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SEARCHDetermining the Key Performance Indicators you want to focus on is the first step in growing your business. Zane Hagy walks you through the process.
KPIs have always been there, but more and more salons seem to be talking about them nowadays. Instinctively, all salon owners worry about KPIs, even if they don’t know the buzzwords associated with them.
KPIs are simply the Key Performance Indicators for your business. Without them, you can’t set clear goals and targets, it’s like taking a long trip without knowing where you’re going. You may know that you want to end up at Miami Beach…but if you’re as directionally challenged as me, and have no map, you could easily end up in Chicago.
Start by deciding which KPIs are most important for your salon. KPIs to consider, include:
Revenue
Client retention
Client rebooking
Retail sales
Average Ticket
Client satisfaction
Employee satisfaction
If detailed tracking of your KPIs is new to you, you may start with a shorter list, but it’s important to start the process of tracking your data and making improvements where needed.
Determine where you are in each category, set goals for where you need/want to be, and start making the changes necessary to see your salon where you want it to be.
This sounds simple, and it is. By outlining where you are and detailing your goals, your odds on achieving them vastly improve. Putting your reality and your goals on paper shows you where changes should be made.
Whether you’ve been monitoring your KPIs instinctively, or with a detailed process, now is a great time to consider adjustments. Many tools exist to help you make improvements, but it’s up to you to figure out where you need the most work.
Most salon owners have no idea what these numbers are. You can hit record sales and still have a profit problem. The difference comes down to four numbers almost nobody was taught to track.
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