way your salon functions overall? Then let’s see what numbers you need to be focusing on.
Number 1 - Service Sales net of VAT
Do you know how to set financial goals for your team that’s both good for them and the business? By creating objectives that encourage each member of your team to increase their own service sales, for personal gain and business growth, will certainly show you a rise in their performance. We recommend that you use a commission-percentage goal of between 35% and 40%.
For example, Mary works a full-time schedule of 40 hours per week, and earns £8 per hour, making her salary £320 per week. To find Mary’s service sales target, we would divide her weekly salary (£320) by either 35% or up to 40%, to find her financial goal for the week.
£320 divided by 35% = £914. Which makes Mary’s weekly goal and also her commission pivot point, £914 net of VAT.
Incentivise this goal: When Mary takes in service sales over £914 in one week, she will earn more money to take home.
Number 2 – Rebooking Percentage
What is your rebooking percentage? Do your stylists encourage clients to book their next appointment before they leave? What is their dialogue at the reception or when the client is in the stylist chair? What incentives do you have to educate your clients to rebook?
The industry average for rebooking clients is just 35%. Give today’s clients a reason to be tomorrow’s sales and you’ll be creating security and peace of mind for your future. We recommend you monitor your future bookings six weeks in advance and keep a record of fluctuating patterns, that way you can foresee the weeks that may be slow and act sooner to build those quieter weeks up.
Incentivise this goal: Create a points or discount system for clients when they rebook at the end of their appointment.
Number 3 – Colour Ratio Percentage
We all know where the big money lies - in colouring. So why wouldn’t you want all your stylists to be expert colourists as well? If you can create a culture in which all of your stylists do colour services, the better it will be for your financial security.
Do you know what your salon average is for colour treatments? The industry average is about 30% of all clients having colour in a given timescale.
By getting your clients chemically dependent and offering a more robust colouring service, you will see your sales grow. The more big-ticket colour services you do, the better the average bill will be, making you and your team work smarter not harder.
Incentivise this goal: Keep up with the latest trends in colouring and make the time for your team to have regular colour education with your manufacture for renewed motivation and confidence.
Number 4 – Bottle per Stylist
Do your team recommend and educate towards the right hair care for their clients? Making your stylists into sales people is not the goal here, but encouraging them to teach their clients about the products they are using, will go a long way towards selling more bottled products.
Get your stylist to demonstrate to your clients how to use the products by multi-sensory communication. Educated clients buy more. That’s a fact!
Two bottles a day per stylist is a realistic goal and can make a huge difference to your average bill, client retention, customer service and overall sales.
Incentivise this goal: Studies show that you’re 30% more likely to retain a new client if you sell them a bottled product at the end of the service, which they feel is truly beneficial to them.
Number 5 – Upgrades
Up selling improves sales goals and increases the average bill. Did you know that approximately 20% of your clients would upgrade to a new or deluxe service if it were offered to them?
Introduce a deluxe or luxury upgrade on services and treatments such as a luxury cut and style as well as offering a normal cut and style. The luxury version would encompass extras such as a conditioning treatment. 80% may decline but an average of 20% will upgrade. Coach your team on dialogue, up selling, and the services, packages or treatments that your salon currently has on offer to upgrade.
Incentivise this goal: Occasionally offer free upgrades to enhance continued loyalty. How would you feel if you were offered a free upgrade?
Number 6 – New Client Percentage
Every business needs to bring in new clients in order to see healthy business growth. You should always be working on promoting your business and improving upon the number of new clients each month.
As a business owner you need to know how many new clients you get and where they come from so you can monitor your results. Measure the percentage change to see if you are growing or declining. Aim for a 20% rise in new clients each week, month and year for sustained growth.
Incentivise this goal: Keep your marketing campaigns fresh and focused to attract new patrons. Present new clients with compelling offers that will make them rethink their loyalty to their usual salon.
Number 7 – Average Bill to net of VAT
Increasing your average bill to a client doesn’t necessarily mean increasing your prices. Salons can BOOST the average ticket price by selling more retail, add-ons, up selling, and cross selling. With all your possible upgrades you could add another 20% to your overall sales.
Let’s say your current average bill is £40 net of VAT. And you want to set a new goal of an extra £5 to achieve an increase to £45. If you see 100 clients in a week and could up-sell to every one of them, that will produce an extra £500 in sales over a week, or £26,000 per year! Keep in mind it’s easier to upgrade and sell extra to existing clients who already trust your judgment.
Incentivise this goal: Remember that commission percentage goal from Number 1? Keep your team motivated to work smart and earn extra take-home money.
Number 8 – Frequency of Visit
As a salon owner, the words Frequency of Visit (FOV) should stand out to you. With the average salon client visiting just five times a year or approximately every ten weeks, it’s natural to be concerned with how often your clients are coming into your business.
Your goal should be to increase a client’s visit - at least - one more time per year and encourage the client to come back sooner, not later.
While it’s certainly important to attract new clients, it is even more important to make sure that your new clients keep returning as frequently as possible. Rebooking should be a standard procedure when checking out a client and is a key way to increase FOV.
Incentivise this goal: Other ways include sending customised emails, holding special promotions, suggesting last-minute appointments and loyalty programs. Focusing simply on Number 8 will help to increase your sales by about 20%.
Number 9 - Productivity
Are your stylists looking to fill up those empty slots in your appointment book? Are they helping you reach maximum productivity for your salon? To be at maximum productivity your salon needs to be gaining new clients every month, retaining those new and repeat clients, increasing FOV and the average bill, all at once.
This is a great indicator to see how good your stylists really are at selling themselves as stylist experts and their popularity with your clients.
Incentivise this goal: When a stylist reaches a minimum of 80% productivity or is utilized consistently, then it’s time for a promotion or price increase. When all of your stylists reach the 80% productivity mark, then your business should be growing and able to employ new recruits.
Number 10 – Retention
How well are you doing in keeping your clients? Are they becoming loyal to you, fans of your salon and brand advocates?
Look at these statistics below on why clients don’t return for a second visit:
- 9% decide to use a competitor
- 14% may be unhappy with the product or service they received
- 68% are simply unhappy with the service
Your business can be broken or made through client retention. With 68% of customers leaving a salon business because they are unhappy with the service, you must do a better job of refining what it is that you offer.
Incentivise this goal: Set the right customer expectations by building relationships and you will build a solid approach to customer service.
ACT ON FACTS: NOT EMOTIONS
Now armed with your number information, you can focus your business on creating an amazing client experience, and making sure your services have the best procedures that will keep your clients coming back.
There’s more to a successful salon than just its pretty image. A successful salon knows how to bring in sales and retain its clients.
Download our KRA Sales Chart in three easy steps today to begin focusing on your key result achievements and BOOST your salon business.
- Get in contact and upload your business LOGO to [email protected]
- We take payment of £99
- We send you the print ready files. (Print to AO and gloss laminate)
The Key Result Achievement Sales Chart has been invaluable to the success of our salon business and takes the information from the computer to a visual form. All the team can see their daily and weekly targets, and exactly what the business is achieving, and what they need to do to earn more money. It’s highly motivating to the team, and, as a salon owner, I can see how my salon is performing when I enter the staff room. - Mellony Gillham. B.O.B Salons
If you would like to arrange a free business and marketing audit with myself then please get in touch.
Carey Faulkner, BOOSTmySALON
You can also download a PDF of this article here!