Resources
Best Practices
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Service Productivity
Increasing service productivity involves two main components. Great Coaching & Consistency
When looking at your overall sales – set goals and monitor the progress towards your targets. Hold your team accountable for their contribution.
Drive service sales by pre-booking
A pre-booked appointment is when a service client who had an appointment today and reserved a future appointment with the same or different staff member – this feature acknowledges cross-promoting staff.
PreBooking Industry Benchmark = 60%
Prebooking is important because it is a guarantee for your future and alleviates time on the phone making appointments for the call center or front desk. Plus it is a huge benefit to the customer; it gets them the appointment they want, when they want it. It maintains their image and keeps them looking and feeling great!
Prebooked relates to Frequency of Visit (how often clients come in each year) and Service productivity—how busy someone is—It’s like a guarantee of money coming in the door!
Successful prebooking increases client retention, increases number of client visits per year, increases sales and productivity.
Staff awareness is achieved with ownership – when your staff can see in the moment information related to their performance and their sales – they will own their actions and want to produce better results. Our Sales Stats module gives in the moment sales information and graphs for both the entire location and a single staff member (link)
What if?
Small changes can make a big difference – use ‘What if’ goals to see where you could be, with one or two more clients. Most often seeing opportunities broken down in black and white and especially how they will directly positively effect the staff member is all the motivation you will need.
Avg Service Ticket $60
x # Hours Productive 6
= Daily Revenue $360
then calculate “what if”
Avg Service Ticket $60
x # Hours Productive 8
= Daily Revenue $480
WebBiz
A big part of productivity is availability. Having not only service availability but having someone available to reserve the appointment time is crucial. Our online booking opens your booking time 24/7, giving your customers the ability to reserve appointments at their leisure.
Profitability
1-2-1 Rule
one client | two products | one appointment (next service)
measure pre-booking % and RPCT/RPST prior to and after the plan
Use inventory adjustment reasons for each department so that you can track usage by service department
Suggested Inventory Adjustment Reasons
- Professional use hair
- Prof use color
- Prof use skin
- Prof use massage
- Prof use nails
- Prof use makeup
- Tester (retail promotional use)
- Damage
- Donation
Remote Inventory Control (RIC)
count inventory in ½ the time » read more
Inventory Spot Checks
Always keep an eye on your inventory levels by performing random spot checks on various items. Utilize the inventory tab in the File Drawer to view on hand quantities and then perform a quick physical count on the item to make sure you have a match. If spot checks are constantly “off” you will need to pay greater attention to regular inventory counts and adjustments.
Operating Expenses
Control your direct operating expenses, here are some standards:
Advertising <2.5% of total sales
Rent <6% of total sales
QuickBooks Integration
Point of sale – all of your sales and discounts
Purchasing and adjustments
Cost of Goods Sold
» read more
Payroll
view your payroll by employee category, benchmark standards for payroll are:
<45% of Service Sales
<4% Retail incentives and retail team members
<4% Support or non-service provider payroll
Guest Attraction & Retention
Attracting and Retaining clients is all about connecting with them!
You will need to create a New Client connection strategy as well as a Return Client connection strategy
A great tool we have to support building your returning client retention, is our Top Customer reports. We have top reports for overall sales, retail and service sales. These can be exported to mailing labels for direct mail campaigns or used in call campaigns
Think of your database as a pie, and a query as a piece of the pie. It is basically a piece of your database that is filled with customers that fit the parameters you specify.
Queries:
Ideas for queries and marketing to new and existing clients
Use birthday queries to acknowledge loyal clients
Use cross marketing queries to promote different departments – salon services but not spa services
Use specific service queries to introduce a new service in that same department
Use specific product queries to promote an event
Use staff’s clients queries if a staff member leaves
Email confirmations
quick and easy and customizable » read more
Staff Attraction & Retention
Availability is the key component
Focus both on coverage and demand
For coverage, identify your most productive times and missed opportunities
For demand look at staff request rates
Tracking Referrals
Why: to see where our new business is coming from
Benefit: to see what methods are effective
How: from the Add New Client screen
Use a simple question with each new customer - How did you hear about us?
Retail Performance
The word "Sell" has such a bad connotation - we think of used car salesmen, we think of people who are not honest, we think of the word Pushy!
But selling in our business is different because our recommended products help clients create the look or recreating the experience we give them at home. Thus retailing is a SERVICE that we provide.
In order to provide that service, we need to listen and speak differently.
We need to listen to what the client’s true needs are and speak to them in a way that they see the products addressing those needs.
INYU™ provides basic and advanced education programs on this topic.
You can’t talk about retail sales without thinking about stock management
Stock management is all about what’s selling and ordering the replenishment stock. You don't want to have money invested in products that are just taking up space!
The big idea to remember is that you can’t sell what you don’t have!
Measure what is selling
The Hot & Cold List report will show you your top selling products
You want to stock more of your top sellers - 2-3 weeks worth
This report has two areas - top and bottom 25
Use your top 25 products to adjust your inventory stock levels - you want to keep more on hand of these products
Use your bottom 25 products to create promotions – bundle services with retail sales on the slow moving products.
Recommending Products
Not only does recommending the right products benefit clients by helping them recreate the look or experience at home it also builds your business.
How does it help build your business? - increasing your retail sales
Use 'The Daily Summary Report' as your main tool.
There is a direct correlation between your average retail tickets and total sales - if the RPCT and RPST increase, so do your sales!
On your Daily Summary report, find the field that says Average Product per Ticket and write RPCT next to it
Then find Average Product per Service Ticket and write RPST next to it.
Which one is easier for you?
In most salons and spas, focusing on RPST is easier because you have a captive audience when they are getting their service done
In a location, where there is a lot of walk by traffic, the RPCT might be an easier opportunity to take advantage of
Goal Setting
Setting tangible yet challenging goals is important. All of us need to have something to reach for - a future achievement. Monitoring progress and breaking down goals into bite-sized chunks make it easy for every one to get involved and contribute.
Monthly Goal
/ # Weeks
= Weekly Goal
Weekly Goal
/ # Days
= Daily Goal
