Running a salon, spa, or other small business requires making countless decisions every day, and many of these decisions are influenced by our thoughts, emotions, and perceptions of the world. However, relying solely on subjective judgment can lead to miscalculations. This is why it’s crucial for business owners to ground themselves in data and regularly track their performance. Watch our video here or read on for insights from My Erlandsson and John Hallberg about which reports salons and spas should track.
Why Spa and Salon Reports Matter
Data brings clarity and objectivity to decision-making processes for salons and spas. Numbers don’t lie; they present the facts as they are. When communicating with your team, it’s much more effective to present concrete data rather than vague opinions or assumptions. Instead of relying on vague statements like “I think it’s like this,” reporting lets you show concrete facts and figures to your team.
Data also provides a clear direction for your team, allowing you to set specific goals and focus areas. For example, one crucial factor we track is the number of loyal customers, which significantly impacts the team’s salaries. Having this data readily available helps eliminate subjective discussions about pay and allows for more transparency in compensation decisions.
5 Key Salon Reports You Should Track
When beginning to track and report data, it can be challenging to understand which numbers are most important. Here are some key data points that salon and small business owners should track:
1. Salon Client Pre-Booking Rates
Pre-booking rates indicate how many clients schedule their next appointment before leaving your salon. This metric is vital because it helps you forecast cash flow and build a loyal client base. The more clients pre-book, the more stable your revenue becomes.
2. Salon Existing Client Retention Rate
Retaining existing clients is essential. Client retention rate measures how many clients return to your salon for services after a certain period, typically 90 or 180 days. A general rule of thumb is to aim for an 80% retention rate for existing clients. If your retention rate drops significantly, it’s a red flag that requires attention. A high retention rate is a sign of customer satisfaction and loyalty. It’s crucial to track this metric to ensure you’re retaining your existing clients.
What about new client retention? The ideal percentage may vary based on your business type and location. For example, salons in tourist areas (like ski resorts) should expect very low new client retention. In a more standard setting, you’ll want to see at least a 40-50% new client retention rate. This metric will let you keep tabs on how well you’re converting new clients into loyal customers.
3. Salon Reports for Productivity Rate
Salon productivity rate indicates how efficiently your salon is utilizing its resources. A good target is around 80%. When your productivity rate reaches this level, you can consider expanding your team or raising prices. Tracking individual team members’ productivity can also help set performance goals.
4. Earnings per Visit/Salon Appointment Value
This metric calculates the revenue generated from each salon appointment. It’s essential to differentiate between earnings from services and retail products. By tracking this data, you can focus on strategies to increase the value of each appointment, such as upselling retail products or personalized services. You can also use team incentives to boost average appointment value.
5. Website Performance and Marketing Metrics
For businesses with an online presence, tracking website metrics is crucial. Ensure that potential customers can easily find and book appointments on your site. Pay attention to website traffic, booking conversion rates, and the effectiveness of your website in conveying relevant information to potential clients.
Depending on your marketing strategy, you may need to track metrics related to social media engagement, Google reviews, or other advertising efforts. These metrics help you assess the effectiveness of your marketing campaigns. Monitor which channels bring in clients and adapt your marketing strategies accordingly.
Regular Tracking and Early Intervention
Comparing your current data to historical data, such as the same month in the previous year, provides valuable insights. It helps you identify trends, spot declines in performance early, and make data-driven adjustments to your business strategy. In the ever-changing world of small business ownership, data is your most reliable ally. By tracking key numbers and analyzing them regularly, you can identify trends and issues early — allowing you to take corrective action before negative changes affect your cash flow.
How to Track Salon and Spa Data
Many salon management software systems offer salon reporting features to help you access and interpret this essential data. At The Salon Business, we recommend Mangomint’s platform as the top choice for salons ready to embrace data-driven decision-making. Mangomint’s salon reporting helps guide the way as you navigate the challenges and opportunities of salon business ownership. This feature complements the software’s advanced online booking, staff management, client management, and other capabilities that help salons thrive.
Keep Your Salon or Spa Moving Forward with Salon Reports
Data-driven decision-making is essential for salon and small business owners. By tracking key metrics with salon reports, you can make informed decisions, set clear goals, and steer your business toward success. Remember, numbers don’t lie, and they provide a solid foundation for achieving your business objectives. Stay tuned for more insights and strategies to help your salon or small business thrive. If you are interested in trying reporting and salon management with the Mangomint platform, you can get a double (60-day) free trial when you sign up using our link here!