With each New Year comes the infamous resolutions: how we intend to improve, turn a new leaf, get healthy, take on better habits…you know, the ones we break by mid-February! In 2017, we suggest taking on a more pragmatic approach with your team.
New Year, new outlook!
In your next meeting, ask each stylist to look back at where they stand financially today versus last year and the previous one. Are they making the same income?
Have your stylists write down a list of their 10 most loyal clients.
Ask them to estimate how much each of these clients spends with them every month.
Then, have them multiply each client’s monthly expenditure by 12.
The goal of this exercise is simple: to realize that client turnover is one of the main reasons for static annual income. When one loyal client is lost, so is a significant amount of income. Although building a customer base is very important for stylists, this won’t increase their income if they are simply replacing lost earnings.
It is essential for stylists to invest in their current customer base and remember how important their loyal customers truly are!
Wishing all of our Beautiful Business readers a very happy and prosperous New Year!
What do you want to hear from us in 2017?
Let us know what your biggest business challenges are in the comments below.