PROVEN TECHNIQUES TO BOOST RETAIL SALES.

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You ve selected amazing product lines, built a beautiful retail area, trained your service providers and front desk, but retail sales are stagnant. What else can you do to increase retail sales? In this ebook, we share marketing and operational strategies that few spas and salons do well, but can be highly effective at increasing retail sales. Hear from clients, who ve seen real results: Through Zenoti s powerful marketing and package management capabilities, we doubled our average ticket size, and moved a high volume of retail products. Sachin Kamat Director of Customer Engagement, Enrich Salons We use Zenoti to manage our inventory, including individual prices, cost and retail products. It makes it very easy for us to track previous purchases in order to do follow up and further boost sales. Gina Henderson Operations Manager, Dermal Laser

EMAILS Emails can help open a sale even before your guest comes in for their visit as well as drive retail sales between visits. So, what types of emails should you be sending? Service Reminders Service reminders are great at getting guests who haven t visited in a while to return to your salon or spa. For example, you might want to send a reminder to guests who came in for their last massage over 3 months ago and have not visited since. When you send a reminder, open the retail sale by announcing a retail promotion that you re currently offering, or by creating a special retail incentive just for guests that receive this email. Product Replenishment Reminders You know what retail your guests have purchased from you,and when that product is expected to be fully used. Use that information to send

a replenishment reminder. For example, if a guest purchased a shampoo that would likely be used in 45 days, be sure to send an email to the guest exactly 40 days after the initial purchase. Slow Moving Product Special For a retail product that is not moving, highlight that product in an email with features and benefits of the product. Offer a BOGO (Buy One Got One free) or similar incentive. This helps you from tying up cash flow. Set your emails on auto-pilot. Create your email templates once, and then let the system handle sending it out to the right guest at the right time. You can also sell retail products online making the entire refill process from email to purchase easy for the customer. Finally, Zenoti also enables you to create emails on the fly and send to targeted groups of guests that would be most receptive to a retail offer.

COUPONS Guests typically check their receipts, even if only for a cursory look, that makes your receipt an effective marketing vehicle. Use a dedicated real-estate on your receipt to print a coupon that promotes a retail product relevant to the service the guest took. For example, if a guest came in for a hair service and did not purchase any retail, print a coupon that encourages a retail sale for a color protective shampoo or hair moisturizing serum. You can make the coupon valid for the same visit or for the next visit. You can also use coupons to cross-sell services. For example, for a guest that comes in for hair services but never tried a pedicure, you can promote that. Set up the system to print smart coupons for each guest. That is, each guest will receive promotions that are tailored to their visit and purchase history.

MEMBERSHIPS Memberships can be a predictable revenue source and help increase customer loyalty. Typically, membership benefits include your most popular services bundled together for a discounted price, or a special membership discount on services. Consider adding retail to your membership benefits. For example, if you give away $500 worth of membership benefits - they can include $300 for services, $100 for products and $100 that can be redeemed on either products or services. With every membership sale, in extension, you re also boosting your retail sales with no extra effort. Some Ideas to Consider: 1. Offer a special membership discount on products. For example, members could get 15% of all retail purchases. 2. Limit benefits on retail to specific product types to move slow selling categories. For example, members can use the credits and discounts you offer only on face and hair care products. Design memberships your way, automatically apply member benefits at POS, and allow members to use benefits at any of your locations. Zenoti is the most advanced software in the industry to manage memberships.

LOYALTY PROGRAMS Loyalty programs are used to reward and encourage specific behaviors from your guests. For example, some common forms of loyalty programs might award points for every dollar spent with you, or award points for actions like referring a guest. The guest can collect and redeem points to purchase services, gift cards or retail. You can use your loyalty program to promote retail sales, Some ideas to consider: 1. Award points for every retail purchase. If you want to award points for total dollar spend as well, highlight retail by awarding more points. For example, if you award 10 points for every dollar spent on services, award 15 points for retail purchases. 2. Encourage guests to try your retail by restricting loyalty point redemption to retail. This is a great way for guests to try something new without making the investment themselves. Run a Loyalty Promotion Loyalty point promotions can attract attention and more business, and allow you to avoid discounting. For example, around Christmas, Valentine s Day, or Mother s Day, you ll want to make the most of the gift-giving season. Be sure to be stocked with gift-able items and award double points for retail purchases for a limited time leading up to the holidays. Automate your entire loyalty program without burdening your staff with extra administrative work. Manually tracking and maintaining loyalty points for every guest can be an overwhelming and error prone task.

ENFORCE PRODUCT RECOMMENDATIONS While enforcing service providers to make product recommendations is more of an operational responsibility, it is important to recognize that your providers will be your best sales people. Some providers are better than others at consistently recommending products to every guest. But, if you can enforce every provider to recommend products with every guest, you ll likely see your retail sales increase. While there are manual methods of enforcing product recommendations, use Zenoti to easily spot any lapses. 1. Enable service providers to record product recommendations digitally through a smart phone or tablet. This immediately attaches to the guest profile, making it easy for the front desk to see product recommendations at check out. Further, it is easily visible to managers if a provider is consistently recommending at least one retail product to every guest. 2. Incorporate product recommendations as part of home care instructions that are emailed to the guest after their visit. For example, guests that came in for a facial, but did not purchase a mask retail product that was recommended, can be sent a follow-up email with the product recommendation along with tips on skin care.

MANAGE STOCK LEVELS Maintaining just-in-time stock levels ensures that you never miss out on a retail sales opportunity because you re out of a particular retail product. Maintaining proper stock levels starts with having key data readily available to you. You should be able to answer questions like: Which products are moving quickly and require replenishment? Do I have enough retail products to fulfill sales for the next 2-4 weeks? Access real-time stock levels at any time, receive alerts when stock is low, and run physical counts of stock with a wireless bar code scanner that makes the entire process fast and error-free.

CONCLUSION While your service providers play a significant role in your retail success, you can also deploy a number of marketing and operational techniques to increase sales. At Zenoti, we know that success depends on your ability to plan and execute. That s why we ve designed a software that reduces the time and effort to follow-through on sophisticated marketing programs. ABOUT ZENOTI Zenoti is an all-in-one software that integrates an appointment book, POS, and CRM with marketing, inventory, and mobile capabilities. Zenoti can help you achieve real business results, like: Increased retail sales Increased customer loyalty Improved employee productivity Want to learn more? Request a demo today!