How much money do you want to make? Success is achieved by setting goals. Start with what you want to do, where you want to go and how much money you want to make. You begin with the end in mind. Then, by focusing on your key drivers, you can dramatically increase your income and achieve the goals you have set for yourself.
First of all, what ARE key drivers? Key drivers are leading factors affecting performance for your business. A key driver is something that has a big impact on whether the business does well. It can also show early warning signs for lower performance or results.
Financially speaking, there are six drivers that will determine your prosperity. They can be tricky, technical and they take serious effort to understand and track. But master these key drivers and you will reach your business goals.
Let’s take a look at your key drivers and learn how they impact your business.
♦ Average ticket per client
The goal: Increase service dollars for each client.
Look at your books every day. Plan ahead. As time permits, suggest an add-on service that benefits your client. As your books fill up and your demand increases, raise your prices.
♦ Number of clients
The goal: Bring in a constant flow of new clients.
Never stop prospecting for new clients. Network with people by joining community organizations. Hand out VIP and business cards. Ask every client that comes in to see you to refer their friends and family – let them know you would love to build your business with people just like them! Donate your services to a charity.
♦ Pre-Booking – manage the number of client visits
The goal: Increase the number of times a customer comes in to see you. This is the easiest, most effective way to fill your books.
Always advise your client to book their next appointment before they leave. Pre-booking guarantees they have an appointment when they need it and you can count on having a consistent income. Consider offering specials for pre-booking. For example, offer 20% off for booking now, or 25% off for booking the whole year.
♦ Average retail ticket – how much product does each client purchase
The goal: Have 50% of your clients buying retail products from you.
Retail bonds your clients to you. Give them the inside scoop on how to get the same look and feel at home. Educate your client on the products you are using. Tell them what it is, when you to use it, where to put it, why they need it and how and why you love it and chose it for them specifically.
If you sell a product once, it sells itself the next time. This is called recurring income. It can be your day off but if one of your clients comes in to purchase more product, you can still be making money!
Always recommend products based on the challenges your client has shared. This is how your build a partnership with your client.
♦ Client retention – how well you keep clients
The goal: Keep them all!
Always make your space fresh, clean and modern. Manage your client’s experience by treating your client like they are the most important person in the world. Be friendly and relational, smile A LOT.
Don’t forget to offer new services. Clients leave because they want change or feel like their stylist, nail technician, barber or masseuse doesn’t listen to them or offer new ideas.
Practice and be the best at what you do. Keep getting better at your craft.
♦ Busy rate – how much of your work time you are actually working
The goal: Have no openings in your schedule and be booked 100% of the time.
Maximize your books by prospecting for clients. Post last minute openings on social media and offer a discount or free service for anyone who can fill it. Add more services for each client. Think about brow sculpting, color services or conditioning treatments.
Adjust your hours to be more convenient for clients. Many people need evening and weekend appointments.
First, now that you know what your key drivers are, you must take steps to decide what you want to accomplish and set a date to reach that goal! Be specific!
Second, you must define the one or two strategies that you will do to achieve your goal. This is your action plan. Something you will actively do to make sure you reach the goal you have set.
Third, you are going to create a numbers chart to keep you accountable. Chart the number of times you complete the strategies set forth. This is something you will visit every single day. Are you doing what you said you needed to do to reach that goal?
Finally, you will create a scoreboard to chart your progress, weekly. This will give you a visual to see how your participation is effecting your goal. The scoreboard will motivate you and help create ownership of the goals you want to accomplish.
Start by picking the Key Driver goal that is most important for you. Think about what you want to accomplish and set a date to reach that goal. Focus on one or two strategies that will help you to achieve your goal.
Do you want to sell more retail? Perhaps you want to sell products to 5 guests a day. Make it a habit to share your favorite products with each guest and tell them why you love the product. Explain the what, when, why, how much and where. Walk each guest to the retail area and show them the products best suited for their needs. Track your progress and celebrate your success!
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