Protect your salon revenue from no-shows and client cancellations
With no-shows and cancellations growing due to client uncertainty, it’s imperative that you risk manage your appointment columns for the protection of your revenue and to ensure stability within your business.
So, how can businesses take steps to protect their revenue, and what are some solutions you can put into place to help you achieve a secure beauty business? Timely has put together a Revenue Protection Guide to help you safeguard your revenue with tips and advice from award-winning salon business coach and Timely friend, Jessica Crane.
“It’s more important than ever to protect your business from no-shows and late cancellations, and make sure your booked appointments turn into revenue,” says Crane. “No-shows can cost you thousands in lost revenue each year; a significant hit to your business that can be avoided by implementing some easy revenue protection features.”
How revenue protection can help your business
Clients are far more likely to attend an appointment if they’ve paid a deposit in advance or know that there’s a cancellation fee because it creates a financial repercussion for missing it. Having a revenue protection policy in place is a great way for salons to get a tangible commitment from clients to ensure they’re not out of pocket if they cancel – especially if it's too late to fill the spot.
Not only that, it also shows your clients that you take your business seriously. It helps clients understand the value of your time and shows them the importance of communicating any change of plans with you ahead of time, and not at the last minute.
How revenue protection works
Revenue protection helps to safeguard your earnings, just like insurance policy safeguards your property and belongings. It’s wise for you to be introducing a revenue protection policy to your business which will outline the terms and conditions around appointment no-shows and cancellations, and even consider using revenue protection features (like deposits or cancellation fees) to enforce your policy.
“I hear time and time again from salon owners that no-shows and last-minute cancellations are their biggest challenge. We’re a service based industry, meaning we trade time and expertise for money, so we need to protect that time,” says Crane.
Crane’s five tips to get started with revenue protection:
1. Write your revenue protection policy
2. Get your team members on board with some clear communication scripts
3. Create consistency around when you will and wont charge clients
4. Turn on deposits and client cancellations via online bookings
5. Communicate your new policies with your clients.
Have a think about any other important factors you might want to include in your policy, like reserving the right to hold onto a deposit if you need to cancel a client due to their poor or rude behaviour, or making an allowance if a client is unable to attend their service due to Covid-19 and/or other illnesses or unforeseen circumstances.
Remember, confidence, clear communication and consistency when it comes to making change in your business. This may feel like a large task on your shoulders at first, but in no time at all you’ll wonder how you ever operated without a revenue protection policy.