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Last updated: February 07, 2019

How To Increase Salon Business: 6 Realistic Goals

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6 Realistic Goals To Help Boost Your Salon Business

If you’re not setting goals and checking that you’re hitting them monthly, then it needs to jump to the top of your to-do list STAT. Not only is it super beneficial to know what’s going on in your salon but achieving goals is a great way to grow your business. The good news is that Millennium Systems International Founder and CEO John Harms knows exactly which areas to focus on and he has a realistic goal for each, which he shared at The Millennium Experience 2018. Keep reading for his advice!


1. New Guests Per Month—Varies

This goal varies because it’s based on what you’re doing to promote your salon. Determine the number of new guests you want to bring in monthly and then take advantage of free advertising like word of mouth and Instagram to make that happen. Then every month, track the number of new guests who get a service at your salon because this shows how well your salon’s reputation and your referrals are working and whether you’re retaining clients.


2. New Client Retention—50%

So you repeatedly meet your goal for new guests per month…now what? If you want 50 percent of new clients to come back for a second visit, it’s crucial that you don’t just pair them with any stylist who is free. Instead, John says you should pair new guests with an experienced stylist who has a knack for making people feel comfortable and who you know will give them a good experience. Turning new clients into loyal guests relies on making a good first impression.


3. Repeat Client Retention—80%

When it comes to repeat client retention, the industry average is at about 70 percent. However, John says to aim for 80 percent if you want to boost your business. So how do you do that? It can be easy to overlook this area but it’s important to know where each of your stylists are at with their books and help them to make smarter, more achievable goals so they can in turn help boost your repeat client retention percentage overall.


John Harms, Millennium Systems International Founder & CEO. // Photography: Backrow Media


4. Frequency Of Visit—7 to 8 times a year

The best salons who get 80 percent rebook are the ones who build a culture around rebook,” shares John. “Culture starts with your staff but it extends to the client.” So if you want to exceed the industry average of five visits a year per client to John’s suggested goal of seven to eight, the answer is to rebook more often. Think of it this way: If one stylist gets one client to come back just one more time, your salon just grew by 20 percent. Win-win.


5. Average Ticket—Increase by at least $5

There’s no industry average to compare to because it just depends on location, experience, etc., so your first job is figure out what your salon’s average ticket is and then what each of your stylists’ average ticket is. Then, each team member should aim to add just $5 to $10 per guest by offering something as simple as a conditioning treatment.


6. Productivity—80%

We know what you’re thinking—shouldn’t the goal for productivity always be at 100 percent? Not quite. If it is, John says you’ve got a problem. So if productivity is nearly perfect, your prices are probably too low and retention and frequency are going down (aka your books are filled but loyal clients are having trouble making appointments). But don’t sweat! It means you’re doing everything right and it’s time to raise your prices.

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