elite training

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

Schedule

• Client Retention• Data Quality• Customer Loyalty

client retention

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?

do you have a hole in your bucket?

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

no shows

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 clientsBy telephoneBy SMS or email

Busy Times vs All Bookings

The No Show Problem1000 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?

Phone vs SMS Costs

The No Show Problem1000 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 costs1000 x 8p = SMS messages £80Saving £160 per month

SMS SAVES £1920 per Year

Appointment Reminders

• SALONGENIUS historically reducesNo Shows by up to 90%

No ShowCalculatorNo Show

Calculator

Appointment Reminders

• Remind All ClientsALWAYS REMIND CLIENTS = YES

SALONGENIUS 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

new clients

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?

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?

Do Your New Clients Return?

• F6-3 STATISTICS Page 9 – Clients by number of Visits

New Client Retention

• F7-2-4-1 SALON RETENTION Left Hand section- New Client Retention

New Client Retention

• F7-2-4-3 NEW BY OPERATOR Are you giving New Clients to the right people?

New Client Contact

• New Client Surveys In Salon, with Skin Tests?

• New Client CCMSequence of automation for New Clients

return rates

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?

Reducing Frequency of Visit

• Are you aware of the impact on revenue?

Return Rate

Calculator

Return Rate

Calculator

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?

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 elseAT LEAST 4 times!

LOOK AFTER YOUR MOST VALUABLE ASSET!

Salon Return Rate

• F6-6 CLIENT DATA QUALITY

Existing Client Retention

• F7-2-4-1 SALON RETENTION• Right Hand section- Client Retention

How many clients?

• Do you know how many clients you need to fill your salon?

ClientCalculator

ClientCalculator

Reducing Return Rate

• Rebooking Options

Reducing Return Rate Summary

• Explain the benefits to clients• Who & When?

• Client CCM• Automated contact based on

client behaviour

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

Client Receives:

• 1 x Appointment Reminder SMS

• 1 x New Client CCM SMS

• 1 x Client Visit CCM SMS

TOTAL 3 SMS (24p)

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

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”

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”

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

plug that hole now

key performance

What are the keys points?

• How Do You Compare Business Insights - Know where you are monthly

• Data QualityKnow your client and how to contact themTake EVERY opportunity to gain potential future marketing opportunity

• Excellent Customer Service

how do you compare?

Rankings

Where my salon ranksWhat do I need to work on

the ability to change depends on data quality

Marketable Status

The more you collect the better

• Client Record Card Occupation

- Do you know their work number?BirthdayAge GroupGenderClient Source

– Reward a Friend?

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

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

Data Quality

• Service & Retail Histories You don’t need to do this – SALONGENIUS 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

Sales Data Quality

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

Getting Sales Correct• Client books for a FHH but it changes to HHH in chair • Who tells Reception & how early?Reason BEST … AT LEAST do… WORST …

Action Booking IN SALON – NO

Delete the billCorrect the booked

service IN SALON

REVISE off FHH Replace with HHH

PRICE ADJUST FHH to price of HH

Sells Correct service at right price

Correct service at right price

WRONG service at right price

Sales r’pts Correct Correct INCORRECT

Tech Hist Correct for service sold

Correct for service sold WRONG for service sold

Booked vs Sold

Bookings match salesTimes correct

Allocated % correct

Bookings DO NOT match sales

Bookings DO NOT match sales

SALONGENIUS Data

Other SALONGENIUS Data Quality• Staff Records

– Dept, Price & Time• Service Records

– Tech, History, Prices & Times, Available To• Stock Records• Discounts

– Correct Promotion tracking• System Settings

– SALONGENIUS & Appointments

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

Duplicate Clients

Having reduce the BIG problem looking at Duplicate Clients

• Duplication Reports• Client Merge Utility outside of

SALONGENIUS• Merge Sales & History

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

loyalty

Loyalty Scheme

• Rewards Points scheme

Discounts

• Points Points per value of Service and/or Retail

Introductory PointsDouble points on Mondays

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

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

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

Discount vs. Loyalty Points

Calculation Item Percentages Discounting £1 per Point scheme Net benefit of Points Scheme

A Bill Value £50.00 £50.00

B Discount 10.0% £5.00 £0.00

C = (A-B) Gross Bill £45.00 £50.00 £5.00

D VAT 20.0% £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

G Reward liability 1.0% £0.00 £0.50 -£0.50

I = (E - (F+G) Disposable Revenue

£26.25 £28.67 £2.42

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?

Loyalty Performance benefits

Calculation Item Percentages Discounting £1 per Point scheme Net benefit of Points Scheme

A Sales £200,000 £200,000

B Discount 15.0% £30,000 £0.00

C = (A-B) Gross Takings £170,000 £200,000 £30,000

D VAT 20.0% £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

G Reward liability 1.0% £0.00 £2,000 -£2,000

I = (E - (F+G) Balance £95,200 £112,000 £16,800

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

An example Rewards Scheme

Field Value Description

SCHEME NAME Rewards The name of the loyalty scheme and appears on the Receipt

GROUP SCHEME NO Salon scheme only

START DATE 1/1/2011 Starting date of the scheme

END DATE Leave Blank This scheme has no end date

SCHEME PERIOD Leave Blank The clients’ membership never expires

POINTS ON ISSUE 150 150 points awarded on joining scheme (£1.50)

POINTS PER £ RETAIL 1.00 Client collects 1 point per £1 of retail

POINTS PER £ SERVICE 1.00 Client collects 1 point per £ of service

1 POINT REDEEMED IS EQUAL TO £

0.01 Each redeemed point is worth 1p (1% basic)

An example Rewards Scheme

Field Value Description

MIN. POINTS REDEMPTION 500 £5 minimum balance required before redemption permitted

ISSUE POINTS ON PART PAYMENT

NO No Points are not earned on remainder bill value if part paid by points

PART PAYMENT BLOCK SIZE

100 Points may be redeemed in blocks of £1

DISCOUNT ONLY SCHEME NO This is not a Discount Only Scheme

SERVICE DISCOUNT NO No service discount - the client gets points only

RETAIL DISCOUNT NO No retail discount - the client gets points only

PAY COMMISSION ON Sale Price

Pay staff commission on Sale Price

PAY VAT ON Sale Price

Calculate VAT on Sale Price

PAY ROYALTY ON PAYMENTS

NO Value paid by points are not charged royalty

POINTS MULTIPLIER MON-SUN

1.00 Normal points Monday to Sunday inclusive. You can set which days offer double points

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

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!

Offering Membership

• To Existing client – To reward loyalty

• To New Clients– To improve retention

F6-3 Page 9

Clients by no of Visits

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

Member clients

• Booking records

• Client Record Card

• Client sales screen

Awarding Points

• Points awarded at client sale based on service & retail value

• Bonuses applied at the timeof sale

• Receipt shows– Opening Balance– Points Awarded– Including bonus (if applicable)– Closing Balance

RC00000001

Redeeming Points

• LOYALTY CARD method ofpayment– Points redeemed by value

• Receipt shows– Loyalty Card payment– Opening Balance– Points Awarded– Including bonus (if applicable)– Closing Balance

RC00000001

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

recommend a friend

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 1st 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)

technology

Can you afford not to?

MyTakings.com

• Centralised Control of dataServices, Stock etc

• Centralised MarketingEasier marketingTrack clients across groupFuture Data Cleansing possibilities

can clients correct their own information?

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

can you staffreception 24/7?

Online Bookings

• 24/7 ReceptionYou define services and staff available

• ClientsRegistered clients on your system

do you leave the salon unlocked overnight?

Security

Protect your investmentProvide 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?

summary

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

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

Make sure you measure it

Summary

• Identified Key areas in SALONGENIUS– Client Retention– Data Quality– Customer Loyalty

• The impact of using these areas and problems– Good use– Poor use

Action Plans

• Plan for next few months

• Objectives & Targets• Responsibilities• Support Needed• Restrictions• Benefits

elite trainingcompletedthank you