First of all, what ARE key drivers? Key drivers are leading factors affecting the performance of your business. A key driver significantly impacts your business and if it does well. It can also show early warning signs for lower performance or results.
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 increase your income and achieve the goals you have set for yourself.
Financially speaking, there are six drivers that impact your business. They can be tricky and technical and take serious effort to understand and track. But master these key drivers, and you will reach your business goals.
Let’s look at your key drivers and learn how they impact your business.
♦ Average ticket per client
The goal: Increase service dollars for each guest.
Look at your books every day. Plan ahead. As time permits, suggest an add-on service that benefits your guest. 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 guest who comes in to see you to refer their friends and family – let them know you would love to build your business with people like them! Donate your services to a charity.
♦ Pre-Booking – manage the number of guest 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 guest to book their next appointment before they leave. Pre-booking guarantees they have an appointment when needed, and you can count on 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 guest purchase
The goal: Have 50% of your guests buy retail products from you.
Retail bonds your guests 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 use it, where to put it, why they need it, and how and why you love it, and choose 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 products, you can still make money!
Always recommend products based on the challenges your client has shared. This is how you 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 guest’s experience by treating your guest like they are the most important person in the world. Be friendly and relational, and smile A LOT.
Don’t forget to offer new services. Clients leave because they want to change or feel like their stylist, esthetician, 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 working
The goal: Have no openings in your schedule and be booked 100% of the time.
Maximize your books by prospecting for clients. Share last-minute openings on social media and offer a discount or free service for anyone who can fill it. Add more services for each guest. 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 the key drivers impacting your business, 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 of how your participation affects 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. Consider what you want to accomplish and set a date to reach that goal. Focus on one or two strategies to help you make an impact on your business.
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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