Here’s how one beauty salon owner manages client no-shows

Thanh Vu, managing director of Dream Nails, reveals her policy and actions towards client no-shows…

Thanh Vu

As an owner of four Dream Nails salons, I’ve experienced a number of challenges, and no-shows seem to be increasingly apparent across our sector.

When I started out as a single salon business, I tended to be present seven days a week and was very aware of every booking and of returning clients. I used to operate a very old school pen and paper system so would take down a client’s phone number and call to check they would be attending before each booking. If a client failed to turn up, it meant that I simply wouldn’t be taking any money home that day after I had paid the bills and staff. Given the importance of their presence, I made a point of calling at least once – with a specific focus on new clients and new names I did not recognise.

As I have expanded and shifted to an electronic booking system, the issue of no-shows has become more prevalent than ever. Unfortunately, I am unable to recognise every client name and nor can I be in four places at any one time. As a result, our no-show rate has unfortunately increased. 

As I track the no-shows at our various salons, one issue that stands out is that invariably they are new customers that have never been to Dream Nails before.

Our marketing push has been successful but it has also brought an increased no-show rate.

Our traditional long-standing clients understand the impact a no show has on our business and fortunately give us plenty of warning if they do need to cancel. So the ugly question that rears its head is: Should we charge in advance of the appointment to prevent no shows?

As a business, I have chosen not to implement a system whereby I require the appointment to be prepaid or a system whereby I keep a client’s bank details in case of a no show. My steel is currently being tested as it seems a certain few simply don’t appreciate the collective impact no-shows have on a business. 

Why then, have I decided to not charge in advance in order to prevent no shows?

1. I genuinely have faith in our clients and will always give the benefit of the doubt. I think it is best to see the good in people and for that reason I like to charge once they have received their treatment – that way they only pay when they are 100% happy.

2. I always try to pay market leading wages to my valued employees. However, they will all tell you that very much appreciate customer tips. We have analysed the data and realise that prepaid appointments are less likely to pay staff tips than when payment is taken post treatment. I think this ties in with point 1 as clearly a customer who is happy will be more willing to tip at point of payment. 

3. We use MindBody Online to process our online bookings but we use First Data as a payment provider. First Data is a competitively priced payment provider, however, I am unable to integrate First Data into MindBody and hence not able to take up front payment. For me this is a simple economic decision – does the benefit of the lower payments to First Data outweigh the increased likelihood of no shows through not being able to take payment upfront. Due to the great rates First Data give us and points 1 and 2, yes. 

So, given I do not charge upfront and statistics show that this leads to a higher no show rate what other measures do I take? We take two measures:

• Educate clients – explain to them how their individual actions can collectively have a huge impact on staffing levels, revenue and ultimately business survival. More often than not they are extremely apologetic. We send every no show client an email (see below).

Dear [insert name],

Just a quick message as you failed to turn up for your appointment today. We send this email to all no-show customers.

We are a small business that has kept on all staff following COVID-19. We have been able to do this by carefully managing bookings and allocating staff across our 4 salons. Unfortunately, when we have no shows this puts this strategy at risk and means the likelihood of future staff redundancies is heightened.

We do not charge for appointments prior to booking and put a lot of trust in our clients that they turn up or alternatively notify us in advance that they are unable to attend. Unfortunately, you didn’t turn up nor did you provide us notice hence we missed out on filling the slot. Please do take this into account in the future as these actions impact others.

Apologies that the email has had to be sent but I want to explain from our point of view.

Thanks

• Close monitoring – After one no show, our staff are told to closely monitor the no show’s next bookings. We will give them a second chance. However, if they fail to show up they are blocked in our system and prevented from booking with Dream Nails again. This may sound harsh but livelihoods are at risk.

Hopefully, clients will appreciate the impact that no shows have on a business. I understand that last minute plans can be disrupted – all we ask is that clients let us know. At least that way, we can release the availability online and also say ‘yes’ to walk-ins.

It’s always best to see the positive in people. After all, no-shows are the exception and our clients are our life blood.

www.dreamnailsbeauty.com