As we get closer to the end of the year, it is a good time to review what progress you have made in the area of client retention and team retention.
Look at client retention first. The benchmark that I set for overall salon result for most clients in both hair and beauty salons is 75-85% with a big focus on being as close as you can to the 85%. There are a few individual variables that will affect this such as:
- Losing a key team member
- Adding new team members
- Number of new clients that you have the time to look after
- Promoting a reason to visit promotion offer
- Changing your software program will take time to get accurate results for several months
Individual benchmarks will vary, but I get very concerned if I see a team member who has been looking after clients for more than 3 months and is not retaining more than 50% and growing each month.
Be sure to look at reports each month from your software program. This is something I do with all my clients. Careful reviewing of this will tell you so much and then of course you need to take the appropriate action to work with and help someone who is not winning clients.
Team retention. How many valuable team members have you lost this year? I stress valuable. Some you are happy to see come and go. Write down the name and the reason why you understand they left. If you see a common reason for losing staff that allows you to make changes, do it and do it soon. Good team members are too hard to find.