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We are a global management consultancy that delivers exceptional outcomes and sustainable change

Case Study

A lead­ing beau­ty salon achieves rev­enue growth of up to 130% by reju­ve­nat­ing the per­for­mance of its staff

2023/03/27

BACKGROUND

The beau­ty indus­try in the Asia Pacif­ic region has seen sig­nif­i­cant growth over the past decade, part­ly dri­ven by the increas­ing demand from middle-class con­sumers. As the mid­dle class con­tin­ues to grow in many coun­tries in the Asia Pacif­ic region, there is a cor­re­spond­ing increase in dis­pos­able income, which is dri­ving demand for beau­ty products.

E‑commerce has also become an increas­ing­ly impor­tant dis­tri­b­u­tion chan­nel for beau­ty prod­ucts in the Asia Pacif­ic region. Online sales have con­tin­ued to grow as more con­sumers in the region become com­fort­able with buy­ing prod­ucts online — and in some case make it their pri­ma­ry mode of shopping.

Our client is a lead­ing beau­ty salon based in Hong Kong and Asia, offer­ing pro­fes­sion­al treat­ments as well as relat­ed beau­ty ser­vices. They are posi­tioned at the high-end of the beau­ty indus­try that is ded­i­cat­ed to pro­vid­ing beau­ty and well­ness ser­vices to customers.

THE CHALLENGE

As a result of a planned reju­ve­na­tion and merg­er of two brands with­in the client’s oper­a­tions, they recog­nised new oppor­tu­ni­ties in improv­ing rev­enue through the bet­ter use of man­age­ment con­trol sys­tems (MCS). We were invit­ed to help the client imple­ment a more robust MCS, as well devel­op bet­ter dash­boards and KPIs for its business.

ANALYSIS

An ini­tial two-week analy­sis in the client’s branch­es across Sin­ga­pore and Hong Kong revealed areas for rev­enue improve­ment, cost man­age­ment, and oper­a­tional improve­ment oppor­tu­ni­ties. From here, we embarked on a 25-week engage­ment with the objec­tives of dri­ving rev­enue gen­er­a­tion, as well as opti­mis­ing mar­ket­ing spend and pay­roll cost man­age­ment. The project was struc­tured into four key focus areas: 

CALL CENTRE OPERATIONS 

  • Analyse call cen­tre capac­i­ty and oper­a­tional improve­ment 

CENTRE
OPERATIONS

  • Oper­a­tional improve­ment, stan­dard­i­s­a­tion, and rev­enue gen­er­a­tion across Sin­ga­pore and Hong Kong

PERFORMANCE MANAGAMENT

  • Review cur­rent per­for­mance man­age­ment prac­tices 
  • Intro­duce stan­dard prac­tices 
  • Encour­age employ­ee par­tic­i­pa­tion in gen­er­at­ing ideas 

MARKETING EFFECTIVENESS

  • Analyse cur­rent mar­ket­ing spend across Sin­ga­pore and Hong Kong 
  • Increase vis­i­bil­i­ty on mar­ket­ing spend and enable decision-making on new mar­ket­ing cam­paigns 

Project Imple­men­ta­tion

The project start­ed with the selec­tion and train­ing of a task­force com­pris­ing of three staff mem­bers from the client’s side, sup­port­ed by a full-time team of our con­sul­tants. We trained and coached the task force in its method­olo­gies, includ­ing behav­iour­al change tech­niques and strate­gies. We also over­saw the project to ensure the com­mit­ted deliv­er­ables were achieved.

To achieve max­i­mum impact and buy-in, a joint client-Renoir team reviewed results of the indi­vid­ual focus areas dur­ing week­ly Man­age­ment Action Team (MAT) meet­ings, whilst a joint client-Renoir steer­ing com­mit­tee met every two weeks to pro­vide direc­tion, make key deci­sions, and ensure the project was on-track to deliv­er results.

This approach allowed for a direct engage­ment with stake­hold­ers, which in turn improved own­er­ship and buy-in from the client.

Results

The project intro­duced sev­er­al ini­tia­tives direct­ed at improv­ing rev­enue, opti­mis­ing mar­ket­ing spend, and stan­dar­d­is­ing oper­a­tions across Sin­ga­pore and Hong Kong.

After 25 weeks, the fol­low­ing results were achieved.

FINANCIAL
RESULTS

Sin­ga­pore
• 25% increase in rev­enue
• 44% increase in prod­uct sales
• 46% increase in sales to new customers

Hong Kong
• 11% increase in rev­enue
• 130% increase in prod­uct sales
• 9% increase in sales to new customers

OPERATIONAL
RESULTS

Sin­ga­pore
• 181% increase in no. of poten­tial cus­tomers con­tact­ed
• 14% increase in no. of call cen­tre bookings

Hong Kong
• 123% increase in new leads
• 20% increase in no. of new customers

Addi­tion­al­ly, the orig­i­nal com­mit­ment of a 2:1 ROI return was sur­passed with a final ROI of more than 3:1.

CONCLUSION

The improve­ments in per­for­mance man­age­ment, call cen­tre oper­a­tions, and the stan­dard­i­s­a­tion of process­es across the cen­tres made a major con­tri­bu­tion to the benefits.

Since then, the imple­ment­ed ini­tia­tives have pro­vid­ed clear­er work process­es and improved account­abil­i­ty, data ana­lyt­ics, and oper­a­tional management.

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