In this day and age, salon owners have access to a seemingly bottomless well of information and data relating to their business. From how your website is performing, to retail sales data, and staff efficiency and client visit data, it can be easy to feel overwhelmed by the sheer volume of information – but what numbers do you need to keep your staff on target?
But when it comes to finding meaningful insights from the data that’s available, it can be hard to sift the corn from the chaff and work out what it is the data is telling you to do.
Raw data means nothing unless you can show a change. Context is key. If we asked one of your competitors how many bookings they’ve had today, we could guarantee that number is going to feel pretty meaningless to you.
But what if they said “30 per cent more bookings than this day last year”? That highlights a business that is growing, and that data becomes an insight. Imagine knowing that information for your own salon?! Suddenly, you can see exactly how your salon is performing, how you’re going toward achieving your goals, and where your salon is headed.
By setting benchmarks and targets for your salon, you can pull tangible, actionable buckets of information out of that bottomless well of data.
THE TARGETS YOU SHOULD BE TRACKING
Research has shown that by understanding data across four key areas, you can get your salon performing on track, and beyond.
We’ve broken down the four key areas that we think any salon owner should be tracking their performance in.
Client visits
By tracking the number of client visits you’ve had in the past, and aiming to increase these, you will see either an increase in revenue – or a problem. If your revenue doesn’t increase with more visits, it’s important to look at any changes to your pricing, or the type of visits you’re receiving.
For example, if you’ve seen a drop in revenue, but an increase in visits, maybe you’re doing fewer colour appointments and more cuts or blow-dries. That would show you a need to push your marketing for your higher-priced services.
Rebooking percentage
We all know how much easier it is to retain a client than it is to attract a new one. That’s why it’s so important to be tracking your rebooking percentage and make sure your clients keep coming back!
To help increase visit frequency, make sure your team are all offering a revisit timeframe recommendation that will suit the client and your business.
Clients rely on you to tell them when they need their next appointment, so encourage staff to have their appointment booked before they reach the front desk. It’s important to set a rebooking percentage target for your employees to keep a close eye on this KPI, and keep those happy clients coming back!
Average spend
If you can continually improve on your average spend, each client becomes increasingly valuable, and each visit to your salon does too. Show your staff different ways to upsell – whether that’s products or treatments, and make sure they understand the importance of the upsell.
Sales breakdown
Net sales, individual sales, retail sales – they all paint a picture of the health of a salon. But how do you use them to guide what you should be doing in the future?
By setting individual staff sales targets, you can drive employee motivation and reward high-performing team members. By giving your team visibility over daily net sales targets, they can be encouraged to work together to achieve a united goal. By setting retail sales targets, your team will be encouraged to upsell – and in turn, increase your average spend.
Staff engagement is a key to success in any business, and setting targets is a great tool to motivate and reward your team.
HOW CAN YOU TRACK THEM?
Having a data-driven approach to business is key to long term success in the digital age. But it’s all about the tools you use along the way to help give you the insights you need to empower your staff and help them make those influential decisions. Having access to up-to-the-minute benchmarks can do wonders for their progress, helping them keep on top of these must-know numbers.
That’s why Shortcuts created Targets, a dashboard that lives in the cloud so your team can check in on their key numbers from any device at any time.
Targets gives you the power to keep an eye on your business KPIs, drive improvements and grow your business with this flexible, highly visual cloud-based feature. You can set up weekly targets for your team and your business and so you all can focus on the areas that matter most to you.
Targets tracks seven essential business metrics:
- Net sales for the business
- Total sales for employees
- Service sales
- Retail sales
- Rebooking percentage
- Average spend per visit
- Client visits
These numbers can be used together seamlessly to drive revenue for your salon. By giving your staff visibility to their individual and team targets and the ability to access the dashboard whenever they’re at work, your employees will be encouraged to drive your business success. They can even keep track of how they’re going from their mobile device!
As a business owner, you can use the dashboard to keep track of their individual performance and set their targets, making employee reviews a breeze.
This exciting release by Shortcuts will give your staff all the information they need right at their fingertips to maximise revenue from each client’s visit.
To learn more about the new Targets feature by Shortcuts, be sure to visit www.shortcuts.com.au/targets
TESTIMONIAL
“Our salon has seen significant growth this year, and one of the reasons for this is how clued in we are to our business data. We are constantly tracking key numbers across the business through Targets, so we know what we’re doing well and what needs improvement. Targets help us to grow individual team members as well as the salon as a whole.”
Kate Henderson, Elysium Hair Brisbane, Qld