This spring, during the height of the pandemic, Kao Salon Division launched the Kao Salon Industry Recovery Initiative and committed to providing Goldwell and KMS salons with tangible resources to help them reopen and restore their businesses in the months ahead.
“During the pause, our senior leadership, along with our field sales and education teams (who support both our direct sales organization and our distributor partners), used the time to prepare for the focused mission of increasing salon revenue when salons could safely reopen and our staff could return to the field,” said Scott Guinter, general manager of Kao Salon Division in the U.S.
“We put together a package of enhanced benefits for our Loyalty Program Customers through Kao Salon Alliance,” continued Guinter. “In our Salon Alliance program, a salon earns points for their purchases. In light of widespread closures, we adjusted our program to be more flexible in point usage, product and programs available, as well as maintaining member status.”
As part of the initiative, Kao's Salon Alliance program encouraged members to redeem their loyalty points for Visa Gift Cards, allowing them to pay bills, purchase PPE or cover other operating costs.
Program enhancements were designed to provide both short and long term cash flow relief. Understanding that many salons needed an immediate infusion of cash to get up and running again, the Kao program allowed salons to redeem points for VISA gift cards that could be used to pay bills, buy PPE or cover operating expenses.
During the closure, the Kao Salon Industry Recovery Initiative helped salons with marketing materials to communicate to guests about features like curbside product pickup.
To increase cash flow over the longer term, Kao offered special pricing on items including back bar, blonding and retail products. Savings on back bar basin enabled salons to generate extra profit on every appointment. Price incentives on service products allowed salons to make more profit on popular, big ticket services, like blonding. Reducing the cost to the salon on retail products increased the cash flow to the salon from the sales to clients who needed to replenish their home care supply after months without access to salons.
To help salon increase cash flow as they reopened, Kao offered special pricing on items like backbar, blonding and retail, helping salons increase profitability with each sale.
In addition, Kao Salon Division supported over 2,000 salons nationwide with Reopening Kits containing hand sanitizer, masks and other sanitation support pieces. The company also created reopening and recovery marketing materials and resources, which are available digitally to Salon Alliance members.
The Kao Salon Industry Recovery Initiative also sent Reopening Kits with masks, hand sanitizer and other sanitation support pieces to 2,000 salons nationwide.
Program results have been outstanding with a more than 600% increase in point redemption vs. an average pre-pandemic month. The Kao Sales and Management team received kudos from Goldwell and KMS salons across the country:
“Avanti Salon & Spa has been a Goldwell salon for 22 years and counting. We started as a small salon with five chairs and have grown to having two profitable locations with forty employees. During these uncertain times, the support we have received from the Kao team has been exemplery. They have gone above and beyond with ideas on how to grow our business, create promotions and motivate employees. A lot of companies will promise you the world until their product arrives at your door, but Kao delivers. We appreciate the partnership!” Gary Bilello, Avanti Salon & Spa
“I just want to let you know that going through this difficult time has been made easier because of all the care, love and support of the Kao team. My Kao Sales and Education team has helped me every step of the way. Thanks!” Glen Goldbaum, Lambs & Wolves
Kao also create clever social media posts highlighting why clients have a special bond with their stylists to help salons keep a strong connection with clientele during the shutdown.
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