Analyzing a business’s data is the best way to realize its financial health and identify trends. Understanding the numbers and assessing the key performance indicators will also help a business plan for the immediate needs and long-term future.
Rosy Salon Software recently conducted a research project, taking a deep data dive to see how much its users realized growth from 2021 to 2022 in key areas. After comparing stats from the two years, a few upward trends emerged, offering insights into the future of the service business.
Service Growth
In 2020, most salons were forced to shut down, causing financial strife across the industry. By 2021, salon doors were open and clients were serviced while practicing social distancing. However, not all clients ventured back into the salon, at least not right away, and the return to “business as usual” has remained a slow journey ever since.
The good news is that the data shows measured growth year over year. For example, in 2022, Rosy users saw a 3.5% increase in the number of appointments on their schedules – a step in the right direction. However, the number of tickets rose by 10% in that same timeframe, indicating that walk-ins are on the rise. The highest number of tickets rose the most amongst the 8-15 chair salons at 14%.
There was also a 10.5% rise in the number of services performed, meaning salon clients are adding more services to their appointments. This could result from salons using upselling techniques to encourage more services and/or clients having both the funds and confidence to splurge a little more while in the chair.
With the increased services performed, Rosy salons realized a 15.2% total service sales growth in 2022, suggesting that salon clients are paying more for these services than in 2021. According to the data, Rosy users had 14.60% overall ticket dollar amount growth in 2022 vs. 2021. The average ticket was $99.91 in 2021 and rose to $103.16 in 2022, earning $3.25 more per salon visit.
To recap, Rosy users had:
- 3.5% more appointments in 2022 vs. 2021
- 10% growth in # of tickets in 2022 vs. 2021
- 10.5% growth in the number of services performed in 2022 vs. 2021
- 15.2% total service sales growth in 2022 vs. 2021
- 14.60% overall ticket dollar amount growth in 2022 vs. 2021
- $103.16 in average ticket dollar amount in 2022 compared to $99.91 in 2021
The Retail Side
Service growth was not the only step in the right direction: retail sales stats also revealed some interesting trends.
In 2022, Rosy users saw a 7% growth in the number of tickets with retail added. Users also realized a 3.50% growth in the value of an average retail sale year over year. But the big revelation is the percentage of service guests that purchased retail in-salon in 2022. Most salons average 20% of their clientele buying home care products after their services but before they leave, while Rosy users averaged 31% in 2022.
Why the drastic difference between Rosy users and other salons? Some credit the option to reserve products when clients book their online appointments, others the running-low reminders sent out by auto email or the suggestive selling feature built into Rosy – or all of the above. And that 31% stat does not include eCommerce sales through the salons’ online stores.
To recap, Rosy users had:
- 7% growth in the number of tickets with retail added in 2022 vs. 2021
- 3.50% growth in the value of an average retail sale in 2022 vs. 2021
- 31% of service guests purchase retail in 2022
Other Finds
No-shows are a perpetual issue with any service business, but even more so with salons. Most salons realize several no-shows in a given week for smaller businesses and likely daily for larger ones. Either way, the losses from no-shows and late cancellations average about 8% of salon sales. But one way to help recoup some of these costs is by taking deposits when booking services. In 2022, Rosy users were able to capture deposits and recoup about half the cost of the booked services for 80% of no-shows.
Another feature that provided growth in 2022 versus 2021 was when Rosy users took advantage of the integration with Tippy within RosyPay payment processing. Without Tippy, tip averages for 2022 were $21.17, but with Tippy, they reached $23.18, meaning that tips through the digital tipping platform were $2 higher on average per transaction.
To recap, Rosy users:
- were able to capture deposits for 80% of no-shows in 2022
- realized on average $2 higher tips when integrated with Tippy
The Assessment
The overall assessment is that more clients are returning to the salon. They are also having more services performed and are paying more for those services. Retail is also on the rise, both in terms of frequency and dollar amount. And, Rosy salons average higher percentages of clients that buy products in-salon during their appointments. Plus, between taking deposits and using digital tipping along with Rosy’s integrated payment processing, salons recoup much of their losses with no-shows, while their service providers earn more in tips.
So, how does your data compare to Rosy’s users?
Looking for software that can help your numbers? Give Rosy Salon Software a try for free! No credit card is required, but you get 30 days for free to see it.
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