STOP giving your team a retail target, it’s like a road to nowhere!

If it's a battle to get the team behind retail and your business is not enjoying 20-30-40% or more in retail revenue then I know what I would do.

STOP giving the team a retail target - The team needs a DIFFERENT target!

Watch instead of read

I'm Caroline Turner founder of The Salon Money Maker and an expert in training teams to sell, whether services or retail, yes that word SELL, it's not a dirty or a bad word. When you know HOW to sell professionally and when client focused, its fun and clients love it.

In this article I want to explain why for many in our industry revenue focused targets are stretch targets / goals and that won't work. I'll explain why and how to use the Complete Professional Service (CPS) target.

If you want a business that grows then mastering the skill of selling is critical. From getting new, or re-booking clients, to cross promotions, or upgrading services, to retail they're all achieved with a sales process, a method of selling. So the more a team masters the skill the busier the salon or spa.

But many professionals will tell you - I'm not a sale man/women

And here's where revenue focused targets fail many team members. Revenue targets focus on the money, and in the mind of many team members sales means being pushy, manipulative, hard selling and most importantly...

"It's not why I became a Stylist / therapist"

Financial targets only work if you know the rules of the game:

Know how to manage a financial target
Have the right positive mind set too financial targets
The experience and confidence to control financial targets

But if a team doesn't know how to play with financial targets they can be demotivating, stressful and can slow down revenue growth. As Daniel Markovitz lecturer at Stanford Universities Continuing Studies Program describes in The Folly of Stretch Goals

"Stretch goals can be terribly demotivating. When stretch goals seem overwhelming and unattainable, they sap employees’ intrinsic motivation".

Surely team members need a money or % target?

Firstly, as an owner or manager you need the target and a very clear understanding of the finances, budgets and the figures needed, you must have all the targets.

Monitoring figures and setting "stretch goals" based around revenue and or % targets for many team members is not enough or effective when it comes to developing revenue.

I would even go so far as to say certain targets are useless and damaging to business, especially for people who need to grow, are currently under performing or are new to the industry.

Financial targets can demotivate and slow financial growth.

Salons and Spas need new targets focused on clients and their experience.

Owners need to monitor client satisfaction and what I call Complete Professional Service AND that's the target team members need in my experience.

Let me give you an example why these figure based targets are useless.

Performance Reviews

Lets say I'm doing a performance review, my figures and reports will tell me clients numbers, new or returning, average spend, specific services and of course the retail amount plus % and total revenue.

I can assess a lot of good information.

Lets focus for a moment on retail and say a team member had seen 100 clients and 20 clients had purchased retail.

What happened to the other 80 clients?

Did the 80 clients who didn't buy receive home-care advise and choose not to purchase? or did the team member not offer advice?

I won't know unless its monitored.

Did the 20 clients who brought get advise or did the client ask for the products without any home-care advise? or are they walk-in clients recorded as their sales because they happened to be at reception?

I just don't know and that's a major problem, I just don't know what a team member is doing - are they advising clients?

What I do know is simple and for me a critical part of salons and spa's success

If clients are given professional advise - revenue grows.

Clients are more likely to re-book - purchase home care - take other services

But only if they are told, given the advise.

What I need is the total and % of how many clients received professional advise:

The Complete Professional Service

When a salon or spa monitors that professional advice is being given to every client it gives a much clearer picture about performance.

The focus of the target is the client, and that can change the mind set for team members - It's Client Centric

It's no long about the money or the sale it's about giving the Complete Professional Service to the client.

That's the money paradox of salons and spas

When you focus on the money and not the client, you don't make money

But when you focus on the client and forget the money, it rolls in with ease

Monitoring the Complete Professional Service

Monitoring that CPS has been done with every client is critical and simple to do.

When professional advice is given to a client it completes the professional service. That advice includes

Next appointment
Service/s advised
Additional Service
Home care
Additional advise

Advise is not limited to just services or home-care the client would benefit from using or booking. A key part of the CPS is to get team members speaking as the true professional they are, sharing their knowledge to benefit the client and enhance their experience.

The Complete Professional Service will need to be added to your computer system as a service.

As the service costs nothing and takes no time, that's how its added. Give the service a title, such as CPS allocate zero time and zero cost.

The advise offered must be written down whether using a prescription card from a supplier or on the printed clients record card.

In an ideal world (we don't always live in) the front of house / receptionist will be given the written advise by the team member, It is now for the front of house to checked though each section with the client. They have the final chance to close and book the client IF the team member didn't close during the service. Once completed then CPS is added to the bill before taking payment.

Now I can get a clear performance picture of what is happening in the salon or spa.

Managing a Change of Direction

If growth is slow and a change is needed it will need to be managed

Think about it...

Remember that team member with 100 clients and 20 clients who had purchased retail, lets add to that information and say the CPS report showed 40 clients received advised. I can now clearly see in closing retail "sales" the success rate is 50% and also that 60 clients didn't get any advise.

Lets expand that to a team what if there was a team of 10 (simple maths) and for simplicity they had the same figures. so that would be 1000 clients, 200 purchased and 400 received advised.

What if I could focus the team to complete the professional service to the missed 600 clients and 50% took home care, that would be potentially 300 more sales.

The focus for the new target... increase the number of clients receiving advise, increase the CPS.

"I just want you to be the complete professional, wow the client with your knowledge and advise them on what would make a difference, really care for them. That's all."

Remember

If clients are given professional advise, revenue grows.

Clients are more likely to re-book, purchase home care, take other services

But only if they are told, given the advise.

What I need is clients receiving professional advise:

The Complete Professional Service

What would I do next?

For me how change is introduced will either get everyone on track and figures moving up and a buzz on the floor or it will be a mess!

So, don't rush in, it's something I've told salon and spa owners on training courses for over 16 years. Plan - Prepare - Practice

That's why my next 2 articles will be focused to tips and techniques on implementing change and setting targets.

So, I'd get ready for change if you believe your team is struggling with figures, retail and or growth is low and slow

I'd set up the computer, look at what would be the simplest way to write down the CPS, I'd start testing.

If I had clients I'd start doing it myself, leaders always set the standard and teams mirror their mentor.

I'd start working with the front of house to record my CPS, get them involved and use to the system, ready first with the team. I'd start first, iron out any issues, before I'd met with the team going.

Posted in Business, Retail, Retail Sales, Targets

Watch instead of read

Financial targets only work if you know the rules of the game:

But if a team doesn't know how to play with financial targets they can be demotivating, stressful and can slow down revenue growth. As Daniel Markovitz lecturer at Stanford Universities Continuing Studies Program describes in The Folly of Stretch Goals

"Stretch goals can be terribly demotivating. When stretch goals seem overwhelming and unattainable, they sap employees’ intrinsic motivation".

Firstly, as an owner or manager you need the target and a very clear understanding of the finances, budgets and the figures needed, you must have all the targets.

Monitoring figures and setting "stretch goals" based around revenue and or % targets for many team members is not enough or effective when it comes to developing revenue.

I would even go so far as to say certain targets are useless and damaging to business, especially for people who need to grow, are currently under performing or are new to the industry.

Financial targets can demotivate and slow financial growth.

Salons and Spas need new targets focused on clients and their experience.

Owners need to monitor client satisfaction and what I call Complete Professional Service AND that's the target team members need in my experience.

Let me give you an example why these figure based targets are useless.

Lets say I'm doing a performance review, my figures and reports will tell me clients numbers, new or returning, average spend, specific services and of course the retail amount plus % and total revenue.

I can assess a lot of good information.

Lets focus for a moment on retail and say a team member had seen 100 clients and 20 clients had purchased retail.

What happened to the other 80 clients?

Did the 80 clients who didn't buy receive home-care advise and choose not to purchase? or did the team member not offer advice?

I won't know unless its monitored.

Did the 20 clients who brought get advise or did the client ask for the products without any home-care advise? or are they walk-in clients recorded as their sales because they happened to be at reception?

I just don't know and that's a major problem, I just don't know what a team member is doing - are they advising clients?

What I do know is simple and for me a critical part of salons and spa's success

If clients are given professional advise - revenue grows.

Clients are more likely to re-book - purchase home care - take other services

But only if they are told, given the advise.

What I need is the total and % of how many clients received professional advise:

When a salon or spa monitors that professional advice is being given to every client it gives a much clearer picture about performance.

The focus of the target is the client, and that can change the mind set for team members - It's Client Centric

It's no long about the money or the sale it's about giving the Complete Professional Service to the client.

When you focus on the money and not the client, you don't make money

But when you focus on the client and forget the money, it rolls in with ease

Monitoring the Complete Professional Service

Monitoring that CPS has been done with every client is critical and simple to do.

When professional advice is given to a client it completes the professional service. That advice includes

Next appointment

Service/s advised

Additional Service

Home care

Additional advise

Advise is not limited to just services or home-care the client would benefit from using or booking. A key part of the CPS is to get team members speaking as the true professional they are, sharing their knowledge to benefit the client and enhance their experience.

The Complete Professional Service will need to be added to your computer system as a service.

As the service costs nothing and takes no time, that's how its added. Give the service a title, such as CPS allocate zero time and zero cost.

The advise offered must be written down whether using a prescription card from a supplier or on the printed clients record card.

Now I can get a clear performance picture of what is happening in the salon or spa.

Managing a Change of Direction

Remember that team member with 100 clients and 20 clients who had purchased retail, lets add to that information and say the CPS report showed 40 clients received advised. I can now clearly see in closing retail "sales" the success rate is 50% and also that 60 clients didn't get any advise.

Lets expand that to a team what if there was a team of 10 (simple maths) and for simplicity they had the same figures. so that would be 1000 clients, 200 purchased and 400 received advised.

What if I could focus the team to complete the professional service to the missed 600 clients and 50% took home care, that would be potentially 300 more sales.

The focus for the new target... increase the number of clients receiving advise, increase the CPS.

If clients are given professional advise, revenue grows.

Clients are more likely to re-book, purchase home care, take other services

But only if they are told, given the advise.

What I need is clients receiving professional advise:

For me how change is introduced will either get everyone on track and figures moving up and a buzz on the floor or it will be a mess!

So, don't rush in, it's something I've told salon and spa owners on training courses for over 16 years. Plan - Prepare - Practice

That's why my next 2 articles will be focused to tips and techniques on implementing change and setting targets.

So, I'd get ready for change if you believe your team is struggling with figures, retail and or growth is low and slow

I'd set up the computer, look at what would be the simplest way to write down the CPS, I'd start testing.

If I had clients I'd start doing it myself, leaders always set the standard and teams mirror their mentor.

I'd start working with the front of house to record my CPS, get them involved and use to the system, ready first with the team. I'd start first, iron out any issues, before I'd met with the team going.