4 Keys To Understanding Salon Business Fundamentals

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When it comes to your business, understanding a few key business fundamentals helps to focus your efforts to get the best results. Aiming to improve the 4 key areas will ensure your salon or spa business’ growth and profitability.


1. Gaining new guests/clients

2. Retaining guests/clients

3. Increasing per guest/client service spend

4. Increasing per guest/client retail spend

That’s it.



Right now you want to list all the ways you are trying to gain new customers. Are you doing email drops? How often? What are the results from your last promotion using email? Do you have a referral system in place? Is it easy to understand? What are your results here? Are you visible online? Do you have a website? Do you use social media marketing? What are your results here? Your ability to attract clients is limitless, remember to focus on being creative rather than competitive to gain extra clients.



Take a look at what you are doing to keep or retain your current customers. Do you offer a loyalty program where great clients are rewarded for their loyalty? Do you create content rich newsletters for your customers? So that they not only gain benefit from this newsletter but you also keep in contact with them? Are you creating a WOW factor for your current guests, or are all your efforts on gaining new customers? When was the last time you ran an event or a workshop for your current customer base?

What is your rebooking rate? Can you do better? It’s much easier to sell or upgrade your current guests to a more expensive treatment or a new product. How much appreciation have you shown your loyal guests? Your regular guests are the lifeblood of your business – your constant goal is to get them to 1) return to you, 2) buy more from you or 3) see your business as the go-to salon or spa for expert knowledge.



What actions have you taken in this area? When was the last time you increased your prices? What services could you create as up-sells or add-ons? How can you get your guests to visit more regularly? What would make them want to try other services or more of the same service?



Finally, What incentives have you provided for your customers to purchase more? Do you have a sales process in order that your staff follows? How well do you know your guests’ needs? Is the product you are selling in line with your business’ philosophy?Are the products that you are selling right for your market? Is your retail space set up invitingly with merchandising?

Your attention as a salon or spa owner should be where it matters… on gaining new guests, retaining guests, increasing guest service spend and retail spend. Aiming to improve the 4 key areas will ensure your salon or spa business’ growth and profitability in the future.