Four ways salon software can help you to diversify
21 Jul 2014
Written by Alice Smithson
Salons that aim to set themselves apart from their competitors with their own unique selling point are more likely to succeed. A salon with a strong identity and focus will attract curious customers and become an established brand in its own right.
However, the beauty industry is notoriously competitive. Many salon managers have been tempted to diversify their business in order to offer something different from their competitors. This could involve offering new treatments or new products, or another service entirely. Salon managers may be concerned that diversification could mean a loss of focus and specialist expertise.
It’s clear that making a concerted move to diversify your salon is a huge step, but with the right data on your side you can make the decision with confidence. We take a look at the decisions salon managers face when diversifying, and how salon management software can assist.
The risks of diversification
Practically every business decision involves trade-offs, and diversification decisions are no different. Even adding to your product linesinvolves costs _ not just the initial cost of the products themselves, but also the additional space in your salon that you’re dedicating to them. Instead of trying out risky new products, you could instead fill that space with products that you know will sell quickly, albeit with lower margins.
Similarly, if you’re planning to add nail treatments to your salon you’ll require floor space, and you’ll have to ensure that your staff have the expertise to carry out the treatments _ paying for their training and losing their services in the meantime. Time, space and money should all be considered before you decide to diversify your salon’s offerings.
How salon management software can help you find new ways to make more profit
If you’ve read the previous posts on the i-salon blog, you’ll know all about the numerous ways in which salon management software can help your business to run more smoothly, cut costs and maximise revenue. It can also help you to make important business decisions, including assisting you with any diversification plans you might have. Here are a few ideas for using your salon software to help you in such a scenario:
- Average spend on products. If your average client spends a significant amount of money on products, take a look at which products in particular are selling well. You don’t want to sacrifice shelf space for popular items with slow-selling products. Instead, think about replacing unpopular items with something a little more innovative.
- Ask for feedback. Your salon management software will allow you to send out marketing emails, targeted at specific groups of clients. Send out emails to your most loyal clients asking them for feedback on any diversification plans you might have. Would they be interested in buying jewellery at your salon? Are there any treatments they would like to try?
- Monitor trials. If you’re trialling the sales of a new product line, you can use salon management software to closely follow its success. If sales are too sluggish, you can always choose to shelve your plans before embarking on a full-scale rollout.
- Loyalty schemes, email and text marketing and financial reports also have their role to play when making diversification decisions. The benefits of salon management software are numerous and significant.
If you’d like to find out more details about how i-salon Software can help your business overcome any obstacles it might face, book a free salon software demo today.
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