What do Bradley Cooper and Ranveer Singh have in common? What about Jennifer Lawrence and Deepika Padukone? Well, for starters they belong to an -ollywood world. Also, they are trendsetters for their audiences. Whenever they come up with a new dance move, catchphrase or outfit, the very next day you will see herds of fans chasing the must-have newest craze. They need to be memorable, impressive, stylish… Up-to-date.
While dance moves can be easily learned, phrases repeated and new clothes bought, when a star changes their look, how does the whole beauty industry react to hundreds of thousands of requests for the new Cooper haircut or the new Singh style? It is here that business analytics can give spas and salons the edge as they move from ‘so-yesterday’ to ‘living up to the hype’.
The beauty industry is defined by the ability to make fast decisions to keep up with trends. What type of haircut is growing in popularity? What training do my staff need? What’s the perfect service to bundle with a haircut? How do we encourage her to buy those products to help her maintain her new look? These are questions that leading salons have to be able to answer quickly.
Enrich Salons, Mumbai’s largest unisex salon with over 50 centers that span 5 cities, is a relevant example. A couple of years ago, Enrich Salons was struggling to get to the data that is so critical to running a successful business. It used to mean manual aggregation processes that required hours of effort, so they would get reports - but weeks delayed.
In 2012, Enrich switched to running its salons with ManageMySpa, a cloud software for spas and salons that includes systems for payment, appointment booking, online booking, employee management, loyalty schemes, inventory, and a mobile solution along with analytics. This is a critical part of their comprehensive solution and runs through the cloud BI solution provided by BIME Analytics.
It had become apparent that Enrich needed real-time data that was accessible to the senior managers regardless of where they were as well as for the regional managers.
As Enrich grew along with an expanding customer base, it was critical for Enrich to monitor the entire organization’s performance as well as be able to drill down into individual locations. And, just as importantly, to compare performance between centers.
The real power of the analytics is that it’s real-time, which means the management team is always connected to all the salon locations, even though the salons are spread across 3 states. Real-time data analytics makes all the difference for the dynamic salon industry, an industry that cannot live only on post-event analysis any more.
Management can look at data and metrics ranging from sales patterns, traffic from each gender, traffic from new guests vs returning guests, how marketing promotions are working at each center, and the overall sales mix of service categories, product categories and more. They’re able to successfully identify revenue opportunities and track down any unexpected behaviors.
It’s easy to see what categories of services perform better in terms of revenue growth or appointment counts, and to compare service sales over time periods. They can outline differences between members and non-members, evaluate the revenue generated by male and female clients, and see the most effective marketing programs.
Most importantly, by drilling through the charts and using filters, they can find root causes for behavior and replicate positive behaviors and marketing campaigns. More than that, they can run what-if queries on the data in order to understand how changes in business strategies on various sub-categories of services could impact performance overall.
Enrich is able to successfully take action to stop revenue leakages, to better retain customers, improve incentive schemes for employees and provide more timely staffing and training programs for centers that see sudden growths in the demand for certain types of services.
Enrich used findings from analytics to design a marketing campaign with two goals – reducing the amount of discount they typically give in their promotions, and to send customers home with a home care retail product related to the service they received.
Once the marketing campaign was launched, Enrich relied on their analytics to monitor performance and make adjustments as and when needed.
The marketing campaign generated more than $100,000 in additional revenue. It was the BIME enhanced analytics planning and monitoring combined with ManageMySpa’s targeted marketing tools that helped Enrich exceed their expectations.
The campaign ran for 2 months and averaged at a 22% discount - this was 8% lower than old campaigns where they were giving away 30%. Combined with a higher average ticket size, Enrich made over 100k in additional revenue, which drew the attention of the entire management team and board of directors.
Throughout this campaign and also on a daily basis, the sales and marketing analytics dashboards allow Enrich to keep track of the macro discounting figure from all campaigns to be in range while also tracking the effectiveness of separate campaigns. They can tweak campaigns as they go along because they understand in real-time what types of customers they attract - whether new or returning ones, what gender, which offers were giving away too much in discounts, and analyze various services and product mixes that brought in the most revenue.
The collaboration between BIME, ManageMySpa and Enrich proves that data is truly beautiful when applied in the beauty industry. And there are so many data sources in this industry - customer, sales, marketing, trends, regional and national, and the list goes on.
So what’s the big trend now? Enrich can tell you. At least until Ryan Gosling challenges Cooper, disrupting haircut sales in the process, right?