Grow Your Salon Business from the Inside Out

Grow Your Business
From The Inside Out
Salon Marketing Strategies
We Promise Will Put Your Guests
at the Heart of Your Business
ISSE - Midwest
November 4th & 5th, 2012

www.group3marketing.com @group3marketing #g3missemw /group3marketing

 Customer/Guest Driven Boutique
Direct Marketing Company
 Founded in 1988
 Wayzata, MN
 Specialty Retail With a Focus
on Beauty – The Business of Beauty
• High Value Salons
• Value Priced Salons
• Beauty Supply Distributor
• Manufacturer
• PBA Member


Doing Business In The Age Of NOW

 In-Salon Strategies
 Your Brand Promise
 Smarketing™ - Smart Marketing
• Retention
• Win-Backs
• Underperforming Guests

 Guest Relationships
 Staying Connected


Beauty for the
Ages
A 360 o VIEW
OF YOUR
CHANGING GUESTS

4

TAKEaway #1
Let’s Define
Marketing…


New World

2008 Changed
Everything

Winners Technology
And Continues
Losers To Explode

Einstein Thinking
Continues To Shape
How We Do
Business

TAKEaway #2
 We Are Out of Our Comfort Zone
• Economy Is Changing
• The Rules of Society Are Changing
• Consumers/Guests/Clients
Are Changing
• Our Employees Are Changing
• How We Do Business Is Changing

7

Social Media Revolution 2012

http://youtu.be/0eUeL3n7fDs
Continue to next slide to view video

8

Beauty for the
BYE-BYE BOOMERS – HELLO GEN Y!
Ages
GENERATIONS DEFINED
BOOMERS: 1946 – 1964
Idealists, self-centered, motivated by internal, inwardly-focused values

GEN X: 1965 – 1979
“Me” generation, savvy, entrepreneurial, very brand-conscious

GEN Y: 1980 – 1994
Millennials, confident, expressive, always connected, open to change


All Guests Are Not The Same

 What Differences Do You See Between
Your Female Guests Based on Age Groups?
• Gen Y (Millennials) 18 - 30
• Gen X 31 - 44
• Boomers 45 – 64
• Traditionalists 65+

10

Pop Quiz

 What One Word Best Describes
Your Guests Today
In The Age Of NOW?

11

Beauty for the Ages
“HOW DID YOU HEAR ABOUT YOUR
PREFERRED SALON?”
60%
Percent of Generation

50%
• When choosing a
40%
salon, Gen Y is the
30% Gen Y
most likely to
Gen X
20% Boomers follow others
10% recommendations
0%
• Gen Y is also the
least receptive to
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Understanding NEW Guest Dynamics

• The Dynamics Of Social Media
– Significant changes in the last few years
60%
Percent of Generation

50%
40%
30% Gen Y
Gen X
20% Boomers

10%
0%
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13

Virtual Tour

14

In-Salon Strategies


Right Here – Right Now

 Step Outside  AMBIENCE Is First
• Feelings
 Look in the Windows.
• Positive Energy
 Open The Door.  5-Star Service Begins With
• What’s That Noise? ATTITUDE
• What’s That Smell? • Do It Like You Mean It
 DRESS Like a Professional
• What’s The First
• Is There Any Other Way?
Thing You See?
 Be GUEST Centric
• Be Flexible
• Be Willing

16

The Grand Hello
 Engaging Each Guest Before the
Service Is The First Moment of Truth
• The Welcome
• The Check in
 Always Verify the Guest’s Personal
Information in the POS – Especially
Their E-mail Address
 Use The Menu As A Selling Tool For An
Added Service
 Always Have A Product To Sample

17

The Grand Experience
 The Service(s) – the Second
Moment of Truth
• Create a Dialog
a) Don’t “Ask” What the Guest Wants
b) Offer at Least One Suggestion
• Stay Focused on the Guest
• Have a Scripted Close
a) Is Everything Okay
b) Remind the Guest What Products
You Used
c) Suggest When You Want to See
Them Again

18

The Grand Goodbye
 Checking Out – The Third Moment of Truth –
Failure Here Can Destroy Everything That
Previously Happened During the Visit
a) Compliment the Look
b) Ask If the Guest Sampled the New
Product or Whether the Products Used
Were Okay
c) Do You Need Any Products Before I Close
the Ticket
d) Get the Bill Right
e) Prebooking – Marketing Begins Here

19

TAKEaway #3
 Your Primary Goals –
 Why Is Our Focus on • Influence the Next Sale
to Set the Stage that
In-salon Guarantees the Guest
Strategies Comes Back Again
and…
an Important Part • Invigorate the Guest to
of Your Salon Become Such a RAVING FAN
that She Tells All Her Friends
Marketing Efforts? How Fabulous Your Salon Is.

20

The Brand Promise
And Why It’s Important


Author Seth Godin Said…


The Brand Promise
 All Marketers
(and Salon Owners)
Are Story Builders TAKEaway #4
 Let’s Stay Focused Every Time You
• What Is Your Brand Promise? Consider a Change
• Why Is it Important? Ask How It Fits With
a) To Your Team Your Current Brand
b) To Your Guests Promise
 Is Your Brand Promise
• Static or Dynamic?

23

Beauty for the
Ages
GEN Y WANTS A SALON THAT IS:
hip an experience

24

Beauty for the
Ages

GEN X IS TRENDY, BUT…
61% JUST WANT TO RELAX

SAME GOES FOR THE BOOMERS
75% WANT THEIR SALON ENVIRONMENT
QUIET AND SUBDUED 25

Beauty for the Ages
COLOR IS BIG
% COLORING THEIR HAIR
GEN Y = 55% GEN X = 71% BOOMERS = 73%
WHY?
BOOMERS: 64% COLOR FOR GREY COVERAGE
GEN X: 41% COLOR FOR GREY COVERAGE;
25% LIKE THE CHANGE
GEN Y: 46% LIKE THE CHANGE;
19% WANT TO FOLLOW TRENDS 26

Smarketing™
It’s Smart Marketing and
It’s All About Your Guests


GO Marketing
 Every Guest is…  GO Marketing
– A Golden Opportunity • Retention
• Think of GO Marketing
– A Missed Opportunity
• Protection
• Think of MO Marketing • Growth
 MO Marketing
• Defections
• Decline

28

Retention
The Heart of Smarketing

70% Is A
Really
Bad
Number

29

Retention
The Heart of Smarketing

 Why Is Retention
Such A Challenge
For Salons?
• Service Vs. Guest Focus
• Missing the Brand Promise
• Not Staying Connected


Pop Quiz

What Do You Call A
A Guest When She
(Or He) Walks Out
Of Your Salon?
FREE
AGENT
www.group3marketing.com @group3marketing #g3missemw /group3marketing 31

Pop Quiz

When Do You
Begin MARKETING
RIGHT
To Free Agents? NOW

www.group3marketing.com @group3marketing #g3missemw /group3marketing 32

Let’s Talk About Loyalty
 How “Loyal” Are Your Guests?  TAKEaway #5
 To Whom Are They Loyal? – Create Salon Loyalists
• The Salon? by Being Guest Centric
• Their Stylist? • Recognize Them
 What if I Told You Brand Loyalty • Thank Them
Is Dead • Reward Them
• Brand Experimentation
• Especially Boomers & Gen Y Guests
• Stay Connected
With Them


Beauty for the Ages
“IF YOUR STYLIST LEFT YOUR SALON, WOULD
YOU FOLLOW HER/HIM TO A NEW SALON?”

Gen Y Gen X Boomers

Yes 27% 28% 34%
Maybe 52% 56% 52%

No, I like my salon,
other stylists are
just as good
21% 16% 14%

Beauty for the
Ages
“HOW LIKELY ARE YOU TO RECOMMEND
YOUR STYLIST? HOW ABOUT YOUR SALON?”

Gen Y Gen X Boomers

Stylist 71% 74% 77%

Salon 80% 78% 80%


Defectors – It’s Going To Happen
 Are You Ready?  Create a Powerful
 Signs a Guest Is Win Back Strategy
Defecting Can Be Bold For Your Salon
or Subtle • Internal – Organize a
• Unsatisfactory Service Quick Response Team
to Handle Guest Issues
• Unresolved Issues
• Smarketing
• Slowdown in Visit Rate
• Don’t Let External Forces
• Fewer Services Erode Your Business
• Stylist Leaves


Win Back The Defectors
 TAKEaway #6
• Be Alert
• Otherwise it’s MO
Marketing Time
• Put Your POS to Work
(It’s More Than a Cash Register
and Booking System)
• Reach Out and Touch
the Guest
• The Heart of Smarketing
Is Being Direct, Timely
and Relevant


Smarketing Is Being Organic

 Underperforming Guests
• You Know Who They Are
• You See Them Every Day
• You Do Nothing to Change Their Behavior
• Classic MO Marketing
 Lost Revenue and Profits
 Lost Opportunity to Create a Salon Loyalist
• Better Yet – A Raving Fan

38

Loyalist Or Raving Fan

A Raving
Fan Is
A Loyalist Is Excited
Passive • She’s Going To
Talk About You
• Word Of Mouth
Marketing

39

Underperforming Guests
 Think of This As Classic
Guerrilla Marketing Warfare
 The Challenge
• Get Them to Buy What They
Are Not Buying - TRIAL
• Get Them to Come in
More Often
• Protect Your Margins

40

Guest Relationships


Buzz Words

• Overworked/ • Guests Don’t Want • Social
Overused Relationships • Connections
• Loyalists • They Want • Viral
• Raving Fans Fabulous Service, • Two way
Fair Prices, Smiles,
And Rewards

Loyalty Relationships Engagement

42

Let’s Get Serious

Staying Connected –
The Key to Growing
Your Business.

43

Being Guest Centric

 Put Your Guests At The
Heart Of Your Business
 Make It Easy for Them To
Do Business With You
 Two Ways To Connect
 Internal Data Mining
 Social Media

44

Staying Connected
 Guests Want to Stay Connected
• Be Timely
• Be Relevant
• Be Social
 A Rewards Program
• A Guest Incentive Initiative
 Goals
• Keep Your Salon Top of Mind
• Create a Reason to Return
• Reward Patronage and Show Your Appreciation

45

Your Guest Marketing Program
 Do It Right – or Don’t Do It
• Keep It Simple – Really Simple
• Reward Purchase Behavior
First
• Influence the Next Sale
• Make the Program Meaningful
for Every Guest
 The Premise
• Spend and Earn –
Redeem and Save
• Upsell and Cross Sell


A New Guest Marketing
Program
 Trigger Based Marketing
• Something Happens EVERY DAY
• A New Guest Tries Your Salon
• A Guest Does Not Come Back
• A Guest Earns A Reward
• These Are Call-to-Action Triggers
 Underperforming Guests
 Growth Opportunities
 Every Day


Ei3™ – A Powerful Tool In The
Age Of NOW
 Focus is electronic
 Turnkey
 Customizable
 Easily changed
 Affordable
 Why E-mail?
 Epsilon Reports:
“Open Rates for Triggered e-mails soar”
Analysis of 7.1 billion e-mails found
open rates for trigger based e-mails
were 75% higher than “business as usual”
(BAU) e-mails in Q1, 2012.


The Final Question

Where Should You Allocate Your
Scarce Marketing Resources?
• Getting New Guests
• Keeping Current Guests
• Growing Current Guests


The Final TAKEaway
 TAKEaway # 7
• Marketing In The Age Of
NOW Works – IF…
• Focus on Your Guests
• Dedication
• Commitment
• Investment in the Future
• Positive ROI


Before We Close
• Tomorrow 12:00 – 1:30PM – Tell Your Friends
– Grow You Business From The Inside Out
– Room 12
 Information Sheet
– Ei3™ Marketing Program
 More Information – TEXT G3MISSE to 96362
– Future Webinars
– Presentation Copy
– Weekly E-Marketing Newsletter


THANK YOU
You’ve Been Fantastic


Grow Your Salon Business from the Inside Out

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