Salon Client Retention, Loyalty Stats

By Alison Alhamed | 03/03/2010 1:43:00 PM

 

Client retention can be a slippery slope, and it’s hard to know how you’re doing when everyone measures it differently. We dug deep into the loyalty stats with these five owners.

KEVIN KRAUKLIS


KEVIN KRAUKLIS
Aveda Academy Denver, Puretalent Salons (avedaacademydenver.com) in Denver, Colorado
New client retention ratio: 33 percent
Existing client retention ratio: 72 percent
Measurement timeframe: 90 days

Do you regularly set retention goals for your team?
Every six months we do a career path meeting where we identify benchmarks and specifically client retention. This is how I determine how new customers will be filtered into the salon—we put it into a power ranking system.

How often do you evaluate and share statistics with your team?
Every day. We also post benchmark reports on a weekly basis. We have a daily huddle sheet, which shows high performances from the day before.

Is retention a factor when considering raising a stylist’s prices or giving them a raise?
Yes, the formula we use is 80-percent requested, 80-percent booked and 70-percent retention.


JANICE VAN MULLEN

JANICE VAN MULLEN
Hue, an Aveda Lifestyle Salon and Spa (huehb.com) in Huntington Beach, California
New client retention ratio: 33 percent
Existing client retention ratio: 72 percent
Measurement timeframe: 90 days

Do you regularly set retention goals for your team?
Every six months we do a career path meeting where we identify benchmarks and specifically client retention. This is how I determine how new customers will be filtered into the salon—we put it into a power ranking system.

How often do you evaluate and share statistics with your team?
Every day. We also post benchmark reports on a weekly basis. We have a daily huddle sheet, which shows high performances from the day before.

Is retention a factor when considering raising a stylist’s prices or giving them a raise?
Yes, the formula we use is 80-percent requested, 80-percent booked and 70-percent retention.


KAREN WISCHNELFSKI

KAREN WISCHNELFSKI
Renaissance (rensalon.com) in Fond du Lac, Wisconsin
New client retention ratio: 32 percent
Existing client retention ratio: 79 percent
Measurement timeframe: Average of 90 days and 180 days.

Do you regularly set retention goals for your team?
Yes, their pay is based off of retention.  I pay hourly with bonuses. If one of the employees is at 75-percent retention and they increase it to 80 percent, then I give them a $300 bonus.

How often do you evaluate and share statistics with your team?
Weekly. At our meetings we highlight different areas we are working on. We go over retention once a month. 

Is retention a factor when considering raising a stylist’s prices or giving them a raise?
Absolutely. Their wage is set off of that. Raising a stylist’s wage is also based upon their productivity.


CHERIE SLUSSER

CHERIE SLUSSER
United Artists Salon and Spa (unitedartistssalon.com) in West Reading, Pennsylvania
New client retention ratio: 28 percent
Existing client retention ratio: 74 percent
Measurement timeframe: 90 days

Do you regularly set retention goals for your team?
We do this on a quarterly basis. The salon looks for continued growth in retention numbers. The team members also can see the increase in their revenue.

How often do you evaluate and share statistics with your team?
We meet with the individual team members twice a year. We have seen very positive results from continual meetings with the stylists. We are moving toward meeting on a quarterly basis.

Is retention a factor when considering raising a stylist’s prices or giving them a raise?
Yes, the stylists with higher retention rates have a better opportunity to achieve this. Retention rates and pre-booking show increases in revenue and income for the stylists.


GLENNIS TOLUNAY

GLENNIS TOLUNAY
Vanity Salon (vanity-salon.com) in Houston, Texas
New client retention ratio: 45 percent
Existing client retention ratio: 76 percent
Measurement timeframe: 120 days

Do you regularly set retention goals for your team?
Our benchmarks give us a set standard to operate by. They require us to retain a minimum of 60 percent of all our clientele.      

How often do you evaluate and share statistics with your team?
The salon manager has a 30-minute meeting with all service providers once a week. In this meeting, service providers learn, among other things, their current client retention and pre-booking rates for the week, month and year.

Is retention a factor when considering raising a stylist’s prices or giving them a raise?
Client retention rates are one of the integral parts factored into any consideration for a promotion.

 

 

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ABOUT THE AUTHOR: Alison Alhamed

Alison Alhamed, Editor in Chief of Modern Salon Magazine | Editor of First Chair

Since July 2008, Alison has worked across all brands under the MODERN SALON Media umbrella, including MODERN SALON, SALON TODAY, FIRST CHAIR and MODERN SALON TV. Alison’s passion for the beauty industry grew even deeper after she enrolled in beauty school, working as an editor by day and a student by night. Alison earned her cosmetology degree from Pivot Point International in Bloomingdale, Illinois, in May 2011.

You can find Alison on Google+ or e-mail her at aalhamed@vancepublishing.com.

 


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