In Nigeria, there are no figures to the failure rates of businesses in the Beauty services sector. It is not uncommon for women to get their hair done in a certain salon and after a few years, it has packed up, and they are looking for the next one.
The business owner just moves on with loads of nightmarish experiences to share. What are the culprits of business failure in this sector?
- Huge power costs. Most beauty salons start out knowing they have to take care of power supply considering how crucial this is to their businesses. But how many of these businesses can sustainably provide power and still make profit? Very few.
- Very high staff turnover. After power, this is a very difficult one to crack. It requires real understanding of leadership to manage the crop of people who actually work in this sector. Most of them do not have good education and just lack personal motivation. The truth is most of them cannot really survive on their salaries. They still need lots of support from family and friends. That just leaves business owners with unmotivated and uncommitted workers. That does not auger well for business.
- Very poor customer service. The lack of motivation comes through in the way these people manage customers. Indifference, carelessness, disregard for the customer is very common in this sector despite its very personal nature.
- Non aggressive marketing of services. Because of the cost of marketing, most of these businesses rely on word of mouth references for patronage. This is totally inadequate.
- What do Business owners in this sector need to do to address these issues? That is what Chinwe Kalu, CEO, Customer Passion Point Limited (CPPL) had to share with the owner and staff of a new Beauty Home (Dreamlocks Salon and Spa) that will launch on 1st December, 2018 in Lekki, Lagos.
Firstly, motivation is crucial. The need to show the staff that it possible to create something that can actually outlive them. I made them see the possibility of personal and financial growth because they commit totally to giving their best to their jobs. We literarily saw their faces light up with realisation of the possibilities.
Also helping them understand the value of a customer was crucial. We are quick to describe the customer as king and the reason for our business but we do see these in the way we service the customer. Customer service is crucial because of the very personal nature of the services rendered. It was necessary to help them understand how important it is to place appropriate value on these people (customers) who come through their doors. Good customer service increases the number of referrals while poor customer service results in bad reputation which spreads really fast and ultimately results in business failure.
Chinwe had this to say, ‘As CEO of CPPL, I have personal interest in the success of beauty services sector. I once ran a salon and spa and eventually shut it down. It was painful but I don’t want to waste that pain. If I can facilitate success in the sector through my experience and the things I learnt, I would gladly do that. Hence my interest in the sector. She applauded, Mrs Vwede Eromvon, CEO of Dreamlocks Salon and Spa for understanding the need to get a consultant involved despite the extra cost. It will make a huge success to the results she gets. I look forward to the success she will experience by starting on the right footing.
CPPL is a value creation consulting firm and we provide marketing and capabilities development solutions. Facilitating a session like this and working with the business to mentor staff and track progress is one of the products we specifically target at the beauty services sector with the aim of supporting them to create value in a manner that is consistent and sustainable.
We do not just teach skills, we provide coaching / mentorship services that ensure great results delivered consistently. At the end of the day, we bring skills, motivation, and effective leadership to the table. They make all the difference’. For more details, contact Chinwe Kalu at [email protected] Or +234 803 301 2458 or visit www.cppl.com.ng.