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What Are The Main Reasons Why Many Beauty Salons Fail?

by | 26. March 2018

Being in the beauty salon business isn’t easy. Indeed, almost 80% of salon businesses fail within the first 18 months of opening. With competition on almost every street corner, how do you make sure your salon stands out from the crowd? Take a look at our 6 reasons why beauty salons fail and learn what you can do to make sure your business stays on top:


1. Low customer retention rate

It is significantly more costly for beauty salon-owners to gain new clients than to keep old ones. For this reason, customer retention rates can make or break a salon business. Increasing and maintaining customer loyalty can be easy if you really focus on the customer experience. Small changes, from providing a more personalised service to offering flexible booking, can have big returns. It will ensure you avoid customer dissatisfaction in the short-term, and build a loyal customer base that will boost your business for years to come. A combination guaranteed to keep your business growing.


2. High no-show ratio

We all know what people can be like. Clients missing appointments is an everyday occurrence but too many no-shows can be devastating for your salon-business. Automated online booking tools can help with this: if a customer cancels her eyebrow-waxing appointment, not only will you be informed right away, but someone else can fill her slot last-minute, without you even having to be involved. While you can’t control your clients’ commitment issues, you can avoid wasting precious time and money. Filling your appointment slots will, after all, keep business failure at bay.


3. Aimless marketing

Knowing your target audience well and moulding your brand to fit them is key to avoiding business failure. Many beauty salons fail because they don’t streamline their marketing enough; ineffective and poorly targeted marketing leads to less brand visibility and therefore less business. Think about your target audience, and if necessary, use feedback to find out what they want from your services. If your main client is the successful working woman, for example, you could brand your salon as the place where powerful women get their hair done. The point is that your message should be consistent and appealing to your target market: failure to do this means failure for your business.


4. Bad SEO

If your business has bad SEO, how can people know that you offer the best highlights in town? Salons with lower Google rankings and poor website-optimization have less visibility and thus fewer clients. This is the ultimate path to automatic failure. SEO optimisation can seem ‘techy’ and difficult, leading many business-owners to avoid it altogether, but in fact it can be very easy. From improving your page speed to replacing text with videos, you can get your website, and in turn your business, more hits in no time at all. You don’t need to be a computer genius to improve your SEO, all you need is Google and the right tools at your fingertips.


5. Not being proactive with your marketing

Effective marketing is not just about improving SEO. Alongside making your website easier to find and use, you also have to be proactive and get the word out about your business. This is where many beauty salons fail, thinking that as long as they have a good website, people will come flocking. Wrong. Failing to do any active promotion, such as sending out newsletters, asking customers for referrals, and running Facebook contests, is a surefire way to make your business stagnate. Be proactive and make sure you’re shouting from the rooftops about your salon’s excellent services!


6. Failure to use automated tools

Many business owners get caught up in everyday administrative tasks that stop them from investing their time in the most important thing: building their business. This is a huge mistake. In today’s digital world, automated tools can free you up to focus on the big ideas, such as your marketing strategy, rather than little chores like sending out appointment reminders. Let a business tool like Shore become your digital elves and you might see Christmas come early for your business!


Don’t let yourself make the common mistakes that causes many beauty salons to fail. All important elements like SEO optimisation and customer retainment can seem impossible when you’re caught up in other administrative tasks. But by investing in an automated tool like Shore, you’ll give yourself time to focus on the things that really count. Let your salon not only survive – but thrive. Maximise the opportunities available to you and make sure your business is a surefire long-term success! Get in touch with Shore today to find out how we can help.

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Kristina ist die richtige Ansprechpartnerin bei Fragen rund um das Thema Social Media und Online Marketing. Als Marketing Managerin bei Shore informiert sie regelmäßig über neue Trends im digitalen Marketing und erklärt euch, wie ihr diese für euer Business nutzen könnt.