The hallmarks of a successful salon are consistent across the industry: high revenue, satisfied guests, and happy employees. But when it comes to gaining a competitive advantage, the finer details can make all the difference.
Growth happens when you start taking incremental steps to improve processes, build on strengths, and leverage top performers. Analyzing and tracking sales and operational data is key to uncovering these opportunities for improvement.
Using data-driven KPIs (Key Performance Indicators) is essential when addressing salon performance. We’ve developed a whitepaper to help you get started with utilizing your salon data – or update your current strategy – by listing some of the top metrics to address for salon success.
You can download it here:
What KPIs are – and why they matter.
A key performance indicator is a data point – or several – used to measure progress toward a business goal. When you set a KPI, you note your starting point and your goal, and track progress over time to ensure you are seeing the desired results.
KPIs help keep your team aligned to a common goal. They encourage accountability for each employee’s contribution towards successful business outcomes. This can be especially important for single-center salons, where fine-tuning a process or leveling up a single provider can make a significant difference to the entire business. Multi-location competitors are likely already looking at these metrics, but with the right salon software and analytics tools, they should be available to all salons. Use that to gain a competitive advantage.
How to use KPIs for salon success
While the obvious success metrics – like overall revenue and number of guests – are important, new opportunities (and weaknesses) are revealed when you delve into specific processes or providers.
Our whitepaper lists metrics that will help you answer important business questions and take action for greater revenue and guest satisfaction. It’s designed to give you clarity on topics such as:
How does your booking process impact sales?
Do guests who book via one channel generate higher ticket prices than others? This channel may offer more opportunities for upselling and cross-selling. Leverage it!
Furthermore, is there a correlation between booking channel and no-shows/cancellations? The channel with the most issues may require clearer messaging about your cancellation policy.
How engaged are your guests?
No doubt, you offer guests five-star service and they spend accordingly. However, what happens after they leave the salon can further impact revenue.
Check how many new guests you get from referrals and consider whether your referral program could be more attractive or accessible. Remember to track referral numbers to see if your changes are working.
Dive into marketing metrics to understand what your most effective channel is. Use that knowledge to ensure resources are spent where they’ll generate the most conversions.
Who is your best-performing provider?
Dive deeper into individual provider data to reveal who is a superstar at both their craft and generating sales. Meanwhile, check who might require extra support – perhaps they could learn something from your top providers. Set individual KPIs to motivate staff to excel and keep them accountable for their performance.
Knowing your salon’s strengths and weaknesses is key to making informed, strategic decisions for future growth – and gaining a competitive advantage. Get the key salon metrics to start tracking today in our whitepaper.