Thursday, 20th November 2008
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Get Wired Up For Wealth!

From self check-in at Heathrow to self check-out at Sainsbury's, your clients have come to accept automation as part of their daily routines.  On-line banking, airline reservations, and other online purchases - technological innovations are making our lives easier and transactions faster.  And now we're expecting the same level of efficiency from our salons. 

If you're serious about growing your business then it's time to throw away your dog-eared appointment book and use innovation to your advantage.  In this article Anne Long-Murray explains that you don't have to be a computer genius to use technology to help you increase your retail sales, reduce client waiting times, assist and inform your staff, free up the front desk, and work smarter. 

Whether you're running a chain of salons or it's just you, a full-time stylist and a "Saturday girl", your business can't be run properly without records, systems and procedures.  And in this, the 21st Century, no business - whatever its size - can be truly competitive without the use of technology. 

FROM HAIRNETS TO INTRANETS

Ask yourself the following questions:

  • Do you find yourself asking your regular clients what service they had the last time they visited?
  • Are you still managing your client database on a card file system?
  • Have you booked in a client for a braid extension only to have them wait at least an hour while you send a junior to Finsbury Park to buy the hair on the day of the appointment? 
  • At least once a week in your salon, do you hear someone asking frantically, "Who's got the book?" referring to your salon appointment book which has once again grown legs?

If you've answered, "Yes" to any of the above, it's time to clear your desk and go paperless or face a future of missed appointments, double-bookings, stolen client lists, and a reputation for not being quite as professional as you should be.  OK, so I might be exaggerating a little when I say "paperless".  In fact the paperless office is about as likely as a paperless toilet, but the wonder of technology really lies not in the trees it saves, but rather in the time it saves.  Time you can use managing the other parts of your business.  So this is not the time to 'feel the flavour of the old-school'.  There's a lot you can do to smarten up your act, starting with the simplest and most widespread marketing tool, the humble email.

EMAIL

Since its inception in 1971, email has quickly become a must for any business owner as it provides a quick and easy method of communication.  Most if not all your clients use the Internet regularly and will have an email address for work and/or personal use.  You can use email to contact your clients to confirm appointments, provide information about special offers, and send newsletters - all at a fraction of the cost of printing and postage.

INTERNET

Acting local …

Research shows that over 80% of people use the Internet to find local information.  Is your salon online?  Even if you only have a page showing your opening times, the services you offer, and the products you carry, it still beats your entry in the Yellow Pages! 

… Thinking Global!

One thing that makes ethnic hair and beauty businesses, and especially Afro-Caribbean hair salons different from the mainstream is their international client base, with loyal clients flying over from France, Switzerland, the Netherlands and even Africa to get their hair done and buy products they can't find at home.  Your website allows you to communicate information about the treatments you offer, display price lists and advertise special offers and promotional events.  You'll be able to establish a mailing list from the people who access your website, and this will enable you to promote your business to a global audience at minimal cost. 

And once you've established your online presence, don't forget those retail sales!  The value of online transactions to households in the UK almost doubled between 2003 and 2004.  According to Visa UK, Internet shopping is growing in popularity at a rate of around 47% per year, so offering your clients a convenient way to purchase products via your website can increase your retail sales.

The Ethnic Salon Finder

Whether or not you already have a website, be sure to register your business on the Ethnic Salon Finder at www.e-salonfinder.com.  It's free of charge and it offers an additional way for clients to find your website and/or details of your salon.

COMPUTERS

Computer technology continues to plummet in price and a brand new PC today can cost less than a full-head weave, but before you invest in the hardware, you need to start by choosing the software you'll be using in your salon. 

As a salon owner or manager, there are a number of day-to-day tasks you have to oversee or execute, from booking appointments to maintaining stock levels, keeping accounts and financial records, managing client information, and promoting the business.  If you're still using a paper-based system to manage these activities, investing in a computer system can help with:

·         Maintaining accurate accounts and financial records.  Computerised systems can handle daily purchases, commissions, PAYE, sales accounts and VAT.

·         Processing payments.  Using a computerised till can help with cashing up at the end of each day, and will provide immediate information about the number of clients, daily turnover, product sales and retail sales. 

·         Managing client records.  An efficient computer system will collect information about your clients each time they attend for a treatment or make a purchase.  It will provide you with clients' histories, personal details, treatments they've had, products they've purchased, how frequently they visit, and preferred appointment times.  This information can be very useful.  For example, on a client's birthday you could give her a small gift or a selection of product samples specific to her needs.  But it's not just for birthdays!  If you made a record on a client's file that she loved the effect of Designer Touch Creme Moisturizing Conditioner you can mention on her return visit that you've now got Designer Touch Self Heating Hot Oil Treatment - she'll be pleased that you've shown a personal interest in her.  And the bonus to you is that these types of personal touches go a long way to encouraging client loyalty.  Computerising your records also secures confidential client data as it gives you the option of restricting access to sensitive information to chosen members of staff. 

·         Managing your staff.  By computerising your appointment system, you can manage which members of staff are available to provide treatments.  You'll also be able to manage room or chair availability.  This allows you to use each stylist's time efficiently and ensure your resources are used effectively.  Good computer records will give you a clearer picture of seasonal trends and the most popular services/stylists.  Analysing your data can show you your busiest periods and help make decisions on opening times and staff scheduling.  You'll also be able to manage personnel records, organise staff training and wages, monitor staff holidays and sickness, and record staff appraisals. 

·         Controlling your stock levels.  Computerising your inventory helps you to manage your purchases, stay on budget, and increase profitability.  All new stock can be recorded and linked to the point of sale.  A good salon management system will allow you to automatically deduct the stock as product sales are made, indicate when stock is running low and even generate purchase orders if required. 

COMPUTER SOFTWARE

Most successful salons are computerised.  They continue to build their businesses through advanced salon management techniques that arm them with accurate information about their salon's operational history, helping them to make decisions that will improve their bottom line. 

There are a variety of salon management systems available on the market, each offering a range of features and varying in price.  The best way to find the product that's right for you is to do your homework.  Costing anywhere between £2000 and £5000, this is a fairly big investment, but once you've made the right choice, you'll start seeing the benefits right away.  Start with a list of the different software vendors by checking the trade press, searching the Internet or asking other salon owners.  Once you've compiled a shortlist of, say, three or four vendors, book yourself a demonstration appointment with each one and refer to the following basic requirements while evaluating the product.

SAMPLE SALON MANAGEMENT SOFTWARE CHECKLIST

FEATURE

E (essential)/
D (desirable)

Easily integrated with standard PC software, e.g. Word for Windows.

E

Training provided for all staff in addition to after-sales support and the option of purchasing further training days at a reasonable price.

E

Product can be adapted to suit your particular requirements, e.g. appointment booking times can be re-programmed to include special and often lengthy treatments for Afro Caribbean salons.

E

Guarantee for the equipment and an IT support contract.

  • Remember to ensure that the support service is available when you need it, as many salons are open on evenings and weekends.
  • Enquire about the payment options for your support.  These may be annual, monthly, or per consultation.   

E

Reports for evaluating your business operations.  Does the system generate the reports you need to evaluate your business?

E

Regular product updates.  These ensure that systems remain up-to-date and continue to operate reliably as they keep up with changing technology.

E

A system that increases retail sales by suggesting appropriate retail products for the client to purchase at the point of sale.

D

A booking system that maximises appointment bookings and highlights gaps.

E

A mechanism to reward and recognise staff for high productivity.

E

A system for controlling and managing retail inventory.  Does the system track stock movements, record sales and reorder as well as providing up-to-date in-stock values?

E

Online booking functionality.  Does the system offer clients the ability to book on-line?

D

Touch Screen Point Of Sale for speed and ease of use.  This feature is becoming less essential as salon staff become increasingly computer literate.

D

References.  Can the software company provide a minimum of three references?  Don't just ask for a list.  Follow up all references with at least a brief phone call.

E

Can the software company make arrangements with a salon that uses the software so you can have an on-site visit?

D

Did you feel that you could understand how to operate the software by the end of the demonstration?

E

Once you've purchased your new system, invest the money required to train yourself and your staff to use the salon management system quickly and efficiently.  Don't sit there trying to use the system without proper training and then complain that the software "doesn't work". 

For information on Salon Strategies and its programmes, or to make an appointment to see a business advisor, call 020 7377 9922.