Managing growth with key performance indicators
There are more ways to grow than by just bringing new clients through your door. You can also upsell high-margin products and additional services. We’ll get to measuring upselling, but let’s first knock out how to measure growth in the more traditional sense.
Measuring your web presence
Using data from Google Analytics you can see exactly where traffic is coming from, how much, and how it’s converting to leads on your site. It’s a bit more difficult to track how web traffic converts to walk-ins, but we recommend surveying new clients on how they found you after their first visit to your salon. Using Google Analytics data you can track things like:
Total Web Visits
Web Visits by Channel (social vs organic vs paid)
Web Visits by Geography
Using event tracking and Google Tag Manager, you can also track when people fill out certain forms on your website, or if the option is available, book an appointment.
Less measurable but equally important ways for you to build your brand and gain new clients are to publish press releases for major announcements at your salon and participate in community events.
To differentiate your salon from competitors, it’s important to play a positive role in your community. It’s also important for nurturing your employees and increasing your employee NPS.
Measuring the Upsell
Mastering the art of the upsell is crucial to the success of your salon business because it allows you to grow without the need for more clients. Since it’s easier to keep existing clients than find new ones, upselling is a major opportunity.
To measure upselling, track your average revenue per client.
Average Revenue Per Client (ARPC)
( Revenue / Total Active Client Base )
The easiest way to raise your average revenue per client is to place high-margin products places where your clients may frequent, such as a waiting area or next to your point of sale. Encouraging the “impulse buy” is a simple way to tag a few extra dollars onto every service you offer.
Managing Cashflow
Even the best businesses have cashflow issues from time to time, it’s just the nature of business. Often, a cashflow issue is a matter of matching your business’s growth goals to your personal goals as a business owner. For example, you may need funding to get to your next phase as a business.
