We can learn a lot from hairdressers, and I don't just mean how to achieve a great blow dry! Traditionally hairdressers have nailed the concepts of maximising frequency and spend from their clients. By having a look at the processes within a typical hairdressing salon, we can learn a lot.
When considering your current client base, two of the key concepts of revenue maximisation are:
Increasing frequency involves increasing the number of times your clients visit you per year. Often businesses give this control to clients, allowing them to have a need, then contact the business to purchase the goods or service to solve the need. Hairdressers have this figured out and don't wait. When you finish your appointment (and look fabulous), your hairdresser will book your next appointment right then and there. They will pre-empt your needs and offer a solution.
An experienced hairdresser will also explain to you that 5 weeks is the perfect time to come back from your next colour and cut. Realistically you could probably get away with 6 weeks or even a little longer, but good hairdressers want to make sure you look and feel good year round. In addition to that, they have figured out that if you re-book every 6 weeks, you will get in approximately 8 visits per year. If you re-book every 5 weeks, you will get in approximately 10 visits per year. That is on average 2 more visits per year. 2 extra times a hairdresser's clients will come and spend more money. That is a revenue increase of approximately 25%. A good hairdresser will not swindle you or trick you, they will advise you on why you want to re-book in 5 weeks, not leave it to 6, demonstrating the value of this to you, their client. There is a lot we can learn from hairdressers.
Who wouldn't want each client to spend an additional 25% per year?
Increasing spend means asking your clients to spend more each time they come to your store, business or salon. Hairdressers have this nailed too. An experienced hairdresser will not only charge you for the services you have done within your appointment, but will recommend the right mix of products to keep their hair looking great at home. This concept of upselling, when done well feels like a value add for the client.
Who wouldn't want that salon look at home?
Considering these two aspects of revenue raising, is an important part for any business. By taking these lessons from hairdressers, and asking yourself "How can I make this work for me?" you can introduce revenue maximising processes into your business too. Remember, this needs to be done well. Staff may need up-skilling in these areas to feel confident with the value proposition.