One of the greatest mistakes we make in our businesses is in the valuation of our clientele. Ours is not the only industry to ignore the value. It is obvious across the economy. We must adjust the way we view the customers and clients who open our doors. We must stop evaluating them as a walk-in or one-time-visit and determine their long-term value to the salon/spa.
Here’s where the concept of re-booking becomes eminently important.
Industry statistics show that it costs approximately $90 to bring a new client into the salon. If that new client stays for one service, say a haircut worth $60, you have just lost $30. However, if we do everything right and re-book that client and give them the service they are looking for, chances are they become long-time clients and their worth has increased at least 6 times. If they get their hair cut 6 times a year at $60 you just made $270 after your $90 investment.
What about a colour client? I just had my colour done and it cost me $150. If you don’t ask me to come back, you only got $60 from your $90 investment. As I get my hair coloured six times a year my long-term value for colour services is $900 per year. And I get my hair cut every other month for an annual charge of $360. Get the picture? I am worth a lot of money in the course of a year. Now multiply that by the number of clients you have on your list.
You can determine your income by the number of clients you have on your roster.
How much do you want to earn next year? To make this easy, let’s say you want to earn $50,000 and earn a 50% commission. (You will have to fill in your own numbers.) Based on that commission rate you will need to generate $100,000 in revenues. If I was your average client, I would be bringing you in $1260 per year. You would only need 80 VALUED clients to make your goal. Want to earn a $100,000? Get yourself 160 VALUED clients!
The reverse is also true. If you only bring in clients one by one you will need 476 clients to generate $100,000 in revenues. To add insult to injury you will actually have to bring in closer to 800 clients to make up for the $90 it cost you to bring a new client in the door!!
It seems like a no-brainer to me. Heck of a lot easier to keep 80-160 clients happy than to re-create yourself over 500 times!!
Get out your pens and pencils and figure out your numbers!
How much do you want to earn? What is the percentage you receive from gross revenues and what is your average ticket price? Get out your Vagaro reports and find out how many clients you need. You might find that you already have a base to work from. The best way to determine how many clients you have is to count the number of appointments you have on your schedule for the next two months. ‘Cause if they are not on your schedule, you haven’t re-booked them and they are FLOATERS!! No guarantee that they are coming back!
Find those clients and protect and nurture each and every one of them. Two things will happen; many happy clients, and a very productive and happy service provider!!