Most salon owners run their business blind, looking only at the "Cash Collected" number. But wealth is hidden in the details.
1. Client Retention Rate
This is your most important metric. What percentage of new clients return within 90 days?
Industry Average: ~30% for new clients.
Goal: 50%+.
If this number is low, your marketing is working (bringing people in), but your operations or service quality is failing (pushing people out).
2. Average Ticket Value (ATV)
How much does the average client spend per visit?
Increasing ATV is easier than finding new clients. Train staff to upsell treatments ("Would you like a conditioning mask today?") or retail products. A $10 increase in ATV across 100 appointments is $1,000 extra revenue—pure profit.
3. Staff Utilization Rate
Are your stylists booked 40% of the time or 90%?
If utilization is above 85%, you are losing money because you can't fit in new clients—it's time to hire or raise prices. If it's below 40%, you have a marketing problem.
4. Pre-Booking Rate
How many clients book their next appointment before they leave the salon?
The "Check-Out" is the best time for the "Check-In". Train your front desk to simply ask: "Lets get you in for your 6-week touch-up so you get the time slot you want."
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