The Fastest Route to Maximum Salon and Spa Profits

April 23, 2009 by  Filed under: Marketing 

Now, what you need to know…

You need to know your cost per lead (how much it costs to generate someone interested in your salon/spa) from EACH source you use (e.g. newspapers, web, postcards etc), your client VALUE per source, your retention rate per source, and every other meaningful number from your business in order to make decisions.

Let’s say you use the Yellow Pages, Postcards and the radio to attract clients (and that is not enough sources!). And let’s say the cost per acquisition of a new client is £10 from the YP, £15 from postcards and £25 from radio. Which is a better ad media?

In this case you don’t know unless you can tell which clients come in most frequently and are retained over time. After a year we might find:


Cost to acquire: £10

# Of visits in 6 months: 8

% Still active at 12 months: 40%


Cost to acquire: £15

# Of visits in 6 months: 6

% Still active at 12 months: 20%


Cost to acquire: £25

# Of visits in 6 months: 14

% Still active at 12 months: 30%

Now, which is the best media?

Every salon/spa has its own set of governing numbers. You need to find yours and then monitor them. The more money you spend on salon advertising for client acquisition, the more important this…

And don’t think that just because one media is more expensive than another you should only focus on the highest return media… That is USUALLY a BIG mistake!!

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