How much revenue are you losing by turning away customers? Probably more than you think
You know the pain: you can’t accommodate people for any number of reasons – the client requested a specific therapist or gender that you don’t have available, or all the hot stones are booked – so you have to turn them away.
Then what happens?
Roger Sholanki, CEO of Book4Time says, “An average spa loses about 15 per cent of a day’s business from turning away clients. Out of 100 appointments a day, that’s 15 appointments at $150 (£123, €140) on average.”
If you’re open year-round and closed only for Christmas and New Year’s, that’s a total revenue loss of $816,750 (£670,000, €770,000).
“A regular will probably call back,” says Sholanki, “but several studies have shown that first-time potential customers who are turned away will never call back, and that’s where you will lose the most – possibly to a local competitor.”
Current methods for dealing with this problem are ineffective: busy staff try to take notes and/or manually log the reasons for turning away customers, then management uses these logs to try to make changes to staff scheduling or facilities. This process is cumbersome and relies heavily on trial and error, leaving high potential for failure.
Imagine simplifying this process and recapturing that lost revenue.
Book4Time makes it easy to optimise your scheduling and facilities to accommodate as much business as possible in two easy steps.
1. Collect the data
Book4Time’s turn-away tracking removes the guesswork by automatically logging the reasons for every turn away. The system then creates an analytics report where managers can see exactly what’s happening.
2. Optimise
Knowledge is power. Once you know why you’re turning people away, you can optimise your scheduling and facilities to accommodate the clients you’re currently losing.
Sholanki says, “With Turn-Away tracking, spas know exactly how much facial or massage business they lost last month, for example, and the system will quantify that in dollars based on services requested. So when creating your schedules, you can staff more facialists or male massage therapists, and fill that demand.”
It really is that simple.
Book4Time makes maximising your revenue a simple and painless process. You’ll never have to guess again.
For more information visit www.book4time.com
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