Episode Details
Back to EpisodesAre You Tracking the Wrong Salon KPIs? [EP:263]
Description
“Know your numbers.”
Salon owners hear it constantly.
Rebooking.
Retail percentage.
Average ticket.
Productivity.
Retention.
New clients.
But knowing your numbers isn't the same thing as understanding your business.
In this episode, we're digging into KPIs (key performance indicators) and why blindly tracking the same handful of industry-standard metrics may be giving you an incomplete picture of what's actually happening inside your salon.
We talk about why a KPI should start with a question, not a benchmark; how a “good” number can still tell the wrong story; and why sometimes you need to go another layer deeper before deciding what to do.
We use real examples from Hello, including declining rebooking while revenue, profit, visit frequency, and retention remained strong; why being 100% booked can actually create problems; how we think about customer acquisition cost and lifetime value of a client; and why we've started creating our own measurements for things like team engagement, growth, culture, and client stability.
Because the goal isn't to collect more numbers.
It's about understanding what the numbers are telling you—and using them to make better decisions.
The Big Idea
Don't start with the KPI. Start with the question you're trying to answer.
Key Takeaways
- “Know your numbers” isn't enough if you don't know what to do with them.
- A useful KPI should help you understand what's happening, what's working, what's not working, or what to do next.
- Don't automatically adopt someone else's KPIs just because they're considered industry standards.
- Start with the problem or question, then decide what you need to measure.
- Traditional salon KPIs can still be valuable—but sometimes you need to go another layer deeper.
- A low number isn't automatically the problem. Study the people with strong numbers and ask what they're doing well.
- Rebooking can tell an incomplete story when clients increasingly prefer online and last-minute booking.
- A “good” KPI can even hide a business problem. Being 100% booked isn't necessarily the same thing as maximizing opportunity.
- Beware of inherited assumptions—ideas repeated so often that people stop asking why they're true.
- Revenue isn't profit, and top-line revenue shouldn't be treated as the final score.
- Customer acquisition cost is more useful when you also know where clients come from and what happens after you acquire them.
- Lifetime value can change how your team thinks about cancellations and long-term client relationships.
- Culture can be measured more intentionally than simply saying, “We have a great culture.”
- Custom metrics can help you measure the business you're actually trying to build.
- Use industry benchmarks for context and inspiration—not as unquestionable rules.
- Before adopting a KPI, ask: Does this apply to my business? What problem does it solve? What information does it give me? What assumptions is it built on?
Time Stamps
00:00 — Opening Takes
03:00 — Do salon owners actually “know their numbers”?
05:00 — What a KPI is supposed to do
07:00 — Don't start with the KPI—start with the question
09:00 — Are salons measuring the wrong things?
11:00 — Knowing a number vs. knowing what to do with it
13:00 — What can you learn from your most-booked stylist?
17:00 — Why Hello's declining rebooking didn't scare us
20:00 — When rebooking becomes a misleading number
22:00 — How a good KPI can tell the wrong story
25:00 — Inherited assumpti