5 Ways to Increase Rentention - 4/18/16

millenniumspasalon.com | meevo.com

5 WAYS TO INCREASE
CUSTOMER RETENTION
Millennium Systems International

Irena Mena
Assistant Learning Manager
Millennium Systems International
Irena Mena has a background in Secondary Education. As an Assistant Learning Manager, she is responsible for
the internal and external education of the company. This includes creating and administrating the curriculum and
testing, as well as training businesses on Millennium and Meevo.
YOUR PRESENTER

GOTOWEBINAR OVERVIEW
• All attendees are muted upon entry to the webinar
• The webinar is in “listen only” mode for attendees
• If you have questions for the presenter(s) or host, please enter them into the
“Questions” box in the panel on the right hand side of your screen
• At the end of this webinar, please take some time to fill out the brief survey
that will be sent to you via e-mail

5 WAYS TO INCREASE RETENTION
Did you know that the average
new client retention is only 35%, a
shortcoming of over half to the
ideal of 60-80%! Learn 5 simple
ways you can increase your
customer retention and improve
your bottom line!
• Educating Your Team
• Motivating Your Team
• Growth Indicators
• Economics of
Retention
• Automation

WHAT DOES RETENTION MEAN TO YOU?

CLIENT RETENTION IS THE LIVELIHOOD
OF YOUR BUSINESS
By definition, customer retention is the activity a
company undertakes to prevent customers from
defecting to alternative companies.
Successful customer retention starts with the first
contact and continues throughout the entire lifetime
of the relationship.

Build a Culture
1. EDUCATE YOUR TEAM

New
Guests
per Month
New
Guest
Retention
Repeat
Guest
Retention
Frequency
of Visit
Average
Ticket
Productivity
6 Growth Indicators

What Growth Means to
Them
(Commission)
A 5% increase in customer retention can
increase business profits by 25% - 125%

Goals
2. MOTIVATE YOUR SERVICE PROVIDERS TO RETAIN CLIENTS

Goals
2. SERVICE PROVIDER MOTIVATION

Goals
3. FRONT DESK MOTIVATION

3. FRONT DESK MOTIVATION
Make It a Career Opportunity – Incentivize Them
Create new positions with multiple levels
Receptionist – Entry Level
$8 an hour
Front Desk Specialist
$10 an hour
Front Desk Professionals
$15 an hour & up

What Makes You
Stand Out?
4. PROVIDE AN EXCEPTIONAL EXPERIENCE

Companies that prioritize the
customer experience generate
60% higher profits than their
competitors

A commitment to customer experience
results in up to 25% more customer
retention and revenue than sales or
marketing initiatives

80% of your future profits
come from just 20% of
your existing customers

Repeat customers spend
33% more than new
customers

Listen – Give them what they want – NOT what you want
Set the Mood – No phones, Gossip, Form Relationships
UDF – Know What They Like (Drink, Candy, etc)
Formulas – Document EVERYTHING (Vacations, Family, etc.)
New Client Welcome – Tour, Goody-Bags, Client Loyalty Program
Birthday/Anniversary/Job – Offer Discounts, Celebrate!
Specific Marketing – Children, Interest/Hobbies, Married?, Hair Info
Non-Requests – Educate Your Front Desk on How to Handle This
It’s the EXPERIENCE more than the SERVICE #dearhairstylist

5. EDUCATE THE TEAM ON HOW TO RETAIN CLIENTS & ITS IMPACT
New
Guests
per Month
New
Guest
Retention
Repeat
Guest
Retention
Frequency
of Visit
Average
Ticket
Productivity
6 Growth Indicators

NEW GUESTS PER MONTH
Marketing
1

NEW GUESTS PER MONTH
Referrals
1

New
Guests
per Month
New
Guest
Retention
Repeat
Guest
Retention
Frequency
of Visit
Average
Ticket
Productivity
6 Growth Indicators
5. EDUCATE THE TEAM ON HOW TO RETAIN CLIENTS & ITS IMPACT

NEW GUEST RETENTION
Exceptional Experience
2

NEW GUEST RETENTION
Follow-up to Verify Experience
2

NEW GUEST RETENTION
Sell Series & Book Standing
2

NEW GUEST RETENTION
Sell Memberships
2

NEW GUEST RETENTION
Pre-book
2

NEW GUEST RETENTION
Make them Aware of Client Loyalty
Promotions
• Offer Points for Prebooking
• Offer Points for Trying a New Service
• Offer Points for Referrals
2

NEW GUEST RETENTION
Call Guests Due in
2

REPEAT GUEST RETENTION
Offer Client Loyalty
3

Offer Custom Packages
3

Sell Series and Book Standings
3

Pre-Book
3

Sell Memberships
3

Call Guests Due in
3

Follow-up on No Shows,
Cancellations, Pendings
3

Contact Clients with Outstanding
Liabilities
(Every opportunity a client walks through the door is an
opportunity to up-sell, cross-sell, add-on, and sell retail! Turn
them into a core-client!)
3

FREQUENCY OF VISIT
Sell Series and Book Standings
4

FREQUENCY OF VISIT
Pre-Book
4

FREQUENCY OF VISIT
Follow-up on No Shows, Cancellations,
& Pendings
4

6 Growth Indicators
EDUCATE YOUR TEAM
New
Guests
per Month
New
Guest
Retention
Repeat
Guest
Retention
Frequency
of Visit
Average
Ticket
Productivity

AVERAGE TICKET
Up-Sell, Cross-Sell, Add-on
5

PRODUCTIVITY
Mask the Book
6

PRODUCTIVITY
Increase Prices if Above 85%
6

APPLIES TO RETENTION & ALL GROWTH INDICATORS
Automated Marketing

ECONOMICS OF RETENTION
5 Chair Salon doing $450,000 a
year with an average service ticket
of $60, and 1,700 active clients

FOV increases from 4.5 to 6
=
$153,000 increase

Retail sales increase from 10% to 15%
=
$45,450 increase

New total
=
$648,400 (44% gain)

NO TIME TO DO ALL THIS?
Automate it!

Online Booking
AUTOMATION & TOOLS

Millennium eGift
AUTOMATION & TOOLS

MillenniumGO™
AUTOMATION & TOOLS

• Educate Your Team on Growth Indicators
• Create Your Benchmarks for Retention (Use
Reports to Analyze Your Business-MA200)
• Set Goals, Bonuses, & Contests to Increase
Retention
ACTION PLAN

CONTACT US
For Information about Millennium or Meevo
sales@millenniumsi.com
For questions about today’s presentation
education@millenniumsi.com

5 Ways to Increase Rentention - 4/18/16

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