Saying that it is crucial to have essential metrics readily available at your fingertips is a huge understatement. We have been faced with continuous uncertainty over the last year, and although the effects may vary from one industry to the next, no one is immune to it. Our world seems to be ever-changing, but one thing is constant – with the right tools, all facets of your organization are measurable and when this data is analyzed, you will be empowered to make informed business decisions.
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, so that you can spend time analyzing data instead of expending valuable resources on collecting and shaping it into a useful form.
Consistent examination of your business metrics will promote continued growth and prosperity, regardless of the types of challenges we might face!
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 radio ad 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 reviewing a report providing analysis on new customers that you actually gained a higher percentage of new clientele through the referral program you launched (at minimal cost, 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.
The capability of obtaining a variety of business metrics with ease is imperative, so that you can spend time on determining what that data means and draw conclusions relating to your company’s performance. For example, is the average revenue per customer higher at one of your salons in comparison to another? Perhaps there is a correlation with the differing equipment mix? Having information available in a visible format might just prompt you to make a change that will yield successful results!
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 that you offer. For example, are your higher level EFTs being retained longer on average than your base level membership? Maybe this is a result of not including automatic discounts on product purchases at the base level, or because you don’t allow guests to freeze on this level membership? Possessing this knowledge just might prompt you to fine tune your EFT rules and parameters.
Thinking of adding new equipment to one of your salons following a recent expansion? Instead of guessing what types of equipment you should purchase, why not run a report that generates info on the sessions per equipment type that will even break down that info per hour? Not only will you be able to make an informed decision about what types of units 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 additional guests.
Analyzing patterns and trends from one year to the next is also vital in understanding the overall situation of your business, especially when experiencing unprecedented events like we have over the last year. Your software program should allow you to conveniently generate an annual comparative analysis, so that you can evaluate whether or not changes to your business model are needed.
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 will promote continued growth and prosperity regardless of the types of challenges we might face!
