They say that ‘knowledge is power’ and this is very true. It is essential for any salon owner to know exactly how their business is performing and in which direction they are moving. Whilst this might seem a daunting prospect, using Premier Software in your business can help you know the ins from the outs without the headache. If you don’t know where you are, then it can be very difficult to plan how you will move forward. We discuss the 10 benefits of using Premier Software in your business to help your salon grow.
Most salon software systems contain more tools than you will need, however Premier Software knows the importance of being able to analyse every aspect of your business and has put a lot of emphasis on ensuring the reports in the system are second to none.
Without Premier Software, it would be almost impossible for salons and spas to track key performance indicators (KPIs), such as average bill value, client retention and retail sales. Trying to collate this information manually is a very difficult and time-consuming process but without it, how can you manage your team, your clients or your salon effectively? Let’s look at some KPIs and the benefits of using Premier Software to monitor you business.
- Average weekly sales. Set your weekly goal on the overall costs and profits you require from your salon.
- Average weekly retail sales. Try to aim for 20% of your overall sales.
- Stock cost. Take into account the breakdown of the cost of delivering each treatment and service, but this should be between 5% and 10%.
- Retail stock costs. Ask your suppliers to help you with this and ensure these are always up-to-date.
- Stylist/therapist utilisation. This should be at least 75% to ensure you are trading at a good level.
- Average weekly sales per stylist/therapist. To be truly efficient, each team member ideally needs to be generating a minimum income of £900 (net of VAT).
- Average weekly take home sales per stylist/therapist. Your goal for this should be based on the experience of the team member, however a standard of 10% could be set.
- New client percentage. Clients will naturally stop visiting your salon for a variety of reasons, so to combat this you need to be achieving an average of 20% of new clients to help your business to grow.
- New client retention. An average salon will only retain about a third of their clients, but many salon owners don’t even know what their retention rate is.
- Frequency of client visit. Whilst it is likely that your team members recommend clients come back every few weeks for treatments, 6 months for hair care, many clients won’t return this frequently. It’s important to find out the truth so you can drive numbers up.
Just like you monitor your social media channels for ‘likes’ and ‘follows’, you should be monitoring your KPIs in the same manner. You need to know how well your business is performing so you can make an effort to improve on areas that may be struggling. Having a record of reports and your KPIs can be a great way of setting performance standards and goals for your team.
If you would like more information on what Premier Software can do for your business, email our representatives at email@example.com or phone 01543 466 580. Alternatively you can visit our website.