ASCP Skin Deep

JANUARY | FEBRUARY 2019

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I know, I know, that's a lot of math! But I hope these examples help you see how a high CRR will help you minimize the time, money, and effort you need to put into gaining new clients— especially if you're growing your practice. Once you calculate your own CRR, play with the numbers to see how increasing your CRR impacts your figures. Now that you know your rate and understand its impact on your practice, use it to set goals. Are you maximizing your client retention strategies to meet your CRR goal? Have you set goals for the number of sessions you want to give within a certain time frame? How can increasing your CRR help you achieve those goals? INCREASE YOUR CRR To increase your CRR, focus on strategies such as immediate rebooking, ongoing client communication, frequent visit rewards, birthday recognition, package plans, and membership programs. With a CRR of 50 percent, Mable had to attract 60 new clients to get a total of 100 clients during the time period. That's a lot of marketing and sales work to gain those new clients, especially if she has to do that over and over each time period. Let's look at an example with the same figures, but with a 75 percent CRR. How many new clients does Mable need to attract to make her goal of 100 sessions during the time period? The numbers show that if she increases her client retention efforts and is able to raise her CRR from 50 percent to 75 percent, she only needs to gain 40 new clients to make her goal of 100 sessions. Going forward, working to maintain a CRR of 75 percent or higher will benefit Mable: if she wants to maintain her client session number at 100 during the time period, she will need to gain fewer new clients over time. As shown in the example below, she'll start the next time period with 120 clients: the 80 she started the initial time period with, plus the additional 40 new clients she worked to gain during the time period. A 75 percent CRR means she only needs 10 new clients during the next time period to meet her goal of 100 sessions. Number of all existing clients at the beginning of the time period: 80 Breakdown of clients during the time period: Total sessions = 100 60 = existing 40 = new Client Retention Rate (CRR) Calculate the % of all existing clients who came for a session during the time period: 60 ÷ 80 = 75% Existing clients during time period Total clients at the beginning of the time period Client Retention Rate Number of all existing clients at the beginning of the time period: 120 Breakdown of clients during the time period: Total sessions = 100 90 = existing 10 = new Client Retention Rate (CRR) Calculate the % of all existing clients who came for a session during the time period: 90 ÷ 120 = 75% Existing clients during time period Total clients at the beginning of the time period Client Retention Rate digital extra

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