With 56 salons spread across four cities in India, Enrich Salons is a fast growing chain with a management team that invests in staff growth and tight operations. It's no surprise that they consistently beat industry benchmarks for KPIs like customer retention, visit frequency and average visit spend. Regarding the average client retention rate for hairstylists, achieving a rate of 50% or higher is considered good, while 60% is regarded as excellent. An even more impressive milestone is reached when the first-time retention rate exceeds 70%.
As with any business, Enrich is constantly striving to improve business performance. They set out to find ways to increase spend from their existing clientele. The challenge to improve an average visit spend, customer retention and visit frequency that were already well above industry benchmarks. They turned to Zenoti Analytics to dig deeper into their customer behavior trends and see what insights they could find.
In reviewing their business performance, it became apparent that while Enrich's overall visit frequency rates were healthy, visit frequency rates varied across service categories. For example, men who were getting haircuts were largely coming back within the targeted 4 weeks. Women were coming in for their color touch-ups for their targeted follow-up date. Some services however did not show ideal visit frequencies.
After evaluating metrics broken down by service categories and assessing the potential upside for each, Enrich identified their opportunity.
Waxing clientele made up a significant portion of their business. However, follow-up visits were irregular and less frequent than their target visit frequency.
Enrich set out to improve the visit frequency rate for their waxing clientele.
Their solution was to craft a meaningful communication that served as a timely reminder as well as a way to educate the client on the benefits of maintaining a regular beauty regimen.
Enrich set up a text message (SMS campaign) using Zenoti's Always On capabilities. The first step was to create a target segment that used the client's last visit date as criteria. Zenoti automatically excludes clients that have opted-out of marketing SMSs.
After the campaign was set up, Zenoti automatically sent a personalized text message (SMS) to customers exactly 21 days after their last waxing service.
Enrich tested this campaign for 60 days; and the results far exceeded expectations.
While Enrich was concerned that customers may react negatively to receiving reminders via text (SMS), they wanted to try SMS (text message) before moving to email. The bet paid off as customers responded positively to the reminders. Some customers even appreciated the appointment reminders as they saw it as a convenient way reminder to stay on top of their beauty regimen.
The campaign resulted in a 14% increase of on-time, repeat visitors.
This was measured by comparing the number of visitors that came for a follow-up visit within two months of their previous waxing visit. Projections show that Enrich can expect two more visits per year from wax clients this year, amounting to a significant increase in revenue from waxing services as well as add on services during their visit.
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