Modern Salon - February 2009 - (Page 46)

MODERN BUSINESS Betting on Futures BEST PRACTICES They’ve weathered walk-outs, suffered recessions, seen bull and bear markets, and thrived through it all. So what’s Jerry and Karen Gordon’s manifesto on maintaining your base? Give people what they want—along with what they’ve yet to discover they want. One route: Show appreciation through a “new-experience.” The goal: Make stellar customer service your primary marketing tool. Explains Jerry Gordon, who along with wife Karen, owns J. Gordon Designs in Chicago, “It costs a lot of cash to market to new customers; advertising is expensive and not always effective. In this economy, we should all make a stronger effort to maintain Jerry and Karen Gordon give their VIP clients the our existing clientele by providing exemplary customer service, top, tress treatment. value-added treatments and superior customer-reward programs.” During November and December of last year, Gordon sent the salon’s VIP clients (the top 250) a beautifully printed invitation for a complimentary, customized hair treatment, valued at $45. His three-fold intent: Reward top-tier clients, introduce them to a new service and expose them to a new product line. Triple play! The bonuses: The service involved a relaxing experience, and clients were told its high value, which they then equated with themselves. Results? Priceless! RETAIL REVUE Riders of the Storm Baby boomers are concerned with “aging” hair, but a solo-use, sample size doesn’t cut it. With Re:nu System Mini Trios, Joico addresses both issues. Your Hottest Product Now: Re:nu System mini trios, in Fullness & Body and Softness & Manageability formulations Why It’s Flying off Shelves: Re:nu System mini trios offer clients Re:nu System mini trios simplify buy-and-try. a way to truly experience the problem-solving Re:nu system at an affordable price. How to Retail it to Clients: Scientific research reveals that hair, like skin, degenerates with age, losing its ability to retain moisture. If your client has thinning, dull or fragile hair that’s less responsive to styling (leading indicators of “mature hair”) address these issues with Re:nu. How to Boost the Ticket: Complement Re:nu’s mini trios with the full-line of anti-aging Re:nu styling products. STEAL THIS! LEADING INDICATORS High-Yield Retailing Salon owner and NCA president Mark Goodman says high-yield retailing requires a “retail as destination” mindset, at least four product lines (for business, natural, on-the-edge and bargain-minded clients) and extreme accessibility, including a place to test and try, plus street visibility. Here’s what he adds to the mix: Name of salon: The Hair-Designers Location: Hilton Head, South Carolina Bright Idea: Goodman employs “big-store strategies.” Best sellers are not at eye level; sales he wants to encourage are. He continually changes displays, like the drug chains do, and includes unexpected items, from sundries to the newest work from a local photographer. At “checkout,” he displays nail polish, lipsticks or gift items at eye level. Why it works: “We focus on different types of products to meet the needs of all potential clients, and use placement like the mass markets do. Now, clients think of us as a retail destination. Changing displays often forces focused attention, but we aren’t as big as the grocery stores that do this, so it doesn’t become a frustration.” Bottom line: Since retooling retail, Goodman says sales went from about 2-percent to nearly 20-percent of sales. Like many established salon owners, Damiano and Teri Guardino of Moda International in Forest Hills, New York, have benefited from a strong, local client base. Another neighborhood-salon similarity: Many of their clients work in a single, threatened industry: the financial sector. What do you do when core clients hit hard times? “We’re offering clients who are unemployed any services they want, gratis, prior to a job interview,” says Damiano. “Even if they want a full head of highlights, the product cost is about $18; the alternative is to lose your clients forever.” Noting that the salon thrived for decades and it was give-back time, the duo presented the idea to the staff first. Even though it meant lost commissions, they were relieved and voted unanimously to approve the plan. Turns out, the staff had wanted to do something themselves. The preemptive move discouraged them from making home visits and relieved them of decision-making. Next, the owners culled the salon’s database and called every client in a “threatened industry” to see if they were okay. The much-appreciated contact allowed them to tell clients that if their jobs were lost, the salon would be there for them. Clients who were unemployed were also told about complimentary jobinterview services. While time-consuming, the method encompassed support, dignity and privacy, something an “economicstimulus promotion” can’t do. “About 20 percent of our clients are financial workers, affected or not,” says Damiano. “But we also looked at families who are clients and the trickle-down effect of single-salary incomes. We discovered nearly 70-percent of our base could be affected in some way, which made action a must. Things will get better, and when they do, our clients will be more loyal than ever.” Teri and Damiano Guardino. Modern Business written and compiled by Victoria Wurdinger. 46 FEBRUARY 2009 www.modernsalon.com http://www.modernsalon.com

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Modern Salon - February 2009

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