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.

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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

1


NEW GUESTS PER MONTH

Referrals

1


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

2


NEW GUEST RETENTION

Follow-up to Verify Experience

2


NEW GUEST RETENTION

Sell Series & Book Standing

2


NEW GUEST RETENTION

Sell Memberships

2


NEW GUEST RETENTION

Pre-book

2


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

2


NEW GUEST RETENTION

Call Guests Due in

2


New Guests

per Month

New Guest

Retention

Repeat Guest

RetentionFrequency


Productivity



REPEAT GUEST RETENTION

Offer Client Loyalty

3



Offer Custom Packages

3



Sell Series and Book Standings

3



Pre-Book

3



Sell Memberships

3



Call Guests Due in

3



Follow-up on No Shows, Cancellations, Pendings

3



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!)

3


New Guests

per Month

New Guest

Retention

Repeat Guest

RetentionFrequency


Productivity



FREQUENCY OF VISIT

Sell Series and Book Standings

4


FREQUENCY OF VISIT

Pre-Book

4


FREQUENCY OF VISIT

Follow-up on No Shows, Cancellations,& Pendings

4


6 Growth IndicatorsEDUCATE YOUR TEAM

New Guests

per Month

New Guest

Retention

Repeat Guest

RetentionFrequency


Productivity


AVERAGE TICKET

Up-Sell, Cross-Sell, Add-on

5


6 Growth IndicatorsEDUCATE YOUR TEAM

New Guests

per Month

New Guest

Retention

Repeat Guest

RetentionFrequency


Productivity


PRODUCTIVITY

Mask the Book

6


PRODUCTIVITY

Increase Prices if Above 85%

6


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

[email protected]

For questions about today’s [email protected]

mailto:[email protected]

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