Sales- Module C 12 week challenge Client retention Strategies.

Sales- Module C

12 week challengeClient retention Strategies

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Module 3: At Risk Clients- Falling off the Wagon

Client Retention ModelCorporate Model Center Actual

Leads 100% 100Appointments 60% 60Shows (consultations)

SalesApplicationsConversionsInitial 6 months 1st year clients

Increase any of these numbers=

Higher Top Line $$=

Increase in Bottom Line $$

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12 Week Challenge- Transition a client into a memberNB1 Conversion

NB1 Conversion Definition:

Must Haves:

CAUTION!

Application Steps:

Check-In > Create excitement > Reassurance > Dream > New Style

Successful Check in = Successful Application

Application > Satisfaction >Fulfilling Dream >Creativity>Selling Program

Successful Application = Successful Check out

Check- Out > Create urgency > Show value of programs > Combat Objections

before they become objectionsSuccessful check out = Keeping a long term member

Tools for Successful Conversion:

•

NB1 balance must be paid prior to

application day!

Balances should never be collected on application day…. Your new client will focus on the cost vs. the reward of new

hair!

NB1 balance must be paid prior to

application day!

Balances should never be collected on application day…. Your new client will focus on the cost vs. the reward of new

hair!

REMINDERS:

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1. 24 hour Check-up:Objectives:

2. Remaining Check-ups:Objectives:

6 day check-up Reminder!For Men and Women

Educate client on:Maxxam Clarifying shampooMaxxam Reconstructor

12 Week Challenge- Transition a client into a memberNB1 Conversion

Frontal Kit:(Place in a product zipper bag):

Traxx SolventLip linerCombDuck bill clipAdhesiveApplicator brushesSkin Prep pads

FOLLOW-UP Schedule:

Men (45 minutes)

Women (60 minutes)

*Managed through Tickler File*

A new client should always see the same stylist

from NB1 applicationthrough 1st full service

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At Risk Clients- Falling off the Wagon

Stop, Look and CombatClients who are “At Risk” of leaving Hair Club

IDENTIFYING AT RISK CLIENTS COMBAT IT!

Not on Program

Not on EFT- pays cash for program

Pays late/Has problems paying

Initial 12 weeks of NB1 application

Had 1st head of hair remade/redo

Hair loss issues on 1st head of hair

Did not come back for check-ups

Frequently misses appointments

Lives far away

Does not use all of program benefits

Quiet- “seems fine with everything”

Talks about exploring other options

Doesn’t use HC products

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At Risk Clients- Falling off the Wagon

MIA- Bring back your TroopsGetting your clients back on the HC Wagon

REASONS CLIENT LEAVE What you can offer to keep them on the Hair Club Wagon

Technical

Customer Service

Financial

Military

Transfer Clients

PIF Clients

Sales- Module D

Creating the LifestyleUpgradesHair Types

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Upgrade Tips: (in order of importance)

1.

2.

3.

4.

Tips on Showing Hair to a Client1.

Member for Life- Having Hair Becomes a HabitCreating the Lifestyle

It’s a FACT:Clients in higher level programs

are longer term clients vs.,

clients who are not in a program or

in a lower level program.

Upgrade Definition:

Must Haves:

CAUTION!Hair System from previous programmust be applied before new programhair is applied.

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Stylist Incentives Ideas

“Summer Lovin”Goal: Increase product or technology education

– Decorate like movie “Grease” and play music– Promote one product or technology per day. Stylist

with most sales wins!

“What’s in your piggy bank?”Goal: Move non-program and new NB1 clients to PCP.

– Piggy Bank with fake money for each stylist– For every conversion/upgrade, fill piggy bank.– Stylist with most money at end wins!


Existing Member Open House

Ladies Open House Objectives:1. Education: Learn more about hair care, styles and be beautiful.

2. Network with other women3. Client retention: Building the relationship with your

female clients.

Who to invite and how to invite?• Invite a variety of program level (a minimum of one Gold or

higher) members. • Also invite some non-program members• Staff members (consultants, female specialist stylists and

manager) should also attend• Personal phone invitations work best. • Written invitation will help remind them of the date.• Call to confirm invitation

What should happen?Staff members should determine the goal and theme of their Open

House. Some Open House themes include:

– Trima: Product knowledge and proper care for hair.– Style variations: Demonstrate styles on a model including hair

wrapping, curling etc…– Overview of services offered: Introduction to Solutions programs– Technology benefits and features

When is the best time?• Tuesday, Wednesday and Thursday evenings

or Saturday afternoon• Plan at least 3 weeks in advance

Plan an Open House

every 4 months

Tip! To increase participation and excitement,Track progress daily on white board in color room

Prizes: $5 to $100 (monthly cost)•Free Lunch•Manicure/Pedicure•Massage•Day off with Pay•Gift Certificate•Movie Tickets•Create a prize book.Approval by RDO

Supplies for all contests: $5 to $20Construction paper, Markers, Glue

Tips for Successful contests:•Daily meetings to track progress•Put stylists in teams •1 week to 1 month long contests•Keep staff motivated by giving out candy

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Preferred Client Programs for Men

ProgramMonthly Payment

# of services

Additional Services

Heads of Hair

Application schedule

Hair Ordering*- Initial application Qty

Hair Ordering*- (after 1st app) Qty

Emerald $169 0 3Every 4 months 1 1

Bronze $219 8 4Every 12 weeks 1 1

Silver $269 10 5Every 10 weeks 1 1

Gold $319 12

Unlmtd Shampoo and Blowdry 6

Every 8 weeks 2 1

Diamond $419 12


Every 4-5 weeks 2 1

Platinum $519 unlmtd


Every 4 weeks 3 1

Presidential $749 unlmtd


Every 2 weeks 4 1 to 2

Preferred Client Programs for Women

ProgramMonthly Payment

# of services

Additional Services

Heads of Hair

Application schedule

Hair Ordering*- Initial application Qty

Hair Ordering*- (after 1st app) Qty

Basic Solutions $199 6 3

Every 16 weeks 1 1

Bronze Solutions $269 8 4

Every 12 weeks 2 1

Silver Solutions $319 10 5

Every 10 weeks 2 1

Gold Solutions $369 12


Every 8 weeks 2 1

Diamond Solutions $469 12


Every 4-5 weeks 2 1

Platinum Solutions $519 unlmtd


Every 4 weeks 3 1

Hair Ordering Reminder:

Factory Holiday Schedule:

Chinese New Year Spring HarvestFall Harvest

Plan Ahead for Factory Holidays:Design Template- Manual/MEA-

Average Order Times:Express Hair Design Template Manual/MEA

Rule of Thumb:Send work orders daily!Use express hair!

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Recurring Customers Rules to Live By

1. Do not let PCP Clients Keep Hair

2. Do not

8. Educate


Attention NB2 Consultants!

Just Remember the 4 C’s:

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Positive People Pay

1) Print Declined Credit Cards:

2) Hit List:

3) Use Buzz Words:

4) No Pay Go!

5) Educate staff on receivables:

6) Back up EFT for existing pay go clients:

7) Set up Manual Charge:

Module 3: At Risk Clients- Falling off the Wagon

How a "Pay Go Client" goes BadScenario: Bronze Client comes in every 6 weeks and receives:

8 full services and 4 heads of hair

Months

Sample Full Service Date Benefits used

Pay Go Schedule: Bronze Client who pays at each full service

EFT Payment Schedule: Bronze Client who has fees run via EFT

January 15 Full service $219 $219

February $219

March 5Full service Sys App $219 $219

April 28 Full service $219 $219

May $219

June 3Full service Sys App $219 $219

July 25 Full service $219 $219

August $219

September 1Full service Sys App $219 $219

October 20 Full service $219 $219

November $219

December 10Full service Sys App $219 $219

Year End Totals

8 Full service 4 Sys App $1,752 $2,628

Definitions

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APPLICATION

(NB1A)

CANCEL-

Removes hair

CONVERSION

(NB1C)Client joins a

Preferred Client

Program. Status

changes to

Active Client

B Refund

C Cancel/

Removal/

Expire/

A Payment

NB2

(Non Program)

Client purchases

Hair system, but

does not covert

to Program

Recurring Customer- Life Cycle

UPGRADE DOWNGRADE

PAYMENT

NB1 C = EFTB

NB2 = NB2PMT

REFUND

NB1C = CRFD

NB2 = NB2R

PAYMENT- Upgrade 1. Cancel current program

2. Enter new program

3. Payment

4. Update EFT profile

EXPIRED

NB1 Application

NB2 status

MIA-

Unable to locate

.

CANCEL1. Cancel program

2. Delete EFT Profile

365 Days

Refund

per contract

PAYMENT- Downgrade 1. Cancel current program

2. Enter new program

3. Payment


PAYMENT- Renewal 1. Enter renewal

2. Enter expiration date


RENEWAL

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Upgrade Definition:An active PCP member who moves from a lower Preferred Client Program level to a higher level.

Example: John upgrades from the Bronze Program to Gold program in order to receive Gold technology and added services.

Must Haves:• First month fee collected• Client signs a PCP contract• Follows Recurring Customer Payment Policy:

EFT or 12 month pre-pay

REMINDER!A client must turn in previous hair systembefore new hair system is applied.

NB1 Conversion Definition:A Non- Surgical client joinsPreferred Client Program afterNB1 application

Must Haves:• First month fee collected• Client signs a PCP contract• Follows Recurring Customer

Payment Policy: EFT or 12 month pre-pay

REMINDER!A client can only be converted (NB1Cor NB1GC) once in HC lifetime.

Recurring Customer- Business Definitions

Non Program/NB2 Definition:A Non- Surgical client purchases one head of hair for $1,500.

Client is considered an active non-program client.

Must Haves:• Hair ordered once 50% of total

contract collected• Client signs NB1/NB2 Contract

REMINDER!Do not sell Non Program hair at adiscount!

SALES

STATUS

Frozen Definition:PCP account is frozen (no monthly feesdeducted).Account can only be frozen for: - Clients who has pre-paid fees- Customer care issue discussed or approved by RDO

CAUTIONAccounts are NOT frozen for:

- Clients not coming for services such as travel abroad

- Customer service issues such as problems with hair or service.- Unresolved payment issues

MIA Definition:A PCP member who the center isunable to locate:- Client has not been in for service within last 60 days- No contact or notice of cancellation- Account may be overdue in excess of 31 days

CAUTIONKeep your clients active!

- Contact all MIA clients by 3rd Friday of each month.

Active Client Definition:An active PCP member who comes in for a full service within 60 days ormakes a payment within 31 days.

CAUTIONUse proper data entry!

Data entry affects a client status:- Active clients should have Member

codes- NB2 (non-program) should have non-

program codes

Sales- Module C 12 week challenge Client retention Strategies.

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