Modern Salon - February 2008 - (Page 70)

YOUR BUSINESS Build it, then what? Experts say 95 percent of all marketing is ineffective. Victoria Wurdinger uncovers the five percent that works, and how you can reap huge returns. our DSCs told on you. They said more than half the salons they visit don’t do any marketing at all. Their owners just wait for clients to come. Being generous, let’s explain by guessing either these salon owners discovered the return on investment is non-existent for most programs, or their accountants told them, “Times are tough; cut back.” Neither is a very good idea. In an e-mailed article, Bob Pritchard, Australia’s International Marketer of the Year, writes that the old paradigms of product, price, brand awareness and satisfied customers “aren’t worth a damn” in today’s information-driven, increasingly competitive marketplace. To market effectively, he advises, build multichannel approaches that enhance potential customers’ knowledge, then increase the dialogue and improve the lifestyle connection between you and them. We asked three salon consultants how, and discovered that what’s most effective barely costs a thing. Carol Phillips, president of EncompassOne in Gainesville, Virginia, and author of Low Cost, No Cost Marketing advises that wellestablished salons in a maintenance mode put five percent of sales back into marketing. “If you’re growing, use 10 percent of projected sales for marketing over the next 16 to 18 months,” she says. Start with the best programs—which also happen to be the free ones. Word of mouth is the primary driver of service or retail purchases. Of nearly 35,000 weekly messages consumers receive, they tend to act on just three to five—but they respond to one in three word-of-mouth 70 FEBRUARY 2008 Y Ask First suggestions. What’s the best way to take advantage? “Define a program and a budget; have specific, trackable results,” recommends Bryan Durocher, president of Durocher Enterprises in Austin, Texas. The reason: Most programs fail because they aren’t measured. Once you’re prepared to track what works and how well, try a triple approach that Durocher says works without fail. Pass out business cards with a call to action. For instance, once you get three referrals from one client, give the client a retail reward. continued on 72 1. Create an in-house referral program. www.modernsalon.com http://www.modernsalon.com

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Modern Salon - February 2008 Contents Behind the Cover Notebook Beauty Matters Contributors @ModernSalon.com New-Now-Next Modern Portfolio Modern Reports As the Experts Choose Beauty Build It, Then What...? Toolbox: Shopping Sharp Star Power Runway Reality Haute Chocolate Modern Update The Goods Personal Style

Modern Salon - February 2008

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