A process of organizing and summarizing business data to monitor the performance of your organization and highlight areas of improvement. It is different from the basic reporting function, which is essentially presenting the data as available. Analytics helps you examine the data to provide additional insights and will often answer any questions that have been raised from reporting. In other words, reporting analytics brings clarity to what is happening, whether it’s working, and what can be done to make it more effective. It’s no wonder that analytics is being increasingly deployed in salons and spas to improve operational metrics and increase revenue and sales.
In order to appreciate the role of reporting analytics, it is important to understand that modern-day businesses need to run at optimum performance. In an increasingly competitive market, it is essential for every salon/spa business to be armed with the data required to make informed decisions. Reporting analytics can be run on almost any function in a salon/spa business to better understand customer preferences for product and service requirements, market trends, and pricing power. By analyzing the constant stream of data, businesses can better ascertain the pulse of the customer and the market, and as a result align their businesses to meet those expectations.
On a daily basis, salons generate a lot of data. It is one thing to create reports out of the data generated, but altogether another process of deciphering the underlying message that the data is telling you. By deploying advanced data analytics, salons can focus on every detail of their business operations. Aspects such as guest preferences, inventory movement, daily revenue, and staff performance can be understood in detail by deploying analytics. The reports generated by analytics are a sort of advisory committee, which highlight areas that can be improved or need urgent attention. Needless to say, improving business processes results in better business performance.
Reporting analytics is a treasure trove of information for salon and spa businesses. From analyzing sales, to business performance and guest preferences, reporting analytics can take a marketing strategy from vague assumptions to well-informed decisions. Salons and spas can actively use reporting analytics to increase their revenue with targeted promotional campaigns. Furthermore, analytics can help you study the effectiveness of campaigns to understand what is working and what is not.