Mar 25, 2021

Spas and Salons: Sample Objectives and Key Results (OKR)

Written by FranConnect

Salon and spa franchises represent well over a million businesses across the U.S. According to IBISWorld, there are approximately 880,000 firms operating in the hair and nail salon industry within the U.S., providing direct employment opportunities for almost 1.2 million people. The health and wellness spa industry has over 22,000 businesses employing over 365,000 people. As the economy changes, salons and spas still employ many people.

OKRs

 
Objective: Increase franchisee revenue.
 
  1. KRs:
    1. Get retail capture rate to 25% (percentage of people who buy retail items vs. spa guests).
    2. Have 100 customers do injectables (high-ticket item).
    3. Increase customers by 20%
    4. Increase facial treatment sales by 30%.
  2. Initiatives:
    1. Increase prices by 10%.
    2. Get front desk staff engaged in sales training from head office.
    3. Review injectable sales on monthly FranConnect scorecard.
    4. Engage in Instagram for lead generation.
Objective: Increase profitability through marketing efficiencies.
 
  1. KRs:
    1. Make cost/lead $25 off Google.
    2. Get repeat guest rate to 50% (percentage of total guests who are repeat guests).
    3. Increase business from referrals by 25%.
    4. Increase walk-in business by 10%.
  2. Initiatives:
    1. Optimize Google AdWords landing pages.
    2. Run annual referral campaign with current customers.
    3. Give roses to customers for the month of February as a Valentine’s Day promotion.
    4. Add colorful decals outside of clinic.
Objective: Increase employee satisfaction of frontline staff.
 
  1. KRs:
    1. Make employee retention rate 20% (employees who left/total employees).
    2. Get eNPS (employee Net Promoter Score) to 30.
    3. Increase employee participation in group events by 50%.
    4. Increase employee participation in learning portal by 25%.
  2. Initiatives:
    1. Launch eNPS program.
    2. Review who has completed training using custom forms in FranConnect.
    3. Have a staff holiday party.
    4. Allow team members to nominate each other weekly for “spirit” awards.

Hopefully these sample objectives and key results have helped you out. Do you want to take it a step further? Learn more about strategy and salon and spa franchises by checking out the following:

About Objectives and Key Results in Franchising
How to be a Collaborative Franchise Business Coach (FBC)

 

About the author

FranConnect

FranConnect is the leading franchise management software provider. Based on an analytics approach, only its award-winning, unified FranConnect platform engages stakeholders to grow, scale and optimize franchise systems through a connected and complete view of the business from sales to multi-unit and multi-brand performance. Over 800 brands — including 40 of the Entrepreneur’s Top 100 Global Franchises — in 18 countries count on FranConnect to successfully grow their franchise systems. FranConnect customers span all sizes, growth phases, and industries and have grown 44% faster than the broader franchising market. Backed by private-equity investor Serent Capital, FranConnect is headquartered in Herndon, Virginia, with global follow-the-sun operations.

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