That’s quite a claim I make in the title, isn’t it, but as you’re about to discover… it’s true!
Let’s start proving it by establishing that there are only 4 ways you can increase your salon turnover. Have a look for yourself and you’ll see the 4 ways are..
- To Attract New Client to Your Salon
- To Persuade Your Existing Clients to Spend More
- To Increase the Average Number of Visits Per Year, Your Existing Clients Make
- To Increase the Length of Time Your Existing Clients Stay Loyal to You
- What’s also true is that most salon owners concentrate on attracting new clients
BUT
as you’re about to discover attracting new clients is the most expensive, hardest to do and least effective way of growing your salon turnover!
Let me prove it to you.
To do this I want you to create an imaginary ‘average’ salon.
Let’s pretend it has 2000 clients and these clients come in 5 times a year (which actually is the national average).
Let’s also pretend your clients stay loyal for 3 years and spend £25 per visit.
This means on ‘average’ every client is worth £375 in turnover to your imaginary salon.
£25 per visit x 5 visits a year x 3 years = £375
and the combined turnover from all 2000 clients will be £750,000
2000 clients x £375 = £750,000
So now we know your clients are worth £750,000 let’s look and see what happens if you try and grow your turnover without adding any new clients to your salon!
Lets start by looking at what happens to your turnover if each client spends £30instead of £25
It would go up to £900,000!
2000 clients x £30 per visit x 5 visits a year x 3 years = £900,000
That’s already £150,000 more … and when you work it out you’ll find it’s the same increase you’d get if you found 400 new clients spending £25 each time they came in!
That’s amazing isn’t it … and which would be easier to do … find 400 new clients or increase your average bill by £5?
EVERY SALON OWNER I’VE EVER ASKED HAS SAID … IT WOULD BE EASIER INCREASE THEIR AVERAGE BILL BY £5!
Now for the next step … what happens to your turnover if your clients visit 6 times a year instead of 5? Your turnover now goes up to just over a million pounds!
2000 clients x £30 per visit x 6 visits a year x 3 years = £1,080,000
This is an increase of £330,000 … and it’s the same increase you’d get if you found 880 new clients!
Again let’s ask the question which would be easier to do … find 880 new clients or increase your average bill by £5 and attract your clients into your salon 1 more time per year?
YOU KNOW THE ANSWER BY NOW!
Finally, here’s the real mind blowing question … What happens if your clients stay loyal for 5 years instead of 3 as well as spending more and coming in more often?
Your turnover from the same 2000 clients EXPLODES to a whopping £1,800,000!
2000 clients x £30 per visit x 6 visits a year x 5 years = £1,800,000
That’s £1.05 million more … and the same as finding 2800 new clients … I TOLD YOU IT WAS MIND BLOWING!
There’s even more good news.
You only have to focus on two of the 4 growth strategies. Get them right and you’ll get the other two for FREE.
Think about it.
Think about what you’ll do to persuade clients to spend more and come in more frequently.
- You’ll probably decide to educate your clients better, so they understand the benefits of what you’re offering them.
- You’ll probably decide to communicate with them better as well, so they know how much you care.
- You’ll probably decide to focus on delivering your promises to them more consistently as well.
Now ask yourself these two questions..
“If I do all this are my clients more likely or less likely to stay loyal for longer? “MORE LIKELY OF COURSE”.
“If I do all this are my clients more likely or less likely to recommend my salon to other people?”
Again the answer is more likely and as I’m sure you’ve already realised that Phorest Cloud is a brilliant and essential tool for monitoring the growth of your clients average spend and also for telling you how often they are coming in!
A message from Simon: “This article was originally published on my blog at www.simonlotinga.com”.
Why not request a demo of our salon software today? We can help you get more clients, back more often spending more!
