Salon Business Operations Flashcards

What does client lifetime value (CLV) estimate?

Answer: Total revenue a client generates over their entire relationship

CLV projects the total revenue a client will bring across all their future visits.

Which marketing metric measures how much it costs to gain one new salon client?

Answer: Customer acquisition cost (CAC)

CAC divides marketing spend by new clients acquired to show the cost per new client.

A salon owner reviews the P&L and sees rising product costs eating into margin. What is the best first step?

Answer: Track product usage per service to control waste

Measuring product used per service pinpoints over-pouring and waste before cutting elsewhere.

Which practice best supports a smooth ownership transition or eventual sale of a salon?

Answer: Maintaining clean financial records and documented systems

Documented finances and systems make a salon transferable and increase its sale value.

What is the main benefit of a salon booking/POS software over a paper appointment book?

Answer: Automated reminders, reporting, and client history

Salon software automates reminders and generates reports and client histories a paper book cannot.

A salon's rebooking rate is 25% and the target is 50%. Which change most directly improves it?

Answer: Training staff to schedule the next visit at checkout

Prompting and booking the next appointment at checkout is the most direct driver of rebooking rate.

Which of these is typically a fixed cost for a salon?

Answer: Monthly rent

Rent stays the same regardless of how many clients are served, making it a fixed cost.