3 Must-Have Salon Management Capabilities to Streamline Your Business

by:
on July 29, 2016

Salon management can be a tough task. You’re faced with ever-changing hours and tons of employees, customers and products to track.

Excelling at salon business management in today’s market means leveraging key features offered by salon software.

Without salon management software to help you track all the business’s moving parts, you’ll be lucky to keep your head above water.

And yet, we know from the conversations we have every day that 58 percent of salon operators who contact us aren’t using software as part of their salon management strategy.

 

58 percent of salon management software buyers are not currently using software
 

Salon software enables you and your employees to automate previously tedious manual processes. This streamlined management will hopefully lead to a more positive customer experience and improved retention.

If you’re reading this, you likely fall into the 58 percent with no such software for your salon business management. No need to worry, though.

We’ve identified three must-have software features that enable these salon management practices. Keep these in mind, and you’ll have a much easier time selecting the best software for your salon business.

(Click on a link below to jump to that section.)

Inventory Management Keeps Shampoo Stocked
Reporting and Analytics Provide Insights Into Revenue
Customer Management Tracks the Most Valuable Spenders

Inventory Management Keeps Shampoo Stocked

Salon management software automates inventory management and may provide the greatest increase in efficiency.

There’s no reason to spend time manually gathering product counts: It’s inefficient and invites human error, as 87 percent of salon owners we spoke with can attest to.

They identify inventory management as a significant pain point for their businesses.

 

87 percent of salon software buyers say inventory management is a pain point
 

Our data goes even further to articulate the importance of automating inventory management. Our retail consumer research found that 83 percent of customers will stop shopping at your business if you have items out of stock.

This sheds some light on why 93 percent of your peers who are buying salon management software specifically require inventory management.

 

93 percent of salon software buyers request inventory management
 

While inventory management can offer greater transparency into your product count, this is only one of many reports your salon software can produce.

Reporting and Analytics Provide Insights Into Revenue

Do you have any idea how to collect valuable customer information? How would you analyze it once you’ve collected it?

Take our advice on must-have salon software features, and you won’t have to worry about manual collection and analysis of all this data.

Reporting and analytics features automatically capture and analyze data for you. Just as with inventory management, automating these tasks creates more time for training employees and interacting with customers.

All the while, the details of each transaction are documented for you to easily find trends and gain other insights.

The ease with which a platform displays these reports is paramount. Without easy-to-use reporting and dashboards, you’re left with spreadsheets to sift through and manually analyze.

While you can make findings through this method, the ease and transparency afforded by formal software reporting is much more efficient.

This explains why 72 percent of salon business owners identify reporting and analytics as a pain point.

 

72 percent of salon software buyers say reporting and analytics is a pain point
 

As our salon management software buyer’s guide explains, software that provides reporting and analytics capabilities offer many benefits. This software:

“Generates reports on customer satisfaction by stylist or service categories, effectiveness of marketing campaigns, tracks staff performance and evaluates revenue trends.”


Reporting and analytics enables you to identify your top selling products and services—off your shelves and in your chairs. With such insight, you can make informed decisions that positively impact nearly every facet of your business.

Customer Management Tracks the Most Valuable Spenders

It’s crucial to use the insights gathered from your salon software to elevate the customer experience.

Every customer is important, but some are literally more valuable than others. For example, if Jane comes into the salon once a month and spends $80, she’s more financially valuable than John, who comes in three times a year to buy shampoo.

Insight such as this is highly valuable. This might explain why 65 percent of salon software buyers specifically require customer management features as a must-have for their new system.

 

65 percent of salon software buyers request customer management
 

Not only do customer management features integrate with reporting and analytics features, most also offer marketing capabilities to execute on next best actions.

For example, you can use insights from the data gathered to create personalized email marketing campaigns. This could be a traditional campaign creating awareness for a new product or offering.

Or, it could be an automated reminder email sent to customers after they exceed a predetermined length of time without returning to your salon.

There are many different ways to go about this kind of personalized marketing, but all of them begin with the data and insights gathered from your salon management software.

Tips for Choosing Best-Fit Salon Management Software

Salon software offers an abundance of features and capabilities beyond those discussed above. In addition to looking for these three important features, here are some more tips for choosing the right system for your salon:

  • Take your time when selecting a software platform. Work with vendors to set up demos, and get your employees and stakeholders involved.
    • Take notes and compare what you do and don’t like about certain vendors’ features or usability. Your new salon management software should not be an added burden for you, your customers or anyone on your team.

    If you’re struggling with getting started, visit our salon software page for a list of top vendors in the industry. You can see product profiles and read our informative user reviews.

    These reviews offer peer-to-peer, first-hand insights into the functionality of each system, as well as the general business experience of working with the vendor. Take advantage of these reviews and pick the best system for your business.

    You may also like

    What Is a Point of Sale (POS) System?

    5 Must-Have Retail POS Software Features to Streamline Your Small Business

    Building Customer Loyalty That’s Embedded in Brand Trust

    Compare Salon Software