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Loyalty. Course Objectives To give you an introduction to the core elements of using SALONGENIUS To establish in your minds – The importance these elements.

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Presentation on theme: "Loyalty. Course Objectives To give you an introduction to the core elements of using SALONGENIUS To establish in your minds – The importance these elements."— Presentation transcript:

1 loyalty

2 Course Objectives To give you an introduction to the core elements of using SALONGENIUS To establish in your minds – The importance these elements have on your business – Who should be responsible – The benefits of using them To give you the skills to utilise these key elements

3 Schedule Data Quality Customer Loyalty

4 data quality

5 Marketable Status

6 The more you collect the better Client Record Card Occupation - Do you know their work number? Birthday Age Group Gender Client Source – Reward a Friend?

7 Driving Data Quality Contact Details & Permission fields New Client information – get as much as you need initially - don’t forget the permissions Existing Client information - revisit, check and improve - don’t forget the permissions You may not get this all in one go Focus on effective data collection Diary driven – Client Data Quality Branded Data collection form

8 Technical Notes Quality Client Record - F2 Service Technical services – Pending Blue, Completed Red – Memo, Update or Repeat Previous – DO NOT USE CLIENT MEMO – Assist using Operator Job Lists & Technical Histories report – Police using F7-2 Pending History reports

9 Data Quality Service & Retail Histories You don’t need to do this – SALON GENIUS does it for you Supermarkets growth over the last 10 years has been due to their exploitation of their client spend data YOU HAVE THE SAME POWER – USE IT CORRECTLY

10 Sales Data Quality Client sale Information Correct Bookings & Sales Accurate refunds Accurate redos Commitment to Teamwork Good salon communication Drive rebooking

11 Getting Sales Correct Client books for a FHH but it changes to HHH in chair Who tells Reception & how early? ReasonBEST …AT LEAST do…WORST … ActionBooking IN SALON – NO Delete the bill Correct the booked service IN SALON REVISE off FHH Replace with HHH PRICE ADJUST FHH to price of HH SellsCorrect service at right price WRONG service at right price Sales r’ptsCorrect INCORRECT Tech HistCorrect for service sold WRONG for service sold Booked vs Sold Bookings match sales Times correct Allocated % correct Bookings DO NOT match sales

12 SALONGENIUS Data Other SALON GENIUS Data Quality Staff Records – Dept, Price & Time Service Records – Tech, History, Prices & Times, Available To Stock Records Discounts – Correct Promotion tracking System Settings – SALON GENIUS & Appointments

13 Archiving and Purging Keeping your data current by looking at the BIG problem Archiving Sales & Appointment Data Purging old Clients & old Histories Focus on a data set worth keeping and improving

14 Duplicate Clients Having reduce the BIG problem looking at Duplicate Clients Duplication Reports Client Merge Utility outside of SALON GENIUS Merge Sales & History

15 Data Quality Summary Improved Data Quality will Increase performance Improved client contact – Option to drive the return rate – More options to market clients Improved technical records – More complete records & better checked More accurate sales records – Improved Sales & Performance analysis System is easier to use – Simpler to use – Fewer mistakes

16 loyalty

17 Loyalty Scheme Rewards Points scheme Discounts Points Points per value of Service and/or Retail Introductory Points Double points on Mondays

18 The Need To improve customer loyalty to salon Develop business through focus on three salon drivers – Client count, frequency of visit and spend. Collect accurate data Tie in Recommend a Friend

19 Means Points based loyalty scheme. – Points allocated against total bill of retail and service – Client can take points (money) off total bill to redeem – Reward clients based on “performance” SG client record card holds the points balance Recommend use with a leaflet and application form Optional use of “salon” card

20 Benefits Improved Client Data Quality and Marketing – Client marketing permissions required as part of joining Net benefit to business compared to discounting – By reducing the discounts given your business retains more disposable income – Motivate staff by relative rise in commission

21 Discount vs. Loyalty Points CalculationItemPercentagesDiscounting £1 per Point scheme Net benefit of Points Scheme ABill Value£50.00 BDiscount10.0%£5.00£0.00 C = (A-B)Gross Bill£45.00£50.00£5.00 DVAT20.0%£7.50£8.33-£0.83 E = (C-D)Net bill£37.50£41.67 F Staff Commission 30.0%£11.25£12.50-£1.25 GReward liability1.0%£0.00£0.50-£0.50 I = (E - (F+G)Disposable Revenue £26.25£28.67 £2.42

22 What does that mean for Business? Example 1000 clients 4 visits per year Average bill £50 1000 x 4 x £50 = £200,000 takings What is your average discount?

23 Loyalty Performance benefits CalculationItemPercentagesDiscounting £1 per Point scheme Net benefit of Points Scheme ASales£200,000 BDiscount15.0%£30,000£0.00 C = (A-B)Gross Takings£170,000£200,000£30,000 DVAT20.0%£34,000£40,000-£6,000 E = (C-D)Net Takings£136,000£160,000 F Staff Commission 30.0%£40,800£48,000-£7,200 GReward liability1.0%£0.00£2,000-£2,000 I = (E - (F+G) Balance£95,200£112,000£16,800

24 Typical Points Rewards Scheme Keep it Simple 1 point per £1 service & retail 1 point worth 1 pence (1% basic scheme) Joining bonus e.g. 150 points (£1.50) – No VAT on points Redemption Minimum balance before permitting Redemption

25 An example Rewards Scheme FieldValueDescription SCHEME NAMERewardsThe name of the loyalty scheme and appears on the Receipt GROUP SCHEMENOSalon scheme only START DATE1/1/2011Starting date of the scheme END DATELeave BlankThis scheme has no end date SCHEME PERIODLeave BlankThe clients’ membership never expires POINTS ON ISSUE150150 points awarded on joining scheme (£1.50) POINTS PER £ RETAIL1.00Client collects 1 point per £1 of retail POINTS PER £ SERVICE1.00Client collects 1 point per £ of service 1 POINT REDEEMED IS EQUAL TO £ 0.01Each redeemed point is worth 1p (1% basic)

26 An example Rewards Scheme FieldValueDescription MIN. POINTS REDEMPTION500£5 minimum balance required before redemption permitted ISSUE POINTS ON PART PAYMENT NONo Points are not earned on remainder bill value if part paid by points PART PAYMENT BLOCK SIZE100Points may be redeemed in blocks of £1 DISCOUNT ONLY SCHEMENOThis is not a Discount Only Scheme SERVICE DISCOUNTNONo service discount - the client gets points only RETAIL DISCOUNTNONo retail discount - the client gets points only PAY COMMISSION ONSale PricePay staff commission on Sale Price PAY VAT ONSale PriceCalculate VAT on Sale Price PAY ROYALTY ON PAYMENTSNOValue paid by points are not charged royalty POINTS MULTIPLIER MON-SUN1.00Normal points Monday to Sunday inclusive. You can set which days offer double points

27 Scheme Advanced Capabilities Day of Week multiplier – Recommend max 2 days / double points Time of Day multiplier – Recommend max 2 times / double points Birthday Bonus – Recommend 500 points auto awarded

28 Extra Capabilities Promotional Bonuses – Service/Retail item bonuses High Flyers – Reward based on spend or visits Period Bonuses – E.g. Double points in January Gift Items – Can be redeemed for points – Don’t give away what you do!

29 Offering Membership To Existing client – To reward loyalty To New Clients – To improve retention F6-3 Page 9 Clients by no of Visits

30 Joining a Client Client fills in Application Select correct client/Add new client – Update correct details and permissions F9 LOYALTY CARD – ADD & Select scheme – Enter unique membership number / Scan the card RC00000001

31 Member clients Booking records Client Record Card Client sales screen

32 Awarding Points Points awarded at client sale based on service & retail value Bonuses applied at the time of sale Receipt shows – Opening Balance – Points Awarded – Including bonus (if applicable) – Closing Balance RC00000001

33 Redeeming Points LOYALTY CARD method of payment – Points redeemed by value Receipt shows – Loyalty Card payment – Opening Balance – Points Awarded – Including bonus (if applicable) – Closing Balance RC00000001

34 Reporting Client Record Card – Client Transaction Statement (report) – Mini Statement (last 7 transactions receipt docket) F7 CLIENTS – Clients Points – Loyalty Liability F5 REPORTING – Loyalty Points – Loyalty Activity RC00000001

35 recommend a friend

36 Recommend a Friend To reward existing clients who refer new clients – Existing client sale produces voucher(s) to give to friends – New Client redeems on 1 st visit only - discounted Existing client will be sent text message to inform once “friend” has visited and claim their reward – Existing client rewarded on next visit - discount Rewards members also get 500 points reward (£5.00)

37 Summary Identified Key areas in SALONGENIUS – Data Quality – Customer Loyalty The impact of using these areas and problems – Good use – Poor use

38 Action Plans Plan for next few months Objectives & Targets Responsibilities Support Needed Restrictions Benefits

39 loyalty completed thank you

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