As the year draws to a close, it’s an opportune time for salon suite owners to reflect on the achievements of 2023 and set clear objectives for 2024. This evaluation and planning phase is key to understanding the efficacy of your business operations, particularly in the realms of sales and marketing.
An effective review of this past year hinges on analyzing three critical Key Performance Indicators (KPIs): your total lead count, indicating marketing team efficiency; the number of leases signed, showcasing sales team effectiveness; and your conversion rate, which is the proportion of leads that turned into signed leases; aka how good your growth engine works.
Your conversion rate is a vital metric to grade your business’ effectiveness when it comes to growth and is critical for future planning, because it provides a reliable estimate of business needs. For example, if your conversion rate aligns with the national average of around 5-6%, this implies that about 1 lease is signed for every 17-20 qualified leads. Knowing this, you can set goals for how many leads you’ll need per month to hit your goals!
Looking ahead to 2024, it’s essential to establish specific goals for these KPIs in line with your overarching business objectives. Remember, the primary goal of marketing is lead generation, and for sales, it’s maximizing the number of conversions out of those leads. Conversion rate is highly affected by the effectiveness and consistency of your sales process (what happens once you get a lead’s information). So it’s important to know where your strengths and weakness lie within the conversion rate equation.
If your current lead volume or quality is insufficient, it may be time to boost your marketing efforts. Conversely, if you have a lot of leads who are beauty, health, and wellness professionals, but your conversion rate is still low then you might need to revise your sales process and strategy.
Focusing on these KPIs and adjusting your strategies accordingly will be crucial in identifying areas of strength and improvement in the coming year, and give you a roadmap of where to focus your efforts and investment to achieve success.
What was your conversion rate in 2023? And how many leads do you need to reach your goals in 2024? To figure out both your conversion rate and your lead need for 2024 we’ve created two simple calculators to help you!
