Saying that it is crucial to have essential metrics available at your fingertips is a huge understatement. With today’s ever-changing economy and constant transformation of our industry, data analysis is the lifeline of any salon.
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Are you unsure of how to record and organize your data into a meaningful format? If you are using a first-rate salon software management program, then there’s no need to worry! Let the program do the heavy lifting for you, so that you can spend time analyzing your data instead of expending valuable resources on collecting and shaping it into a useful form.
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Although qualitative data has its purpose and can be helpful, it can also mislead you on the true performance of your business. Sure, it may seem like that billboard advertisement that you ran last month brought several new customers through your door – but without viewing objective quantitative data, how can you be certain? You may find that after looking at a report that provides analysis on new customers that you actually gained a higher percentage of new clientele through the customer referral program that you launched (for which the cost was minimal, as you rewarded existing customers for referrals by automatically applying points on their accounts to be used toward future retail purchases). Having properly formatted data readily available will allow you to rule out the human bias factor.
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The capability of obtaining a variety of business metrics with ease is imperative so that you can spend time determining what that data means and draw conclusions relating to your organization’s performance. For example, is the average revenue per customer higher at one of your salon locations in comparison to another? Perhaps there is a correlation with the differences in your equipment mix at each one? Having information available in a visible format might just prompt you to make a change that will yield successful results!
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Your software program should provide you with the ability to conveniently generate an annual comparative analysis, so that you can evaluate whether or not changes are needed in your business model.
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Do you regularly review the progress of your EFT membership program? Doing so might provide some meaningful insights, or cause you to re-evaluate things, such as the member benefits you offer. For example, are your higher-level EFT memberships being retained longer on average than your base level membership? Maybe this is a result of not including automatic product discounts, or because you don’t allow freezes on base-level memberships. Possessing this knowledge just might prompt you to fine-tune your EFT membership rules and parameters.
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Thinking of adding some new equipment to one of your salons following a recent expansion that gave you additional space? Instead of guessing what types of equipment you should purchase, why not run a report that generates information on the tans per bed type that will even break the info down per hour? Not only will you be able to make an accurate assessment when deciding on what types of beds or booths you should add, you will also be able to determine if you will need to schedule additional staff during certain times of the day in order to efficiently accommodate increased traffic.
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Analyzing patterns and trends from one year to the next is also vital in understanding the overall situation of your organization. Your software program should provide you with the ability to conveniently generate an annual comparative analysis, so that you can evaluate whether or not changes are needed in your business model.
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The bottom line is that the root of your success stems from your dedication, hard work and perseverance – consistent examination of your business metrics will provide you with the knowledge and power that promotes your continued growth and prosperity!
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