Mastering KPIs
From rebooking rates to utilisation targets, we explore how salon owners are using KPIs to move beyond full diaries and build truly profitable businesses
Underpricing and inconsistent performance are often blamed for poor profitability in salons, but many business owners are still not tracking the numbers that actually drive profit.
For most hair businesses, KPIs come down to a small group of core metrics: total revenue, net profit, rebooking rate, average client spend and utilisation. Together, these indicate how much money is coming in, how much is being retained, how stable future bookings are and how effectively time is being used.
Michael Van Clarke, owner of Michael Van Clarke salon in London, says simplicity is key. “We focus on four KPIs: revenue, rebooking, retail and new client requests. If those are not meeting targets, then we can drill down further but those key ones tell us 95% of what we need to know,” he says. “If one drops, we know exactly where to look.”
Use Rebooking to Secure Future Revenue
Rebooking rate measures how many clients leave the salon with their next appointment booked, and it is one of the clearest indicators of future income.
Michael has taken a structured approach, increasing his salon’s rebooking rate from around 50–60% to 75%, with a target of 80%. “That creates stability,” he says. The change came from two key actions: raising awareness in consultations and introducing a financial incentive.
“At the start of the appointment, we ask when their hair stopped looking good. That tells you when they need to come back,” he explains. “Then rebooking becomes expected.” He also introduced two price points – one for clients who rebook before leaving and a higher one for those who don’t – creating a clear reason to commit.
Track Utilisation to Manage Time
Utilisation measures how much of your available appointment time is filled, and while it’s a key performance indicator, higher is not always better.
“If you are more than 80% utilised, you’re running the risk of burnout,” says Lorenzo Colangelo, managing director of The Gallery salon in Royal Tunbridge Wells.
For salon owners, this means building realistic timings into services rather than trying to maximise every minute. A slightly lower utilisation rate with higher-value appointments and better client experience can be more profitable in the long term.
Increasing Average Spend
Average client spend tracks how much each client spends per visit, and increasing it is often more effective than trying to see more clients.
In practice, this means shifting from single-service visits to a more complete treatment experience. This doesn’t require hard selling, but better recommendations based on client needs.
Michael has seen the long-term impact of this approach. By expanding services around core appointments, his salon has significantly increased client spend. “One client now spends nearly twice as much as they did before,” he says.
Improve Team Performance
KPIs can also be used to manage and develop teams. Brian McCallum, creative director of Roar Hair & Beauty in Glasgow, uses KPIs as a coaching tool. “If someone’s rebooking numbers drop, we look at why,” he says. “It’s not used as a stick to beat them with, it’s about supporting them to improve.”
Meanwhile, Lorenzo recalls discovering that his salon’s new client return rate was below 50%. “That didn’t sit right with me,” he says, prompting changes in how new clients were introduced to the salon and encouraged to return.