5 Ways to Increase Rentention - 4/18/16

millenniumspasalon.com | meevo.com

5 WAYS TO INCREASE CUSTOMER RETENTION

Millennium Systems International

Irena MenaAssistant Learning Manager

Millennium Systems International

Irena Mena has a background in Secondary Education. As an Assistant Learning Manager, she is responsible for the internal and external education of the company. This includes creating and administrating the curriculum and

testing, as well as training businesses on Millennium and Meevo.

YOUR PRESENTER

GOTOWEBINAR OVERVIEW

• All attendees are muted upon entry to the webinar

• The webinar is in “listen only” mode for attendees

• If you have questions for the presenter(s) or host, please enter them into the

“Questions” box in the panel on the right hand side of your screen

• At the end of this webinar, please take some time to fill out the brief survey

that will be sent to you via e-mail

5 WAYS TO INCREASE RETENTION

Did you know that the average new client retention is only 35%, a shortcoming of over half to the ideal of 60-80%! Learn 5 simple ways you can increase your customer retention and improve your bottom line!

• Educating Your Team• Motivating Your Team• Growth Indicators• Economics of

Retention• Automation

WHAT DOES RETENTION MEAN TO YOU?

CLIENT RETENTION IS THE LIVELIHOOD OF YOUR BUSINESS

By definition, customer retention is the activity a company undertakes to prevent customers from defecting to alternative

companies.

Successful customer retention starts with the first contact and continues throughout

the entire lifetime of the relationship.

Build a Culture1. EDUCATE YOUR TEAM

1. EDUCATE YOUR TEAM

New Guests

per Month

New Guest

Retention

Repeat Guest

RetentionFrequency

of VisitAverageTicket

Productivity

6 Growth Indicators

What Growth Means to Them(Commission)

1. EDUCATE YOUR TEAM

A 5% increase in customer retention can increase business profits by 25% - 125%

Goals2. MOTIVATE YOUR SERVICE PROVIDERS TO RETAIN CLIENTS

Goals2. SERVICE PROVIDER MOTIVATION

Set Goals on the Growth Indicators,

Not Sales!

Offer Commission and Pay Increase

Opportunities

Goals3. FRONT DESK MOTIVATION

Pair the Front Desk up with Service Providers & Set-

Goals on Pre-book, FOV, Average Ticket, ETC.

Have Contests on PKG/Series,

Memberships, Pre-Booking, etc.

3. FRONT DESK MOTIVATION

Make It a Career Opportunity – Incentivize ThemCreate new positions with multiple levels

Receptionist – Entry Level$8 an hour

Front Desk Specialist$10 an hour

Front Desk Professionals$15 an hour & up

What Makes You Stand Out?

4. PROVIDE AN EXCEPTIONAL EXPERIENCE

Companies that prioritize the customer experience generate 60% higher profits than their competitors

A commitment to customer experience results in up to 25% more customer retention and revenue than sales or

marketing initiatives

80% of your future profits come from just 20% of your existing

customers

Repeat customers spend 33% more than new customers

Listen – Give them what they want – NOT what you wantSet the Mood – No phones, Gossip, Form Relationships

UDF – Know What They Like (Drink, Candy, etc)Formulas – Document EVERYTHING (Vacations, Family, etc.)

New Client Welcome – Tour, Goody-Bags, Client Loyalty Program Birthday/Anniversary/Job – Offer Discounts, Celebrate!

Specific Marketing – Children, Interest/Hobbies, Married?, Hair InfoNon-Requests – Educate Your Front Desk on How to Handle This

It’s the EXPERIENCE more than the SERVICE #dearhairstylist

5. EDUCATE THE TEAM ON HOW TO RETAIN CLIENTS & ITS IMPACT

New Guests

per Month

New Guest

Retention

Repeat Guest

RetentionFrequency

Productivity

6 Growth Indicators

NEW GUESTS PER MONTH

Marketing

NEW GUESTS PER MONTH

Referrals

New Guests

per Month

New Guest

Retention

Repeat Guest

RetentionFrequency

Productivity

6 Growth Indicators5. EDUCATE THE TEAM ON HOW TO RETAIN CLIENTS & ITS IMPACT

NEW GUEST RETENTION

Exceptional Experience

NEW GUEST RETENTION

Follow-up to Verify Experience

NEW GUEST RETENTION

Sell Series & Book Standing

NEW GUEST RETENTION

Sell Memberships

NEW GUEST RETENTION

Pre-book

NEW GUEST RETENTION

Make them Aware of Client Loyalty Promotions

• Offer Points for Prebooking• Offer Points for Trying a New Service

• Offer Points for Referrals

NEW GUEST RETENTION

Call Guests Due in

New Guests

per Month

New Guest

Retention

Repeat Guest

RetentionFrequency

Productivity

REPEAT GUEST RETENTION

Offer Client Loyalty

Offer Custom Packages

Sell Series and Book Standings

Pre-Book

Sell Memberships

Call Guests Due in

Follow-up on No Shows, Cancellations, Pendings

Contact Clients with Outstanding Liabilities

(Every opportunity a client walks through the door is an opportunity to up-sell, cross-sell, add-on, and sell retail! Turn them into a core-

client!)

New Guests

per Month

New Guest

Retention

Repeat Guest

RetentionFrequency

Productivity

FREQUENCY OF VISIT

Sell Series and Book Standings

FREQUENCY OF VISIT

Pre-Book

FREQUENCY OF VISIT

Follow-up on No Shows, Cancellations,& Pendings

6 Growth IndicatorsEDUCATE YOUR TEAM

New Guests

per Month

New Guest

Retention

Repeat Guest

RetentionFrequency

Productivity

AVERAGE TICKET

Up-Sell, Cross-Sell, Add-on

6 Growth IndicatorsEDUCATE YOUR TEAM

New Guests

per Month

New Guest

Retention

Repeat Guest

RetentionFrequency

Productivity

PRODUCTIVITY

Mask the Book

PRODUCTIVITY

Increase Prices if Above 85%

APPLIES TO RETENTION & ALL GROWTH INDICATORS

Automated Marketing

ECONOMICS OF RETENTION

5 Chair Salon doing $450,000 a year with an average service ticket

of $60, and 1,700 active clients

FOV increases from 4.5 to 6 =

$153,000 increase

Retail sales increase from 10% to 15%=

$45,450 increase

New total=

$648,400 (44% gain)

NO TIME TO DO ALL THIS?

Automate it!

Online BookingAUTOMATION & TOOLS

Millennium eGiftAUTOMATION & TOOLS

MillenniumGO™

AUTOMATION & TOOLS

• Educate Your Team on Growth Indicators• Create Your Benchmarks for Retention (Use

Reports to Analyze Your Business-MA200)• Set Goals, Bonuses, & Contests to Increase

Retention

ACTION PLAN

CONTACT USFor Information about Millennium or Meevo

sales@millenniumsi.com

For questions about today’s presentationeducation@millenniumsi.com

5 Ways to Increase Rentention - 4/18/16

Education

Virtual Rentention N Reposition Mgt

10 Ways to Increase Brand Awareness

5 ways to increase sales effectiveness

Ways To Increase Memory Retention - How To Increase...

18 Ways To Increase Barakah

15 Ways to Increase Value

5 Painless Ways To Increase Productivity

5 Ways to Increase Your Intelligence

10 Ways to Increase Website Conversions

Rentention & graduation1

7 Ways Paperless Depositions Increase Attorney...

Eight ways to Increase Productivity

Ways to Increase Your Domain Authority

Simple ways to Increase Conversion Rate

Five Ways To Increase Agency Value

7 Ways to Increase SharePoint Adoption