11 Steps To Take Before Discounting Your Salon Services Passion Squared (1)

11 Steps To Take Before Discounting Your Services

August 27, 2017Nina KovnerGROW

 “Marketing is not the art of finding clever ways to dispose of what you make. It is the art of creating genuine customer value.” Philip Kotler

This post was originally written in February 2015, but is oh so relevant to the questions I still get asked, so I did a little update! 

Daily deals and excessive discounting tells me two things: you are desperate and do not have a clear plan or point of difference for growing your business.

Discounting your services can be so tempting and can drive a ton of traffic and short term sales. But my question to you is at what cost?

Discounting erodes brand equity aka value
Discounting attracts discount shoppers, which is only awesome if you are a discount brand. And if you are, you can stop reading this
Discounting tells me your only point of difference is price
Discounting trains people to ask for discounts
Discounting tells me the value of the service is actually the discounted price, not the actual price
Discounting tells me you do not have a clear understanding of how to build your business or the value that you offer your clients
Depending on your business model, your brand purpose, promise and people and how you generate revenue, discounting can permanently damage your business.

Instead of discounting, here are some simple strategies (not easy!) that can help you grow a business for the long term…

1. Implementing a referral/rewards program, communicating about it and executing on it consistently
This rewards loyal clients for sharing their experience

2. Getting your pre-book % to at least 80%, using consistent dialogue and systems
This ensures existing clients are happy by getting their preferred day/time

3. Training your entire team to ask clients to share their experience on YELP, and ensure they are doing it consistently
Yelp is a BIG referral driver, love it or not. 

4. Ensuring your team is delivering a quality experience that is aligned with your brand promise, consistently
This is the most important really. If you experience sucks, nothing else will help you

5. Working with each team member individually to devise a plan for how they are going to grow their business including referrals, pre-booking, upgrading (only with the clients true needs are in mind), and recommending the products necessary for clients to care for their hair at home
We focus on what we value. Is your team aligned with your brand promise?

6. Getting serious about a social strategy; content creation, curation, consistent engagement which is proven to increase word of mouth if done well

7. Committing to an email marketing strategy, consistently, which delivers value as well as calls to action
Email is not dead, in fact, it’s one of the best ways to stay engaged with existing clients

8. Creating a system for client check in’s to see how their experience was
Let’s bring back thank you note, or at least, post experience check in’s

9. Creating a system to connect with clients who have not been back in a while. You can learn a ton and most likely will get some of your clients back into the salon
Where did they go? Why did they leave?

10. Are you delivering more value than the price you are charging? Or less value for the price? Is your pricing strategy consistent with your brand promise and people?
If your promise is to deliver a luxury experience but you are marketing to discount shoppers, that right there is a disconnect. If you prices are high, but your experience is low, that is a disconnect too!

11. Taking a look at your retention rate. How many new clients are you seeing? More importantly, how many are you actually keeping?
This will tell you a lot about your experience and if it is valued. If your retention rate is low, something is broken. The good news, you have resources to help you fix it.

All of the above actions will contribute to long term, sustainable, healthy growth.

Deals and excessive discounting will contribute to short-term sales, brand erosion and unsustainable growth.

Your choice. Choose wisely.

Love + Awesomeness-
Nina

PS: As with anything, pricing strategies are NOT black and white and one size does not fit all. You must decide what is best for you and the outcome you are seeking.

Influencer Marketing blog Passion Squared (1)

The Price of Influence

August 7, 2017Nina KovnerENGAGE, GROW

The key to successful leadership is influence, not authority. Ken Blanchard

So here we are, another game, changed. As a former VP of Marketing in beauty, I can tell you I never saw this coming, not like this, not back in the early to mid 2000’s. Did you?

But what I did see was a shift happening, into the world of social + digital. I saw biz models change, I saw behaviors changing and I knew big changes were coming, in fact, I was so inspired the social + digital revolution and how it empowered creatives that it inspired me to create Passion Squared.

So here we are, in the age of the influencer. Before we dive in deeper, let’s create some context. What does the word influence mean?

Influence (noun)
the capacity to have an effect on the character, development, or behavior of someone or something, or the effect itself.

Now let’s define social influencer.
A social influencer is a real person who has a loyal following and strong presence on social + digital media platforms who share stories with their followers that can inspire actions such as clicking, booking, buying, subscribing, etc.

Influencer marketing as defined by social@Ogilvy
Influencer marketing identifies those which have the most influence over potential buyers, and orientates marketing activity around these influencers.

Here’s the thing loves, influence has been around for a very long time, it’s nothing new; endorsement deals, celebrity spokespeople, etc have always been a common way to market, as has traditional advertising which is a brand saying “look at our awesome new product, buy it!”… but what is new is this social influencer movement which is still very misunderstood in the professional beauty space.

Why is this even a thing now? It’s been long understood that word of mouth and referrals many times have a greater impact on sales than traditional advertising. With the rise of social, there is an opportunity for brands to tap into their evangelists storytelling and use that as a way of marketing and advertising.

In addition, with the rise of social, comes a big need for content, and it’s no secret that some brands struggle with creating valuable content that resonates with their intended audience, thus the need for influencers to create content for them. Your content is your marketing. Content and storytelling can inspire action, actions create customers.

What Some Brands Are Looking At When Engaging Influencers

Large Followings
Content Creators
Highly engaged on social platforms

What Brands Need To Be Looking At Too

Engagement (# of likes, comments, shares, views compared to total followers)
Reach (#of unique accounts that have seen a post)
Types of Followers (do they align with the brands target audience?)
Relationships with Followers
Content Quality + Creativity
Integrity + Ethics
How their personal brand aligns with brand seeking a relationship

In a very short time, we have already seen a shift begin with the micro influencer(under 50K followers) …
Some people are catching on to the fact that a handful of larger accounts may actually not have the the most qualified audience that the brand is looking for. This could be because of purchased followers, third party comment bots, liking bots, comment pods and more.

How Do Influencers Get Paid?

That depends on the type of relationship with the brand but here are some ways…
Free product
Trips
Events
Per Post
Per Piece of Content
Per Hashtag Use
Brand Ambassador contracts
Collabs (NinaXDougThePug) Lol!
(Collabs can be co creating a product with a % royalty paid to the influencer based on sales)
Promo Codes
(this is where a brand issues a promo code and influencer gets a % of sales every time the code is used)

How Much Do Influencers Get Paid?

Well, this may shock you, piss you off, excite you or at least, make you think.
Note: I did not create these numbers but they are consistent with what I have researched over the last couple years.

This is from Bloglovin for bundled content, not a la carte content. For a la carte, Bloglovin’s research shows $100 per 10K followers as a place to begin your pricing. My two cents, for video content, the price goes up, as does the effort, creativity and work.
Bloglovin Influencer pay rates

 

How Are These Rates Determined?

Here is one way, again, from Bloglovin.

Bloglovin Influencer Rates

What I am seeing in the pro beauty space for the most part is not aligned with what I am seeing in the larger influencer space. Why? The pro beauty influencers may not know how to price themselves and the brands may not know how to value their contributions. But that is no excuse to not educate yourself on how the world of influencers work if you want to be part of this space.

At the end of the day, what matters most, is the integrity and trust influencers have with their audience. Cause if that is hurt, tarnished or destroyed, then there is simply no more influence.

Influencers, know your value and worth and get your money. Brands, invest wisely into your influencer marketing programs and focus on building meaningful relationships with influencers that are aligned with your objectives.

Influencers, only do business with and promote the brands you love, stay true to your values and be honest with your community.

And lastly, disclose, disclose, disclose. Nothing is worth losing the trust of your community and customers. Nothing.
Example: This product was given to me free for my fair and unbiased review. Thank you for the free gifts brand x. #ad #partner #sponsored #unboxing 

To learn more about influencers, and all things social + digital, sign up for my NEW program Social Beauty Intelligence On Demand. To get on the early notification list, click here.

With love, integrity and trust, always-
Nina ❤

The Danger of Good Advice passion squared blog

The Danger of “Good Advice”

June 10, 2017Nina KovnerENGAGE, GROW

Don’t ever take a fence down until you know why it was put up. Robert Frost

Advice is tricky. Have you ever received bad advice? Good advice? How did you know?

As long as I have been in business, I learned very early on about the concept of context. So let’s begin by defining context, shall we?

Context

(noun) the circumstances that form the setting for an event, statement, or idea, and in terms of which it can be fully understood and assessed.

This is where “good advice” turns bad. Context. Without it, our well meaning advice can actually be harmful.

Context is about understanding the BIG picture. My clients know, whenever a question is asked, my response almost always goes something like this…
What is your objective?
What outcome are you seeking?
Can you provide a little more context around this question?

I see it everyday. A question comes up about pricing, and so many are quick to share what they believe is absolute truth, again, without knowing the context of the question, the objective of the business, the model of the business, the marketing position of the brand. Not awesome my loves, not awesome, at all.

The internet is full of great advice, but with that comes the issue of lack of context.

One of the best ways to illustrate this concept of context is The Celery Test, which I found years ago in the book Start With Why by Simon Sinek. I was beyond excited when I found this example as it confirmed for me why I always asked the questions I asked before “dishing out advice”.

The Celery Test by Simon Sinek

“Imagine you go to a dinner party and someone comes up to you and says, “You know what you need in your organization? M&M’s. If you’re not using M&M’s in your business, you’re leaving money on the table.”

Somebody else comes up to you and says, “You know what you need? Rice milk. The data shows that all the people are buying rice milk these days. You should be selling rice milk in this economy.”

While you’re standing over the punch bowl, yet another person offers some sage advice. “Oreo cookies,” he says. “We made millions from implementing Oreo cookies in our organization. You’ve got to do it.”

Still somebody else comes up to you and says, “Celery. You’ve got to get into celery.”

You get all this great advice from all these highly accomplished people. Some of them are in the same industry. Some of them are more successful than you. Some of them have offered similar advice to others with great success. Now, what do you do?

You go to the supermarket and you buy celery, rice milk, Oreos and M&M’s. You spend a lot of time at the supermarket walking the aisles. You spend a lot of money because you buy everything. But you may or may not get any value from some or all of these products; there are no guarantees. Worse, if you’re budget-constrained, you had to whittle down your choices again. And then which do you choose.

But one thing’s for sure: when you’re standing in line at the supermarket with all these items in your arms, your celery, rice milk, Oreos and M&Ms, nobody can see what you believe. What you do is supposed to serve as tangible proof of what you believe, and you bought everything.

But what if you knew your WHY before you went to the supermarket? What if your WHY is to do only things that are healthy? To always do the things that are good for your body? You’ll get all the same good advice from all the same people, the only difference is, the next time you go to the supermarket, you’ll buy only rice milk and celery. Those are the only products that make sense. It’s not that the other advice isn’t good advice; it’s just not good for you. The advice doesn’t fit.

Filtering your decisions through your WHY, you spend less time at the supermarket and you spend less money, so there’s an efficiency advantage also. You’re guaranteed to get value out of all the products you bought. And, most importantly, when you’re standing in line with your products in your arms, everybody can see what you believe. With only celery and rice milk it’s obvious to people walking by what you believe. “I can see that you believe in looking after your health,” they may say to you. “I feel the same way. I have a question for you.” Congratulations. You just attracted a customer, an employee, a partner or a referral simply by making the right decisions. Simply ensuring that WHAT you do proves what you believe makes it easy for those who believe what you believe to find you. You have successfully communicated your WHY based on WHAT you do.

This is an idealistic concept and in the real world that level of discipline is not always possible. I understand that sometimes we have to make short-term decision to pay bills or get some short-term advantage. That’s fine. The Celery Test still applies. If you want a piece of chocolate cake, go right ahead. The difference is, when you start with WHY, you know full well that the chocolate cake is a short-term decision that doesn’t fit with your beliefs. You’re under no illusions. You know you are only doing it for the short-term sugar rush and you’ll have to work a little harder to get it out of your system. It’s astounding the number of business I see that view an opportunity as the one that’s going to set them on a path to glory, only to have it blow up or slowly deflate over time. They see the chocolate cake and can’t resist. Starting with WHY not only helps you know which is the right advice for you to follow, but also to know which decisions will put you out of balance. You can certainly make those decisions if you need to, but don’t make too many of them, otherwise over time, no one will know what you believe.

But here’s the best part. As soon as I told you WHY, you knew that we were going to buy only celery and rice milk even before you read it. As soon as I gave you the filter, as soon as I said the WHY, you knew exactly what decisions to make before I said so.

That’s called scale.

With a WHY clearly stated in an organization, anyone within the organization can make a decision as clearly and as accurately as the founder. A WHY provides the clear filter for decision-making. Any decisions—hiring, partnerships, strategies and tactics—should all pass the Celery Test.”

If you are a coach, consultant, educator, blogger, leader, influencer, or advice seeker, please be mindful that you may not have the “whole picture”, and that the advice you give, or get, may, or may not, pass The Celery Test. And while you are at it, pick up Start With Why, and become a better marketer, leader, value creator and advice giver.

Love + Awesomeness-
Nina xo