Case Studies

Hair Salon

Creates Sales Program and Boosts Revenue

The Backstory

This 3 year-old salon is a new venture for an experienced owner/operator. The facility is beautiful, well-laid out, spotlessly clean and nearly fully staffed with experienced professionals. The owner is current on trends and techniques in hairdressing and is committed to continuing education in hair and salon management.

The Challenges

Despite a seemingly great setup, the salon was not generating enough revenue to pay the bills and the owner’s salary.

Upon the first in-depth consultation we discovered the following challenges: The owner perceived herself as a hairdresser, not a salon owner. As a result, she didn’t pay attention to the salon’s Key Performance Indicators, did not take ownership of her sales numbers and took on too many low level duties that left her little time for management, marketing and big picture thinking. As the salon’s top producer, she became resentful that her stylists were not independently contributing to the salon’s new customer base.

The Plan

  • Transition owner from operator to CEO/management mentality
  • Learn to pull, understand and analyze reports from salon POS software
  • Better understanding salon numbers and productivity
  • Delegate management duties to several staff members to give owner more time to manage and market
  • Properly input client information into POS system to establish a more specific client profile, identify new customers and establish an email database
  • Create employee sales culture/ new client acquisition plan
  • Engage and train stylists to participate in client acquisition/retention, maximizing bookings and
  • increase earnings
  • Implement a formal referral program, giving stylists tools to increase their own bookings
  • Referral program to include monthly service, new customer and product sales goals and incentives for each stylist
  • Develop a regular training and team building schedule
  • Create a sustainable marketing/outreach program, including a more compelling marketing message
  • An in-store promotional schedule designed to attract new clients
  • A monthly newsletter program for client communication/loyalty
  • Create a new customer welcome package

The Results

  • Owner fully engaged in the process and fostered a team approach to the salon’s success, creating competition and enthusiasm with her staff. Within one month of the launch of the marketing/referral program: Product sales increased by nearly 100%
  • Staff average ticket increased by anywhere from 9-30 percent; staff average product ticket increased from 15 to 65 percent
  • Staff rebookings rose from 28.9 to 34 percent
  • Total cost of the program to the client included several hundred dollars in printing and cost to revise website.

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