3 Tips to Boost Sales
How about a Pay Rise for 2017?
Be honest… How many times have you done this, created a new year plan, made an enthusiastic start and before you know it things have petered out before they really got started?
Make this year different by implementing and consistently carrying out some very simple strategies that will add extra income to your bottom line.
I have a pal who is a Business Consultant. He works on the assumption that there is always 10% saving in any organization which bodes well for him as his customers are usually fairly large businesses so a 10% saving will always more than justify his fee.
That got me thinking if there is 10% saving in every business surely with some creativity and applied strategy there must be 10% to be added.
I have worked with thousands of salons for almost 2 decades. I can count on 1 hand the number of salons that are fully occupied, maximise every retail and upsell opportunity, re-book routinely and consistently apply a marketing plan. So assuming you are like 99.9% of salons you probably have the capacity to apply the 10% rule.
Here are some very basic calculations. (These figures are based on average salon performance stats)
The average number of clients per team member is approximately 200
The Average number of visits per year per client is 6
The Average Bill Per Client is approximately £35.00
200 Clients x 6 Visits x £35 Average Bill = £42,000 Net Annual Sales by Team
Add the 10% Rule and you get…
220 Clients x 6.6 Visits x £38.50 Average Bill = £55,902 Net Annual Sales by Team!
That equals £13,902 per team member which is a 33% increase!
The average salon has 4 team members plus the owner. Achieve this and You have just given yourself a £69,510 pay rise without taking on any additional staff.
The Naysayers may think “Been there, Done that, Got the Tee-Shirt” but to be honest you just can’t help some people.
Let’s take this a stage further and explore some strategies you can use to add just 10% to 3 areas of your business.
10% Increase in Average Bill
Increase the prices – many business owners are nervous of increasing prices for fear of losing clients. The fact is assuming that service levels and technical expertise are maintained most clients would associate far more discomfort with having to try someone new than paying a small increase. We work in a small environment so everything feels so personal but the truth is the complaints or negative feedback received (if any) will be from the very few, and the majority will accept it.
Recommend Aftercare – During the consultation explain to every client (even the clients you know well) what tools or products you will be using to achieve the final result. When you are applying the product stop the conversation, get your clients attention and demonstrate how to apply and how much to use.
Ask – at the point of sale ask the client if they too would like to use the product you have used to achieve the same result at home. Use the Onscreen prompt that appears in Salon Advantage (see below).
You can edit this if required. See here
Recommend – Suggest an additional service, style, treatment or alternative during consultations with clients.
10% Improved frequency
How Long will it last? – during the consultation explain to your client how long you recommend that the style, colour, treatment etc may last or add benefit. By mentioning that a result may last for 5 or 6 weeks you are subliminally suggesting when they need to come back.
Reinforce – Use strategies to reinforce this during the client’s booking. It can be many things like “Wow the next time I see you the clocks will be going forward” or “the kids will be back at school”. Find what works for you and make it part of your conversation.
Onscreen Prompt – when the client pays the onscreen prompt will display how long since your clients last booking. If the client visited 7 weeks ago suggest 6 (See Below).
Next Booking Due Smart Campaign – Use “Next Booking Due” Smart Campaign. This runs completely automatically and monitors your response rate. You can send a “Gentle Reminder” text to your regular (not new) clients 7 weeks after they have visited if no future booking has been made. On average 24% of recipients will book and visit a salon within 2 weeks of receiving it. See how to activate here
10% Increased Clientele
Ask for referrals – Explain to your clients that Word Of Mouth is an essential element of you continuing to grow in your business and ask them if they would be kind enough to recommend you to friends, family and work colleagues. Admittedly it’s unlikely that your clients are going to be your unpaid full time advocate but if you ask and someone compliments them on how they look after seeing you that might just be the trigger. REMEMBER we are only aiming for 10%!
Recommend A Friend – Set up a “Recommend a Friend” scheme. Advertise this in your salon and at reception. Also implement the recommend a Friend Smart Campaign which will automatically send a text to your clients asking them to recommend a friend. It will also record when they do and send another message thanking them.
Non Returner Campaigns -It’s far less expensive to regain or keep an existing client than it is to get a new one. The most successful Smart Campaigns in Salon Advantage are the Non Returners. There are two; Non returner Stage 1 set to send an incentive to a client after 15 weeks and Non Returner Stage 2 is sent after 26 with an improved offer. On average approximately 30% of recipients will book and visit the salon within 30 days of receiving this.
New Client Follow Up – An extraordinary proportion of New Clients will only visit a client once and then not return (Believe it or not the average stats are that 40% only visit once). There are Three New Client Smart Campaigns that will trigger messages after various time frames which are well proven to improve retention. See New Client Courtesy, New Client Stage 1 and New Client Stage 2
Online Booking – Add Online Booking to your Website and Facebook page. Over 30% of all online bookings are made by brand new clients.
Facebook – Post late availability to your Facebook page. Take something that currently adds little or no financial value to your bottom line and monetise it.
So above we have 17 strategies and tools that will impact your Number of Clients, Client Frequency and Average Bill.
I would love to hear your feedback on what worked (or didn’t) and also anything that you would like to share that is not mentioned above.
What do you have to lose?