Pay attention to these top five growth indicators and learn how to use technology to better manage your business.
Imagine the world before Facebook, Instagram or Twitter. Hard isn’t it? Technological advances have come at lightning speeds over the past 10-20 years. Specifically in the beauty industry, advances in technology have allowed for more effective client booking, inexpensive and convenient promotion of services and more efficient and user-friendly ways to track salon metrics. There are so many options to choose from when it comes to management software, but one company that has made a name for itself is Millennium Systems International. Founder and CEO John Harms started writing software in 1987 at The Village Salon in Tannersville, PA. He later created the first appointment book module for the beauty industry, which put the company on the map.
Now Millennium Systems offers a lot more than appointment booking. Harms and Robert Maconi, Vice President of Enterprise Sales—a division of Millennium—talk to salon owners about growth indicators such as how many new clients a month they attract and how they can increase their average ticket revenue. “These are forward-focused growth indicators that help predict future revenue and growth,” claims Harms. Focusing on these predictors of growth can help your business stay competitive.
Top Five Growth Indicators
1. New clients per month: You need new clients to replace those who move or no longer come in. It’s important to track that movement. If you see the numbers dropping, it’s a good indication that either your marketing isn’t working or you have a reputation problem.
2. New client retention: The industry average is only 35 percent of clients who come back a second time. By the sixth visit, only eight to 12 percent of clients come back again. We’ve proven that by looking at data from a thousand salons.
3. Repeat client retention: The goal should be 85 percent.
4. Frequency of visits: It’s the one growth indicator that allows us to immediately help salons to realize a 15 to 20 percent growth in 90 days. Frequency of visit average for hair services is five times a year. The goal should be eight.
5. Average ticket: Learn what your average ticket is and try to increase it in $5 to $10 increments per guest by suggesting conditioning treatments or upselling services.