Now Installing…Profitability

Now Installing…Profitability
Management Software Improves Efficiency, The Bottom Line

by Matt Morgan

“The most important aspect of salon management software is management,” says Michael Young, president of Interactive Designs, Inc., which makes SunTouch and SalonTouch. “It’s like having a trustworthy micro-manager at your salon while you are there or away.”

Software should be able perform theft prevention, detailed reporting, inventory tracking, client data management, appointment scheduling, bed control, and lamp-usage tracking; supply marketing information, a complete point-of-sales system, and growth potential; and contain options for Internet integration.

“Software organizes your business and defines your production,” says Sid Nelson, chief operations officer of Affiliated Acceptance Corp., manufacturer of FrontDesk Interactive Software. “It’s easier to keep track of the number of packages sold, new members enrolled, prospects who came in, inventory levels, beds that are clean or not clean, beds that are in use or not in use, and which ones are being used the most. It can also help you monitor staff and maintain their accountability. In addition, it can help you to see what promotions are working based on usage, products sold, etc.”

A good program also should assist salon operators with salon promotions, pricing, employee security and tanning-regulation enforcement, says Chris Deres, operations manager at SunLync LLC.

“Software gives salon owners the control needed to be able to operate as efficiently as possible,” he says. “They can sleep at night knowing that software is helping to promote and protect their business.”

Since so much is riding on the proper function of salon management software, the decision of which program to buy—and which company to buy from—should not be taken lightly.

There are many fine providers of salon management software. The service and support they give to their salon customers can be as important as the functions of their programs.

“These are the people who you have entrusted with your most valuable asset,” says Anthony Lunsford, president of Jireh Consulting Group, Inc., manufacturer of SalonXpert.“I would simply ask the company, “‘Are you in a position to be my most trusted partner?’”

According to Young, a software vendor must be focused on its products in the indoor tanning industry. Companies that only dabble in tanning-salon-management software can be risky, he says. Will they stay on the cutting edge of technology in the industry? Can they dedicate the time to solve problems? Will they be around when the salon owner needs them most?

By contrast, those with a proven track record in the industry “will give a salon owner great peace of mind knowing the company will be around in years to come,” he says.

Security and protection—from what salon owners can and can’t control—continue to be key functions of management software.

Computers put all files in one centralized electronic location, hence making all of the salon’s crucial information particularly susceptible to damage or theft. Even client-card salons that think they’re safe from computer bugs have fire, theft and vandalism to deal with.

If something were to happen to the information, the salon literally would have to start from day one. This includes rebuilding the entire tanning history of each client, as well as their package histories and balances, etc.

Given the sheer amount of information contained in a typical indoor tanning salon, it is essential that the information is backed up and protected. A good software solution can do both.

Case in point: “We have had three salon clients that have been damaged in fires,” Lunsford explains. “If the owners hadn’t converted to software prior to the fire, their client information would most likely have been lost forever. The salons may have never recovered. We had protected their data on our secure server, away from the actual salon.”

“Away from the actual salon” is the operative phrase here. The Internet has made remote storage a cost-effective reality. Manually backing up key files with tapes and CD-ROMs still is a viable solution for many salons, but it requires a diligent routine by day, week and/or month. Plus, if the backups are kept in the salon, they do little good when disaster strikes.

Protection from external factors such as fire and weather is just one angle of concern for tanning salons. Wise salon owners know not to overlook the security risks their own customers and employees bring every day.

It’s a sad fact, but unscrupulous staff members can steal minutes from tanning packages as well as time on the clock with a few clever keystrokes. Management software should have safeguards in place to limit employees’ access to certain functions.

Devices such as biometric (thumbprint) scanners are being integrated into more and more software programs.

“The fingerprint device, if implemented properly, can reduce employee theft, expedite client verification, secure management sections of the software, track employee use within the software, and even identify employees as they clock in and out,” Young says.

Lunsford agrees: “By the use of multiple levels of software security and equipment like biometric thumbprint scanners, key fobs and photos, you are able to have much greater control over both employee and customer theft.”

Management software can generate reports and identify trends in an instant, putting power at the fingertips of salon owners that can’t be harnessed by a manual system. All of this is designed to improve efficiency for the salon and increase its profit margins.

In addition to security and protection, the Internet is being used for connectivity. This is the ability of a computer in a salon to be hooked up to another computer in that salon or, on a larger scale, for a computer at one salon to be hooked up to a computer at another salon—down the street or across the country.

Through management software utilizing an Internet connection, salon owners or operators can log in to the system from anywhere in the world and grab real-time snapshots of the business such as how many beds are in use at any given time, up-to-the-minute sales for the day, number of guests for the day, and number of appointments scheduled for the next day, Nelson says.

Furthermore, remote management lets salon owners perform day-to-day tasks such as replenishing inventory, arranging for maintenance of equipment and lamp usage, and issuing requirements to employees.

“Off-site management is very important, as single-salon owners usually manage their salons on their own,” Deres says. “Off-site management capabilities can offer some freedom so that the owner does not have to be at the salon during every open hour.

“For the multi-salon owner, software can provide the ability to view activity across multiple locations on one screen,” he says. “At a glance, you can see exactly how your salons are doing. In fact, you can even see how long beds have been dirty. Add to this the ability to update pricing and equipment options from any location, and now you’re not only managing your business remotely but also saving time and money.”

Electronic funds transfers—better known as EFTs—have been used in the tanning salon environment for years. Some say it’s easy money because the cost is debited from a tanner’s account automatically each month, as long as the card is still valid and the funds are there.

“EFTs should be an essential offering by all salon owners,” Young says. “A convenient payment plan for the clients while ensuring a steady monthly income is great for the slow season. It has also been proven that many people sign agreements at the spur of the moment and with great intentions but never follow through— basically becoming free money for the salon as the client may not even visit the beds each month.”

However, each EFT customer’s card must be debited each month, and with the growing number of EFTs, salon managers are spending increasingly more time processing them. Plus, troubleshooting any problems that occur along the way, such as insufficient funds, take even more of a manager’s time away from the business.

“There are still salons right now that are running their EFTs by literally punching them in on their terminal,” says Jeff Oakes, president of Nichesoft LLC. “If you’ve got 200 or 300 EFTs and you like them all due on the first, every month on the first they have to sit there and punch in 300 credit-card numbers and amounts, one after another, until it’s done. With software, of course that’s all automated. It pops up on the first and says, ‘I’ve got 300 EFTs to process. Can I do it?’ You say ‘Yes’ and it does it right there in front of you. And of course after every one that’s done it updates your sales records. For the ones that get declined for whatever reason, it will freeze that person’s account so the next time they come in they have to give you updated information. If you’re doing that manually, that’s just a nightmare.”

Still, with older software systems and some new ones, EFTs aren’t processed automatically; the salon still needs to send them to a third party for processing. This extra step gets away from the “make it easy” mantra of salon software.

“You used to have to export a file of all of your EFT customers and send it off for processing,” Oakes says. “Then the company that did the processing would send you back a return file that you would then have to import that would update all of your records.”

Some software vendors are making it easier for salons to export data for processing, while others are building EFT processing right into their programs.

The functionality of the Internet and the strengthening of mobile technology have led to the newest trends in salon management software. Functions such as e-mail marketing, text messaging and online account management have taken salon-client communication to a new level.

Because of the organization that salon management software brings to the salon, the operator is able to pinpoint tanners that fit into certain buying patterns and send them specific marketing messages. This is accomplished through the world of e-mail.

“Nothing comes close to the power of being able to send a special offer to a target group of, let’s say, all customers who’ve tanned within the last 15 days and have bought a specific bottle of lotion,” Lunsford says. “Each individual e-mail is personal; it won’t list the other 24 recipients who fell into this category.”

Another new capability in salon management software takes advantage of the powerful trend in cellular technology: text messaging. Those customers who choose to receive messages via their cell phones can stay up to date with the latest announcements from their tanning salons.

“Busy clients may not always have access to a computer to check their e-mail, but they usually have their cell phone or pager with them wherever they go,” Young says. “With most cell phones and pagers able to send and/or receive text messages, salon owners are able to advertise specials or remind clients of scheduled appointments.”

Finally, salon management software can enable tanning customers to book appointments online and check the status of their accounts. Clients who can do this can perhaps save a phone call or visit to the salon. The more clients can do for themselves, the more time the salon staff has for other tasks.

“A truly integrated software package will allow your customers to schedule appointments, check their account status and make payments online,” Nelson says. “Better integrating your customer into the lines of communication with your salon not only helps build brand loyalty, but the added service and convenience can also help to retain customers.”

All of this new technology has an added benefit: Periodic messages by e-mail or text message as well as online access can provide an extra level of security in the salon. If tanners can keep tabs on the status of their accounts, they will be able to tell relatively quickly if they are being abused.

“The capabilities … are virtually endless,” Young says, “and undoubtedly beneficial to any salon owner.”