“To maximise your salon’s turnover, you really need to have an effective strategy in place. In this article, we take a deep dive into how you can achieve this all-important goal.”
Let’s talk about the bottom line. It goes without saying that (along with providing an amazing service for your clients), maximising the turnover of a salon is one of the main objectives for any salon owner. Figuring out how to do that, though, isn’t always simple. So, how exactly can this be achieved?
There are a number of ways to get (and keep) the ball rolling when it comes to maximising turnover – from optimising pricing and minimising expenses, to building customer loyalty and perfecting your marketing strategy.
So, (without further ado) here are our top 7 techniques for increasing salon profits:
- Increasing client base
- Increasing customer loyalty
- Price increases
- Minimising expenses
- Creating the right marketing strategy
- Creating effective promotions
- Optimising results
And, of course, you’ll get the best results by combining a number (if not all) of these strategies at once. A perfect symphony of business strategy, if you will. Ready to take a closer look at how to achieve this?
1. Increasing client base
Okay, so this one might seem obvious, but increasing your client base can be a good place to start when it comes to increasing turnover. However, it can also be a bit of a double-edged sword.
Increasing the number of customers usually also means an increase in expenses, from management costs and personnel costs to products and resources.
This all means that it’s really important to consider the number of clients you can take on – taking into account the available resources and possible extra costs you’ll incur.
There are a good few ways that you can go about attracting clients. A great marketing strategy can work wonders (more on that later), and offering discounts and promotions can be great at getting people through the door.
Keep in mind, though, that some of these strategies are short-term solutions. New customers, attracted by a great deal or promotion (for example) will tend not to return if they’re not retained, and might turn elsewhere.
So, once you’ve attracted a new client, it’s arguably even more important that you work to retain them. This brings us on to our next tip: increasing customer loyalty.
2. Increasing customer loyalty
Customer loyalty is invaluable when it comes to both strengthening your brand and maximising your revenue.
If a customer loves their experience with you and leaves the salon feeling satisfied, they’re much more likely to return when they next need a tune-up (that part’s a no-brainer, really).
What’s more, is that a returning customer is more likely to spend higher. They might, for example, upgrade from a simple cut & blowdry to that balayage they’ve always wanted to try, or get that *extra* fancy facial next time round. Essentially, now that they trust your salon’s expertise and skills, they’re more likely to branch out and try out something new. If you imagine a client’s first visit as dipping their toes, then their next few visits are a deep dive into your salon’s services and skills.
Not to mention, a loyal and satisfied client is much more likely to spread the word. They might tell their friends and family about their amazing experience with you, or even post on their social media to tell the world. A loyal client and brand spokesperson all in one – what’s not to love?
So, how can you encourage loyalty in your clients? There are lots of ways really. A warm welcome, some personalised treatment advice, a free gift, a bit of a chin-wag. It can be as simple as a nice cup of tea during their service. Customers value what they buy. By meeting their needs, going above and beyond, and always offering more than they expect, the perceived value of the salon will increase. And this means being able to raise prices, without having to resort to a game of discounting with the competition.
3. Raising prices
Again, raising prices in your salon might seem an obvious solution to increasing salon profits – and yes, it can be extremely effective. However, the wider context needs to be considered when thinking about a price increase.
If a salon doesn’t provide an experience or service that feels valuable – for example, an uninviting or outdated salon, or one with poor customer service – then an increase in prices will not be effective. Simply put, if a client doesn’t feel that your salon is worth the increased price, then they will not return.
When a client enters your salon, a warm welcome and an inviting space are crucial to increasing this perceived value. Aim for: good lighting, a clean and tidy room, up-to-date decor, and a touch of personality. All of these will help to make the clients feel comfortable and welcome in the salon.
These days, the secret to really letting your salon shine and stand out from your competitors is not to sell just a service, but an experience. Offering the client a great salon experience means that a price increase can be justified.
And, if the experience is truly unforgettable, your clients will be willing to pay that little bit extra.
4. Minimising expenses and managing finances
So we’ve spoken about increasing prices – but another great way of maximising salon profits is managing your salon’s finances effectively. This includes taking a look at your expenditure and streamlining it where possible.
If your expenses increase just as much as your revenue, then profitability will remain virtually unchanged.
Of course, there are material things that can be looked at in this regard. You could check out and compare products, suppliers, and resources for example. It’s also worth bearing in mind that one of the biggest wastes and losses in the beauty industry tends to be stockroom or warehouse disorganisation.
Taking all of this into consideration, it’s pretty vital to have a way to effectively manage your salon’s finances and resources. Recording and monitoring data helps to plan and optimise the entire business, and when you have ingoings and outgoings, expenses, and salaries to look after – sometimes pen and paper just doesn’t cut it.
A good salon management software can help keep track of all of this. With Treatwell, our in-depth salon analytics give you full control of your business. Within your company report, you’ll be able to access an overview of your revenue and costs, broken down by services, products, and promotions. So, if it’s time to cut down on costs, you’ll know exactly where to start.
Not to mention, data is always available and updated (no more frantically flicking through phonebooks or diaries), so it can free up time for salon owners to focus on their business and clients.
5. Creating an effective (and consistent) marketing strategy
Marketing really is king these days. Effective marketing can help with many of your salon’s short-term and long-term goals – from acquiring new clients to retaining existing ones.
A good marketing plan not only aims to develop the salon’s brand and its communication with clients (and potential clients), but it also carefully measures the results and consistently optimises them.
There are so many channels to choose from when you’re executing a marketing plan. Whether it’s through email, social media, your website, SMS, or even WhatsApp – make sure that your messaging is always consistent. This will keep your brand identity strong, and make your salon recognisable amongst the thousands of salons across the UK.
Again, this is where a professional salon management tool can be a huge help. With Treatwell, you can send specific, personalised, and targeted marketing campaigns to your clients and monitor their progress. So, whether you’d like to shout out about a new service in your salon, offer a special promotion to a customer you haven’t seen in ages, or send a happy birthday deal – Treatwell can help support all your marketing needs. Plus, you keep an eye on receipts, expenses and sales statistics too. All of this, in one place.
By monitoring this data, you can easily check which campaigns are generating results, and which ones are lagging behind. Learn what works, what doesn’t, and focus on what gets you the most visibility and success.
6. Create effective promotions
Discounts, promotions, loyalty programmes, partnerships, and vouchers are all great ways of attracting new clients to your salon.
However, it’s essential to know which offers are the best fit for your business and clients, and make sure they work alongside the numbers and objectives of the salon. It’s counter-intuitive, for example, for your most popular treatment to be discounted at your most peak times – when you’d usually be booked up anyway.
Instead, a great place to start is by thinking about off-peak times, or ‘dead-periods’ – those times when the salon is a little emptier (we all know that post-Christmas lull can hit hard). If you know your chairs are usually quieter on Tuesday mornings, for example, then adding a discount for this time specifically might help to fill up space. Analyse which products or services you want to push, create a promotion, and voilà. A discounted slot is better than an empty slot, after all.
And whilst these tools are great for your long-term business strategy, Treatwell also gives you the ability to offer ad hoc, last-minute discounts – should you want to. Our flash promo feature on Treatwell Pro allows you to set last-minute discounts for a maximum of 72 hours on selected services. And Treatwell Connect’s last-minute and off-peak discounts allow you to tempt clients at quieter times. Perfect for if your week is feeling a little slower than usual, for example.
Of course, it’s hugely important to always take into account the costs for that particular discounted service. Think of: staff and time costs, how much product is used, and other expenses such as electricity and water. Make sure that it’s worth your time and effort to carry out. Creating balanced promotions, without compromising on the professionalism, quality, or worth of the salon, is vital.
By employing this strategy, you can maximise sales, build customer loyalty, and increase salon profits.
7. Optimising results
The strategies we’ve gone through so far can be hugely beneficial for all salons who want to optimise their client experience and bring in that extra revenue.
However, once you’ve employed these techniques, it’s just as important to track their effectiveness. You can then continue to optimise your strategy based on the results you’ve achieved.
This is where your data analysis comes in. It helps you figure out what’s working, and what needs tweaking by tracking up-to-date figures and data. Treatwell puts all of these analytic tools (plus much more) at your fingertips – allowing you to determine how to best move forward with your strategy.
Maximising the turnover of a salon is a delicate task. However, with a solid strategy, effective analysis, and the correct tools – it’s more than feasible.
Treatwell’s management system is designed to make life easier for salon owners, and help with every aspect of salon life (we’ll leave the treatments up to you, though). Keep track and manage your business, without giving up time, so that you can focus on creating amazing experiences for your clients. Choosing Treatwell means becoming part of a community of visionary hair and beauty stylists – are you ready to join us? Book your free demo here.