Unraveling the secrets to maximizing revenue in salon and spa franchise businesses

As a salon or spa franchise business owner or manager, you’re constantly looking for ways to maximize revenue and increase profitability while maintaining quality standards and giving your customers a great experience.

Well, there isn’t a magic spell, but we can certainly let you in on spa and salon franchise marketing strategies and actionable tips to boost your revenues. Read on to see what they are.

The beauty and wellness industry is one of the most competitive spaces, especially in the U.S. As a salon or spa owner, you must stay up to date on the latest trends to be able to increase revenues and profitability. Ensuring every customer leaves satisfied while efficiently managing resources and retaining top talent is no small feat. The challenges, it seems, are endless.

With a few tried and tested strategies, however, you can have all of this—a better bottom line, a larger customer base, and improved resource utilization.

Related reading: A Guide to franchising your Salon,Spa, or Medical spa

This may sound too obvious as a spa and salon franchise marketing strategy, but hear us out—optimizing your service menu is a great way to increase revenue. Giving thought to creating a service menu can help boost your sales.

Analyze your salon and spa data for services your guests prefer or choose together. Also look at services that give you the best margins.

Steer your guests toward services that augment your revenue and profitability. Make them attractive, both in terms of service and pricing, so your customers can't resist the offers.

Here are some ways to optimize your service menu:

Related reading: How to know when your salon or spa brand is ready to franchise

Allow technology to take over some of your most mundane tasks, so your staff are using their time better and more productively. Instead of burying them in admin tasks, franchise management software will free up their time so they can focus more on revenue generation than bookkeeping.

Franchise management software can take over POS/billing, schedule online appointments, maintain a dashboard, manage your CRM, membership programs, and more. Imagine your guests receiving reminders for their next pedicure appointment, with the available appointment dates and times, technicians, and locations. The entire process is automated, your staff doesn’t need to spend time on this, your guests are impressed, and you’ve filled your appointment calendar.

Franchise management software can also help with your digital presence which is one of the most important salon and spa management tips. Whether it’s creating a digital service menu, managing your e-commerce, creating campaigns, or email marketing, a good franchise management software platform can do it all.

It can even capture and analyze customer feedback and handle your loyalty program. What’s more, it can give you detailed, accurate reports to help you devise winning strategies for your salon or spa franchise business.

Software like Zenoti offers user-friendly and effective franchise management software for both spas and salons, with features designed to help increase revenues.

A surefire way to increase your revenues is by boosting repeat business from loyal customers. While the quality of your service and how you make clients feel is important, a rewarding best-in-class loyalty program can help you retain customers without having the competition poach them away.

Offering membership plans can be a reliable way to have committed customers. Enlisting customers in loyalty programs and rewarding them with incentives like points, membership tiers, member-only events and offers, and member discounts are a win-win for your salon and spa business.

Cementing customer loyalty with personalized follow-ups and reminders not only creates customer delight but also ensures repeat business.

Go one step further and create a referral program. There isn’t a more authentic sales pitch than that from a happy and satisfied customer. Offering referral program incentives allows you to sit back and watch your clients turn into your best advocates, bringing in new clients. Referral programs also help you cement your relationship with your existing clients. Boosting business in this way means hearing your cash registers ring more, too.

Related reading: Boost your salon's clientele with a powerful salon referral program – A step-by-step guide

You are only as strong as your weakest link; which makes a well-trained, productive team in a salon or spa essential for creating exceptional guest experiences. Managing staff productivity is one of the most critical success factors in the beauty industry.

When running a franchise business, it’s imperative to have consistency in services across locations, and this can only happen when there is standardized training for staff. Both training and productivity give your business a competitive edge. Staff members who are up to date with the latest trends and techniques, as well as product information, can help your salon or spa attract more guests and generate positive word of mouth.

Regular training is also important for employee retention. Investing in employee development can help staff feel valued and engaged. It helps promote leadership, ownership, and accountability. When management invests in staff through training, the team feels a deeper sense of loyalty.

A well-trained team can help increase revenues by upselling, personalizing the customer experience, and adding on related treatments. In addition, well-trained staff members are more productive and better utilized, helping increase spa and salon revenues.

Related reading: How to attract, engage, and retain top talent

Follow the salon and spa franchise business tips outlined above to see them work their magic.

It will take time and sustained effort to put these strategies into practice, no doubt, but you can look forward to positive results, such as increased revenue and better profitability, as well as more loyal customers and a more motivated team.

Zenoti serves salon and spa owners seeking a unified platform for end-to-end business management to help grow their brand. Learn more.