Sales- Module C 12 week challenge Client retention

Sales- Module C 12 week challenge Client retention Strategies

Module 3: At Risk Clients- Falling off the Wagon Client Retention Model Increase any of these numbers = Higher Top Line $$ = Increase in Bottom Line $$ Leads Appointments Shows (consultations) Sales Applications Conversions Initial 6 months 1 st year clients Corporate Model 100% 100 60% 60 Center Actual 2

12 Week Challenge- Transition a client into a member NB 1 Conversion Definition: Must Haves: Application Steps: Check-In > Create excitement > Reassurance > Dream > New Style Successful Check in = Successful Application > Satisfaction >Fulfilling Dream >Creativity>Selling Program Successful Application = Successful Check out CAUTION! Check- Out > Create urgency > Show value of programs > Combat Objections before they become objections Successful check out = Keeping a long term member Tools for Successful Conversion: • NB 1 balance must be paid prior to application day! Balances should never be collected on application day…. Your new client will focus on the cost vs. the reward of new hair! REMINDERS: 3

12 Week Challenge- Transition a client into a member NB 1 Conversion 1. 24 hour Check-up: 2. Remaining Check-ups: Objectives: Frontal Kit: (Place in a product zipper bag): 6 day check-up Reminder! FOLLOW-UP Schedule: Men (45 minutes) Women (60 minutes) *Managed through Tickler File* A new client should always see the same stylist from NB 1 application through 1 st full service Traxx Solvent Lip liner Comb Duck bill clip Adhesive Applicator brushes Skin Prep pads For Men and Women Educate client on: Maxxam Clarifying shampoo Maxxam Reconstructor 4

At Risk Clients- Falling off the Wagon Stop, Look and Combat Clients who are “At Risk” of leaving Hair Club 5

At Risk Clients- Falling off the Wagon MIA- Bring back your Troops Getting your clients back on the HC Wagon 6

Sales- Module D Creating the Lifestyle Upgrades Hair Types

Member for Life- Having Hair Becomes a Habit Creating the Lifestyle Upgrade Definition: Tips on Showing Hair to a Client 1. Must Haves: CAUTION! Hair System from previous program must be applied before new program hair is applied. Upgrade Tips: (in order of importance) 1. 2. 3. 4. It’s a FACT: Clients in higher level programs are longer term clients vs. , clients who are not in a program or in a lower level program. 8

Member for Life- Having Hair Becomes a Habit Creating the Lifestyle Stylist Incentives Ideas Existing Member Open House “Summer Lovin” Ladies Open House Objectives: 1. Education: Learn more about hair care, styles and be beautiful. 2. Network with other women 3. Client retention: Building the relationship with your female clients. Goal: Increase product or technology education – Decorate like movie “Grease” and play music – Promote one product or technology per day. Stylist with most sales wins! “What’s in your piggy bank? ” Goal: Move non-program and new NB 1 clients to PCP. – Piggy Bank with fake money for each stylist – For every conversion/upgrade, fill piggy bank. – Stylist with most money at end wins! Prizes: $5 to $100 (monthly cost) • Free Lunch • Manicure/Pedicure • Massage • Day off with Pay • Gift Certificate • Movie Tickets • Create a prize book. Approval by RDO Who to invite and how to invite? • • • Invite a variety of program level (a minimum of one Gold or higher) members. Also invite some non-program members Staff members (consultants, female specialist stylists and manager) should also attend Personal phone invitations work best. Written invitation will help remind them of the date. Call to confirm invitation What should happen? Staff members should determine the goal and theme of their Open House. Some Open House themes include: Supplies for all contests: $5 to $20 Construction paper, Markers, Glue – – Tips for Successful contests: • Daily meetings to track progress • Put stylists in teams • 1 week to 1 month long contests • Keep staff motivated by giving out candy – – When is the best time? • • Tip! To increase participation and excitement, Track progress daily on white board in color room Trima: Product knowledge and proper care for hair. Style variations: Demonstrate styles on a model including hair wrapping, curling etc… Overview of services offered: Introduction to Solutions programs Technology benefits and features Tuesday, Wednesday and Thursday evenings or Saturday afternoon Plan at least 3 weeks in advance Plan an Open House every 4 months 9

Member for Life- Having Hair Becomes a Habit Creating the Lifestyle Factory Holiday Schedule: Chinese New Year Spring Harvest Fall Harvest Hair Ordering Reminder: Plan Ahead for Factory Holidays: Design Template. Manual/MEAAverage Order Times: Express Hair Design Template Manual/MEA Rule of Thumb: Send work orders daily! Use express hair! 10

Member for Life- Having Hair Becomes a Habit Creating the Lifestyle Recurring Customers Rules to Live By 1. Do not let PCP Clients Keep Hair 2. Do not Attention NB 2 Consultants! Just Remember the 4 C’s: 8. Educate 11

Module 3: At Risk Clients- Falling off the Wagon Positive People Pay 1) Print Declined Credit Cards: 2) Hit List: 3) Use Buzz Words: 4) No Pay Go! 5) Educate staff on receivables: 6) Back up EFT for existing pay go clients: 7) Set up Manual Charge: 12

Definitions

Recurring Customer- Life Cycle APPLICATION (NB 1 A) CONVERSION (NB 1 C) UPGRADE Client joins a Preferred Client Program. Status changes to Active Client DOWNGRADE RENEWAL MIAUnable to locate. NB 2 (Non Program) CANCELRemoves hair Client purchases Hair system, but does not covert to Program A B C Payment Refund Cancel/ Removal/ Expire/ PAYMENT NB 1 C = EFTB NB 2 = NB 2 PMT REFUND NB 1 C = CRFD NB 2 = NB 2 R CANCEL 1. Cancel program 2. Delete EFT Profile PAYMENT- Upgrade PAYMENT- Downgrade PAYMENT- Renewal 1. Cancel current program 2. Enter new program 3. Payment 4. Update EFT profile 1. Enter renewal 2. Enter expiration date 3. Update EFT profile Refund per contract EXPIRED NB 1 Application NB 2 status 365 Days 14

Recurring Customer- Business Definitions SALES NB 1 Conversion Definition: Upgrade Definition: Non Program/NB 2 Definition: A Non- Surgical client joins Preferred Client Program after NB 1 application An active PCP member who moves from a lower Preferred Client Program level to a higher level. A Non- Surgical client purchases one head of hair for $1, 500. Example: John upgrades from the Bronze Program to Gold program in order to receive Gold technology and added services. Client is considered an active non-program client. Must Haves: • • • First month fee collected Client signs a PCP contract Follows Recurring Customer Payment Policy: EFT or 12 month pre-pay REMINDER! A client can only be converted (NB 1 C or NB 1 GC) once in HC lifetime. • • • First month fee collected Client signs a PCP contract Follows Recurring Customer Payment Policy: EFT or 12 month pre-pay REMINDER! A client must turn in previous hair system before new hair system is applied. • • Hair ordered once 50% of total contract collected Client signs NB 1/NB 2 Contract REMINDER! Do not sell Non Program hair at a discount! STATUS Active Client Definition: Frozen Definition: MIA Definition: An active PCP member who comes in for a full service within 60 days or makes a payment within 31 days. PCP account is frozen (no monthly fees deducted). Account can only be frozen for: - Clients who has pre-paid fees - Customer care issue discussed or approved by RDO A PCP member who the center is unable to locate: - Client has not been in for service within last 60 days - No contact or notice of cancellation - Account may be overdue in excess of 31 days CAUTION Use proper data entry! Data entry affects a client status: - Active clients should have Member codes - NB 2 (non-program) should have non -program codes CAUTION Accounts are NOT frozen for: - Clients not coming for services such as travel abroad - Customer service issues such as problems with hair or service. - Unresolved payment issues CAUTION Keep your clients active! - Contact all MIA clients by 3 rd Friday of each month. 15