Let’s get straight to the point here. A client that doesn’t show up for their appointment means lost revenue for your business. Conversations around no-shows and how to combat them have arisen more and more in our community post-lockdown(s) and are becoming a concerning issue for salons, spas and clinics alike.
This is why we’re calling 2021 the year of the booking deposit. Gone from being something that’s nice-to-have when booking in a client to a total non-negotiable, we want to see more businesses protecting their precious time and ever-growing waitlist with measures that get your clients committed and excited for their appointments.
So, how do you implement this new process? How much do you charge? How will your clients respond to the change?
We reached out to Phorest Salon Software to have these most commonly asked questions answered and to learn how their brand-new online deposits feature is the answer to your no-show woes. For salons who can’t afford to let any more opportunities pass them by, this new feature protects and grows your revenue, improves your cash flow and gets clients engaged about spending more on retail.
Cutting your no-shows by 65%
Phorest shared with us that “businesses that have implemented their booking deposit system have seen their no-shows go from 5.4% to 1.9%”. Yes, you read that correctly, they’ve cut their no-shows by more than half! Whilst it’s important that the quantity of clients is there, you want to ensure they’re also quality ones. By adding a booking deposit process, the clients that are walking through your doors are ready, committed and excited to receive their treatment.
Secure cash flow
From the cost of consumables, product, technology repayments to the additional cleaning supplies required in our current environment, the investment in a client’s service begins before they’ve even arrived. For those businesses in the trenches of client no-shows, we know that money can be tight.
Having a booking deposit system in place means that you can secure a proportion of your clients’ treatment cost prior to their appointment and utilise this for the cost of treatment consumables. Giving you peace of mind that the client has financially committed to attending their appointment, you’re able to stock up on those treatment room essentials, especially when you start to see a trend in service popularity.
We know that sole traders and home-based businesses are going to love the extra cash flow flexibility that comes with a booking deposit. Whilst yes, this is another ongoing expense for your business, the cost of using a feature like the Phorest online deposit options significantly outweighs the cost of yet another no-show.
Choose when, what and how much to charge as your deposit
With 30% of your bookings happening when your doors are closed, online booking is another must-have in our eyes. The whole world has gone online after all! If you don’t currently have an online booking system in place, that’s 30% of new or existing clients that you could be losing to a competitor that does. With the ease of online bookings comes the ease of not showing up which is where the deposit process comes in.
The team at Phorest explain that online bookings can be deemed a higher risk booking which could warrant a higher booking deposit. Different deposits for different types
of clients?! Music to our ears!
When developing this new feature, the Phorest team knew that no two clients were the same and your loyal, long-term clients don’t necessarily need the same booking deposit as a brand-new, unfamiliar online booking. This is where things got really interesting for us. For salon owners unsure of how to implement a deposit strategy, get ready.
With Phorest, you can create custom deposits that you can change at any time, for any type of client.
In your Phorest account, you can select which services you’d like to charge a deposit for, what type of client needs to pay a deposit and how much that deposit is.
For example, if your online booking system asks if they’re a new client, this could trigger your system to charge a higher booking deposit. If the booking is for an existing client, this deposit could be much lower. If that existing client has a history of no-shows on their account, you may choose to increase that booking deposit to secure their appointment this time around.
This is also a big win for clients that are unsure how their existing clientele would respond to a new booking deposit system. Remember, your services are worth a booking deposit. Your loyal, long-term clients continue to visit you for a reason so asking them to support your business with a small deposit before another incredible service shouldn’t raise an issue for them.
Ramp up the retail
If you’re wondering how a booking deposit could possibly encourage a client to spend even more money in your business, hear us out.
Let’s say, a first-time client books an appointment online. Let’s call her Sally. Sally books that 90-minute facial that she’s had her eye on for a while, which she secures with a 50% booking deposit (remember, higher risk = higher deposit). She booked her treatment 4-weeks in advance, during the same week that she received her latest salary payment.
Once her appointment date arrives, Sally has likely been paid again and only needs to settle the remaining 50% of her treatment cost. Her deposit has been spent and budgeted for in the previous salary period so, in her mind, she’s got less to pay for on treatment day and more money to splurge on treatment upgrades and retail products! And to that we say, treat yourself, Sally.
Use your booking deposit as an opportunity to consult like the pro you are and recommend products, treatment packages and upgrades that are going to enhance your client’s results. Blown away by your exceptional service and expertise, they not only spend more during their appointment but likely book a second (or third) treatment without batting an eyelid at the deposit.
We want you to get those booking deposits sooner which is why we’ve teamed up with Phorest for an incredible Beaute exclusive offer. Receive 50% off your set-up, including data migration and one-on-one training, when you sign up here.