Be a better captain: 4 key numbers to pay attention to
What is a captain of a ship responsible for? Getting their ship from point A to point B, using instruments to guide them.
The simplest explanation for a captain’s job would be that he finds out where the boat needs to go, and then make sure it gets there. Along the way he takes measurements to make sure he’s on the right path and may or may not fight off a few pirates (depending on how many of the Jack Sparrow movies you’ve watched). When he arrives, he has achieved success.
As the captain of a business, your job could be explained in a similar way. You find out where your business needs to go to be successful, and then you do what is necessary to get there. Along the way you might defend your ship against few pirates and deal with crew problems; that’s all part of business.
What we’re talking about today is the measurements you can take to find out if your business ship is on the right track.
1. Client Retention
How many of your customers are returning to your business. If this is lower than 80% it’s time to review your daily client services procedures.
2. Rebookings
How many customers leave your business with another appointment booked? An established stylist should be hovering around 80% business retention to effectively grow and maintain their clientele. That’s 8 out of 10 people making a booking before they leave. Your business goal should be no less than 60%, since you’ll need to account for new and growing team members.
3. Average Spend
The average value of each visiting appointment should be at or above the price of your core service in your business. Eg: if your salon charges $80 for a cut and blow wave, your average appointment value should be at or above $80.
4. Product Sales
How many products do you sell to each customer? Each business is different but one client out of two or three should purchasing a product from your business. That’s a product sale rate of 33% – 50%.
Be a better captain; pay attention to your numbers!
