Improve your business with these numbers

The best metrics for growing your salon, spa or clinic (KPIs)

2 Dec 2020 by Kitomba

Are you looking to take your business to the next level? There are some key business numbers you should keep track of and know how to improve. 

Here are the best metrics for growing your salon, spa or clinic, which can be used as key performance indicators (KPIs) for your business.

Client revisit period

One way to increase the number of appointments you complete each year is by reducing the length of time clients take between appointments. Reducing it by even the smallest amount can result in a significant jump in revenue.

For example, a salon completes 95 appointments per week with a client average spend of $99. If they reduce their revisit period by four days (from six weeks and four days to six weeks), they can complete an extra nine appointments each week. That’s almost an additional $900 extra per week, or $46,000 per year!

To make this a reality, run a training session with your team on ways to reduce their client revisit period. For example, they can educate their clients on the benefits of visiting every six weeks for their colour or four weeks for a facial.

reduce your client revisit period with regular treatments

Rebooking rate

When a future appointment is made within 24 hours of the previous appointment it counts as rebooked. Increasing your rebooking rate can have a significant effect on your business as it secures future income.

Here are some ways to improve your client rebooking rate:

Rebook clients immediately after their appointments 

Ensure you ask the client to rebook immediately after their appointment – the likelihood of them rebooking reduces dramatically once they’ve left the salon. If you’re a Kitomba customer, pay attention to Kitomba’s automatic rebooking prompt. When you commit an invoice, Kitomba will automatically ask if you want to rebook the client.

Get your team onboard

Run a competition where the staff member who rebooks the most clients in a week wins a prize, or set a team target and treat everyone to a reward if they reach it.

Rebooking salon client at front desk

New client rate

New clients are incredibly important to any business as they link directly to revenue.  A consistent increase in new clients allows you to be certain of business growth.

Businesses naturally experience a loss of around 10% of clients each year, so that should be a minimum for your new client rate.

When it comes to your new client rate, here’s what you need to know:

  • If your percentage of new clients is low and you regularly have gaps in your appointment book, then it’s a great time to kick off some marketing activities to get more clients through the door. Finding new clients doesn’t have to be an expensive exercise as there are many cost effective alternatives, like an ‘introduce a friend’ promotion or Facebook advertising.

  • If you’re experiencing the opposite and your new client rate is low but you’re fully booked weeks in advance, then your business has reached capacity. So it’s time to grow! Do you have a large enough salon or do you need to look at growing your team?

client attrition rate of 10 percent

Retail attachment rate

Your retail attachment rate is the percentage of clients who visit for a service and also purchase retail. Retail products tend to have a high margin and as the majority of salons, spas and clinics can improve in this area, there’s so much potential to increase this number.

There are many ways you can increase your retail attachment rate, a few are:

  • Create packages that include services and complementary retail. Choosing the right package items and an attractive price is sure to entice your clients to purchase a package.

  • Show your clients which retail products can maintain their results between appointments. They’ll love the fact they can continue to look so good!

Retail revenue

Increasing the number of clients who purchase retail provides you with the opportunity to earn more revenue from each appointment.

To start increasing your retail revenue you can:

Set a goal for retail sales

For example, if you’re selling retail to 10% of your clients, you could strive for 25%. Get your team onboard with the challenge and ensure they have the product knowledge they need.

Provide great advice to your clients

Success in selling retail comes down to your approach. Your clients are often looking for guidance and direction when it comes to products. So when you’re next shampooing them, tell them which shampoo you’re using and why. This not only makes clients aware of products you’re using but also explains their benefits, making it more likely they’ll leave with a product.

Client being shampooed in salon

Online booking revenue

Our customer data tells us that more than 10% of bookings are now made online, accounting for a good portion of a salon, spa or clinics total revenue. Online booking has become a necessity for businesses as it offers the flexibility and convenience clients demand, and allows you to focus on the client in your chair all while you receive bookings.

Here are a few strategies that can increase your online booking revenue:

Promote your online booking

Ensure all your clients know you have this fantastic way for them to book with you! Add a button to your website and Facebook page, include in your Instagram bio and any social media posts, add a link to all your emails and text messages, mention it on your answering machine message, and have signage in your salon, spa or clinic.

Learn more: How to promote your online booking.

Make booking online easy for your clients

Ensure your services are clearly named and have descriptions, always keep your staff’s working hours up to date and show service duration and prices to make it as easy as possible for your clients to book online.

If you’d like to find out how Kitomba can help make you more successful, get in touch with us.

Woman booking hair appointment on smartphone

Grow your business with these numbers

Understanding and measuring your key business numbers will give you the knowledge you need to become even more successful. The metrics covered in this article can be used as key performance indicators (KPIs) to grow your salon, spa or clinic.

So, run your Kitomba reports, benchmark yourself against your industry and use these tips to start improving your results!

If you’d like to find out how Kitomba Salon and Spa Software can help your business to become more successful, book your free demo

For more tips on growing your business, download our free guide, 100 ways to grow your salon, spa or clinic.   

Find out more about growing your hair and beauty business:

Editor’s note: This article was originally published on 31 January 2019 and has been updated for relevance and comprehensiveness.  

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