DASS_CH05_Slide Presentation

CHAPTER 5

BUILDING A CLIENTELE

5.1

5.2

THE CLIENT FACTOR

CLIENTELE BUILDING

CHAPTER 5 BUILDING A CLIENTELE | ADVANCE ORGANIZER

FOLLOWING THIS LESSON, YOU WILL BE ABLE TO:

• Make informed decisions by studying the client market

• Assess accurately the financial value of one client

• Explain why attracting new clients on an ongoing basis is a necessity

• Use proven strategies to build new clientele

CHAPTER 5 BUILDING A CLIENTELE | ADVANCE ORGANIZER

5.1

THE CLIENT FACTOR

THE CLIENT PROFILE

THE FINANCIAL VALUE OF

ONE CLIENT

CHAPTER 5 BUILDING A CLIENTELE | THE CLIENT FACTOR

THE CLIENT FACTOR

Client Factor: Important information about the client, combined with the financial value of a client

• Failure to consider the client factor invites unnecessary and career-threatening danger

• Paying attention to changes in the client factor offers one key to increasing business opportunity

CHAPTER 5 BUILDING A CLIENTELE | THE CLIENT FACTOR

THE CLIENT PROFILE

Client Profile: Composite of market statistics used to identify the general characteristics of individuals within that market

• Provides general insights about clients within a market area

• Gives the professional a “point of departure” to make assumptions about serving that client market with integrity

CHAPTER 5 BUILDING A CLIENTELE | THE CLIENT FACTOR |

THE CLIENT PROFILE

THE CLIENT PROFILE

Successful professionals study their client market to know:

• Age 38

• Female

• College educated

• Full-time professional, technical or service occupation

• Married: 1.8 children

• Household income:

$40,000 + per year


THE CLIENT PROFILE

THE CLIENT PROFILE

Assumptions

• Salon service should be pleasurable, relaxing and inviting

• Expects excellent customer service

• Wants services that will help her retain the appearance of youth


THE CLIENT PROFILE

THE FINANCIAL VALUE OF ONE CLIENT

• The ability to develop close relationships with clients will go far in creating your financial success

• Average loyal clients visit salon every 6 weeks, or 8 visits per year

• Returning clients are more likely to purchase additional services and retail products




• Satisfied clients will usually refer three new clients

Average Ticket: Average amount spent on services and retail by a salon client during one visit




What is the financial impact of losing just ONE client?

Satisfied clients will usually refer 3 new clients

Unhappy clients might tell up to 10 people



5.2

CLIENTELE BUILDING

ATTRACTING AND RETAINING CLIENTS

BEST PRACTICES FOR BUILDING A CLIENTELE

CHAPTER 5 BUILDING A CLIENTELE | CLIENTELE BUILDING |

ADVANCE ORGANIZER

CLIENTELE BUILDING

In order to be a successful salon professional, you will constantly need to attract and retain (keep) a group of loyal clients

• Clients are the hard-earned and most precious commodities of your business

• Clients can come from three sources, generally as a result of:

• The salon’s efforts

• Your efforts

• Someone else’s recommendations

CHAPTER 5 BUILDING A CLIENTELE | CLIENTELE BUILDING


Clientele: Persons who make habitual use of the services of another person

• Attracting new clients and then retaining them by providing quality service is the foundation of any business

Client Relations Management (CRM): The tracking and oversight of your clientele building strategies, also includes measuring and evaluating their results

• Clientele-building strategies are all the methods you and the salon use to attract and retain clients




Building a clientele is thought of in two distinct, but interrelated phases:

• Client Development: Inviting new clients to join your clientele

• Client Retention: Converting existing clients into return and, hopefully, lifelong clients. Clients who come back two or more times are called retained clients or return clients.




Full book: All available appointment times for a given day (or week) are scheduled with clients

• Maintaining a “full book” takes personal dedication to spreading the word about the quality and benefits of your services

• In today’s business climate, a full book is within grasp of professionals, who blend skill and ability to provide exceptional service with an energetic and attentive approach to attracting and retaining clients




THE FOUR KEY PRINCIPLES

FOR BUILDINGYOUR CLIENTELE ARE:

1.

Practice target marketing

2.

Provide exceptional service

3.

Increase and meet market demand

4.

Display a winning, clientele-building attitude




• Providing clients with products, services and quality treatment guarantees their satisfaction with the salon experience

• Giving exceptional service is a defining characteristic of the true professional

INGREDIENTS FOR SUCCESS

• Ready to work

• Willing to meet market demand

• Able to provide exceptional service




• Salon professionals who are most successful are the ones who accommodate clients

• Professionals who are ready and willing to meet market demand will be more likely to achieve a full book

• More appointments are requested between 2:00 and 8:00 p.m. on weekdays and early-to-late Saturday mornings than at any other times




TARGET MARKETING EXCEPTIONAL SERVICE

HIGH

MARKET

DEMAND

HIGH MARKET

DEMAND

WINNING, CLIENTELE-

BUILDING ATTITUDE

FULL BOOK = FINANCIAL AND PROFESSIONAL SUCCESS



FULL

BOOK


STRATEGIES FOR ATTRACTING CLIENTS:

1.

Distributing Business Cards

2.

Promoting Referrals

STRATEGIES FOR RETAINING CLIENTS:

1.

Upselling

2.

Prebooking



DISTRIBUTING BUSINESS CARDS

• Easy, effective and inexpensive way to attract new clients

• Easy for potential clients to put in their wallets, increasing the likelihood that they will contact you and schedule an appointment



DISTRIBUTING BUSINESS CARDS

Guidelines to make sure your business cards attract as many new clients as possible:

• Be sure your cards are attractive and contain accurate information

• Keep your cards in a case

• List your work schedule on the back

• Monitor your supply of cards



PROMOTING REFERRALS

• Referral: The act of one person directing another person to a specific professional or business

• Referral Source: The original person who made the referral

• Referral Client: A new client that requests an appointment with a specific professional or business




Positive word-of-mouth is a major component of the referral process.

In order to ensure that word-of-mouth about you is positive, you should:

1.

Deliver exceptional services to each and every client.

2.

Eliminate anything that would cause a client to feel uncomfortable.

3.

Do what you can to correct the situation if a client expresses dissatisfaction.




• It is typical for a successful professional to receive at least five referrals per month

• Referrals are important because approximately 10% of repeat clients will be lost annually in the salon

• Take the opportunity to ask clients to recommend their friends and family



UPSELLING

Upselling: Selling specialized and/or additional services to clients beyond what they had originally scheduled

Benefits of upselling:

1.

Clients send in more referrals

2.

Clients tend to buy more retail

3.

Two to three times more money per minute or per day is generated for the professional



PREBOOKING

Prebooking: Having clients reserve a future appointment before leaving the salon during a current visit

• The best kept secret for converting first-time clients into lifelong clients

• Is an effective way to achieve a full book

• Clients are able to have an appointment time that best meets their needs



LESSONS LEARNED

 Knowing about your client market gives a much-needed advantage that often translates into new and repeat business, which in turn increases the overall financial value of clients

 The financial value of one client for one year is calculated by multiplying the number of client visits in a year times the average ticket for each visit

CHAPTER 5 BUILDING A CLIENTELE | LESSONS LEARNED

LESSONS LEARNED

 It is important to continuously attract new clients because clients may make choices to leave the salon that are out of the control of the salon and/or salon professional

 The best practices new salon professionals can use to build their clientele include distributing business cards, promoting referrals, upselling and prebooking


REMEMBER

A winning combination for success in the salon industry includes an understanding of the client market, the value of a client and sound strategies for building a clientele.


REAL WORLD SCENARIO

Apply your knowledge to resolve the situations or actions in the following scenarios

CHAPTER 5 BUILDING A CLIENTELE | REAL WORLD SCENARIO

REAL WORLD SCENARIO

1.

The salon where Annie works is near a local college and the client profile is: females age 18 to 24, full-time college students, who come from urban areas and have family income under $60,000 per year. The salon owner has asked Annie and the entire staff to suggest ways to increase business or make clients more satisfied with the salon. Based on the client profile, which one of the following suggestions is the LEAST appropriate?


REAL WORLD SCENARIO a.

Offer spa day packages and stay open during school vacations


REAL WORLD SCENARIO b.

Offer a frequent buyer card and stay open evenings and weekends


REAL WORLD SCENARIO c.

Offer a couples discount card and play up-beat music


REAL WORLD SCENARIO d.

Hang posters of celebrity hairstyles and offer soda in addition to tea and coffee


REAL WORLD SCENARIO

Answer

a.

Offer spa day packages and stay open during school vacations


REAL WORLD SCENARIO

2.

Annie wants to project the financial value of two of her regular clients over the next year so she can compare how they contribute to her financial success. Client Sally likes the “natural look” and comes in once a month for a

$25 haircut and blow-dry and spends an average of $10 per visit on retail purchases. Client Vanessa likes to be very stylish; she comes in every other month and likes to try different hair color and texture services. Vanessa’s average ticket is $60. Which client contributes a higher financial value to Annie, Sally or Vanessa, and why?


REAL WORLD SCENARIO a.

Sally’s financial value is higher; hers is $420 ($35 x 12 visits) and Vanessa’s is $360 ($60 x 6 visits).


REAL WORLD SCENARIO b.

Vanessa’s financial value is higher; hers is $360

($60 x 6 visits) and Sally’s is $300 ($25 x 12 visits); retail purchases are not included in the calculation.


REAL WORLD SCENARIO c.

Vanessa’s financial value is higher because her average ticket is $60 and Sally’s average ticket is only $35.


REAL WORLD SCENARIO d.

The financial value of these clients cannot be calculated without knowing how many clients they refer to Annie.


REAL WORLD SCENARIO

Answer

a.

Sally’s financial value is higher; hers is $420 ($35 x 12 visits) and Vanessa’s is $360 ($60 x 6 visits).


DASS_CH05_Slide Presentation

CHAPTER 5

BUILDING A CLIENTELE

THE CLIENT FACTOR

CLIENTELE BUILDING

FOLLOWING THIS LESSON, YOU WILL BE ABLE TO:

THE CLIENT FACTOR

CLIENTELE BUILDING

REMEMBER

Answer

Answer

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DASS_CH05_Slide Presentation

CHAPTER 5

BUILDING A CLIENTELE

THE CLIENT FACTOR

CLIENTELE BUILDING

FOLLOWING THIS LESSON, YOU WILL BE ABLE TO:

THE CLIENT FACTOR

CLIENTELE BUILDING

REMEMBER

Answer

Answer

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