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4 September 2018 - by Trina McColl
A new model innovation program at skincare franchise Ella Baché is reaping dividends for franchisees with an average 21 percent growth in service sales for those embracing the change.
Ella Baché CEO Pippa Hallas said a new services menu was the first change implemented as part of a larger four-year strategic development plan for the model.
“Over 30 percent of franchisees have made the change to the new services menu and the results are very positive.” Hallas said.
“The business recorded an 8 percent increase in total and service revenue, along with a 6 percent jump in retail turnover across the franchise.
Hallas said management spent a considerable amount of time focused on ways to develop the business model and drive further success and profitability for franchisees.
“We listened to what our franchisees wanted, starting with a focus on getting more clients through the door. This led us to customer research, which revealed there was a disconnect in what clients understood we did versus the expertise actually available to them in our salons. We saw the opportunity immediately and conducted a full review of our service menu.”
The business recorded an 8 percent increase in total and service revenue, along with a 6 percent jump in retail turnover across the franchise.
The new services menu includes 14 Skin Solutions, new personalised treatments, professional products, techniques, technology and a clear connection to how the service relates to at home treatments and a regular skincare program that really drive results harder without harming the skin.
“Change takes time, but we are pleased with the results so far and the positive feedback from our franchisees,” Hallas said.
Mandy Kaur, who operates the Doncaster franchise was one of the first franchisees to convert to the program and has experienced 32 percent growth since implementing the new menu.
“We saw an immediate change when we introduced the new service menu. It seemed to make everything more appealing for clients. We have a higher customer return rate now, especially in the younger under 25 demographic, and better product sales,” she said.
Ms Kaur also confirmed her business had experienced a 45 percent increase in service sales, and a 10 percent increase in product sales because of the menu changes. She also believes it has enhanced the company’s point of difference in the market place.
“What they have done is so fresh. I’ve never seen anything like it in the industry before. There is no one really owning the benefits of safe, long-term, effective skin care like Ella Baché does and the new menu really brings that to life for the company,” Ms Kaur said.
Ella Baché expects all 145 salons nationally will be converted to the new service menu by the new year.
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