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I spoke to the management team at Enrich Salons about Zenoti's business intelligence software. Here’s an excerpt of our conversation …

Can you describe how you use our analytics software? 

Analytics

Zenoti sends me an email at the end of every business day, with a collection of reports that lets me track our performance for the day and against previous months. At the first level, I make sure that we’re hitting expected revenues and counts.

If overall performance is good, then I spend a few minutes on the rest of the reports in the dashboard. The graphical nature of the reports makes it easy for me to glance through and quickly identify any outliers or unexpected behavior.

If something is not right, then I can log into the analytics software and drill down into the data to isolate the problem.

For example, in this discount Percentage Report, you’ll see that two salons stand out of the pack. One is awarding higher than expected in discounts in offers and the other shows exceptional behavior.

Insights From Analytics

At this point, I’d log into the analytics software and drill down to find the reason for these outliers.

What are some actionable insights you’ve found using analytics?

Analytics help us identify revenue opportunities and operational issues. An operational issue might be the need for staff training or seeing that we have a staffing issue. We also find areas of pilferage and revenue leakage.

There are a few reports I can look at to monitor staffing allocation. For example, the Service Sales report shows me if a particular category of services is selling more than expected at a particular salon. I’ll monitor whether this is a trend and prepare to adjust staffing if required. We’re constantly adjusting our staffing based on revenue distribution.

Insights From Analytics

The data in this report is not representative of actual Enrich data.

We ran 3 promotions to boost skin services and used this report to track the results. We ended up increasing the sales mix for skin services by 2-3%. This is a significant increase as our skin services bring, on average, higher revenue than hair services.

In addition to the service sales mix, we also look at our product sales ratios. The Product Sales report maps our service sales mix to the product sales mix. Proportionately, hair does a better job of selling retail product than skin. So again, we’ll decide what action to take based on this finding.

The key is that analytics gives us a 360° view into our business. I’m able to take an initial finding and drill-down into the data, let’s say by centers, by categories, by gender and so on to get to the root cause of any behavior.

Have you achieved real business results by using Analytics?

Absolutely. A few months ago, there were two things that were standing out as clearly for us – we needed to see if we could give away less in discounts and we needed to boost retail sales. Analytics helped us find specific opportunities to design the marketing campaign.

We launched the campaign from Zenoti, which is important because we were able to monitor the campaign results in real-time through analytics. We needed to ensure that we weren’t giving away too much in discounts. If there was a particularly highly discounted offer, then we’d correlate this to additional revenue that the offer was bringing in. Based on that we decide the effectiveness of the offer.

Throughout the campaign, we knew how each salon was performing and could identify issues quickly. In some cases it was clear that staff needed training on how to promote our offers. We found and stopped pilferage issues. Some centers out performed others, so we would find out why and replicate that behavior at other centers.

That marketing campaign was extremely successful – we brought down our discount percentage significantly, moved high volumes of retail product, increased our average ticket size and even awarded more in commissions to our employees – so it was a win all around.

Learn more about how Enrich Doubles Average Ticket Size With Smart Marketing

Increasing retail sales is a common goal for most salons and spas. Where does someone start with analytics to address this goal?

The starting point would be by looking at the Product Sales Percentage report. This shows me where we have clear cut potential to sell more retail. I have a baseline expectation for percentage of product sales, so anyone that falls below that line, I know can improve their product sale mix.

The report makes it easy to identify which centers are under performing as well performing exceptionally. For the bottom set of salons. I’ll address with training and also determine if I need to push a marketing promotion specifically for these centers. For the top salons, I need to find out what they’re doing right – if it’s a particular employee, manager or something else that’s resulting in great retail sales.

Insights From Analytics

Is there anything else that you want to add?

The power of analytics for us is that the data is real-time, we no longer have to wait days or weeks for aggregate data. This makes it possible for us to see early warning signs and take action immediately.

I check the traffic by gender report every day. It only takes a few seconds for me to make sure that our gender mix is right. Monitoring this is important for us as females have a higher average ticket price than males. If female traffic starts dropping then we know right away if the center is at risk for hitting their revenue targets.

Another example is tracking our new centers’ performance. Memberships are a core loyalty program for us at Enrich. I check the new guest vs members report every day. New salons have a higher new guest ratio than the older locations, but I watch and make sure they are headed in the right direction. I know what the ratio should settle on. The report gives me insight onto whether membership sign-ups are happening and if we’re getting new guests to come back for a second visit.

Our entire management team and even my managers that are on the ground check analytics data every day. The completeness of the data gives me certainty that all aspects of the business are running smoothly and the ability to immediately fix the things that aren't.

Read more about The Reports You Need, When You Need Them with Zenoti Analytics

About Enrich Salons

Enrich Salons is Mumbai's largest unisex salon with over 50 centers that span 5 cities. In the past few years they successfully more than doubled their number of salons and are continuing to rapidly scale. Their customers appreciate the quality of service Enrich offers, through high quality of training, consistency in service and overall focus on customer satisfaction. www.enrichsalon.com

About Zenoti And Zenoti Analytics

Zenoti is an easy to use, cloud software that helps spas, salons, and medical spas achieve operational excellence and drive business results. Our all-in-one solution includes appointment booking, POS, online booking, online sales, marketing, employee management, loyalty, inventory, analytics and a complete mobile solution.

Zenoti Analytics is primarily used by multi-center chains and large single center spas and salons. Our Analytics includes dashboards that help you gain insight across your business. Our software will also automatically email dashboards to the right owners to easily stay on top of actual business performance.

Read more case studies to learn how businesses have grown with Zenoti.

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Emily Martin
Zenoti Copywriter
A self-confessed bookworm with a passion for languages and weaving together words. Happiest when immersed in nature, either on horseback or skis, or curled up with a good thriller. Emily's writing focuses on sharing trends and insights impacting the beauty and wellness industry.
Emily Martin
Zenoti Copywriter
A self-confessed bookworm with a passion for languages and weaving together words. Happiest when immersed in nature, either on horseback or skis, or curled up with a good thriller. Emily's writing focuses on sharing trends and insights impacting the beauty and wellness industry.

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Cullie Poseria
Senior Product Marketing Manager, Fitness
Coming from a healthcare family, growing up as a competitive athlete, and being trained as a filmmaker, and MBA, Cullie brings diverse experience to her storytelling and digital business-to-business product marketing. Her writing focuses on sharing trends and insights from her experience in software, entertainment, wellness, and fitness.

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