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Top 3 Business Boosters – Part 2 of 3

 2. Analyze Client Profitability

Handle your Clients according to the value they bring to the business

“You will be most successful if you are a business who is diligent in gathering customer data and then providing initiatives that will encourage those customers to become even more profitable to the business.”

We know that our most valuable customers are those who have come in recently; who shop with us frequently; and who spend a lot of money when they visit. To uncover this data, you have to track those three things with each customer. That is: the (last) dates the customer has visited the spa, which is referred to as “Recency”; how often they are coming into the spa in a given timeframe, or “Frequency”; and what they spend each time they visit the spa, or “Monetary Value”.

Shortened, these three profitability measures become “RFM”. Most likely your software program can provide some or all of this data for you.

Once you have begun gathering data on your clients, group them into two or three categories that will enable you to rank them and determine their handling.  In simplified terms, an R1F1M1 is your VIP, and an R2F2M2 has less value to your business.

One more point not to be overlooked.. always consider a

client’s potential as well as proven results.

About Leslie

Spas2b Inc. is a full service Spa Development company, specializing in Online Spa Management Distance Learning Courses, Spa Business Manual Instant Downloads & Resources, and Spa Consulting Services.
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