Looking to shape up your beauty and wellness business? Stay on top of industry trends and benchmarks so you can compare how you’re performing against other businesses like yours in the industry. Armed with that knowledge, you can make the right decisions for your salon or spa, at the right time.
Start measuring key performance indicators or KPIs because you can’t manage what you don’t measure.
The first step toward understanding your performance is identifying KPIs to track. These should combine more conventional, standard metrics – such as revenue per location – with strategies intended to drive greater revenue and efficiency.
Here is just a sampling of KPIs that a beauty and wellness business should track. Identify categories to focus on (like revenue, guest relationship, or provider performance, for instance) and retool your strategies.
Once you choose KPIs to track, you can compare them to industry benchmarks. How can beauty and wellness businesses get benchmark data?
Benchmarks by Zenoti
Beauty and wellness businesses using Zenoti have an advantage: They can access industry benchmarks to see exactly how they compare to similar businesses across a variety of essential KPIs.
Watch a short video to explore the potential impact of Benchmarks by Zenoti on your business.
Practical ideas for your salon, spa, or medspa
Benchmark data puts actionable information within reach. It lets you view your business against the rest of the industry and make well-informed decisions based on those insights.
Let’s look at two examples of how knowledge of benchmark data can help you make the right choices for your business.
1. How to increase the average ticket size?
Take a revenue benchmark like guest spend per visit or average ticket size (ATS).
If the 2021 ATS for your business – tracked by your software platform – is below the industry median, you might aim to increase your ATS 15% over the next year. What steps can you take to meet that goal? Ideas include training staff to suggest service and retail add-ons as part of their connection with guests. You could also automate add-on recommendations through the online booking process and guest emails.
If you’re more ambitious, you’ll mirror the choices of high performers, like promoting a digital referral program and accepting the most up-to-date payment options.
2. How to boost staff retention?
Finding and keeping talent is a challenge for beauty and wellness businesses, so it makes sense to track a provider benchmark like staff retention. After all, it takes more than just an appealing work environment to retain great talent.
If you’re losing stylists and providers more frequently than the industry average in your category, how can you reverse the trend? You can make the greatest impact by maximizing earning opportunities for your providers, for starters. Keep providers busy with a full appointment schedule. Equip them with information for service upsells and product sales to boost tip and commission income.
Zenoti benchmark data correlates digital payments with higher tip income for providers. Boost provider income by making it easy for guests to pay and tip through a mobile app. Showcasing this provider-friendly aspect of your business can help you attract and retain talent in a tight post-COVID market.
With Benchmarks by Zenoti, you can make informed decisions that will help you drive revenue while enhancing the employee and guest experience.