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elite training
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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
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Schedule Client Retention Data Quality Customer Loyalty
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client retention
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Improving Existing Client Retention Who do you compete with, identify your business values? Do you understand your clients expectations? Do you focus on delivering a complete “experience”? Do you reward regular clients?
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do you have a hole in your bucket?
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Client Retention keys points No Shows Do you track your No Shows? New Clients How many new clients come back and to who? Return Rates Getting clients to come more often
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no shows
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Are you losing clients? Do you have a No Show problem? Are you recording No Shows? Do you Remind Busy Times or all bookings? How do you remind clients By telephone By SMS or email
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Busy Times vs All Bookings The No Show Problem 1000 bookings per month 3% No Show rate – 33 per month – 1 per day Busy Day 10 cols x 7 services @ £50/serv = £3500 value 1 No Show = £50 lost Impact 1.4% loss on day Quiet Day 3 cols x 4 services @ £50/serv = £600 value 1 No Show = £50 lost Impact 8.3% loss on day Likelihood of Walk-ins to fill cancellations?
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Phone vs SMS Costs The No Show Problem 1000 bookings per month 3% No Show rate – 33 per month Phoning costs 1000 x 4p per call (2min @ 2p/min) = £40 2mins per call = 33 hours @ £6.08b.w. £200 Cost £240 per month SMS costs 1000 x 8p = SMS messages £80 Saving £160 per month SMS SAVES £1920 per Year
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Appointment Reminders SALON GENIUS historically reduces No Shows by up to 90% No Show Calculator No Show Calculator
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Appointment Reminders Remind All Clients ALWAYS REMIND CLIENTS = YES SALON GENIUS only sends SMS to enabled clients As Data Quality improves so SMS efficiency improves Automate Reminders F2-1-5 SMS REMINDERS AUTOMATIC REMINDERS = YES REMINDER PERIOD = 1 DAY BEFORE VISIT
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new clients
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Improving New Client Retention Do you know how many new clients never return? Do you know why they do not return? Are you giving them to the right people?
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New Client Generation Where do your New Clients come from? What motivates them to visit? What motivates them to visit again? Do you offer incentives to convert them to “regular”? Are New Colours a problem due to skin tests?
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Do Your New Clients Return? F6-3 STATISTICS Page 9 – Clients by number of Visits
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New Client Retention F7-2-4-1 SALON RETENTION Left Hand section- New Client Retention
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New Client Retention F7-2-4-3 NEW BY OPERATOR Are you giving New Clients to the right people?
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New Client Contact New Client Surveys In Salon, with Skin Tests? New Client CCM Sequence of automation for New Clients
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return rates
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Reducing Frequency of Visit Do you know what your average client visit period is? Can you, and indeed, do you sell the benefits of returning more frequently to your clients? Any value in Pre-Booking the next appointment?
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Reducing Frequency of Visit Are you aware of the impact on revenue? Return Rate Calculator Return Rate Calculator
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The average client is returning to most salons every 11.71 weeks. That’s only four times a year! Only 2 in 3 new clients return to the same salon! Return Rates and Client Retention are the most critical challenges facing a modern hair salon today. Why are client’s only coming four times a year?
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Focus on the current problem! Most salons concentrate on marketing clients who have not been back for 12 months. That means they’ve been somewhere else AT LEAST 4 times! LOOK AFTER YOUR MOST VALUABLE ASSET!
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Salon Return Rate F6-6 CLIENT DATA QUALITY
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Existing Client Retention F7-2-4-1 SALON RETENTION Right Hand section- Client Retention
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How many clients? Do you know how many clients you need to fill your salon? Client Calculator Client Calculator
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Reducing Return Rate Rebooking Options
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Reducing Return Rate Summary Explain the benefits to clients Who & When? Client CCM Automated contact based on client behaviour
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Client Contact Manager Proactive marketing to contact clients on a personal basis F7-5 CLIENT CONTACT MANAGER Triggers – Scheme Times set the trigger events Appointment or sale Content – Scheme Messages set how the client is to be contacted and the content of the message – SMS, Email or Letter USE CAREFULLY
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Client Receives: 1 x Appointment Reminder SMS 1 x New Client CCM SMS 1 x Client Visit CCM SMS TOTAL 3 SMS (24p)
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CCM Client Triggers F7-5-1 SCHEME TIMES – New Client 1 Day after Sale Sale is the trigger – Client Not Rebooked 5 weeks after Sale Sale is the trigger
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New Client Messages F7-5-2 SCHEME MESSAGES – New Client 1 Day after Sale Send if Future Appts = Yes Contact via SMS “ CLIENT FIRST NAME Thank You for choosing SALON NAME to take care of your image, we hope you had a fabulous experience & look forward to seeing you very soon”
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Client Visit Messages F7-5-2 SCHEME MESSAGES – Client Not Rebooked 5 weeks after Sale Send if Future Appts = NO Check for ANY SERVICE Contact via SMS “ CLIENT NAME keep your image looking great! Visit SALON NAME in next 2 weeks and receive 10% discount - show this text on arrival. Reply STOP to unsubscribe ”
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CCM Contact F7-5-3-1 NEW CLIENT – New Client 1 day after sale – New Client 1 day after msg F7-5-3-2 CLIENT – Client Not Returned 5 weeks – Client Not Returned 5 weeks msg Others – No Shows – Recommend a Friend – Client Birthday – Loyalty Card Expiry
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plug that hole now
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key performance
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What are the keys points? How Do You Compare Business Insights - Know where you are monthly Data Quality Know your client and how to contact them Take EVERY opportunity to gain potential future marketing opportunity Excellent Customer Service
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how do you compare?
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Rankings Where my salon ranks What do I need to work on
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the ability to change depends on data quality
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Marketable Status
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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?
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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
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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
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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
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Sales Data Quality Client sale Information Correct Bookings & Sales Accurate refunds Accurate redos Commitment to Teamwork Good salon communication Drive rebooking
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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
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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
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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
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Duplicate Clients Having reduce the BIG problem looking at Duplicate Clients Duplication Reports Client Merge Utility outside of SALON GENIUS Merge Sales & History
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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
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loyalty
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Loyalty Scheme Rewards Points scheme Discounts Points Points per value of Service and/or Retail Introductory Points Double points on Mondays
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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
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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
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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
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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
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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?
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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
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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
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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)
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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
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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
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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!
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Offering Membership To Existing client – To reward loyalty To New Clients – To improve retention F6-3 Page 9 Clients by no of Visits
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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
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Member clients Booking records Client Record Card Client sales screen
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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
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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
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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
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recommend a friend
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Recommend a Friend To reward existing clients who refer new clients – Existing client sale produces voucher(s) to give to friends – New Clients redeem on 1 st visit only to get 10% discount Existing client will be sent text message to inform once “friend” has visited and claim their reward – Existing client rewarded on their next visit 10% discount Rewards members also get 500 points reward (£5.00)
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technology Can you afford not to?
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MyTakings.com Centralised Control of data Services, Stock etc Centralised Marketing Easier marketing Track clients across group Future Data Cleansing possibilities
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can clients correct their own information?
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Client Data Collector Client updates their details Completes / Corrects their data Eliminates mistakes Advertising & information Away from Reception Hand-held device Password protected Reception download client record to mini PC Reception “accept” updated record
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can you staff reception 24/7?
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Online Bookings 24/7 Reception You define services and staff available Clients Registered clients on your system
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do you leave the salon unlocked overnight?
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Security Protect your investment Provide traceability How safe is your business? Do know where all the cash is? Do you know where all your stock is? How safe is your client data?
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summary
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10 Steps Forward 1.Get a better understanding of your clients wants / needs. Ask them! 2.Identify your salons Experience Values 3.Define your salons Unique Selling Points 4.Communicate them to all staff and clients 5.Create a staff culture to control client behaviour
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10 Steps Forward 6.Communicate well with New Clients before, during and after visit. Thank them! 7.Deliver on your promises…. Create a client “experience” in your salon 8.Sell your clients the benefits of enjoying the “experience” more often 9.Communicate well with regular clients before, during and after visit. Thank them! 10.Utilise the marketing calendar to manipulate client behaviour
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Make sure you measure it
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Summary Identified Key areas in SALONGENIUS – Client Retention – Data Quality – Customer Loyalty The impact of using these areas and problems – Good use – Poor use
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Action Plans Plan for next few months Objectives & Targets Responsibilities Support Needed Restrictions Benefits
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elite training completed thank you
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