31. How to set Targets for your Salon Team

Welcome, and today we’re talking about individual team member targets. What I’m going to share with you is three targets that I set my own team here, in my award winning Salon. Now it may well be that there are times when you need to add more targets, and that varies according with the performance of the employee and also the stage of the career they are at. It’s really important that your team know what’s expected of them. So these are the big three that I want to share with you: Average bill - Average bill or average ticket value is one of the most important key performance indicators or KPI’s in your Salon. An average bill covers an awful lot, so if you can see that someone’s average bill is very low, there are parts of her job that she’s just not doing. An average bill that’s on the increase indicates somebody who’s taking retail seriously or that’s also very good at selling additional products or services when somebody comes in to your Salon. So you want to see a nice high average bill, set a benchmark for the level that the person is at in their career and also monitor it over time. Retention - I think client count is slightly old fashioned and what I’m more interested in is retention for this reason; I can increase your client count by promotional activity and I will see a bump in the number of customers that come into the Salon. The retention rate shows me how pleased my customers are with the Stylists or Therapists performance, so that’s what I’m interested in. If you’re starting to see retention on the slide, you need to intervene really quickly because somebody with very low retention is not an asset to your business. Utilisation - This is how busy a person is, how much of the day that you’re paying them for are they actually occupied making you money. The reason we look at utilisation is because your marketing activity has a huge impact on utilisation of your team, but it may not be impacting on the average bill. Utilisation can be impacted purely by the marketing spend that you’re putting into your business. So we monitor the utilisation, if you’ve got somebody who has continually low utilisation despite your marketing efforts, again perhaps you need to address that in a slightly more aggressive way, it may even be that it’s time to move that person on. In my Salon we have two bench marks for utilisation; we have an eighty percent target utilisation. Below sixty percent we have what is called an intervention. If there’s still a problem with utilisation after six weeks of intervention, we would start looking at your contract and potentially reducing your hours in a hope to increase that utilisation number. I hope that’s been useful to you, if you’ve got something that you’d like to add either pop it in the comments below or head over to the Build Your Salon Facebook page where I would love to hear from you. I hope you’ve already subscribed, if you haven’t hit subscribe now. I have a video and a podcast out like this every single Monday, and I would hate you to miss out on the content that I share with you in the future. Until next week, take care.