Earlier, customers had to call and book appointments to be the first to grab the chair at their favorite salon. Now, customers can do appointment scheduling right from their smartphone and book a slot they prefer. Mobile salon applications have transformed the way people consume beauty services. The online Salon Appointment Booking Solution automates the appointment taking and managing tasks for beauty and hair salons.
There are many benefits of salon software beyond taking and managing online appointments a salon could reap. However, to build a prolific salon booking software, the Business Model for Salon has to be ideal. A proper salon business model helps you figure out: if your concept is feasible, how you will create customer value, how customers will access your service, and how you keep your business competitive.
Moreover, your business model also discusses your salon revenue model. By creating a business model, you can plan every vital aspect of your business in advance. Therefore, you can anticipate how to tackle your competitors and budget and nurture your business down the line. If you wonder how to lay the foundation of the magical business model, take a deep breath and relax.
The post revolves around the crucial elements of the salon business model. If you aim to Develop a Salon Appointments Booking App like StyleSeat, you should not miss out on this post. So, let’s spill the beans about the salon business model.
Salon Appointment Booking Business Model
- Customer Segments
Customer segments in your business model are the group of customers you want to sell your salon services. You must know who you are targeting and their demographics to get this block right. It is said, defining and targeting the right customer group is key to your business model success.
As for the online salon business, your audience may be the individuals who seek on-demand and convenient beauty services. The group may include men, women, college-educated looking for quality and accessible salon services. It also covers people who seek salon options and struggling salons to offer their service online if it’s a salon marketplace app like SalonIrish.
- Key Partners
A business needs non-consumer entities as partners to fuel the business model. It could be your suppliers, manufacturers, business partners, or other salons to offer their services through your online booking app. You must plan and then approach partners who would help you grow your business, helping serve your customers better.
Moreover, by partnering with diverse salon owners, you ensure the app user gets ample options to choose from. Having quality partners also promotes user retention by respecting users’ choice of salons every time.
- Key Activities
The activities required to fulfill your salon’s primary purpose, make profits and solve your prospects’ problems. At this block, you decide what features and functionality your app must have according to your user journey, whether you should develop an app for Android or iOS or both.
You have to plan activities for your brand awareness and salon app marketing strategies as well. These activities work as a road map for your online salon business to operate.
- Value Proposition
The online salon industry is not shallow anymore, and the competition is increasing with every passing day. In that case, a new salon business requires unique quality to grab the limelight and create long-term relationships with customers from the beginning. For a new online salon app, the value proposition could be:
- Offering a fresh and ever-lasting customer experience, reducing the communication barrier between salon professionals and customers;
- Letting customers find the best salons near them;
- Partnering with reliable and professional salons and stylists;
- Offering automated reminder feature to reduce no-shows;
- Multiple payment options to accelerate the payment process;
- Key Resources
Key resources are essential to make it up to the value proposition you decided to offer with your salon app. They help you reach the markets you target and maintain relationships with your customer segments and gain revenues. Your mobile salon app is a vital resource for your salon business.
It allows you to connect with your target audience, let them review and rate your services. In contrast, you learn more about their problems and strategize effective solutions for the same.
You have developed a salon app that works amazing, but how will your prospective customers know about this? Right, you need to raise awareness and advocate among customers about your salon app and its offerings. Basically, awareness, evaluation, purchase, delivery, and after-sales are the five phases of any direct or indirect channels. These channels may include a website, social media, word of mouth, advertisement, digital marketing, email, etc.
- Revenue Model
There are many monetization ways for an online salon booking app, and it’s good to have multiple revenue streams as well. Many salon marketplace apps charge a 10-20% commission from salon partners for the service. Many offer a freemium app version with minimal features and sell a premium or customizable version. In contrast, some salon booking apps offer subscriptions or memberships with premium features and discounts for customers.
So first, you should dig a little and know which ones will work best for your online salon business. Take help of some hypothetical questions like below.
How much will your customers be willing to pay?
For what do they need to pay?
How much do they currently pay for the same service?
How would they prefer to pay?
How much would each Revenue Stream contribute to overall revenues?
Read also how free apps make money.
- Cost Structure
You will definitely need a budget to execute all that you have planned in your business model. And this is the block of your business model where you explain fixed and variable costs that your business must incur. For example:
- Cost to develop a salon booking mobile app,
- Maintenance and marketing cost of the app,
- Expenses of acquiring key resources and carry out key activities,
- Infrastructure, instrument, and staff costs,
- Other miscellaneous expenses.
Salon booking mobile app development is a proven solution for salon owners to expand their business. However, it can also backfire without a strategic business model and remain a costly affair without results. That’s why you need to put everything in one place and analyze it before executing anything. As for the app development cost, you have to consult a mobile app development company as it varies depending on some factors.