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Salon & Spa: Transform Your Front Desk into a Profit Center

Posted on: June 21, 2016 by Joel Paterson | Tagged as: ,

Transform Your Front DeskIn any salon & spa, the front desk staff plays an integral role in the success of the business. Not only are they responsible for reception duties including booking appointments and answering telephones, they also develop a relationship of their own with the clients, as they’re often the first ones to greet each client upon arrival.

With that being said, traditionally the “Front Desk” has been considered an expense, rather than a revenue generating source for the salon & spa. This doesn’t have to be the case.

Transforming your front desk into another Profit Center provides you with the ability to utilize existing resources, to increase sales and profits.

So, how can this be done? The concept is simple.

Educate the Front Desk Staff on Growth Indicators

You may think that in order to transform your Front Desk into a Profit Center, you must teach them about “sales”… let me stop you right there. This approach rarely works, as the reality is they need to learn how to generate more sales, within the duties they’re already performing each day. Teaching your Front Desk staff about “growth indicators” is critical to achieving a profitable Front Desk. Once your Front Desk staff is familiar with a few key growth indicators, they’re able to help drastically increase your salon & spa revenue.

Here are a few “must know” growth indicators, which can help your Front Desk create and perform actionable tasks, that turn administrative responsibilities into profits.

First, they should not only learn what each of these represent, but also your your salon & spa’s metrics for each one.

  • Frequency of Visit
  • Average Ticket
  • New Clients per Month
  • Client Retention
  • Staff Productivity

So, how can these growth indicators help your Front Desk become a “Profit Center”?

It’s rather simple actually. Once your Front Desk staff is familiar with the above indicators, and the existing numbers associated with them, they now have the ability to put measures in place, to assist in growing these numbers, while performing their daily tasks.

Let’s take a look at just a couple examples.

Frequency of Visit

“Frequency of Visit” represents how often each of your clients, visits your salon & spa. By finding ways to decrease the time between each visit, you’re able to not only keep a fuller, more consistent schedule, but also increase the annual revenue you generate from each client.

Here’s our example: Let’s say your average client visits every 8 weeks, and they spend an average of $75 per visit. That would mean that we’ll see them approx. 6.5 times per year, which will generate $487.50 in revenue (6.5 visits x $75).

If we can bring the “Frequency of Visit” down to 6 weeks, instead of every 8, we can expect to see them 8.5 times per year, and generate an additional $150/year from each client.

Multiply $150 by your number of clients, and you can see how beneficial this can be.

Your Front Desk staff can play an integral role in this process, by measuring the time between visits, and reaching out to clients who have exceeded the average “Frequency of Visit” time, and attempt to get them back on track, to a more consistent visit schedule. Don’t underestimate the value of this process, as the potential is staggering!

Average Ticket

Your salon & spa’s “Average Ticket” is probably one of the most valuable metrics in your business. Knowing how much the average client spends each visit, is critical in the success and growth of your business.

Even a slight increase in this number, can result in significant sales/profit growth throughout your salon & spa. So, what role can the Front Desk staff play, in growing this number?

Here’s our example: If you’re like most salon & spa companies, your Front Desk staff may also be responsible for inventory control and tracking. This means, they will know which products are selling, and which ones they have to dust every week, because they aren’t moving so well.

So, if you’re sitting on some retail inventory that hasn’t been selling well, try bundling your top selling products, with your worst selling products. Believe it or not, this is a powerful way to move the slow selling inventory, and increase product awareness, while also growing the amount your clients are spending during their stay… This means, an increase to your “Average Ticket”.

Conclusion

Your Front Desk staff are a valuable resource inside your salon & spa. Tying “Growth Indicators” to duties previously considered an expense, such as confirmation calls, and inventory tracking is an efficient way to generate increased revenues in a new, profitable manner.

Improving your “Growth Indicator” numbers doesn’t have to be rocket-science. You can use your imagination for the most part, to help your Front Desk staff make the most out of the tasks they’re already performing, by simply adding a “growth” element to it.  Virtually every task your front desk staff is currently performing day in and day out, can go a long way in growing your revenues inside your salon & spa. Provide them with the ability to identify how each task can be associated with specific growth indicators, and watch how well it serves you. You’ll be glad you did.

If you’re looking for more ways on how to transform your front desk into a Profit Center, contact us today, and let us help.