How to Make More Money With the Same Clients?
Marketing Legend Jay Abraham once said that there were only three ways to build a business.
1) Get more new clients
2) Get existing clients to spend more money (increase the average ticket)
3) Get clients to come in more often
This is true in good economies and in bad economies. There is really no other way to build your salon business.
Now some of you may say “Well, if I increase my staff I can grow my salon business”. Yes, that’s true, but that is nothing more than another play on number one (getting more new clients).
The quickest and easiest way of increasing your salon business may just lie in number three of Jay Abraham’s list (getting clients to come in more often). This is often referred to as the client’s visit cycle. And in today’s challenging environment, it is a statistic that salon owners will have to pay attention to – like never before.
But what if there was a simple way that you could improve a client’s visit cycle (almost overnight) and realize an instantaneous 20-25% increase in sales? Well, the good news is…there is a simple way to do this. And there’s not a better time to implement this than 2009!
It really comes down to simple math and a carrot. Let me explain the simple math first. Let’s assume that the average client spends $50 per visit in your salon. (BTW your HairMax salon software can get you the real number in a variety of different reports) And let’s also assume that your average client visits your salon every 7 weeks. This is becoming the new “norm” as clients are trying to prolong their visits in today’s economy.
If a client visits your salon every 7 weeks, then they will visit the salon 7.5 times in a year (52 weeks divided by 7 weeks is 7.43). If we take the $50 average ticket and multiply it by 7.5 times, we get an annual spend amount of $375.00. This is the base amount that we will start with.
Here is the carrot. Let’s say that you introduce a new program whereby a client will get a 10% discount on any “pre-booked” appointment as long as their new appointment is booked within 5 weeks of their service. You can market the program as the “We care about you always looking your best” program.
When a client books the appointment within the 5 week time period, they will simply get 10% off their service the next time they come in. In HairMax, the receptionist would simply put a note in the “Sales Notes” area (when they book the appointment) and the salon software will then prompt them to apply the discount at the appropriate time. It is very simple to implement.
The client will feel like they are saving money because they are getting the 10% discount. They will also feel that you are truly concerned about them always looking their best because you will be selling the program based on the premise that clients will look better if they visit the salon more frequently. Seven weeks is typically pushing the envelope when it comes to waiting for another service.
Now, let’s do the math based on this new program. If a client comes in every 5 weeks then they will be visiting the salon 10.5 times per year (52 weeks divided by 5 weeks is 10.4). If we take the same $50 average ticket and apply the new 10% discount, we end up with an average annual spend amount of $468.00 (10.5 x $45). This represents a 24.8% increase in sales with the same client base!
Many times a program can be an abject failure if it is not “sold” correctly to staff or to clients. Your staff needs to realize that clients will be trying to extend their time between appointments over the next few years. And if they do nothing about it, and give clients no reason to change their behavior, they will become victims of a sluggish economy.
However, if they are proactive about showing their clients the benefits of coming in every 5 weeks as opposed to every 7 weeks, they can actually make more money while giving the client a 10% carrot. Use your HairMax salon software to help make the new program work and your salon sales will soar without adding any new clients.