SOFTWARE SOLUTIONS
Driving the numbers when salon management software is used to its fullest potential, salon owners discover they are better managers and their salons are more profitable.
SALON SOFTWARE DOES EVERYTHING
from manage inventory to track repeat visits.
What are its best uses when you want
to drive profits?
John Kanski, a Paul Mitchell the
School owner who co-owns Jenni’s Salon
and Spa in Bloomington/Normal, Illinois,
and is also a Lunatic Fringe Salon franchise
co-founder, advises focusing on growth indicators,
such as sales totals, average ticket,
frequency of visits and the percent of new
guests stylists are retaining.
“We meet one-on-one with stylists once
a week, and follow a four-week rotation of
discussing benchmarks, goal setting, techniques
and career,” says Kanski. “Using
software data to discuss goals, I stress that
frequency of visits drives profits, and rebooking
rates drive up frequency of visits.”
Focusing on the three Rs—rebook,
retail and refer—Kanski creates rewards
programs and promotions that will increase
those numbers. For instance, stylists have
frequency-of-visit goals. To get a seventimes-
a-year client to visit eight times, he
might offer an extra hair cut appointment
for free, knowing that freebies always get
clients to spend more once they’re in the
chair. He also mines specific client data,
such as who spends the most or who does
not get the salon’s nail services.
“In Bloomington, our top 400 guests
represent 80 percent of our revenues,”
notes Kanski. “Incentives are best for loyal
guests. Identify these clients and send them
an offer; the payoff is huge. Sometimes, we
send a text message to our top 400, offering
double rewards points for a visit that day, as a way to drive immediate business.”
Tracking results is also important. When
Kanski sent everyone whose birthday fell
during a certain month a coupon for a freebie,
he compared the cost of what he gave
away to how much the offer generated in
sales by simply having his software system
track the ROI on that offer.
At Yoga for Everybody in Fairfield,
Connecticut, General Manager Jennifer
Jennings also focuses on retention rates
and revenue. Her guests begin with a one month,
unlimited-use offer and at the end
of the month, she tracks who bought a new
package, from 5 classes to a year-long
membership.
“We also track individual instructor’s
retention rates,” says Jennings. “If any
guest has not been in for a while, we call
them personally when possible, because it
works better than an e-mail.”
Justin Lehman, vice president of Jean
Madeline, which also owns Adolf Biecker
Salons and Spas and Jean Madeline Aveda
Institutes in Philadelphia, says if you want
usable numbers, you must define them when
you set up the software. He categorized and
defined each service, so that now, by simply
checking off a few boxes, he can see who
gets hair color but does not book spa services.
How does he then cross-promote?
“Once I run a query, I send an e-blast for
a dual-service booking,” says Lehman. “My
vendor’s e-blast package sells separately but
ties right into the software. I can upload any
art and add links. Clients can share an offer
on Twitter, Facebook or LinkedIn, and I can
track it all.”
Lehman also looks at client history. He
sends anyone who has not been in for 90
days a discount offer, e-mails special offers
to clients whose stylist is returning from a
long maternity leave and maximizes software
use with staff coaching. Like Kanaski,
he tracks retention, pre-booking rates, service
and retail tickets, and new client averages
by week and month. Stylists must
meet eight of their 10 goals to get a price
increase and the software tracks each one.
Which matters most in his salon?
“We’re pretty aggressive with pre-booking,”
says Lehman. “It’s what keeps clients
in the salon, so the goal is 75%.”
For a comprehensive look at all the
software program’s available, check out the more
extensive 2010 Software Guide.
Read the full series:
- Technology Case Studies: Salon Apps
- Technology Case Studies: Software Solutions
- Technology Case Studies: Online Booking
- Technology Case Studies: Interactive Marketing
- Technology Case Studies: Salon Sites
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