How are you tracking success?
How are you tracking success in your beauty business? Most owners gauge success by how much money is in their bank account. Of course that's a good start, but it's also important to understand what's working and what's not in case that bank account balance starts to dip your comfort level and you need to figure out how to bring it back up! In this post, I'll cover several key performance indictors, or KPIs, you should be tracking in your beauty business.
Total Clients Seen
You should be tracking the total number of clients you see because this metric has a direct connection to how much revenue you can generate. It also plays a role in expenses, staffing and scheduling. While most most feel a declining number of guests is a bad thing, that isn't always the case if you're charging clients. So, while you should track this number it's important to look at what else is going on in the business to fully understand what this number means.
New Clients
Even the most successful businesses see some attrition from loyal clients each year. With that in mind, it's important to have a funnel of new clients coming through the door regularly. If you are tracking this number and notice a change, it could mean it's time to review things in your business such as:
- Marketing
- Pricing
- Customer Service & Experience
Are you marketing consistently? Are you tracking the effectiveness in your market? Has your pricing changed? Did you receive bad online reviews as a result of poor customer service or experience? Monitoring and analyzing all these factors can help you plan for future success.
Client Retention
Just as important as new clients coming in is your client retention rate. Are your existing client rebooking with you? If so, how long are they waiting to come back in between appointments? If you aren't doing what you can to rebook existing clients and get them in your business on a regular basis you'll be in a consistent state of advertising to new clients. This can get expensive and should make you question what is happening in your business that is causing clients not to return.
Average Client Sale
Work smarter not harder is the name of the game here. If you're seeing a ton of clients and still not meeting your financial goals it may be time to raise your prices to increase the average client sale. It may also be time to revisit your service add-on and/or retail strategy to ensure each client is spending more with you when they visit.
Retail Sales
Retail sales are an easy way to increase profits in your beauty business. You should be tracking retail sales and striving to increase them each quarter. If sales are slumping it could be time to retrain your team, re-educate your clients or bring in some fresh products.To help you keep track of your success I've created a Success Tracking printable that is available for instant download in my store. Head there now and grab your copy. Then, contact me if you're having trouble taking your beauty business to the next level.
