Do you know your Key Performance Indicators?
If you don’t have a solid foundation to work from and only rely on ‘takings’ as an indicator of salon performance, now is the time to start looking at the three most important metrics outside of what’s in your till at the end of every week, according to the salon finance expert Gloria Murray:
- The average spend of your clients
- Your utilisation rates
- The percentage of your returning customers
Your challenge: Today, take some time to ask yourself if you know what your most valuable KPIs (Key Performance Indicators) are in your salon or spa business. And if you do, does your strategic work concentrating on optimising them, day in, day out?
If you use Phorest in your salon, you can easily pull these reports from anywhere and measure week-on-week. For today, you can simply analyse your numbers and start making a plan to improve your profits by looking specifically at the average spend of your clients. It’s a great way to boost revenue without the need to acquire new clients or add more overheads.
You should be asking yourself:
- Is your clients’ average spend high enough?
- What can you do to increase it?
- What’s your next step?
Think about additional revenue streams from upsells, add on treatments and retail that can boost every clients’ spend. Then, decide on one next step to action in the salon this week. It could be encouraging your staff to sell more retail, making a special offer on add-ons, or creating a package.
Further reading & resources: