Salon Management Software

Salon Management Software
Are You Savvy or Scared?

by Danielle Maheux

Let’s say it together: salon software. For some salon owners, these two little words are lauded as the keys to running a successful business; for others, just hearing those words is enough to induce a panic attack. Yet, any owner will agree that there is a lot to be said for running a tanning business smoothly. So why does the thought of software, which is designed to simplify the time-consuming yet necessary processes of day-to-day salon operations, inspire fear in even the most business-savvy operator?

Over the years, software technology in salons has been associated with the stigma of being unnecessary, difficult to use and expensive. These preconceived notions have become an excuse for salon owners to continue to stand by their tried-and– true methods (translation: outdated), despite the positive impact that salon management software can have on their businesses.

“Many salon owners don’t understand the value that a flexible, easy-to-use, feature-packed software program can bring to their business,” says Hope Pendley, executive manager for SunLync, a Williamsville, N.Y.-based software manufacturer and division of JK Products and Services. “A good software package can increase sales opportunities, track and reward customer loyalty and improve their ability to control expenses and manage employees.”

With software, owners can count on a consistently high level of accuracy, security and efficiency—kind of like having a super-productive micromanager working around the clock, leaving the salon owner ample time to attend to other important aspects of business and ultimately, generate more revenue.

“I had used software in a previous salon and, upon opening my current salon, felt I also needed software for total accountability and all the controls it offers,” says Grant Miller, owner of Sun Your Buns in Altoona, Pa. “I can’t imagine why people would be afraid of computerizing with software. In fact, I’d be afraid of not computerizing with software!”

Unfortunately, it seems that Miller is among the minority, as many salon owners are buying into the unfairly negative image of software and choosing not to integrate the technology in their salons. This article addresses the common excuses employed by salon owners to avoid investing in salon management software and the fears behind them, while explaining how software can make a great salon even better.

If time is money, then those who subscribe to this mantra are losing out on both. The very definition of software is increased efficiency and accuracy in all aspects of salon business; simply because the manual way works does not mean it is the best option.

“People get used to a routine and, from the point of the salon owner, ‘Why spend money to fix something that isn’t broken?’” says Nichesoft President Jeff Oakes, whose Carollton, Texas-based company offers TanTrack software. “The fact is that the investment in software will pay for itself because of features like speed, report-generation, theft prevention, built-in marketing tools and the ability to make copies efficiently.” 

One of the best tools offered by software is the capacity to simplify the inventory and report process, which is a necessary part of making sound business decisions but can be a headache for many business owners.

“In a manual system, there’s really no way to look at specific revenue-generators in your business, which is how a salon owner finds where the business needs help and can focus their attention accordingly,” says Mark Willard, director of franchise operations at Maple Valley, Wash.-based Desert Sun.

With software, however, updates to inventory are logged automatically and the owner only needs to select the data already stored in the software to generate a specific report.

“Reports provide invaluable information to salon owners in many areas,” Pendley says. “They allow the top-selling and most profitable products and equipment to be identified easily, can track the most-effective marketing campaigns and provide information on employee hours, commissions, voids, refunds and much more.”

Another important aspect is the heightened level of safety and security software provides. Employee theft can occur in a variety of ways and is still one of the largest problems a salon owner faces. Because of their intimate relationship with salon business, employees can get away with a number of indiscretions, from stealing tanning session minutes to altering inventory data.

“Nichesoft has many safeguards in place to help keep employee actions under control,” Oakes says. “We can limit access to any screen within the software, and on some screens we can limit specific functions. The software also automatically logs any attempt to access a secure area and any changes made to a client’s package, even if the employee has proper clearance.”

Many software systems utilize passwords or codes for this type of internal security, but some programs also use external safeguards. Tools like biometric fingerprint readers maintain a high level of security by guaranteeing the identity of the employee prior to letting them use or make a change to the system. The readers also can be used to verify customer identity before allowing them to tan or make a transaction.

“Helios was the first software supplier to implement a fingerprint scanner to cut down on employee and client theft,” says John Hurley, director of marketing and sales at the Indianapolis-based software company. “Also, every level of our software requires a password that is defined during setup, which is necessary to maintain accountability.”

Security features also can help protect against identity theft, which is a growing problem as more and more personal information is stored on computers and the Internet. Encryption prevents any would-be hackers from stealing confidential information, like credit-card numbers.

“SalonTouch uses the highest level of database encryption on critical information,” says Mike Young, president and owner of Interactive Design, the Alpharetta, Ga.-based maker of SunTouch and SalonTouch software. “This is to protect both clients and salon owners from identity theft in the event that someone gains access to the salon database without the proper authority.”

Reality check: Index cards are no longer the most-effective way to run a tanning business. There is simply no comparison between the speed of a computer and the time it takes an employee to sift through a box of client cards or files.

“Technology is always evolving and making our day-to-day life more efficient,” says Mark Plewa, who works in business development at Affiliated Acceptance Corp., a software supplier based in Sunrise Beach, Mo. “Why waste time searching for documents when, in less than a second, you could have the document right in front of you?”

This expedited process also looks far more professional from the customer’s perspective—and with all the salons available to patronize, those initial impressions can mean the difference between retaining the client and losing their business.

“When we used a card system, we found that it created a mess on the front desk—it just didn’t look good,” says Susan Babineau, owner of Diva Tanning in Everett, Mass. “We decided we needed software to keep everything organized.”

Manual systems like index cards or files also present a problem in reference to the quantity of data that can be stored. Software is virtually unlimited—and more information translates to better customer tracking, which can greatly affect sales.

“Software that tracks each client’s tanning and sales history provides a mechanism for better service to that individual,” Young says. “Salon owners can track trends in services sold, products sold, beds used, gender, age, where they live, how they spend their money and much more.”

Salon staff has access to each customer’s personal information, visit history and past purchases during the check-in process, which enables them to tailor product and bed recommendations to their previous visits and purchases or simply reminds them to wish the client “Happy Birthday”.

Touches like these, made easy because software puts all the necessary information in one central location, are what increase customer loyalty and product sales.

“Our salon’s software actually ‘announces’ the client’s birthday via a pop-up screen when their information is accessed on that day,” says Stephanie Telley, director of marketing for salon chain Hot Spot Tanning in Tennessee. “Since we offer a free tan or upgrade for birthdays, this is a great reminder to the employee to suggest this special to the client.”

Additionally, software offers the capability of better marketing strategies. Many software programs include e-mail addresses, home mailing addresses and phone numbers under the umbrella of personal information, which means that salon owners have three ways to connect with their clients.

In essence, salons can target specific audiences in their marketing strategies instead of simply sending items out at random, which cuts down on the initial cost of marketing and raises the likelihood that customers will be driven to spend money at the salon as a result.

“We had a salon owner in Iowa who ran a radio advertisement at the same time she sent a targeted e-mail, both on the same topic,” says Anthony Lunsford, president of Cincinnati-based Jireh Consulting Group, Inc., manufacturer of SalonXpert software. “More than 60 percent of the people who came in cited the e-mail message as what prompted their visit.”

Cell phone numbers also can be a dynamic marketing tool in regard to text messaging, which is a quick way to communicate between mobile phones and associated devices without having to call anyone.

Both e-mail and “texting” have the added benefit of immediacy, in that the customer receives the marketing material instantly as opposed to having to wait for it to reach them by postal mail.

“A Utah salon owner sent a marketing message to a targeted e-mail group from his home prior to going in to work one day,” Lunsford says. “When he arrived at the salon, he discovered that multiple customers already had been in to use the e-mail offer he had sent that morning.”

It is true that in the early days of software, there were quite a few horror stories from daring salon owners who invested in software—only to realize they were unable to make it work. However, today there are a variety of improved, user-friendly software designs in the market and salon owners have the option of choosing whichever program best fits their needs and abilities.

“Most salon owners feel they will lose control over their operations because of their lack of computer knowledge,” Hurley says. “The reality is that there have been huge improvements in software over the last decade and, by investing in software, owners actually will gain more control over their clients, inventory and employees.”

The initial process of implementing software into a salon can seem daunting, but software companies have taken great strides to create training guides, online classes and onsite tutorials to ease their clients into the world of software and make the experience of integrating as simple as possible. Beyond the incorporation phase, most suppliers also provide a technical support hotline and online resource section for questions or emergencies.

Depending on the company, this service might be free, included in the cost of the software or available for an extra fee. “Our focus has always been to teach clients how to use and understand software in order to make them better operators,” Hurley says.

Sun Your Buns’ Miller stresses that the cost of technical support from manufacturers that do charge is usually reasonable and often includes advantages like 24-hour support and weekend service. “Tech support is additional, but I wouldn’t be without it,” he says. “It only takes one instance to make paying the fee worthwhile for the whole year.”

As Rick Kueber, CEO of Elizabethtown, Ky.-based Sun Tan City LLC says, “One thing I can’t figure out is why salon owners can be very apprehensive to invest a couple thousand dollars in a program that will drive their salon, but don’t think twice about spending $20,000 to $30,000 on a bed.”

His advice is to think of software as an investment rather than an expense and, like a salon owner who is deciding on what type of new bed to purchase, focus on getting as much as possible out of the investment. That means taking a proactive approach to researching software and becoming familiar with all the features that are available, then deciding which ones are most necessary for the salon.

Begin by identifying which operating platform will work best for the salon—a local-area network (LAN), a wide-area network (WAN) or a browser base. A LAN is most effective for single-location salons because it has the ability to link all computers in the building, giving each workstation access to the software. A WAN usually is used for salon chains or franchises, which have multiple locations that need to be connected to one central software program. Browser-based software is run through the Internet and can be accessed from any computer that is Internet-capable, which works for both smaller salons and large chains or franchises.

Once that has been decided, it is time to look to the software programs and suppliers. A great way to start the process of narrowing down companies is simply to ask around. Other salon owners will be happy to share what worked for them; similarly, each software manufacturer’s sales team can explain the ins and outs of their product—and the meaning behind the computer jargon.

Take advantage of free trials and demos. Demos, which are generally available on a manufacturer’s Web site, offer an online version of the software to introduce salon owners to the system and its navigation. These versions are usually similar to those available at tanning expos.

“I know it’s hard for salon owners to research software because of how busy they are, but it is well worth the time,” Hot Spot Tanning’s Telley says. “Free demos are a great way to explore all the options— software booths at tanning expos are especially helpful because you can try multiple systems in just a few hours.”

For a more in-depth look at software, many suppliers offer free trials that last from a month to a year, during which salon owners can download the software to their salon and implement their specific data. This allows salon owners to familiarize themselves with the software and see how it works with the salon computers.

“FST Co. offers a free 1-year trial program with free technical support,” says Hap Nguyen, owner of the software and timer manufacturer in Fountain Valley, Calif. “We give salon owners an entire year because it takes time to fully explore the program and experience all of the features of our software, such as EFTs.”

These trial runs are also a great way to comparison shop between suppliers prior to committing to one software system—and to ensure that the software is compatible with the salon owner’s technological proficiency.

“At AAC, we take the time to help salon owners make an educated software purchase,” Plewa says. “From live Web demos to sales support, we make sure that owners have a very clear understanding of their choices. Whether they choose our software or that of a competitor, the most important thing is that they are comfortable with their choice.”

Perhaps the most fear-inducing aspect of software is the chance of losing data due to server, system or hard drive failures. Deriving from the earlier, less-reliable days of software, the issue of data safety was an important factor in the reworking of modern systems.

“My biggest concern with software mostly surrounded having a real-time WAN because, if the server goes down, you are unable to use the computer system at any salon,” Sun Tan City’s Kueber says. “However, we’ve found that it’s not even an issue because it happens so rarely.”

Of course, salon owners should not just rely on the fact that these issues are unlikely to occur; instead it is important to confront the potential for problems head-on by backing up the data. A manual backup is the process of saving a copy of the information contained in the software to another location, such as an external disk or an Internet storage site. This is important regardless of the type of operational platform a salon owner chooses (LAN, WAN or browser), but is all-too-often an overlooked step. To assist with this, some software systems have functions to automatically initiate a backup.

Overall, modern software systems are much more reliable than their predecessors. There is no need to avoid software because of the “what if” factor— simply being mindful of backing up information regularly or using a program that does it automatically will ensure that data stays safe, even in the face of disaster.

“My biggest fear was that the system might crash; but after integrating software, I’ve found that crashes aren’t even something I worry about anymore because the software works so well,” Diva Tanning’s Babineau says. “It’s true that something could happen, but that goes for any aspect of your business. For example, your electricity could go out and cause a world of trouble. You can’t just focus on the potential for bad things to occur.”

Many of the common fears surrounding software are founded in misinformation or old information that is no longer accurate. Don’t allow these ideas to prevent investment in software. Instead, take advantage of the opportunities offered by salon management software to improve customer service, organize business and help the tanning industry flourish at the salon level in today’s technology-oriented business climate.

“This whole industry revolves around sales and doing the right thing for the customers,” Desert Sun’s Willard says. “I can’t imagine having to go back to the manual way.” 

The ABCs Of EFTs

Electronic funds transfers, or EFTs, continue to be successful in the tanning industry but, because of their popularity, salon owners easily can become overwhelmed by the sheer volume of transactions that need to be processed each month.

“An EFT is the electronic transfer of a pre-authorized amount of money from a client’s checking or savings account to a salon owner’s account,” says John Murillo, senior sales associate for Clearwater, Fla.-based Gulf Management Systems, Inc. “This translates to recurring revenue paid to your account every month and helps eliminate late fees and delinquent payments associated with non-EFT accounts.”

With salon management software, owners need not worry about manually processing EFTs. Instead, they can rely on the software to do it automatically, organizing all of the billing information needed to make the transaction and processing the transfer on the appropriate day of the month. Most software systems also will record the approved transactions and update the sales records accordingly.

“The goal is to help salon owners save money, increase customer satisfaction and retention, stimulate cash flow and improve cash management,” Murillo says.

However, salon owners sometimes worry that software alone cannot ensure that their clients’ accounts will be handled with the highest level of professionalism possible; therefore, they may enlist the help of a third-party processor.

“Certain customer service worries and concerns about data security in regard to EFTs can arise when using software,” says Craig Fine, vice president of Conexion, LLC in Baltimore. “As a third-party processor, our EFT program can be integrated with existing tanning industry software. This allows our staff to handle a salon’s EFT schedule to ensure the accounts are managed properly.”

Other companies require the salon owner to export the EFT information stored in their software prior to processing the transactions. “It’s easy—the salon owner just has to send the file directly from their software and we will process the scheduled EFTs,” Murillo says.

Software and third-party processors also assist in regard to declined transfers, which are a hassle for a salon owner to monitor and manually update in their files.

“If transmissions do not go through, there is an automatic second-day processing; if the transfer still is declined, the associated account is ‘frozen’ to prevent future returns,” Fine says.

Ultimately, it is up to the salon owner to decide which processing method works best for them because EFTs are an essential part of monthly revenue and a convenience to the clients.

“Offering flexibility for members in choosing a payment method creates better customer service—and that equals increased customer retention,” Fine says.

Good Timing

While tanning beds sold in the United States are equipped with built-in timers, most salons also utilize an external timer to guarantee that customers do not overexpose or “help themselves” to longer session lengths. As salon owners begin to turn to salon management software to enhance their tanning business, they can simultaneously maximize the benefits of their external timer by integrating it with the software.

“By controlling your tanning beds remotely from the front desk, you are able to keep better control of the salon,” says Kevin Barrett, an inside sales manager and tech support staff member at Applied Digital, Inc., the Branson West, Mo.-based manufacturer of the T-Max external timer system. “This means that customers cannot set their own times and also allows staff to cancel a session from the front desk should an emergency arise.”

External timers also often include a variety of features to keep salon employees apprised of current tanning equipment conditions.

“Timers can track lamp hours, session counts, bed hours and much more,” Barrett says. “They also show when a room is ‘dirty’—as in, recently used and in need of cleaning—or when a bed is in a cool-down mode.”

The information derived from these features can be extremely useful when combined with software, enabling salon owners to track maintenance records for all equipment and generate reports for energy expense, usage and much more.

“Many states require that a salon keeps detailed records, including equipment maintenance records,” says Jeff Oakes, president of Nichesoft, a software manufacturer based in Carollton, Texas. “It’s very convenient to keep that information in one place with software, and it makes the data much easier to review.”

Since most salons already utilize external timer systems, owners sometimes worry that the timers will not be compatible with the type of software they may buy; fortunately, many timers are built with software in mind.

“Our timers are compatible with all major salon software programs in the market,” says Hap Nguyen, owner of FST Company, a software and timer systems manufacturer based in Fountain Valley, Calif.

In reference to safety and control, external timers are an important feature of any salon. With the added bonus of software compatibility, timer systems enhance a salon owner’s ability to operate, regulate and maintain their hottest commodity—the tanning equipment.