# Business | SUCCESS
SUCCESS
For most of us the goal is working smarter and not harder. Here is his secret to business success from Andrus Nomm at Kitomba.
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o you know how successful your business is? How do you measure success? In reality, few businesses have a solid measured approach to determining success. Sure healthy revenue and breaking even are a helpful guide, but how can you tell that your business is working? Follow these steps below.
REBOOKING RATE For your team, it ensures a pre-booked column, job security and motivation from constantly being in demand. For your business, you’re securing future income so you can make decisions with confidence. An increase in visit frequency and a reduction in time, energy and money spent finding new clients will boost profits. Regular visits mean you’ll develop better relationships, they’ll get appointment times that suit them and overall their hair and beauty maintenance will be improved. However, the most important part of measuring your rebooking rate is how you define it. So rebooking your client before they leave the salon is a priority as once they walk through the door, the chances they’ll book within that period dramatically decreases. If your client books multiple appointments in advance, it’s a massive bonus for your business!
RETENTION RATE Client retention is all about creating loyal clients through providing 93 HEADWAY.NET.NZ
high-quality service and a fantastic experience. Loyal, long-term clients, are important to business as they tend to spend more, cost less and make valuable referrals to new clients. We recommend having online booking as it gives your clients the convenience of being able to book whenever - even outside of business hours. If you think they still need reminding, a personalised text or email will do the trick.
REVISIT PERIOD The length of time between appointments has an impact on your annual revenue and reducing it by even the shortest amount of time will result in a massive jump in revenue. Here’s an example: If your annual revenue is $400,000 and your average revisit period is eight weeks, reducing it by just one day (seven weeks and six days) will increase your annual revenue by $7,200. So your annual revenue will increase by a massive $56,000.
NEW CLIENT RATE New clients are the lifeblood of any business as they tie directly to revenue. A consistent increase in clients allows you to be sure of business growth. Take a look at your new client rate. It should be sitting at 10 percent. Why? Because natural attrition sits at around 10% so to balance this, you need at least 10 percent of the clients. If your percentage is low and you regularly have gaps in your