One of the most common ways to calculate client retention is to take all the clients (either new or repeat) over a 30-day period, then look forward 90 days to see who returned and who didn’t. But why would you ever want to wait 90 days to know if you lost a client? Wouldn’t it be more valuable to learn earlier, so you can take pro-active measures to retain her before she gets too comfortable with the salon down the street?
Korvue Software’s KSG, or Artificial Intelligence Engine, learns the individual visitation cycle of every client, so you can monitor retention in absolute real time and discover any difference in typical individual client behavior. Owners set the client alerts based on three levels of status—caution, missing and inactive. For example, the Caution Alert could be set to identify any client that has gone 35-percent past his or her normal visitation cycle.
When any client names appear in the three alerts, salon staff can take immediate action. In many cases, the action chosen can occur automatically through the software.
“The days of generalizing retention and frequency of visit are gone, if you can’t track individual client behavior through artificial data, then you risk losing your clientele before you even know it,” says Phil Fennell, a former salon owner and a senior industry specialist for Korvue.