In pure financial terms, the majority of salon owners and beauty entrepreneurs do enough to get by. More specifically, they generate enough of a profit to cover their overheads and pay the wages of the people they employ. Some may argue that this to be expected, as this type of business is often dependent on a positive economic sentiment and inflated levels of consumer spending.
This assertion ignores the sheer size and scope of the beauty industry, for example, which in 2012 achieved a cumulative value in excess of $15 billion. This should speak volumes to the entrepreneurs among you who will see a unique opportunity to expand your salon and develop a lucrative business venture. You have a wealth of brilliant opportunities available to you, all of which could lead to greater profits, greater prestige and a better reputation for your salon business.
If you’re willing to invest the time and effort to achieve your salon’s full potential, then read on to find out what you can do:
#1 Attract More Clients
Expanding your client base seems like a glaringly obvious way to improve your businesses turnover and prestige. The hard part, of course, is how to go about doing it, and there are a number of options open to you. Firstly, you could create a referral program, which encourages consumer loyalty by rewarding their interaction with the brand. People love to feel like they’re getting a bargain, and giving your current customers the opportunity to get special deals or rewards for helping your business is a great way to improve customer satisfaction while simultaneously increasing your client turnover. For those who don’t know where to start or how to market such a policy, there’s even special software available from phorest.com that can provide practical assistance.
Also, do not be afraid to use multiple strategies to draw people in. Alongside your referral program, you could also offer discounts to new customers, perhaps marketing them through Amazon Local or Groupon, as well as advertising deals in your window the old-fashioned way.
#2 Upsell Your Existing Clients
Your existing clients are one of your most important resources. You’ve already managed to get them through the door at least once, which means that they’re interested in what you do. Once you have them inside, you have a captive audience, so it helps to have an upselling pitch practiced to perfection as a way of retaining your loyal custom. Make sure that you don’t sound too sales-orientated, and instead try to give genuine advice about offerings that complement what the client wants. If your argument makes practical and commercial sense, your brand will emerge as a thought leader within the industry and help to create strong client bonds.
#3 Broaden Your Existing Services
The more services you offer, the more people will be interested in them. If you can offer advanced services such as high definition brows alongside waxing, manicures and tanning, then you’re opening yourself up to a much larger market than a competitor who only offers the latter two options. Given that consumers are increasingly aware of cutting-edge beauty services; this has the potential to deliver increased turnover and profitability. One word of warning, however: make sure that you or a trained staff member is competent in delivering everything that you offer. One surefire way to lose customers and earn yourself a bad reputation is to deliver a poor job.
#4 Ask Your Clients What They Want
On a similar note, it is important to note that customers know what they want. The aim of market research is to find this out, but one of the easiest ways to gather the information you need is simply to ask your clients for their feedback. Most will be happy to oblige.
For those who feel less comfortable voicing their opinions, make sure that there is also some way to offer written feedback. This can be through your website or a short questionnaire that clients can pick up and fill in at their leisure.
A great way to increase the number of responses you get is to offer a reward for your customer’s time. Think about providing an incentive, such as a contest that everyone who offers feedback will be entered into.
#5 Invest in Your Staff
Once again it might sound obvious, but your staff are the heart of your business. The beauty industry is very people-focused, and your employees are the ones on the frontline. The more training you give them, the better the service they’ll be able to provide, and the happier your customers will be. Take the time to cultivate their talents, and you will be the one that will reap the rewards. On a final note, be sure to protect them through the course of their everyday tasks, as the financial and human cost of workplace accidents can seriously undermine your businesses growth.
With these points in mind, you should be able to build a loyal client base while also driving higher levels of turnover and profitability. You may also find it easier to retain and attract top industry talent, which will improve the range and quality of services you can provide. The first step is to take a look at your beauty business today to see what needs improvement.