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Tips to Start Your Salon KPIs

Why do salons need KPIs?

What is KPI? It is short for Key performance indicators.

KPIs are essential for all kinds of business, especially in the service industry, in which KPIs indicate how your salon business is going.

That is, the KPIs represent the performance of your salon business, it shows the well-being of your salon business, helping you achieve your next milestone and continue to profit!

Salon KPIs will make your members focus on what they need to reach! Salon businesses consist of many parts like customer satisfaction, customer retention, membership sales, etc. Successful businesses rely more on KPIs.

KPIs measure the performance against predefined targets and the parameters can be filled in forms, for example, achieved ones or a task.

Targets and KPIs are important beacons for the team to aim towards and can stretch a salon’s results well past the average.

Some salon owners don’t know how much it costs to run their business or how much money they’re making. Often the salon is run by emotion.

For example: ‘It felt like a great week because we were really busy and all the girls were happy.’ But those who track the numbers know: you can be flat out and going nowhere.

Hence it is essential to set KPIs and ensure your entire team is working towards them so your business will keep profitable and growing!

What KPIs are best for salons? 

What salon KPIs are best for salons - Beauty Wemero
What KPIs are best for salons – Beauty Wemero

Beauty Wemero recommends the following KPIs for your Salon:

Client Satisfaction:

Empower your clients to score your staff based on more objective opinions, which is the authentic survey.

Membership:

Measure how many clients are loyal to your shop and what’s more, keen on your stylist/staff/services!

Products:

Record another great part of your revenue, who sold the most of products and which is preferred by most of the clients.

Growth:

% increase over last month/last week, or the same period last year.

Rebooking:

Ensuring a future booking from the client visit keeps you a brilliant revenue, securing the future business for the team member.

Referred Clients:

Whether your salon will expand by your current clients, show the value of your staff/services, measure your shop’s attitude to your overall client experience and help your staff achieve results with well-thought-out marketing and incentives.

To build up your salon measure system, please refer to Beauty Wemero online salon management!

Tips for setting Salon KPIs 

Tips for setting Salon KPIs - Beauty Wemero
Tips for setting Salon KPIs – Beauty Wemero

Now that we know how KPIs play an important role for salons, and which are best to help you improve your business, you’re probably wondering how to set them. 

When choosing the best KPIs and targets for your business, it is better not to focus on too many at once. 

Base your business targets on past performance and with a reasonable ascend to get your business healthily grow!

Team targets should be non-exclusive, taking every member into account. Remember to set realistic goals for your team and expect that as a team they will be able to achieve more than if operating as an individual. 

Strive to grow team cohesiveness and unity – this will stand them in good stead for achievement!

1. Start by Knowing Salon Current Finance

What does it cost for your salon? How will you count your revenue every day? How will you update the KPIs you set up?

That is the first step to moving forward to your goal, to clarify how you will measure the progress and the stretch!

2. Get your break-even point

Once you get all the numbers in your palm, investigate where the money is being spent. Do you have any cumbersome expenses? 

Too many on the team? Are you paying for things twice and you didn’t realize until you looked at your bank account? 

When was the last time you asked your energy provider for a better price? Are you paying yourself? Think about where your money is and isn’t going.

3. Set your goal

Your break-even point is your initial starting point from which to set your business goals. Remember the goal is to get profitable, it’s to make an increasing profit. 

Hence set ambitious, yet attainable goals and decide on which KPIs will help you to achieve the next level based on your salon ability.

That is saying, every little step is an actual rise of your business! No need to set up exaggerated goals.

4. Bonus structures and incentives for targets 

Bonus structure or incentives for team targets will help to encourage your members to achieve their KPIs and reach their full potential.

Bonus structures in salons like reward consistency, achievements, performance, etc. You might start with a target and pay out a bonus.

 But if that target is much different to get reached, then you will be dipping into your bottom line. Growing them up to a profit share based on consistency is vital. 

If your staff make their target three weeks in a row, then they get a great bonus. This ensures the bonus payments are rewarding growth and consistency and will enable you to sustain the bonus scheme.

Otherway, you will pay out the targets, then have to stop setting up bouns, because you will realize you’re losing money.

It takes time to work out the right formula for your salon team. Start small to make sure your salon will grow sustainably and healthily! 

5. Salon software: Track and Report on KPIs 

KPIs and targets for your team won’t benefit your salon unless you have an accurate and dependable way of tracking and measuring KPIs and targets consistently. Salon software seems very essential in this scheme.

Beauty Wemero will help you set up your goals and track how much percentage your team completed, and you can download the data as you need. It will divide your monthly goal into 4 phases to help you monitor the progress toward your goal.

“Beauty Wemero generates reports based on the real-time status of your business: sales, clients, staff performance. KPIs are important because they represent behaviors, outcomes, and experiences that happen in the salon. What Wemero created wisely is it turns experiences into numbers that you can measure and monitor, and it makes it easy to do that.” –  

Linny Smith, Executive Director of Linny Hair. 

If you’re not a Beauty Wemero, you can sign up here, and if you’d like to find out how Wemero Salon & Spa Software can help your business to become more successful, get a demo here.

Prepare to set up your first KPIs? 

Prepare to set up your first salon KPIs - Beauty Wemero
Prepare to set up your first KPIs – Beauty Wemero

We believe that you have a good idea to start your salon KPIs when you read here with expert tips for setting them, Start now to set your KPIs, get your team on board, keep tracking and witness your business grow!

If you would like to lean on a brilliant salon & spa software to implement your salon targets, Beauty Wemero could never be the second one to others as your ideal assistant to grow your salon!

Get in touch with your exclusive consultant for your business from this article, please contact us at support@wemero.com or leave a message on www.wemero.com, your exclusive consultant will reply to you in a short time!