Saying that having essential metrics available at your fingertips is crucial is a huge understatement. With today’s ever-changing economy, and the constant transformation of our industry, data analysis is the lifeline of any business.
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, and have full access and ownership to your data, 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.
With today’s ever-changing economy, and the constant transformation of our industry, data analysis is the lifeline of any business.
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 guests through your door, but without viewing objective quantitative data, how can you be certain? You may find that after looking at a report containing analysis on new customers that you actually gained a higher percentage of new clientele through the referral program that you launched (for which the cost was minimal, as you automatically rewarded your existing customers for the referrals with 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 evaluate the performance of your business. 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 info 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 question things such as the member benefits that 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 tanners to freeze at this level? Possessing this info just might prompt you to fine tune your EFT membership rules and parameters.
Thinking of adding new equipment to one of your salons following a recent expansion? Instead of guessing what types you should purchase, why not run a report that generates info on the tans per bed type that even breaks it down per hour? Not only will you be able to make an accurate assessment when deciding on what beds or booths to add, you’ll also be able to determine whether you will need to schedule additional staff during certain times of the day in order to efficiently accommodate the additional tanners.
Analyzing patterns and trends from one year to the next is also vital in understanding your overall business situation. Your software should allow you to conveniently generate an annual comparative analysis so that you can evaluate whether or not changes are needed in your business model.
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.
