How to create your I.O. and U.S.P.s
Would you like to know why people buy? I'm not talking about HOW
customers buy, but WHY customers buy.
We spend a lot of time on the how ‑ and not enough time for the why, and isn't the WHY the important thing? We want customers to have a strong motivation for buying from us and continuing to buy from us. The WHY is critical. If you don't know the WHY then the HOW doesn't matter!
WHY do people buy? Simply put, they buy because there are more reasons to buy than to wait, shop around, think about it, or just not do anything. We need to make sure there are lots of reasons to buy, and few reasons (or no reasons) not to.
That is where your Irresistible Offers (IO) and Unique Selling Points come into play.
So quick ‑ what offers do you have that a customer just has to take advantage of and what is unique to your salon/spa compared to your competition?
Are you having trouble coming up with the answers? If it is a challenge for you then how do you think your customers and employees will do when you ask them to name the offers and selling points of your business that are irresistible?
First let's look at the IRRESISTIBLE OFFER. (I.O.) An offer is a package of service and/or retail items promoted in a way and at a price point that cannot be ignored.
Why do people respond to offers? It is because the offer (reasons to buy) are greater than the reasons not to buy (risk of purchasing). We need to come up with an offer that has the greatest benefit to the customer with the least amount of risk.
The customer's perception of value is critical to your I.O.. What kind of things will add value without any risk, or even reduce the risk while making the offer more favorable?
$ Adding gifts with purchase ‑ free flip flops with a pedicure
$ Bundling services for a great price ‑ spa sampler with mini massage, facial, manicure,
make up touch up for $99
$ Giving complimentary services with a service purchase ‑ free paraffin with manicure
$ Giving many reasons why the service will make the customer look better
$ Giving many reasons why the service will make the customer feel better
$ Giving many reasons why the service will make the customers look younger
$ Giving many reasons why the service will make the customer healthier
$ Giving a guarantee that is unconditional
$ Giving many referral stories that match the customer's objectives
$ Giving a try before you buy offer
$ Providing a payment program
$ Providing a follow up system for ongoing value and support ‑ thank you and reminders
$ Showing proof that the service delivers as advertised (more referrals)
After you have created the irresistible offer or a list of possible offers that can be packaged you need to build your unique selling points into the offer. This is the WHY the customer should do business with you. The events that happen to the customer during their visits that are unique. The things that make the customer say Awow@. The little touches that make your business unique!
What are some things that make your business unique compared to your competition?
‑ How you greet the customer ‑ a greeter at a podium instead of a front desk
‑ How you package their smocks ‑ packaged in plastic to show freshness/cleanliness
‑ Touches in your restroom ‑ folded towels instead of paper, special soft soap and lotions
‑ Extras from your beverage bar ‑ flavored coffee, ceramic mugs, cinnamon stirring sticks
‑ Videos and information in your waiting area ‑ fashion videos, product information
‑ Extra things for the customer in your waiting area ‑ hot towels, relaxation area
‑ New customer welcome book awarded to new customers worth $XXX.XX
‑ Frequent customer rewards system with points for purchases
‑ A consultation booth for new customers or those wanting a change
‑ A thank you card to all new customers
‑ A referral reward system ‑ $10 gift certificate mailed the week a customer refers someone
‑ E‑mail reminders for services
Let's look at the difference in the customer experience and perceived value
of getting a manicure at two different salon/spas:
The low I.O. and U.S.P. salon/spa: the customer books the manicure from a referral, comes in and checks in at the front desk, is pointed toward the coffee bar to get a Styrofoam cup of coffee on his own, sits and waits for the nail tech to come out and get him, gets the manicure, pays and leaves.
The high I.O. and U.S.P. salon/spa: the customer calls to book the manicure and are offered the paraffin treatment for half price that will make her hands look and feel great. She decides to get the paraffin treatment with the manicure. When the customer arrives, she is greeted at the door and taken to the waiting area where she is given a mug of flavored coffee and shown where the restrooms and changing rooms are. She is offered a tour of the salon/spa. Her nail tech comes out to get her and comments on the referral logged at the time of booking and provides the service. When the customer leaves, she is given a new customer welcome book when booking the follow up service. The customer decides to purchase a series of manicure/paraffin packages to get seven services for the price of six. The next day the customer gets a thank you card in the mail and her friend that refers her receives a $10 gift certificate for the referral.
Do you see the difference in the experience and especially in the
perceived value of the experiences?
In the low I.O. and U.S.P. salon/spa the customer booked and was provided with the service ‑ but what reasons did she have to rebook, upgrade, or ever come back? Is just doing a good service good enough?
In the high I.O. and U.S.P. salon/spa customers are given an I.O. when booking (half price paraffin with your first manicure), the experience of greeting, waiting, and receiving service was filled with lots of customer wows (U.S.P.), and the customer received two more I.O.s when leaving ‑ the new customer welcome book you get for prebooking before leaving, and the series special of seven visits for the price of six. The referral reward program encourages the referring customer to send more people and the thank you card to the new customer seals the deal!
If both of these salon/spas are in the same area who will get and maintain customers?
This is the next level in customer service and is critical in this new economy.
Now let's look at how the High I.O. and U.S.P. Salon/spa built this magnetic customer system.
The appointment booking: when a customer calls in the salon/spa has a script that books the requested service and always offers an auxiliary service that complements the requested service and delivers value for the price. When the customer calls the booking expert asks if the customer has heard about the booking specials. When the customer asks to hear about the specials, the booking expert delivers the offer emphasizing the way the add on service will make the customer look and feel. An example script would go something like this:
Customer Hello I'd like to book a manicure.
Booking Expert Great, let me look for availability. Have you heard about our nail
department specials?
Customer No, what are they?
Booking Expert Well you know how hard the last few months have been on our skin. The dry, cracked look and feel of our hands can be a real problem, and we have the perfect solution for you!
Customer What is that?
Booking Expert We have a paraffin treatment that we apply to your hands and then rest your hands in warm mittens. In 15 minutes your hands will feel soft and look great. It is normally a $20 service and we are offering this service for only $12 with manicure services. How does this sound? 8
Customer Great!
Notice that the booking expert did not ask "Would you like to book this service?" They asked "how does that sound?" This is a great way to close the deal!
The greeting and check in experience needs to be simple and personal. A customer who comes to the salon/spa does not want to walk across 60 feet of waiting area with other customers looking at them and wait 5 minutes to check in. The customer does not look/feel good (that is why they came in) and wants to relax. The new customer does not know where the restroom is, if the beverages are free, and where to change. The greeting and check‑in in a high I.O. and U.S.P. salon/spa include the following special customer experiences:
‑ greeting by a host at the door
‑ the offer of a tour
‑ help with the beverages
‑ sees the offer for the new customer welcome book in the waiting area and other locations
‑ sees the opportunity to purchase series of services for a reduced price
‑ salon/spa oriented entertainment
‑ clean smocks and nice touches in the restroom
After the service is performed, the customer has the option and is given a reward for rebooking before leaving. The new customer welcome book will give the customer the incentive to prebook before leaving and receive a book full of add‑on offers worth $XXX.XX. This will double the chance of a new customer prebooking before leaving.
When rebooking the customer is offered a series of visits for a special price and is offered the ability to book the series of visits then. The customer will see additional perceived value and have the option of purchasing the series and prebook a group of appointments.
After the customer leaves the salon/spa they receive a thank you card in the mail and the customer who referred them receives a thank you for the referral card and a gift certificate good for their next visit.
As a salon/spa owner or manager it is your job to add Irresistible Offers and Unique Selling Points to the business all the time. Your job is also to counter your competition's I.O. and U.S.P. strategies by adding them to your business or even improving on the competition's strategies.
Want more information on developing your I.O.s and U.S.P.s? Call your MIKAL consultant for more examples and information about positioning your business for success at 513-528-5100 www.mikal.com or e‑mail us at mikal@mikal.com .
Friday, March 17, 2006
salon on-line appointment booking is great!
IT IS TIME TO GET YOUR ON-LINE BOOKING
SYSTEM UP AND RUNNING!
http://www.mikal.com/onlinebookingdemo.htm
7 Reasons why the On-Line Booking System needs to be up and
running in your business RIGHT NOW! And $6085.00 in reasons
to do get going on on-line booking every year!
1. The on-line booking system delivers the up sell service offer to everyone who logs in to book appointments. If 50 customers add an up sell service each week for $20.00 the on-line booking system will increase your sales $4000.00 per month.
2. The on-line booking system allows dozens of clients to search for appointments at the same time. How much would it cost to have a dozen receptionists available with a dozen phone lines 24/7 to give your clients that level of service?
3. The on-line booking system will confirm all appointments made with customers who have an e-mail address automatically by e-mail. How much time do you spend on confirmations each week? If you spend one hour each day, six days a week at $10.00 per hour the on-line booking system will save you $240.00 per month in confirmation time.
4. The on-line booking system delivers an offer with every e-mail confirmation. What if your clients received an e-mail offer for a retail product the day before their visit? How many would buy a retail product? If 5 more customers a day buy a retail product for $14.00 based on the confirmation coupon that would generate an extra $ 1680.00 per month in retail sales.
5. The on-line booking system will take the place of a receptionist for 30% of your appointments. If the system books 500 appointments a month and each appointment take 2 minutes you save 1000 employee minutes a month. That=s 16.5 hours a month in labor costs. If you are paying $10.00 per hour that=s a savings of $165.00 per month.
6. The on-line booking system allows you to see analysis and activity information in salon/spa from any internet connection. Know how many people are waiting, sales up to the minute, and employee sales from anywhere. What is piece of mind worth to you?
7. The on-line booking system allows your staff to see their day and week. How many times do they call the front desk to see when their first client is coming in?
What are you waiting for? www.mikal.com Call MIKAL now! 513-528-5100
SYSTEM UP AND RUNNING!
http://www.mikal.com/onlinebookingdemo.htm
7 Reasons why the On-Line Booking System needs to be up and
running in your business RIGHT NOW! And $6085.00 in reasons
to do get going on on-line booking every year!
1. The on-line booking system delivers the up sell service offer to everyone who logs in to book appointments. If 50 customers add an up sell service each week for $20.00 the on-line booking system will increase your sales $4000.00 per month.
2. The on-line booking system allows dozens of clients to search for appointments at the same time. How much would it cost to have a dozen receptionists available with a dozen phone lines 24/7 to give your clients that level of service?
3. The on-line booking system will confirm all appointments made with customers who have an e-mail address automatically by e-mail. How much time do you spend on confirmations each week? If you spend one hour each day, six days a week at $10.00 per hour the on-line booking system will save you $240.00 per month in confirmation time.
4. The on-line booking system delivers an offer with every e-mail confirmation. What if your clients received an e-mail offer for a retail product the day before their visit? How many would buy a retail product? If 5 more customers a day buy a retail product for $14.00 based on the confirmation coupon that would generate an extra $ 1680.00 per month in retail sales.
5. The on-line booking system will take the place of a receptionist for 30% of your appointments. If the system books 500 appointments a month and each appointment take 2 minutes you save 1000 employee minutes a month. That=s 16.5 hours a month in labor costs. If you are paying $10.00 per hour that=s a savings of $165.00 per month.
6. The on-line booking system allows you to see analysis and activity information in salon/spa from any internet connection. Know how many people are waiting, sales up to the minute, and employee sales from anywhere. What is piece of mind worth to you?
7. The on-line booking system allows your staff to see their day and week. How many times do they call the front desk to see when their first client is coming in?
What are you waiting for? www.mikal.com Call MIKAL now! 513-528-5100
Thursday, March 09, 2006
fred dengler asks salon and spa owners what is your job dscription?
OWNERS - What is your job description?
www.mikal.com
As owners we show up for work every day. We manage, motivate, lead, train, listen, and most the time Ado whatever it takes@ to keep the business going (and hopefully growing).
But what is our job description? What would we write in a classified ad if we needed to hire someone to replace us? What would we hire the person to do and what would be the training program for our replacement?
Knowing your job description is just as critical as your employees knowing their job descriptions. Having a clear job description helps you to prioritize tasks, gives you a perspective, and creates a clear description of your responsibilities with those you work with.
I speak with salon and spa owners every day and on a regular basis ask owners what their job description is. The answers I get are everything from broad statements about sustaining the company vision to detailed hour by hour descriptions of tasks the owner does. The most common answer is Awhat ever needs to be done!@
One challenge with Adoing what ever needs to be done@ is that at the end of the day and the end of the week have we really done what needs to be done, or just reacted to what was happening and responded to the most urgent requests for our attention? Have you ever finished for the day and wondered what you did all day? Have you asked yourself where did the day go? Have you looked at projects that you know will move your business forward that have been sitting on your desk for weeks? Have you skipped interesting and important meetings and seminars because you did not have the time to attend and participate?
A big question is whether the job we think we have is the job we have (and do every day). What takes up our day? Do we have the time to move our company forward? Do we promote the company vision and concept every day? Do we delegate, motivate, and supervise our staff to increase their quality of working life and improve the customer experience? Do we manage our time effectively?
Would you like to have more control over your time and the impact you have on your company? I have some owners do a little exercise that helps to define their job and prioritize their efforts. All you need to do is make a list of the most important ten things you can do on a daily basis to grow you business. You might include setting and reviewing staff goals, staff training, greeting new customers, remerchadising your retail area, working with the front desk on customer service, reviewing your SMS software management reports, researching new services to add to your menu, reviewing your expenses and looking at areas to cut waste and costs, following up on your direct mail and e-mail marketing campaigns, visiting local beauty schools and meeting with students and staff, or any other jobs you need to do on a regular basis.
Now, for a week you need to track your time. Write down what you do each day in fifteen minute blocks of time. At the end of the week add up all of the time you spent on the ten most important things on your list. Also add up the time you spent on other tasks. How much time did you spend on your top ten tasks? What other tasks took up your time? Should those other tasks be part of your top ten tasks? What can you do to reduce the time spent on non top ten tasks?
If you hired yourself as owner to do the top ten tasks how would you rate your performance at the end of the week?
How can you spend more time on your top ten tasks? Can you delegate some of the other things that take up your time? Can you eliminate some of the tasks that don=t contribute to your business?
What does your staff think your job desciption is? This is an interesting exercise that will give you feedback on what your staff thinks you do and also what they would like you to be doing. Have a staff meeting and ask your staff to write down what their job description is. They can be as detailed as they want. When they are done have them also write down what they think your job description is. Don=t talk to them about what you think it should be, or what the company goals are, or corporate vision is. Review their ideas and see if what they think your job is matches your top ten list.
If you are really brave also ask the staff to give you an evaluation on how well you are performing you job description. One owner even had the staff vote on whether the staff would keep them as the owner.
On the broadest level our job is to sustain the vision and concept of the business. We do this by constantly promoting our concept to customers, staff, and vendors. We do that by keeping in touch with cultural, fashion, and economic factors and refining our vision and concept to achieve our goals.
In conjunction with maintaining and enhancing our concept we must make sure our company is self sustaining and profitable. Break even is not good enough. We have to create a company with the right mix of products and services that appeals to our target market and then go after that market.
If you worked through the exercise of tracking your time you probably isolated some time wasting tasks. You need to be ruthless in eliminating those time wasters. Do you have vendors that just drop in and take up your time? Do you have staff members that love to visit and never seem to have enough time to get their work done? Do you spend time on e-mail, faxes, and mail that doesn=t give you information that will help you grow you business? Get rid of it all!
See more info at www.mikal.com
Do you have customers or piers that take up your time with their latest tales of bad luck, no luck, or bad timing? Don=t take their calls. Surround yourself with happy, lucky, productive people. It is amazing that the busiest people always seem to have enough time to get one more thing done. Spend time with people that have goals and vision.
Want to get more done? Get up one hour earlier and get to work. Book out 2 hours of office time every day and allow no interruptions. Get rid of voice mail and take every call you can. Be brief and direct if you are not interested in something. Learn to say no when someone wants your time on a project you are not interested in. Learn to say maybe or I=ll think about it when someone wants you to make a snap decision. Reveiw e-mails, faxes, and mail during lunch.
The best time management strategy is to operate every day like it is the last day before a two week vacation. Think about how efficeint you are the day before you go out of town. Act that way every day!
As owners we have limited resources. We only have so much time and only so much money. We must manage our time in a miserly way. We need to use our time to communicate our corporate vision and enhance and improve our concept. Review your top ten priorities and work on them every day. Perform in a way that will let you give yourself a great job evaluation!
Questions or ideas? Call or e-mail me!
Fred Dengler
MIKAL
513-528-5100
fredd@mikal.com
www.mikal.com
www.mikal.com
As owners we show up for work every day. We manage, motivate, lead, train, listen, and most the time Ado whatever it takes@ to keep the business going (and hopefully growing).
But what is our job description? What would we write in a classified ad if we needed to hire someone to replace us? What would we hire the person to do and what would be the training program for our replacement?
Knowing your job description is just as critical as your employees knowing their job descriptions. Having a clear job description helps you to prioritize tasks, gives you a perspective, and creates a clear description of your responsibilities with those you work with.
I speak with salon and spa owners every day and on a regular basis ask owners what their job description is. The answers I get are everything from broad statements about sustaining the company vision to detailed hour by hour descriptions of tasks the owner does. The most common answer is Awhat ever needs to be done!@
One challenge with Adoing what ever needs to be done@ is that at the end of the day and the end of the week have we really done what needs to be done, or just reacted to what was happening and responded to the most urgent requests for our attention? Have you ever finished for the day and wondered what you did all day? Have you asked yourself where did the day go? Have you looked at projects that you know will move your business forward that have been sitting on your desk for weeks? Have you skipped interesting and important meetings and seminars because you did not have the time to attend and participate?
A big question is whether the job we think we have is the job we have (and do every day). What takes up our day? Do we have the time to move our company forward? Do we promote the company vision and concept every day? Do we delegate, motivate, and supervise our staff to increase their quality of working life and improve the customer experience? Do we manage our time effectively?
Would you like to have more control over your time and the impact you have on your company? I have some owners do a little exercise that helps to define their job and prioritize their efforts. All you need to do is make a list of the most important ten things you can do on a daily basis to grow you business. You might include setting and reviewing staff goals, staff training, greeting new customers, remerchadising your retail area, working with the front desk on customer service, reviewing your SMS software management reports, researching new services to add to your menu, reviewing your expenses and looking at areas to cut waste and costs, following up on your direct mail and e-mail marketing campaigns, visiting local beauty schools and meeting with students and staff, or any other jobs you need to do on a regular basis.
Now, for a week you need to track your time. Write down what you do each day in fifteen minute blocks of time. At the end of the week add up all of the time you spent on the ten most important things on your list. Also add up the time you spent on other tasks. How much time did you spend on your top ten tasks? What other tasks took up your time? Should those other tasks be part of your top ten tasks? What can you do to reduce the time spent on non top ten tasks?
If you hired yourself as owner to do the top ten tasks how would you rate your performance at the end of the week?
How can you spend more time on your top ten tasks? Can you delegate some of the other things that take up your time? Can you eliminate some of the tasks that don=t contribute to your business?
What does your staff think your job desciption is? This is an interesting exercise that will give you feedback on what your staff thinks you do and also what they would like you to be doing. Have a staff meeting and ask your staff to write down what their job description is. They can be as detailed as they want. When they are done have them also write down what they think your job description is. Don=t talk to them about what you think it should be, or what the company goals are, or corporate vision is. Review their ideas and see if what they think your job is matches your top ten list.
If you are really brave also ask the staff to give you an evaluation on how well you are performing you job description. One owner even had the staff vote on whether the staff would keep them as the owner.
On the broadest level our job is to sustain the vision and concept of the business. We do this by constantly promoting our concept to customers, staff, and vendors. We do that by keeping in touch with cultural, fashion, and economic factors and refining our vision and concept to achieve our goals.
In conjunction with maintaining and enhancing our concept we must make sure our company is self sustaining and profitable. Break even is not good enough. We have to create a company with the right mix of products and services that appeals to our target market and then go after that market.
If you worked through the exercise of tracking your time you probably isolated some time wasting tasks. You need to be ruthless in eliminating those time wasters. Do you have vendors that just drop in and take up your time? Do you have staff members that love to visit and never seem to have enough time to get their work done? Do you spend time on e-mail, faxes, and mail that doesn=t give you information that will help you grow you business? Get rid of it all!
See more info at www.mikal.com
Do you have customers or piers that take up your time with their latest tales of bad luck, no luck, or bad timing? Don=t take their calls. Surround yourself with happy, lucky, productive people. It is amazing that the busiest people always seem to have enough time to get one more thing done. Spend time with people that have goals and vision.
Want to get more done? Get up one hour earlier and get to work. Book out 2 hours of office time every day and allow no interruptions. Get rid of voice mail and take every call you can. Be brief and direct if you are not interested in something. Learn to say no when someone wants your time on a project you are not interested in. Learn to say maybe or I=ll think about it when someone wants you to make a snap decision. Reveiw e-mails, faxes, and mail during lunch.
The best time management strategy is to operate every day like it is the last day before a two week vacation. Think about how efficeint you are the day before you go out of town. Act that way every day!
As owners we have limited resources. We only have so much time and only so much money. We must manage our time in a miserly way. We need to use our time to communicate our corporate vision and enhance and improve our concept. Review your top ten priorities and work on them every day. Perform in a way that will let you give yourself a great job evaluation!
Questions or ideas? Call or e-mail me!
Fred Dengler
MIKAL
513-528-5100
fredd@mikal.com
www.mikal.com
Fred Dengler asks if you explain the WHY to your staff
Do you tell your staff the ““why”” of the work?
As you know MIKAL is involved in the push for higher productivity and better communication using our software program as a major tool in getting this task accomplished, it’s disturbing how many salon/spa managers neglect the crucial task of creating the “why”. Most salon/spa managers are so concerned with instructing receptionists and stylists on how to do their jobs that they ignore the equally important questions of “why” the jobs need to get done, and for whom they are doing the work. If receptionists and stylists don’t understand the the “why” of what they do, it makes the work meaningless. If you are not using a weekly goal setting and feedback system give us a call at MIKAL for information on how to set one up. The “why” for you to set up the goal setting is that the average stylist or receptionist increases sales and performance up to 10% just by setting goals and getting regular feedback! Give us a call at 800-448-5420 or 513-528-5100 for free information on these systems.
This lack of “why” is not just a problem for the Beauty Industry! For an idea of how dangerous this is to a salon/spa’s health, a recent Gallup study showed that 71% of workers are “not engaged.” When asked what caused them to disengage, the workers overwhelmingly cited the requirement to perform useless tasks. This begs the question, “why” are salon/spa managers assigning so many useless tasks? How many times do we hear ““why”” do I have to fill out the client information card, or ““why”” are you mad when I can’t get the new customer thank you mailing done one week? Or even more likely the tasks just don’t get done, or are only done when you ride the staff. This creates resistance and also wears you out as a manager.
It seems more likely that receptionists and stylists only think their work is useless. Creating the “why” is instrumental in giving receptionists and stylists a new perspective on how their work fits into the salon/spa as a whole. We need to take the time to give them the Big Picture at every opportunity.
The idea of creating the “why” for receptionists and stylists isn’t new, but the most popular method used to make workers feel invested and relevant to the operations of the salon/spa – profit sharing or quarterly bonuses or commissions for selling or doing certain activities – has been largely ineffectual. While profit sharing gives receptionists and stylists a legitimate ownership stake, they do little to show workers how they actually impact a salon/spa’s overall performance. Most receptionists and stylists perceive their profit sharing or year end bonus as kind of a lottery ticket over which they have no influence, while the actual performance of the organization is dictated by market swings, owner decisions, and other forces beyond their control. This feeling of irrelevance tends to increase in direct correlation to salon/spa growth, especially in larger salons/spas; in general, as the size of the salon/spa increases, workers’ sense of professional value decreases.
We need to get better as we get bigger or we lose the economy of scale and the personal
involvement customers are looking for in a salon/spa. How many times do you see a nice salon/spa expand and then lose staff (because they fail to create the ““why””) and then start to lose customers because the personal service and involvement are not there any longer!
For owners and senior salon/spa managers who are making strategic decisions, the need to create the “why” for their team takes on an even higher level of importance. Most salon/spa owners are many levels removed from front desk and service providing types of customer interaction. Instead, customer feedback comes in the form of reports and research. Tapping into the experiences of receptionists and stylists who interact with customers can provide a valuable new source of information in the decision making process. Consider a general trying to gather information from the battlefield. Would he be able to make informed strategic decisions if his forward units didn’t understand the importance of their role? And how effective would those units be if they didn’t understand their mission? The same conditions apply to salon/spa owners and leaders. Low level “troops” who clearly understand their role and mission will always be able to provide better feedback to senior leaders in charge of major decisions.
When a salon/spa is small, for workers the “why” exists naturally. It should be obvious how much individual contributions matter in an organization of five or ten people. The problems is growing salons/spas almost always reach a tipping point when the team environment evolves into a salon/spa owners and managers version of the TV show The Office. Staff feels disconnected to management and management feels frustrated because the staff doesn’t get it. Salon/spa managers and owners skilled at providing staff the “why” can help stave off this tipping point. You may be beyond this point and your staff has a good grasp of the “why” of the tasks they need to perform. That means your communication lines are good and you are using the ODM model Open Door Management!
Now for the next step. If your salon/spa has already passed this stage, one of the most powerful trends in management and a fantastic tool for producing employee involvement is Open Book Management (OBM). In a nutshell, OBM does away with all confidentiality in regard to salon/spa finances. By showing receptionists and stylists where the salon/spa stands, its financial health, how key numbers and ratios affect profitability and revenue, and perhaps most importantly explaining to receptionists and stylists how their pay is affected by all of the above, OBM does a far better job at involving receptionists and stylists and giving them job the “why” than simply handing out a bonus plan or profit sharing program!
OBM – Open Book Management gives ratios to the staff that MIKAL can provide for you. An example is New Customer Retention. “Why” is it important to prebook new customers before they leave your salon/spa? Because right now most salons and spas only keep 30% of new customers for a follow up visit in the next 90 days. If the salon/spa can double that number using the MIKAL New Customer Welcome Book and Preceptionist ReBooking Strategies the net profit in the salon/spa will increase from 2 to 5 percent! Now the stylists and receptionist know why you get crazy every time a new customer is allowed to wander out the door without being asked to rebook. Remember the 10% sales increase I mentioned at the beginning of the article?
That is the “why” you would share with staff to motivate them to set goals and review the evaluation reports. Call your MIKAL consultant for a free copy of the New Customer Welcome
Book program at 800-448-5420 or 513-528-5100.
Another reason for practicing Open Book Management is that the majority of our stylists and receptionists have no concept as to what it costs to run a salon/spa. One owner we work with books a half hour with a different employee each week (and pays them) and has them assist with printing checks and making payments to vendors. The employees are amazed at how much it costs to run a salon/spa!
For salons/spas unwilling to make the jump to OBM – Open Book Management, or salon/spa managers working within a larger organization, the first step to forming the “why” for your stylists and receptionists is to understand all of the work and information flow affecting members of your team. Only when a manager understands all of the interactions between her receptionists and stylists, clients, vendors and other departments, can she show her receptionists and stylists how their work fits into the overall structure of the salon/spa. It is important to know that everyone in an organization has a customer. Your customer is whoever receives your work output, and for most receptionists and managers their customer is not the end customer but rather another person within the salon/spa. This way of thinking should reveal each employee’s relevance as well as uncover meaningless work. Salon/spa managers should understand and be able to explain to their receptionists and stylists how their jobs add value and “why” particular tasks are required. If an employee is performing tasks that are not needed by someone else in the salon/spa or by the end customer, those tasks should be eliminated. At the same time as soon as a staff member stops being serviced by another staff member (like the receptionist stops providing daily appointment schedules to the stylists) the staff member needs to notify management. In this way the system becomes self policing. As a manager or owner, you will have transcended the mindless commands of telling them how to do their jobs and shown them “why”, and for whom those jobs get done.
Call MIKAL for more management and marketing ideas. We’ve been helping salons run more profitably and effectively since 1981. Give us a call at 513-528-5100 or check us out on the web at www.mikal.com.
As you know MIKAL is involved in the push for higher productivity and better communication using our software program as a major tool in getting this task accomplished, it’s disturbing how many salon/spa managers neglect the crucial task of creating the “why”. Most salon/spa managers are so concerned with instructing receptionists and stylists on how to do their jobs that they ignore the equally important questions of “why” the jobs need to get done, and for whom they are doing the work. If receptionists and stylists don’t understand the the “why” of what they do, it makes the work meaningless. If you are not using a weekly goal setting and feedback system give us a call at MIKAL for information on how to set one up. The “why” for you to set up the goal setting is that the average stylist or receptionist increases sales and performance up to 10% just by setting goals and getting regular feedback! Give us a call at 800-448-5420 or 513-528-5100 for free information on these systems.
This lack of “why” is not just a problem for the Beauty Industry! For an idea of how dangerous this is to a salon/spa’s health, a recent Gallup study showed that 71% of workers are “not engaged.” When asked what caused them to disengage, the workers overwhelmingly cited the requirement to perform useless tasks. This begs the question, “why” are salon/spa managers assigning so many useless tasks? How many times do we hear ““why”” do I have to fill out the client information card, or ““why”” are you mad when I can’t get the new customer thank you mailing done one week? Or even more likely the tasks just don’t get done, or are only done when you ride the staff. This creates resistance and also wears you out as a manager.
It seems more likely that receptionists and stylists only think their work is useless. Creating the “why” is instrumental in giving receptionists and stylists a new perspective on how their work fits into the salon/spa as a whole. We need to take the time to give them the Big Picture at every opportunity.
The idea of creating the “why” for receptionists and stylists isn’t new, but the most popular method used to make workers feel invested and relevant to the operations of the salon/spa – profit sharing or quarterly bonuses or commissions for selling or doing certain activities – has been largely ineffectual. While profit sharing gives receptionists and stylists a legitimate ownership stake, they do little to show workers how they actually impact a salon/spa’s overall performance. Most receptionists and stylists perceive their profit sharing or year end bonus as kind of a lottery ticket over which they have no influence, while the actual performance of the organization is dictated by market swings, owner decisions, and other forces beyond their control. This feeling of irrelevance tends to increase in direct correlation to salon/spa growth, especially in larger salons/spas; in general, as the size of the salon/spa increases, workers’ sense of professional value decreases.
We need to get better as we get bigger or we lose the economy of scale and the personal
involvement customers are looking for in a salon/spa. How many times do you see a nice salon/spa expand and then lose staff (because they fail to create the ““why””) and then start to lose customers because the personal service and involvement are not there any longer!
For owners and senior salon/spa managers who are making strategic decisions, the need to create the “why” for their team takes on an even higher level of importance. Most salon/spa owners are many levels removed from front desk and service providing types of customer interaction. Instead, customer feedback comes in the form of reports and research. Tapping into the experiences of receptionists and stylists who interact with customers can provide a valuable new source of information in the decision making process. Consider a general trying to gather information from the battlefield. Would he be able to make informed strategic decisions if his forward units didn’t understand the importance of their role? And how effective would those units be if they didn’t understand their mission? The same conditions apply to salon/spa owners and leaders. Low level “troops” who clearly understand their role and mission will always be able to provide better feedback to senior leaders in charge of major decisions.
When a salon/spa is small, for workers the “why” exists naturally. It should be obvious how much individual contributions matter in an organization of five or ten people. The problems is growing salons/spas almost always reach a tipping point when the team environment evolves into a salon/spa owners and managers version of the TV show The Office. Staff feels disconnected to management and management feels frustrated because the staff doesn’t get it. Salon/spa managers and owners skilled at providing staff the “why” can help stave off this tipping point. You may be beyond this point and your staff has a good grasp of the “why” of the tasks they need to perform. That means your communication lines are good and you are using the ODM model Open Door Management!
Now for the next step. If your salon/spa has already passed this stage, one of the most powerful trends in management and a fantastic tool for producing employee involvement is Open Book Management (OBM). In a nutshell, OBM does away with all confidentiality in regard to salon/spa finances. By showing receptionists and stylists where the salon/spa stands, its financial health, how key numbers and ratios affect profitability and revenue, and perhaps most importantly explaining to receptionists and stylists how their pay is affected by all of the above, OBM does a far better job at involving receptionists and stylists and giving them job the “why” than simply handing out a bonus plan or profit sharing program!
OBM – Open Book Management gives ratios to the staff that MIKAL can provide for you. An example is New Customer Retention. “Why” is it important to prebook new customers before they leave your salon/spa? Because right now most salons and spas only keep 30% of new customers for a follow up visit in the next 90 days. If the salon/spa can double that number using the MIKAL New Customer Welcome Book and Preceptionist ReBooking Strategies the net profit in the salon/spa will increase from 2 to 5 percent! Now the stylists and receptionist know why you get crazy every time a new customer is allowed to wander out the door without being asked to rebook. Remember the 10% sales increase I mentioned at the beginning of the article?
That is the “why” you would share with staff to motivate them to set goals and review the evaluation reports. Call your MIKAL consultant for a free copy of the New Customer Welcome
Book program at 800-448-5420 or 513-528-5100.
Another reason for practicing Open Book Management is that the majority of our stylists and receptionists have no concept as to what it costs to run a salon/spa. One owner we work with books a half hour with a different employee each week (and pays them) and has them assist with printing checks and making payments to vendors. The employees are amazed at how much it costs to run a salon/spa!
For salons/spas unwilling to make the jump to OBM – Open Book Management, or salon/spa managers working within a larger organization, the first step to forming the “why” for your stylists and receptionists is to understand all of the work and information flow affecting members of your team. Only when a manager understands all of the interactions between her receptionists and stylists, clients, vendors and other departments, can she show her receptionists and stylists how their work fits into the overall structure of the salon/spa. It is important to know that everyone in an organization has a customer. Your customer is whoever receives your work output, and for most receptionists and managers their customer is not the end customer but rather another person within the salon/spa. This way of thinking should reveal each employee’s relevance as well as uncover meaningless work. Salon/spa managers should understand and be able to explain to their receptionists and stylists how their jobs add value and “why” particular tasks are required. If an employee is performing tasks that are not needed by someone else in the salon/spa or by the end customer, those tasks should be eliminated. At the same time as soon as a staff member stops being serviced by another staff member (like the receptionist stops providing daily appointment schedules to the stylists) the staff member needs to notify management. In this way the system becomes self policing. As a manager or owner, you will have transcended the mindless commands of telling them how to do their jobs and shown them “why”, and for whom those jobs get done.
Call MIKAL for more management and marketing ideas. We’ve been helping salons run more profitably and effectively since 1981. Give us a call at 513-528-5100 or check us out on the web at www.mikal.com.
Fred Dengler talks about the Female Factor in Salon and Spa Management
Salon Owner and Managers – The Female Managing Female Factor
Our Beauty and Spa industry indisputably has the largest female work force and the greatest number of female managers and owners. This creates a business culture that is unique in business. It would seem “natural” that females managing females would be an easier, more consistant task than a mixed gender business. But any of us who have worked in the industry (more than 30 seconds) know that is not the case. Here are some ideas on how to manage the large female factor in your business – especially if you are also a female!
The latest Census Bureau statistics reveal that female owned businesses are hotter than ever. Between 1997 and 2002 females started businesses at twice the national rate. Female-owned businesses with more than $1 million in revenue went up by 18% and those with more than 100 employees went up by 10%. Many of those businesses are salons and spas. Call us for the TSA statistics as they compare to MIKAL Salon and Spa owners 513-528-5100.
One upshot of all this growth is that now there are more females in leadership positions than ever. Whether they head their department in the salon or spa, the front desk, the booking room, or head the whole company, these females are in a position to do something they may have wanted to do for a long time. Hire other females and work with other women.
Females like working with other smart, savvy females. There's often less ego involved and more willingness to collaborate. As woman leaders in the salon and spa industry, you can create a culture where success doesn't have to mean trying to become "one of the guys." But your idealistic visions of females working together do not always translate smoothly into practice. Call us at ask for our Staff Recruiting Ideas pdf at 513-528-5100 or e-mail us at sales@mikal.com . There's no guarantee that just because you hire other females, everyone will magically get along. Here are a few of the more common problem areas we can encounter with our reception staff, stylists, nail techs, and estheticians:
Are You the Boss or Buddy? Or Are You Trying to be Both?
When “Sally” (one of our salon owners and no it’s not her real name) became the owner and manager of a new salon she opened, she told her all female staff that they had a say in every decision and that her door was always open no matter how small the concern or how late the hour. "I didn't want them to see me as the big bad boss," she explained. "I wanted them to like me."
Instead, Sally created an environment in which there was too little structure. Stylists took her open door policy literally and dropped in to chat about personal problems or petty disagreements they should have been able to resolve on their own. Even worse, when Sally made management decisions her staff seemed to resent her adopting any authority. This resentment bothered her, but she had made it sound like everything would be a committee decision when she started the business!
Do You Want to Be Liked or Do You Want to Be Effective? Can you Be Both?
Just because you're in a leadership position doesn't mean you stop wanting people to like you. We have the same challenge with receptionists and salon managers/spa coordinators who want to be liked by the staff they need to manage. Many times we are frustrated by our management staff because they become friendly with the service providers and then start to take their side or show favoritism to certain staff members. When this happens the first person we should look at is ourselves! Do we handle the staff like friends but expect our management staff to act differently?
Female are raised to always be nice and nurturing to other female and, like Sally, they can be wary of coming across as too tough or power hungry. But part of your responsibility as a leader/manager is to call the shots. If employees see you as their best buddy, it can be confusing when you start telling them what to do or calling them on their mistakes. Try envisioning yourself as a leader who is respected by her employees rather than seeking unconditional love.
Guess What? You Need to Ban the Micromanager In You!
Many females embrace the beauty and spa industries over the traditional corporate world because they're sick of a macho work culture or love the artistic and customer service side of the beauty and wellness industries. Others want an environment where they don’t have to do twice as much to prove themselves while someone's always looking over their shoulder waiting for them to screw up. But once on our own, it can be difficult to relax these hyper-vigilant standards. This can be especially true with your own business, where everything that goes out the door has your name attached. But you're going to have to learn to let go!
We'll assume you've hired competent, innovative female to work under you. If you insist on supervising every last detail, you're sending the message that you don't trust them to handle anything on their own. That's a sure way to breed apathy, or even worse, resentment. Because your female staff are often more attuned to relationships and more sensitive to feedback, they can be especially prone to interpreting your micromanaging as criticism. It's worth the risk to give them some autonomy and even allow them to make the occasional mistake. They'll work harder if they feel like their input matters.
Women and Family-Work Issues
First wouldn’t it be nice if we could just hire the person that interviews with us and not get the family, boyfriend, co-dependent, sibling, etc… issues that emerge after the person is hired? Hiring right is the first step in taking care of these issues. It would also be nice if all things were equal on the work-family front -- if men took on just as many domestic responsibilities and were just as eager for maternity leave and flexible working schedules. (listen to me – don’t tell any of my guy friends I said this!) But we all know this isn't true. Females are still the primary care givers and they expect female bosses and employers to be more sensitive towards this struggle to balance work and family lives.
When You Institute Policies or an Employee Policy Manual
Before you institute policies, talk to your employees about what they need and be clear in your own head about what is possible from a financial and procedural standpoint. Be as generous and as creative as you can. Females with less personal stress make happier and more productive employees. But also be realistic about what the business can support. One of the worst things you can do in a management role is make promises you can't keep. Call us for a Salon/Spa Policy Manual on disk you can edit and use to get your policies in place. Our number at MIKAL is 513-528-5100.
Above all, female leaders owe it to their female employees to practice what they preach. A charismatic, well-adjusted woman at the top goes a long ways towards creating a healthy office atmosphere. When powerful and highly visible females are seen helping other females by implementing female-friendly policies, acting as mentors and role models, or simply honoring their word, they set a standard for everyone else to come, and I mean for both men and women!
Call MIKAL for Hiring and Staffing Ideas at 513-528-5100 or e-mail sales@mikal.com .
Our Beauty and Spa industry indisputably has the largest female work force and the greatest number of female managers and owners. This creates a business culture that is unique in business. It would seem “natural” that females managing females would be an easier, more consistant task than a mixed gender business. But any of us who have worked in the industry (more than 30 seconds) know that is not the case. Here are some ideas on how to manage the large female factor in your business – especially if you are also a female!
The latest Census Bureau statistics reveal that female owned businesses are hotter than ever. Between 1997 and 2002 females started businesses at twice the national rate. Female-owned businesses with more than $1 million in revenue went up by 18% and those with more than 100 employees went up by 10%. Many of those businesses are salons and spas. Call us for the TSA statistics as they compare to MIKAL Salon and Spa owners 513-528-5100.
One upshot of all this growth is that now there are more females in leadership positions than ever. Whether they head their department in the salon or spa, the front desk, the booking room, or head the whole company, these females are in a position to do something they may have wanted to do for a long time. Hire other females and work with other women.
Females like working with other smart, savvy females. There's often less ego involved and more willingness to collaborate. As woman leaders in the salon and spa industry, you can create a culture where success doesn't have to mean trying to become "one of the guys." But your idealistic visions of females working together do not always translate smoothly into practice. Call us at ask for our Staff Recruiting Ideas pdf at 513-528-5100 or e-mail us at sales@mikal.com . There's no guarantee that just because you hire other females, everyone will magically get along. Here are a few of the more common problem areas we can encounter with our reception staff, stylists, nail techs, and estheticians:
Are You the Boss or Buddy? Or Are You Trying to be Both?
When “Sally” (one of our salon owners and no it’s not her real name) became the owner and manager of a new salon she opened, she told her all female staff that they had a say in every decision and that her door was always open no matter how small the concern or how late the hour. "I didn't want them to see me as the big bad boss," she explained. "I wanted them to like me."
Instead, Sally created an environment in which there was too little structure. Stylists took her open door policy literally and dropped in to chat about personal problems or petty disagreements they should have been able to resolve on their own. Even worse, when Sally made management decisions her staff seemed to resent her adopting any authority. This resentment bothered her, but she had made it sound like everything would be a committee decision when she started the business!
Do You Want to Be Liked or Do You Want to Be Effective? Can you Be Both?
Just because you're in a leadership position doesn't mean you stop wanting people to like you. We have the same challenge with receptionists and salon managers/spa coordinators who want to be liked by the staff they need to manage. Many times we are frustrated by our management staff because they become friendly with the service providers and then start to take their side or show favoritism to certain staff members. When this happens the first person we should look at is ourselves! Do we handle the staff like friends but expect our management staff to act differently?
Female are raised to always be nice and nurturing to other female and, like Sally, they can be wary of coming across as too tough or power hungry. But part of your responsibility as a leader/manager is to call the shots. If employees see you as their best buddy, it can be confusing when you start telling them what to do or calling them on their mistakes. Try envisioning yourself as a leader who is respected by her employees rather than seeking unconditional love.
Guess What? You Need to Ban the Micromanager In You!
Many females embrace the beauty and spa industries over the traditional corporate world because they're sick of a macho work culture or love the artistic and customer service side of the beauty and wellness industries. Others want an environment where they don’t have to do twice as much to prove themselves while someone's always looking over their shoulder waiting for them to screw up. But once on our own, it can be difficult to relax these hyper-vigilant standards. This can be especially true with your own business, where everything that goes out the door has your name attached. But you're going to have to learn to let go!
We'll assume you've hired competent, innovative female to work under you. If you insist on supervising every last detail, you're sending the message that you don't trust them to handle anything on their own. That's a sure way to breed apathy, or even worse, resentment. Because your female staff are often more attuned to relationships and more sensitive to feedback, they can be especially prone to interpreting your micromanaging as criticism. It's worth the risk to give them some autonomy and even allow them to make the occasional mistake. They'll work harder if they feel like their input matters.
Women and Family-Work Issues
First wouldn’t it be nice if we could just hire the person that interviews with us and not get the family, boyfriend, co-dependent, sibling, etc… issues that emerge after the person is hired? Hiring right is the first step in taking care of these issues. It would also be nice if all things were equal on the work-family front -- if men took on just as many domestic responsibilities and were just as eager for maternity leave and flexible working schedules. (listen to me – don’t tell any of my guy friends I said this!) But we all know this isn't true. Females are still the primary care givers and they expect female bosses and employers to be more sensitive towards this struggle to balance work and family lives.
When You Institute Policies or an Employee Policy Manual
Before you institute policies, talk to your employees about what they need and be clear in your own head about what is possible from a financial and procedural standpoint. Be as generous and as creative as you can. Females with less personal stress make happier and more productive employees. But also be realistic about what the business can support. One of the worst things you can do in a management role is make promises you can't keep. Call us for a Salon/Spa Policy Manual on disk you can edit and use to get your policies in place. Our number at MIKAL is 513-528-5100.
Above all, female leaders owe it to their female employees to practice what they preach. A charismatic, well-adjusted woman at the top goes a long ways towards creating a healthy office atmosphere. When powerful and highly visible females are seen helping other females by implementing female-friendly policies, acting as mentors and role models, or simply honoring their word, they set a standard for everyone else to come, and I mean for both men and women!
Call MIKAL for Hiring and Staffing Ideas at 513-528-5100 or e-mail sales@mikal.com .
About Fred Dengler and MIKAL
Fred co-founded The MIKAL Corporation in 1981 with the goal of designing a powerful PC-based software program for the Beauty Industry. Fred studied the market, saw the need for systems, and the potential for growth. He dedicated his new company to designing the ultimate Salon Management System (SMS). At the time there was no software available for the industry. Slowly MIKAL grew as the first visionary salons embraced the new technology of computers. MIKAL=s thrust has always been to provide not only the ultimate software for the Beauty Industry, but also the finest training, support, and management education. This emphasis lead MIKAL to grow into the most successful salon automation company in the beauty industry. Fred=s commitment to the industry has driven him to write numerous articles for Salon Today, Salon Ovations, Hair & Beauty News, and many other trade publications. Fred has also given computerization and business management seminars at the International Beauty Show, the MidWest Beauty Show, ACTS, the Premier Show, and numerous other shows. Fred provides more than forty education classes each year. MIKAL=s software has received the CRN Star Software Award and the VarBusiness Solutions Award from the Computer Industry. Fred continues to lead the industry in automation and business management. He hosts two national User Group Meetings each year and continues to speak and write on the topics of salon/spa automation and business management. His recent seminars have taken him as far away as Alaska and his latest and greatest software system, SMS V - The next generation in salon management, has just been released with the first module On-Line Appointment Booking! Fred was just featured and quoted in Reseller Management, the foremost trade publication for software companies selling specific solutions to businesses. Fred=s newest area of development is in the area of recreating the Spa and Salon position of Receptionist into a new, income creating position called a Preceptionist. Fred has just published a booklet on the topic and is working with trade magazines on developing articles supporting the new Preceptionist position!
Fred Dengler The MIKAL Corporation www.mikal.com
fredd@mikal.com 4382 Mt. Carmel-Tobasco Rd.
Cincinnati, Ohio 45244
Fred Dengler The MIKAL Corporation www.mikal.com
fredd@mikal.com 4382 Mt. Carmel-Tobasco Rd.
Cincinnati, Ohio 45244
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