Is your salon leaving too much cash on the table, and missing opportunities to increase revenue? Good chance; most do. But the extreme to which you miss out on making money can vary, depending on how prepared you are to spot opportunities.
Not leveraging existing customers
“Every satisfied customer is an ambassador for your salon,” says business analyst Clayton Eniz. “They are the best people to promote your business, and they’re likely happy to do so. It’s imperative that you give them the tools to do that.” It could be as simple as requesting them to post to social media about their positive experience in your salon. A real customer’s glowing review is always going to be more powerful than an Insta-celebrity. In addition, consider offering a discount to an existing customer when they refer a friend, or encouraging them to try new treatments as a bundle deal are all likely to build your revenue.
Rewarding underperforming staff
While it’s important to reward staff to keep them motivated, rewarding underperforming staff only endorses their sub-standard work ethic, while chipping away at your bottom line. Moreover, rewarding those who do well, will ideally encourage others to step up their own efforts. In addition, creating a team-based bonus – which relies on every team member to reach particular targets – will hold every staff member accountable to each other; no one wants to be the team member that lets the group down.
Offering too many discounts
It makes sense to discount treatments in quieter periods, in an effort to increase bookings, but offering them without strategy could be dangerous. “Giving a discount is just giving a discount if you’re not using that promotion to fill off-peak times,” says Clayton. He suggests that rather than discounting, upgrading to a more popular service can make it easier for a client to upgrade “in treatment.”
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