How to manage cancellations in your salon
Tuesday 1st November 2022
Cancellations and no-shows are the scourge of the beauty industry. Whenever I mention these words to a salon owner, they’ll squint their eyes, stiffen their jaws and purse their lips - before unleashing a barrage of expletives I cannot repeat here.
I think I’ve even seen steam come out of their ears! - and understandably so – before they go on to describe scenarios of columns falling apart, staff getting annoyed, money being lost and the frustration of having turned away other clients who could have filled those slots.
Unfortunately, most salon owners I talk to are reporting that no-shows and late cancellations are on the rise (particularly in busy city centres) due to more last-minute decision-making and it appears that new clients are often the worst offenders.
This presents salon and clinic owners with a challenge: how can you protect your income while encouraging new clients to book? And how can you guard against financial loses when no-shows and late cancellations do occur?
Reality check
Have you ever sat down and calculated how much money you are losing from no-shows and late cancellations? If not, then set aside half an hour to investigate - it can be a sobering experience, so perhaps have a glass of wine at the ready.
Let’s say you get six missed appointments from no-shows or late cancellations in a week, and your average bill is £35 - you’re looking at £210 lost revenue per week. That’s equivalent to £10,920 per year! … Now have a sip of that wine.
Common solutions and their downsides
The most common steps salons take to minimise no-shows and late cancellations are the trusted appointment card (old school), appointment reminders via text or email (this should be standard), and calling round to re-confirm appointments on the day (time consuming but worth it to avoid no shows).
While all the above are valid ways to remind people to come in, they don’t actually deter them from ‘misbehaving’. It thus leaves your income and your business vulnerable.
To charge or not to charge, that is the question
The next step many salons consider is taking a deposit, which seems to make sense because you secure the booking and have a way to hold on to the monies in case the client falls foul of your cancellation policy. But some operators express valid concerns about this on the grounds that (a) it can be very time-consuming (and sometimes awkward) capturing the card details or (b) it can put people off booking, particularly new clients, which would be counterproductive.
The latter concern makes salons particularly wary of implementing a deposit-taking policy and we’re often asked if there is a better option that involves less work, less risk, yet provides the salon with more security and control.
Finding the sweet spot
Most salon owners think of charging at the point of booking but there is an alternative that allows us to find the sweet spot between encouraging as many bookings as possible while securing and protecting income and this is charging only in the event of a no-show or late cancellation.
The only way to do this, and make it enforceable, is to securely capture and validate the client’s credit card details at the point of booking, in the same way that you might secure a hotel reservation, clearly pointing out that no monies will be taken until the time of the booking or in the case of a no-show without the appropriate cancellation notice.
In this instance, should late cancellation occur, it is at your discretion whether you charge them or not - because let’s face it, sometimes there are genuine reasons for non-arrivals and this way you can base it on the relationship you have with the client (it is a ‘people business’ after all).
Some operators still worry that even this might discourage clients from booking but what we’ve seen in practice is that salons tend not to see a negative impact on booking numbers, although there are some that might see a slight initial dip, then the numbers go up again quite quickly. And new clients are also booking and providing their credit card details - whereas an upfront charge may have put them off.
Which services should you take credit card details for? Our recommendation, based on the success we’ve seen across the beauty and aesthetics industry, is to do it across the board - why leave yourself open to risk?
Beautiful benefits
One pleasantly unexpected side effect that’s been reported to us by several clients that have adopted this card validation approach is that it “weeds out the flaky ones” so those customers who were not committed to the appointment won’t book. The majority will respect that you have a business to run and will happily provide their credit card details.
As one of the salons we work with put it: “Since having this in place, we’re attracting a different kind of clientele”. And I’m sure you’d rather have reliable and respectful clients, so that your columns are ‘strong and stable’ (almost has a nostalgic ring to it now, doesn’t it?).
It can also have a positive effect on your overall brand as clients will perceive you to be more professional, well organised and providing a smoother, more convenient booking journey.
Your new favourite part of the week
When visiting a client recently to see how they were getting on with our credit card collection service I wasn’t met with the usual pursed lips and squinted eyes. Instead, they had the biggest smile on their face: “We love it - no shows have gone down dramatically. Monday morning is now my favourite part of the week. That’s when I check the cancellation report and go Charge! Charge! Charge!”
Author:
Menno Kuijper is Head of Design & Production at gappt. To find out more about gappt's credit card collection service, how it works for online and in store bookings, and how it can help your business call 0207 493 0333.