Hair Salon 90 Day Profit Makeover

Increase Client Loyalty… with an Off-Colour Cape.

Posted on: August 15, 2018 by Joel Paterson | Tags: Salon & Spa Tips

Being able to identify a new client at a glance, provides a tremendous opportunity for salon owners/managers.

This enables you to customize the experience for the new client, and increase your chances of building loyalty.

The average hair salon has a retention rate of just 30%. This means, they are only seeing 3 out 10 first-time visitors, a second time. Increasing this number even slightly can have a massive impact on your profits.

So, why the off-colour cape?

Like I said above, being able to identify a first-time client provides tremendous opportunity…. and a cape that sticks out like a sore-thumb, does just that.

So, what do we do, once a new client is wearing this off-colour cape? That’s where things get fun…. You may be skeptical, but stay with me.

Let’s run through a scenario.

  1. Our new client, let’s just call her Cindy, sits in the stylist’s chair, and is wrapped in the off-colour cape.
  2. The stylist performs the consultation, as they normally would, being sure to ask Cindy what problems/struggles she may be experiencing with her hair.
  3. Cindy stresses her frustration to her stylist, how the summer humidity wreaks havoc on her hair.
  4. The stylist than briefly discusses what humidity does to the hair, and a product the salon carries, to help with that concern.
  5. During the appointment, the owner (or manager) makes their way over to Cindy, to introduce themselves, and ask the stylist how the appointment is progressing.
  6. The stylist relays Cindy’s “humidity” concern to the owner/manager, and again mentions the product they recommended.
  7. The owner/manager retrieves this product from the retail shelf, and provides it to Cindy, free of charge, and simply states something along the lines of “let us know how it works for you, on your next visit”.

That’s it! Now, all the stylist needs to do, is re-book Cindy when she’s finished… Which Cindy is much more likely to do, than she otherwise would have been, without this interaction with the owner/manager.

Let’s address the “concerns”.

  • You just gave a product away for free.
  • You’re not in the business of “losing money”.

Here’s where nerdy numbers come into play, but I’ll keep it short and avoid those. If  only 30% of all first-time clients ever return, we need to exceed expectations, if we want to boost that number.

If we can get Cindy to return for a 2nd visit, and a 3rd, and a 4th, we’re now building a strong relationship. That’s where a key statistic called “Lifetime Value” comes into play. We won’t get into the math behind it, so let’s just make it simple.

The product you gave away to Cindy, probably cost you anywhere from $12-$20… but we’re drastically increasingly the likelihood that she will return.  Personally, I would pay up to 4x that amount, to obtain a new, loyal client.

If you’re interested in the math/numbers behind this process, and the results you can expect from it, don’t hesitate contact us. We’d love to help!

Like I continue to stress over and over again, the hair salon industry is a “numbers game”, and knowing how to capitalize and maximize on key numbers is where big profits are made.

Until next time!