Hair salon cancellations, of course, can prove costly, and Kitomba Salon and Spa Software are on the case the reduce the problem. The software provider analysed one year of its data to find that the average salon has 10 appointments that are cancelled or result in a no-show each week, and found a solution that can lessen this by 29 per cent.
The data analysis found that salons that are taking deposits upfront to secure the booking see a reduction in in no-shows and cancellations by up to 29 per cent on average, if asking for a full payment upfront, as compared to salons that ask for no deposit.
“Taking deposits is our number one recommendation to salons because by taking payment upfront, either partly or in full, your clients are committing to their appointment, it helps with your cash flow, increases client spend, and carries a much lower risk of chargebacks or damaging client relationships than charging cancellation fees after the fact,” explained Alyssa Dowsett, General Manager of Kitomba Salon and Spa Software.
“While requiring a deposit may deter some clients from booking an appointment, often these are the type of clients who are not serious about committing to their appointment with you. It’s time to embrace this change and set a new standard in the industry.”
Beyond limiting no-shows, salons that take deposits also report a 9 per cent increase in retail sales and a 2 per cent increase in total client spend on average, meaning clients are not only more likely to show up, but also to keep spending once they get there. It’s also reported to be a better strategy to take a deposit, rather than changing a cancellation fee afterwards.
“Anecdotal data we’ve collated tells us that charging a client a cancellation fee after they can’t make an appointment is more likely to damage the client relationship and loyalty towards that salon, whereas clients who paid a deposit in advance were less affected by it due to already having spent those funds to secure the appointment.”
Salons have reported the impact of this approach, particularly as, for larger salons, the cost of cancellations can be equivalent to missing out on a whole senior stylist’s wages each year.
“To a salon owner who is hesitant about taking deposits, I would say that introducing a little bit of friction in that process will completely eliminate time wasters from your business and really solidify the people who are serious about your time in the salon,” said Laura Hunter, salon partner at Oscar Oscar Salons, Indooroopilly.
“People expect it these days. You’d pay a deposit for a restaurant, you’d pay a deposit for an appointment. I even find that people forget that they’ve paid a booking deposit online, which is great for them because they get to the end of their appointment and surprise, it’s a little cheaper than they thought it would be.”
Kitomba has published a free eBook of strategies and tips for salon owners looking to reduce cancellations and no-shows, including advice around writing cancellation policies, text reminder messages, loyalty programs and methods to filling last-minute gaps in your appointment book.
For more information visit www.kitomba.com/au/
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