September 12, 2015
We at EverySalon.com are committed to help salons all over the world grow. Salon owners sometimes don’t understand what growth means for a salon. Spending a lot of money to get customers that are not likely to be repeat customers, for example, is not growth. We always advise salon owners and managers to define growth as sustainable growth of revenue and profit.
Now that we have defined what we mean by growth, here are the five ways to grow revenue for salons:
- Customer Acquisition
- As a salon owner, you make money when customers come to you for service. And for customers to come to you, they need to know that you exist. Thats the bare minimum. No one can come to you if they don’t know you exist. Traditionally, being in a good location helped people find you. And salon owners went to networking events to build their clientele. While location and networking are both still very important, there is one more thing you need to do well these days: creating your presence on the Internet.
- Once your potential know about your existence, they still need a convincible reason to come to you salon. Word of mouth is the most successful customer acquisition ever because it does not just help new customers know about your existence, it also gives them a reason to visit you. Coupons and promotions are second most effective ways to give people a reason to visit you.
- Customer Retention
- Bringing customers to your salon once is the most difficult part but it is just the beginning. The customer needs to be satisfied by the service they receive for them to come back. If the customers are really happy, their word of mouth will help you get even more customers. Salon owners often fail to value customer retention. Spending money on customer acquisition without a good retention rate is like pouring water in the sand.
- The quality of service provided followed by the experience at the salon are key to bringing customers back. Cleanliness and rude staff are two things that tick customers off.
- While there are a group of regular customers, there are a number of customers that wander around different salons. A well managed loyalty rewards program can help increase your regulars over time. Targeted “Come Back” coupons can help you bring back price sensitive customers.
- Once you have won regular customers, they are much more likely to spend more on each visit as you have built a relationship with them. It is important to encourage customers to try services in addition to what they normally get. This not only increases you revenue, it also allows customers to discover other services that the might be interested in.
- Periodic offers to try new services at discount is one way you can expose more services to your clients.
- Loss Prevention
- As a salon owner, you have to run your ship tight to make sure you are not losing money that you earned. Money mishandling by staff is surprisingly common among salons and other small businesses. Good accounting system is important from this perspective.
- Missed appointments are another incidents that lead to lost revenue for a salon. Appointment reminders are a good way to minimize this.
- Cost Control
- A dollar saved is a dollar made. Identifying potential cost cutting measures however small can lead to big saving in the long run.
Do you have success stories about growing your salon’s revenue that you want to share with the community? Please let us know!