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Hello and welcome, and it’s that time of the year again. I thought it was good timing for me to share what I think is the one most important measure for measuring the success of a member of your team.
The one measure that I’m going to share with you today that I think is vital, is called utilisation. Essentially how busy one member of your team is. Some Salon coaches around the world, will say that the average bill is the most important measure, and I don’t think that’s correct. We’ve had turn our marketing into a machine for a successful Salon, and that involves running promotions, discounts or a loyalty programme. So, average bill will look a little bit more negative, utilisation will show us how busy somebody is.
The other measure is the amount of money they’re putting in the till. Your service total or your service and retail total, isn’t necessarily a great measure of how brilliant a Stylist or Therapist is. The other problem with using service and retail totals, is that when someone goes on holiday, it hits they’re totals hard. Utilisation takes that into account, because what we’re measuring how many hours were utilised putting money in the till.
Now what I would like you to do is figure out what the consequences of somebody not hitting a target is. In my Salon, we have a target of eighty percent utilisation. If your utilisation drops below seventy percent, we start having weekly marketing meetings. If your utilisation drops below sixty percent I will be reducing the hours that you are contracted for, two hours come off your contracted hours.
If somebody is a brand-new starter, I build in a target for them to move up. I would give them three months to hit target utilisation, if they’re brand new you have six months to hit those targets. If they’re not hitting those targets, we reserve the right to terminate your employment in that instance. That’s the consequence that I have in my Salon, and it’s important that you have those consequences build in.
I hope that’s been useful to you, it will be more useful if you build in the consequences in. If you’ve enjoyed the video, then please don’t forget to subscribe. I do a broadcast like this every single week and I would hate you to miss out on the content that I’m sharing. If you’ve already subscribed I will see you again next week. Take care.