AMERICA'S BEAUTY SHOW'S SALON BUSINESS FORUM

Room 470a on Sunday, March 28th was packed with audience members eager to learn from the experts on how to bring back their clients.

Panel members Reuben Carranza, CEO P&G Professional; Deborah Schmidt, owner of Mitchell's Salons & Spas in Cincinnati, OH; Eva Scrivo, owner of Eva Scrivo Salon in NYC; William George, owner of James Joseph Salons in Boston, MA; Ginny Eramo, owner of Interlocks Salon & Spa in Newburyport, MA; Jason Hall, owner of Red 7 Salon in Chicago, IL; and Cosmetologists Chicago President, Frank Gironda also contributed. Stacey Soble, editor-in-chief of Salon Today led the Q&A discussion. 

(left to right) Outline of Reuben Carranza, Frank Gironda, Deborah Schmidt, William George, Ginny Eramo, Jason Hall, Eva Scrivo, Stacey Soble

Here's some of the information provided by some of the Salon Industry Experts:

REUBEN CARRANZA

- Carranza led an interactive and proactive discussion about consumer shopping behavior. He started with the topic of beauty, and asked a very important question to audience members: "Who's getting involved in beauty?" According to Carranza, consumers are becoming more knowledgeable about services and products everyday. Consumers are becoming blurred by all of the beauty competition that has evolved throughout time.

The truth of the matter is, salons and spas are now competing with retail stores which now have their own specialized departments in beauty—CVS Beauty, JCPenny Beauty, Payless, The Gap, Victoria Secret—all of these retail chains have customized beauty brands. "The battle is not only happening in brick and mortar environments, it's happening online as well. According to Google.com, YOUTUBE has over 800,000 consumers clicking about beauty every week," says Carranza. "Large retail stores have made mass retailing a success because of their pristine displays. They have created an overall environment where people can stop and browse."

Carranza hit his point right on the nose when he concluded. "It's time for us to take back our salon client. Because she believes us first." Carranza told audience members they should be conscious of the buying behavior of "The Beauty Enthusiast." 

Reuben Carranza

What is 'The Beauty Enthusiast?"

• A consumer who thinks about spending her money, where to spend her money, and is pre-disposed to shopping and spending in the salon environment.

• She views the salon and the hairdresser as the 'key' source of beauty

• She is a thought-leader. This can include blogging or looking for new products and services.

• She is an experience-seeker. It's all about the total beauty experience for the Beauty Enthusiast. She likes all of her senses engaged.

• She's an informant. She responds to sophisticated information, trends and what's happening in the beauty industry.

• She wants to look the best at her age, and actively seeks out beauty news.

Beauty Enthusiast's statistics:

45 percent purchase Salon and Retail products
44 percent purchase only Mass Retail products
11 percent purchase only Salon products.

What do these statistics mean? According to Carranza, Salon owners need to focus on the
people IN THE MIDDLE who buy both salon and retail products. If business owners can
persuade this percentage to purchase only salon products, they have more customers right
in their bag.

"Be true to your client. Give them the best experience possible," said Carranza. "When the economy
recovers, this is what will keep people coming back to your salon. People who do this already are
pre-disposed to success. The more you offer, the more you get." Carranza said to listen to your
clients because they will tell you exactly what they want. When you give them what they want,
they will continue to come back. Let clients know what your salon stands for, and why you're unique.

As a closing point, Carranza stressed that through TRANSACTIONS you make EXPERIENCES.
Move from ACQUISITION to INVOLVEMENT, and evolve your TRUST from the customer to
more of an AUTHORITY role.

WILLIAM GEORGE - George stressed that besides taking back your clients, it's important to take back your staff. "Keeping a team together is tantamount to success in this industry," said George. Staff meetings and clear communication to your staff is crucial. It is important as an owner to take control of each and every meeting at your salon. "Make sure your staff is well-trained," adds George. 

There are three key components for a successful business:

1. Salons must produce a brand identity.

2. Make clear product choices—be strategic.

3. Always keep your staff engaged through communication, training and strong leadership

Deborah Schmidt and William George

EVA SCRIVO - Scrivo gave a little different advice. Her business strategy involved establishing herself as a beauty expert not only in hair but fashion, events, makeup, etc. "It was my best business building skill," said Scrivo. "When people needed advice, they knew they could come to me to get it." The second business strategy Scrivo emphasized was for salons to have good "chair-side manners."

"Become the authority. Show your client exactly how to style their own hair. By teaching, sharing, and giving, the more you get back," said Scrivo. "If you are going to talk about anything with your clients, talk about hair. Let your clients talk about the personal things—let them drive the conversation." According to Scrivo, the best hairdressers don't talk. They focus on their work. "Less talking equals more time to do your client's hair," said Scrivo. If you must talk, chat during blow-drying time or when you are applying a product.


 Eva Scrivo

"Make a lasting impression. Educate and empower you client, be professional and don't be a product
bully," said Scrivo. "Beauty is about energy and connection. If you give your client the insight of beauty
she will move differently throughout her life," said Scrivo. "A lot of my customers are very proud of
me and say, 'Eva, I can't believe how far you've gone' and I say, 'I couldn't have been able to do it
without you.'" 

DEBORAH SCHMIDT - According to Schmidt, quality service starts with education of your staff.
"By the time they get to the client they will be confident and know what they are doing." said Schmidt.

Schmidt also said to collect information on the target you want and you’ll begin to see patterns. Go back with a target client in mind—every thing has to match that image. Create a culture your client can feel.

Schmidt said it ended up being a stroke of genius to name her second salon concept Pump. “You can think of more innuendo to market the word Pump—we’ve done ‘em all and we’re still doing ‘em.”

More quotes:

“Your target client has to be the captain of your team.”

“If you are speaking sincerely and speaking consistently, your client will hear you twice as loud.”

JASON HALL - When Jason was asked, "How do you retain customers from a stylist who left the salon,"
he replied, "We offer an incentive where the client can try out a different stylist at our salon and see if
they like them. We also communicate to our clients where their previous stylist went. We also give them
their contact information—we don't hold back."

****************************************************************************************************
At the end of the Salon Business Forum, all of the business experts had a chance to leave the audience
with a final soundbite. Here's what everyone said:

Eva - "Build relationships and connections with people about their hair. Measure successes quarterly or annually. It takes many years to build your craft."

Jason - "Be true to yourself. Your business should be a reflection of you. Never waiver from that."

Jenny - "Empower yourself and your staff on an outgoing basis. Keep everyone enthused."

William - "You and your company are a brand."

Deborah - "Know your target."

Frank - "Never lose sight of your game plan."

Reuben - "The future moving forward is not what happened in the past. It takes all of us together to make a change whether you're a salon owner, stylist, manufacturer, etc."