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Transcript of Elite training. Course Objectives To give you an introduction to the core elements of using...
elite training
Course Objectives
• To give you an introduction to the core elements of using SALONGENIUS
• To establish in your minds– The importance these elements have on your
business – Who should be responsible– The benefits of using them
• To give you the skills to utilise these key elements
Schedule
• Client Retention• Data Quality• Customer Loyalty
client retention
Improving Existing Client Retention
• Who do you compete with, identify your business values?
• Do you understand your clients expectations?
• Do you focus on delivering a complete “experience”?
• Do you reward regular clients?
do you have a hole in your bucket?
Client Retention keys points
• No Shows• Do you track your No Shows?
• New Clients• How many new clients come back and
to who?
• Return Rates• Getting clients to come more often
no shows
Are you losing clients?
• Do you have a No Show problem? Are you recording No Shows? Do you Remind Busy Times or all bookings?
• How do you remind clientsBy telephoneBy SMS or email
Busy Times vs All Bookings
The No Show Problem1000 bookings per month
3% No Show rate – 33 per month – 1 per day
Busy Day 10 cols x 7 services @ £50/serv = £3500 value 1 No Show = £50 lost Impact 1.4% loss on day
Quiet Day 3 cols x 4 services @ £50/serv = £600 value 1 No Show = £50 lost Impact 8.3% loss on day
Likelihood of Walk-ins to fill cancellations?
Phone vs SMS Costs
The No Show Problem1000 bookings per month
3% No Show rate – 33 per month
Phoning costs 1000 x 4p per call (2min @ 2p/min) = £40 2mins per call = 33 hours @ £6.08b.w. £200 Cost £240 per
month
SMS costs1000 x 8p = SMS messages £80Saving £160 per month
SMS SAVES £1920 per Year
Appointment Reminders
• SALONGENIUS historically reducesNo Shows by up to 90%
No ShowCalculatorNo Show
Calculator
Appointment Reminders
• Remind All ClientsALWAYS REMIND CLIENTS = YES
SALONGENIUS only sends SMS to enabled clients As Data Quality improves so SMS efficiency improves
• Automate Reminders F2-1-5 SMS REMINDERS AUTOMATIC REMINDERS = YES REMINDER PERIOD = 1 DAY BEFORE VISIT
new clients
Improving New Client Retention
• Do you know how many new clients never return?
• Do you know why they do not return?
• Are you giving them to the right people?
New Client Generation
• Where do your New Clients come from?
• What motivates them to visit?
• What motivates them to visit again?
• Do you offer incentives to convert them to “regular”?
• Are New Colours a problem due to skin tests?
Do Your New Clients Return?
• F6-3 STATISTICS Page 9 – Clients by number of Visits
New Client Retention
• F7-2-4-1 SALON RETENTION Left Hand section- New Client Retention
New Client Retention
• F7-2-4-3 NEW BY OPERATOR Are you giving New Clients to the right people?
New Client Contact
• New Client Surveys In Salon, with Skin Tests?
• New Client CCMSequence of automation for New Clients
return rates
Reducing Frequency of Visit
• Do you know what your average client visit period is?
• Can you, and indeed, do you sell the benefits of returning more frequently to your clients?
• Any value in Pre-Booking the next appointment?
Reducing Frequency of Visit
• Are you aware of the impact on revenue?
Return Rate
Calculator
Return Rate
Calculator
The average client is returning to most salons every 11.71 weeks.
That’s only four times a year!
Only 2 in 3 new clients return to the same salon!
Return Rates and Client Retention are the most critical challenges facing a modern hair
salon today.
Why are client’s only coming four times a year?
Focus on the current problem!
Most salons concentrate on marketing clients who have not been back for 12 months.
That means they’ve been somewhere elseAT LEAST 4 times!
LOOK AFTER YOUR MOST VALUABLE ASSET!
Salon Return Rate
• F6-6 CLIENT DATA QUALITY
Existing Client Retention
• F7-2-4-1 SALON RETENTION• Right Hand section- Client Retention
How many clients?
• Do you know how many clients you need to fill your salon?
ClientCalculator
ClientCalculator
Reducing Return Rate
• Rebooking Options
Reducing Return Rate Summary
• Explain the benefits to clients• Who & When?
• Client CCM• Automated contact based on
client behaviour
Client Contact Manager
Proactive marketing to contact clients on a personal basis
• F7-5 CLIENT CONTACT MANAGER• Triggers
– Scheme Times set the trigger events• Appointment or sale
• Content– Scheme Messages set how the client is to be
contacted and the content of the message– SMS, Email or Letter
• USE CAREFULLY
Client Receives:
• 1 x Appointment Reminder SMS
• 1 x New Client CCM SMS
• 1 x Client Visit CCM SMS
TOTAL 3 SMS (24p)
CCM Client Triggers
• F7-5-1 SCHEME TIMES– New Client 1 Day after Sale
• Sale is the trigger
– Client Not Rebooked 5 weeks after Sale
• Sale is the trigger
New Client Messages
• F7-5-2 SCHEME MESSAGES– New Client 1 Day after Sale
• Send if Future Appts = Yes• Contact via SMS• “CLIENT FIRST NAME Thank You for choosing
SALON NAME to take care of your image, we hope you had a fabulous experience & look forward to seeing you very soon”
Client Visit Messages
• F7-5-2 SCHEME MESSAGES– Client Not Rebooked 5 weeks after Sale
• Send if Future Appts = NO• Check for ANY SERVICE• Contact via SMS• “CLIENT NAME keep your image looking great!
Visit SALON NAME in next 2 weeks and receive 10% discount - show this text on arrival. Reply STOP to unsubscribe”
CCM Contact
• F7-5-3-1 NEW CLIENT– New Client 1 day after sale – New Client 1 day after msg
• F7-5-3-2 CLIENT– Client Not Returned 5 weeks – Client Not Returned 5 weeks msg
• Others– No Shows– Recommend a Friend– Client Birthday– Loyalty Card Expiry
plug that hole now
key performance
What are the keys points?
• How Do You Compare Business Insights - Know where you are monthly
• Data QualityKnow your client and how to contact themTake EVERY opportunity to gain potential future marketing opportunity
• Excellent Customer Service
how do you compare?
Rankings
Where my salon ranksWhat do I need to work on
the ability to change depends on data quality
Marketable Status
The more you collect the better
• Client Record Card Occupation
- Do you know their work number?BirthdayAge GroupGenderClient Source
– Reward a Friend?
Driving Data Quality
• Contact Details & Permission fields New Client information
– get as much as you need initially- don’t forget the permissions
Existing Client information- revisit, check and improve- don’t forget the permissions
You may not get this all in one go
• Focus on effective data collection Diary driven – Client Data Quality
Branded Data collection form
Technical Notes Quality
• Client Record - F2 Service• Technical services
– Pending Blue , Completed Red– Memo, Update or Repeat Previous– DO NOT USE CLIENT MEMO– Assist using Operator Job Lists & Technical
Histories report– Police using F7-2 Pending History reports
Data Quality
• Service & Retail Histories You don’t need to do this – SALONGENIUS does it for
you
Supermarkets growth over the last 10 years has been due to their exploitation of their client spend data
YOU HAVE THE SAME POWER– USE IT CORRECTLY
Sales Data Quality
Client sale Information• Correct Bookings & Sales• Accurate refunds• Accurate redos• Commitment to Teamwork• Good salon communication• Drive rebooking
Getting Sales Correct• Client books for a FHH but it changes to HHH in chair • Who tells Reception & how early?Reason BEST … AT LEAST do… WORST …
Action Booking IN SALON – NO
Delete the billCorrect the booked
service IN SALON
REVISE off FHH Replace with HHH
PRICE ADJUST FHH to price of HH
Sells Correct service at right price
Correct service at right price
WRONG service at right price
Sales r’pts Correct Correct INCORRECT
Tech Hist Correct for service sold
Correct for service sold WRONG for service sold
Booked vs Sold
Bookings match salesTimes correct
Allocated % correct
Bookings DO NOT match sales
Bookings DO NOT match sales
SALONGENIUS Data
Other SALONGENIUS Data Quality• Staff Records
– Dept, Price & Time• Service Records
– Tech, History, Prices & Times, Available To• Stock Records• Discounts
– Correct Promotion tracking• System Settings
– SALONGENIUS & Appointments
Archiving and Purging
Keeping your data current by looking at the BIG problem
• Archiving Sales & Appointment Data
• Purging old Clients & old Histories
Focus on a data set worth keeping and improving
Duplicate Clients
Having reduce the BIG problem looking at Duplicate Clients
• Duplication Reports• Client Merge Utility outside of
SALONGENIUS• Merge Sales & History
Data Quality Summary
Improved Data Quality will Increase performance
• Improved client contact– Option to drive the return rate– More options to market clients
• Improved technical records– More complete records & better checked
• More accurate sales records– Improved Sales & Performance analysis
• System is easier to use– Simpler to use– Fewer mistakes
loyalty
Loyalty Scheme
• Rewards Points scheme
Discounts
• Points Points per value of Service and/or Retail
Introductory PointsDouble points on Mondays
The Need
• To improve customer loyalty to salon• Develop business through focus on three
salon drivers – Client count, frequency of visit and spend.
• Collect accurate data• Tie in Recommend a Friend
Means
• Points based loyalty scheme. – Points allocated against total bill of retail and
service– Client can take points (money) off total bill to
redeem– Reward clients based on “performance”
• SG client record card holds the points balance• Recommend use with a leaflet and
application form• Optional use of “salon” card
Benefits
• Improved Client Data Quality and Marketing – Client marketing permissions required as part
of joining
• Net benefit to business compared to discounting– By reducing the discounts given your business
retains more disposable income– Motivate staff by relative rise in commission
Discount vs. Loyalty Points
Calculation Item Percentages Discounting £1 per Point scheme Net benefit of Points Scheme
A Bill Value £50.00 £50.00
B Discount 10.0% £5.00 £0.00
C = (A-B) Gross Bill £45.00 £50.00 £5.00
D VAT 20.0% £7.50 £8.33 -£0.83
E = (C-D) Net bill £37.50 £41.67
F Staff Commission
30.0% £11.25 £12.50 -£1.25
G Reward liability 1.0% £0.00 £0.50 -£0.50
I = (E - (F+G) Disposable Revenue
£26.25 £28.67 £2.42
What does that mean for Business?
• Example• 1000 clients• 4 visits per year• Average bill £50
• 1000 x 4 x £50 = £200,000 takings
• What is your average discount?
Loyalty Performance benefits
Calculation Item Percentages Discounting £1 per Point scheme Net benefit of Points Scheme
A Sales £200,000 £200,000
B Discount 15.0% £30,000 £0.00
C = (A-B) Gross Takings £170,000 £200,000 £30,000
D VAT 20.0% £34,000 £40,000 -£6,000
E = (C-D) Net Takings £136,000 £160,000
F Staff Commission
30.0% £40,800 £48,000 -£7,200
G Reward liability 1.0% £0.00 £2,000 -£2,000
I = (E - (F+G) Balance £95,200 £112,000 £16,800
Typical Points Rewards Scheme
• Keep it Simple• 1 point per £1 service & retail• 1 point worth 1 pence (1% basic scheme)• Joining bonus e.g. 150 points (£1.50)
– No VAT on points Redemption
• Minimum balance before permitting Redemption
An example Rewards Scheme
Field Value Description
SCHEME NAME Rewards The name of the loyalty scheme and appears on the Receipt
GROUP SCHEME NO Salon scheme only
START DATE 1/1/2011 Starting date of the scheme
END DATE Leave Blank This scheme has no end date
SCHEME PERIOD Leave Blank The clients’ membership never expires
POINTS ON ISSUE 150 150 points awarded on joining scheme (£1.50)
POINTS PER £ RETAIL 1.00 Client collects 1 point per £1 of retail
POINTS PER £ SERVICE 1.00 Client collects 1 point per £ of service
1 POINT REDEEMED IS EQUAL TO £
0.01 Each redeemed point is worth 1p (1% basic)
An example Rewards Scheme
Field Value Description
MIN. POINTS REDEMPTION 500 £5 minimum balance required before redemption permitted
ISSUE POINTS ON PART PAYMENT
NO No Points are not earned on remainder bill value if part paid by points
PART PAYMENT BLOCK SIZE
100 Points may be redeemed in blocks of £1
DISCOUNT ONLY SCHEME NO This is not a Discount Only Scheme
SERVICE DISCOUNT NO No service discount - the client gets points only
RETAIL DISCOUNT NO No retail discount - the client gets points only
PAY COMMISSION ON Sale Price
Pay staff commission on Sale Price
PAY VAT ON Sale Price
Calculate VAT on Sale Price
PAY ROYALTY ON PAYMENTS
NO Value paid by points are not charged royalty
POINTS MULTIPLIER MON-SUN
1.00 Normal points Monday to Sunday inclusive. You can set which days offer double points
Scheme Advanced Capabilities
• Day of Week multiplier– Recommend max 2 days / double points
• Time of Day multiplier– Recommend max 2 times / double points
• Birthday Bonus – Recommend 500 points auto awarded
Extra Capabilities
• Promotional Bonuses– Service/Retail item bonuses
• High Flyers– Reward based on spend or visits
• Period Bonuses– E.g. Double points in January
• Gift Items– Can be redeemed for points– Don’t give away what you do!
Offering Membership
• To Existing client – To reward loyalty
• To New Clients– To improve retention
F6-3 Page 9
Clients by no of Visits
Joining a Client
• Client fills in Application
• Select correct client/Add new client– Update correct details
and permissions
• F9 LOYALTY CARD– ADD & Select scheme– Enter unique
membership number / Scan the card
RC00000001
Member clients
• Booking records
• Client Record Card
• Client sales screen
Awarding Points
• Points awarded at client sale based on service & retail value
• Bonuses applied at the timeof sale
• Receipt shows– Opening Balance– Points Awarded– Including bonus (if applicable)– Closing Balance
RC00000001
Redeeming Points
• LOYALTY CARD method ofpayment– Points redeemed by value
• Receipt shows– Loyalty Card payment– Opening Balance– Points Awarded– Including bonus (if applicable)– Closing Balance
RC00000001
Reporting
• Client Record Card– Client Transaction Statement (report)– Mini Statement (last 7 transactions receipt
docket)
• F7 CLIENTS– Clients Points– Loyalty Liability
• F5 REPORTING– Loyalty Points– Loyalty Activity
RC00000001
recommend a friend
Recommend a Friend
• To reward existing clients who refer new clients– Existing client sale produces voucher(s) to give
to friends– New Clients redeem on 1st visit only to get 10%
discount• Existing client will be sent text message to inform
once “friend” has visited and claim their reward
– Existing client rewarded on their next visit 10% discount
• Rewards members also get 500 points reward (£5.00)
technology
Can you afford not to?
MyTakings.com
• Centralised Control of dataServices, Stock etc
• Centralised MarketingEasier marketingTrack clients across groupFuture Data Cleansing possibilities
can clients correct their own information?
Client Data Collector
• Client updates their details Completes / Corrects their data Eliminates mistakes Advertising & information
Away from Reception
• Hand-held device Password protected
Reception download client record to mini PC Reception “accept” updated record
can you staffreception 24/7?
Online Bookings
• 24/7 ReceptionYou define services and staff available
• ClientsRegistered clients on your system
do you leave the salon unlocked overnight?
Security
Protect your investmentProvide traceability
How safe is your business?Do know where all the cash is?Do you know where all your stock is?How safe is your client data?
summary
10 Steps Forward
1.Get a better understanding of your clients wants / needs. Ask them!
2. Identify your salons Experience Values
3.Define your salons Unique Selling Points
4.Communicate them to all staff and clients
5.Create a staff culture to control client behaviour
10 Steps Forward
6. Communicate well with New Clients before, during and after visit. Thank them!
7. Deliver on your promises…. Create a client “experience” in your salon
8. Sell your clients the benefits of enjoying the “experience” more often
9. Communicate well with regular clients before, during and after visit. Thank them!
10.Utilise the marketing calendar to manipulate client behaviour
Make sure you measure it
Summary
• Identified Key areas in SALONGENIUS– Client Retention– Data Quality– Customer Loyalty
• The impact of using these areas and problems– Good use– Poor use
Action Plans
• Plan for next few months
• Objectives & Targets• Responsibilities• Support Needed• Restrictions• Benefits
elite trainingcompletedthank you