6 opportunities most beauty salons miss when growing a business
Your beauty business is flourishing, and it's time to focus on growth, but you don't want to stick to the obvious strategies. Social media marketing and good customer service aren't going to cut it for your goals! Luckily, there are plenty of ways you can think outside the box, giving your brand a competitive edge in a saturated market.
From diversifying revenue to optimising your services, here are six lesser-known opportunities that growing beauty salons often miss.
1. Optimising services based on data
Data will be your beauty salon business' BFF as you plan your next steps. In particular, track your most in-demand services and pinpoint the areas of your salon that have the biggest impact on your income.
For this, you'll need a
POS system for booking appointments and taking payments. Your POS software will automatically track the services your clients are using, helping you identify what's going down well with your target audience and what you could afford to drop.
You might, for example, notice that
acrylic nails are a hit, while shellac is lagging behind. You can then invest in acrylics confidently, leaving shellac for the time being as you focus on a more certain return on investment (ROI).
A quick note: be specific when adding services to your POS. Rather than simply inputting ‘facial', for example, add options for each type of facial you offer at your salon. When your team takes a booking, it'll be much easier to add exact details so that you can start collecting valuable insights into your best services.
2. Strengthening client retention
When starting a beauty salon business, it's normal to focus your marketing strategy on chasing new leads. This is where your income lies, after all.
But, as you begin growing your beauty brand, that approach needs to change. You shouldn't be putting all your energy into gaining new clients, but instead on retaining those you have; and this is an area where a lot of beauty salons miss out.
Client retention is crucial for maintaining your income, cultivating loyalty, and giving you the freedom you need in order to expand. It's stability, which is always welcome in business.
To encourage retention, consider strategies like:
- Loyalty schemes: Create a system that rewards clients who return time and again. Offer a discount or freebie as an incentive, so that those considering switching to a different salon have a clear reason to come back to you.
- Rebook after appointments: Train staff to encourage clients to book their next appointment before they've walked out the door. A simple ‘Shall we get you booked in for next month before we fill up?' can be transformative for retention.
- Personalised services: Encourage loyalty with a service that goes above and beyond. If a client shows interest in a new product, for instance, offer them a sample, and always follow up appointments with a quick thank you text or email (add aftercare advice tailored to their treatment as a bonus!).
You want clients to feel valued by your salon and excited to return, so that the thought of going somewhere else doesn't cross their mind.
Revenue diversification ensures your income doesn't come from a single service. A lot of beauty salons already buy into this strategy by offering a wide range of treatments, but you don't have to stop there.
As you grow, think of in-demand services you could offer that would help you tap into different revenue streams. Some ideas include:
- Wedding day beauty services
- Party pampering at the client's chosen venue
- Mobile beauty treatments
- Mental health salon days
- Makeup lessons
- Themed days for seasonal events (like Mother's Day and Valentine's Day)
Consider how to make these offerings stand out from your normal salon treatments. If you start running themed seasonal events, for example, you might offer bubbles on the door, a complimentary dressing gown and slippers, and a beauty industry special guest.
Not sure how to diversify? Your best source of inspiration is your clients. Ask them what services they'd love for you to offer, and test ideas through surveys and social media polls to find your next big thing.
4. Capitalising on existing space
Speaking of revenue diversification, your beauty salon itself can be a source of new income streams. As soon as you have a space, the possibilities for revenue and growth are (almost) limitless.
Renting spaces in your salon, for instance, is a fantastic growth strategy. With contracts in place, it ensures you have a reliable, fixed income that you can count on every month. You can also choose people who bring new services into your space, expanding your offerings to draw in a larger demographic of clients.
You might rent out your salon after hours for events and workshops, too. Target brands hosting influencer events, for instance, and freelance beauty coaches who need a space to teach their clients.
5. Cultivating local community partnerships
Building a community around your salon is always beneficial. When looking specifically at growth strategies, consider reaching out to other independent, local businesses to forge fruitful partnerships.
You might have a wedding venue in your area, for example. Speak to them about the potential of working together and providing referrals for each other; you can recommend their venue to bridal clients, and they can recommend yours to their wedding parties.
This sort of community-based growth doesn't happen overnight. Spend time establishing a positive reputation in your area by joining in with events, sponsoring town sports teams, and chatting on local social media groups. As you become more active, you'll naturally meet other business owners, paving the way for profitable partnerships.
6. Tracking your metrics
We've already spoken about monitoring your most popular services, but business metrics go a lot deeper. Your salon is a goldmine of data you can use to guide your growth strategy and uncover opportunities, making it crucial you tap into it.
In particular, keep an eye on key performance indicators (KPIs) that align with your growth goals. If, for instance, you want to boost client retention, you should be tracking:
- Repeat booking rate
- Repeat visit frequency
- Churn rate (how many clients you lose)
You might also keep an eye on loyalty indicators, like average spend per visit and referral rate.
If you're not sure how to analyse your data and turn it into actionable insights, it could be worth working with professional data analysts. While it's an added expense, your unique data is invaluable for creating a strong growth plan, and the investment could be well worth it for your long-term success.
Final thoughts
The salon industry is competitive, and you don't want to be a cookie-cutter business. Rather than following generic growth strategies, keep these ideas in mind as you plan your next steps, and think outside the box for true growth.
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