Mark asked this question at Salon Smart and, in turn, I asked salon owners to share with me which KPIs they measure regularly in their business. These are the numbers that indicate how well your business and individual team members are performing. Below are some of the suggestions from the workshops and an average number that the delegates suggested would be a good goal to aim for.
Utilisation: 80 per cent
Rebooking: 70 per cent
Retail sales: 15 per cent
New client retention: 70 per cent
Average bill: 10 per cent higher than cut and finish price
As I said these were the suggestions from the delegates in the room and not mine, but what I did discover was that many salons are not looking at their numbers on a regular basis and some were not even aware of what numbers they should be looking at. All of the above are good numbers to monitor and should all be looked at from two points of view. First, the numbers of your salon overall; and second, the numbers of each of your team individually. For example, your overall salon rebooking number could be 70 per cent but this could come from an average of three of your team achieving 90 per cent and three of your team achieving 50 per cent. Your challenge is to find out how some stylists achieve a higher rebooking rate and then coach the lower performing team to help them to grow theirs.
Average income per client is a classic. Some stylists constantly upgrade and achieve an average income per client that is way higher than their cut and finish price. Others undercharge, offer discounts or spend their time offering low ticket services which eat away at their average income per client figure.
When I first joined 3•6•5 as a member more than 25 years ago, I learned two things that I’ve never forgotten: ‘success leaves clues’ and ‘successful people do the things that non-successful people can’t or won’t do’. Anyone that is achieving more than someone else is always doing something differently. As a salon owner it is your responsibility to grow the results of each and every member of your team. But first you need to monitor and analyse your results to understand what you need to work on. This is why knowing and understanding the KPIs of both your salon and your team is vital.