If you run a salon, spa, or medical spa, you’re probably keeping an eye on a few basic business metrics like revenue and staff utilization. But what are you doing with that information?
The answer: Probably not enough. The true value of any metric is only realized when you have something to compare it to – an industry benchmark.
The 2023 Beauty and Wellness Benchmark Report, a new analysis of salon, spa, and medspa data by Zenoti, delivers benchmarks across a dozen key measurements. Now, any owner or manager can compare their data to that of businesses like theirs.
Making the most of beauty and wellness benchmarks
A benchmark shows you how you stack up to similar businesses, across measurements that define your organizational wellbeing.
For example, a barbershop might compare its average guest spend against those of top-performing businesses, high achievers, or the industry average. With benchmark data gathered and analyzed by Zenoti, barbershop owners – and barbers – know where they stand against peers, and where to create or revise strategies as needed.
What’s inside The 2023 Beauty and Wellness Benchmark Report
According to key findings in the benchmark report, every major beauty and wellness business category booked more appointments in 2022 than in 2021. However, barbershops and medspas led appointment growth, with barbershop visits up by 28.5% per location, and full-service medical spa visits up by 22.5%.
Similarly, the top 10% of membership-based spas enjoyed 22% higher revenue than their non-membership peers.
The report also offers key findings on the no-show gap at barbershops, customer feedback, and the impact of gift cards.
In the report, Zenoti serves up 32 pages of data, trends, and insights – including key findings like the ones above, an industry recap, and benchmark data on revenue, provider performance, and guest experience.
Zenoti analyzed 2022 performance data across our technology platform – software used by 25,000+ beauty and wellness businesses. Because of this reach, Zenoti is in the unique position to collect and share benchmark data at a scale and level of detail not found elsewhere.
The report includes data from six beauty and wellness business segments:
- Barbershops and quick-service salons
- Full service / luxury salons
- Medical spas with a single-service focus
- Full-service medical spas
- Comparisons of membership-based spas vs. non-membership-based spas
For each segment, the report identifies three levels of data benchmarks – top performers (top 10%), high achievers (top 25%), and the industry average – for the following key performance indicators (KPIs):
- 2022 revenue per store / location
- Average ticket size / guest spend per visit
- Utilization rate
- Bundle sales
- Average annual gift card sales
- 2022 revenue per provider
- Provider-led retail sales
- Average monthly tips
- Online booking rate
- Online check-in rate
- Repeat guest rate
- No-show rate
With this benchmark data at hand, salons, spas, and medical spas can now understand their place in the market.
From there, it’s time to select the right KPIs and monitor progress. This helps your business identify strengths, fix problems, and forecast business growth. However, you’ll want to return to benchmarks when determining goals for each metric.
Revenue is the most common indicator of business success for today’s businesses – which is why the benchmark report highlights 5 critical KPIs that contribute to those bottom-line results. Staff utilization is just one example.
The state of staff utilization
As shown above, membership-based businesses lead the way at 51% staff utilization for the industry average, 87% utilization for high achievers in the top 25th percentile, and an impressive 97% utilization rate for top performers in the 10th percentile. Barbershops and quick-service salons also show impressive utilization numbers.
Further, the utilization rate of best-performing full-service medical spas is nearly triple the industry average.
Note: Benchmarks like this one offer just one snapshot of the data available to every business and brand powered by Zenoti software.
These businesses can easily see and track their KPIs related to revenue, providers, guest touchpoints, store management, and more. They can also compare their progress against similar businesses – for any time period, location, and size.
Ready to see how your business compares?