Improving Cut Short Hair Salon's Profitability: A Case Study Analysis

Desklib provides past papers and solved assignments for students. This case study analyzes Cut Short Hair Salon's operations and suggests improvements.

CASE STUDY ANALYSIS & EVALUATION
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Table of Contents
Question 1........................................................................................................................3
Introduction................................................................................................................... 3
Encourage Pre booking and appointments...................................................................3
Introduce an E - payment system.................................................................................4
Introduce exciting offers................................................................................................4
Conclusion.................................................................................................................... 5
Question 2........................................................................................................................6
Suggestion 1.................................................................................................................6
Suggestion 2.................................................................................................................6
References.......................................................................................................................7
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Question 1
Introduction
Cut short is a popular chain of hairdressing offering the salon services to its customers.
While providing services it was noticed that the valuable time of the customers is lost in
various activities including checked in time, seated and explaining their preferences in
relation to style takes customers lots of time. This is the valuable time of the customers
that are lost each and every day. In this context, it is addressed, to the CEO for
increasing the profitability of the company it is important to consider the customers
valuable time. With this, some customers remain dissatisfied as they don’t have enough
time to wait for the longest time. Even hair stylist does not have enough time for each
and every customer to listen to them properly. In this regard, this report depicts the
three recommendations for improving the profitability of the company as well also assist
in reducing the time of the customers. With these recommendations, customers can
save their lots of time where there is no requirement to stand in queue for a long time
for discussing their style preferences with the hair stylist. In this context, there are three
recommendations are mentioned that assist in improving the salon services and helps
out in building a relationship with the customers.
Encourage Pre-booking and appointments
Pre-booking system is very commonly used methods that assist in boosting up
customer retention and also assist in forecasting the business schedule in the coming
weeks. Pre-booking system increases the visit frequency of the customers as well as
the revenue of the Cut short (Rrustemi & Jashari, 2018, p. 151). Nowadays, each and
every customer don’t want to waste their valuable time by standing in a queue and want
to get quick services. So to reduce the waiting time of the customers during check in
and check out this system is imperative for the Cut short. This system also assists the
hair stylists to offer an ideal date while booking the next appointment for the customer.
Further, booked appointment through the websites of cut short also helps the customers
to acknowledge the services provided by the Cut short and customer can their services
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according to their preference. With the help of pre-booking appointment customers can
have an idea to know about the type of service they get on a particular day. It also
guides the customers to know all the details of the services and its related charges. This
assists the customers to prefer or make a choice of the services which is in their
affordable range. It also supports in solidifying the future of the Cut short. This means
that less waiting and less money for the clients who book their appointment online. This
will help the management attract new customers with accurate long term planning and
also increase the opportunity of making a career for the hairstylist. An Increase in the
number of appointments helps the clients to meet their choices within a less period of
time (Li, et al., 2017, p. 10). It also supports the clients to get the services they really
want by deciding in advance about the type of services they actually want. This also
helps in encouraging the clients on receiving the satisfactory experience from the Cut
short and this also assist in increasing the base of the customers which leads towards
the growth and development of the company. This also helps out in motivating the staff
for providing the best services to their customers and assist in making the customer
base for the company. Pre-booking assist them in getting the immediate services to the
clients even.
Introduce an E - payment system
The E – payment system is the method of making transactions or the payment of the
goods and services with the help of the electronic medium. With increasing in the use of
internet-based banking and shopping, now the customers also believe in cashless
transactions. With this method, customers can book their services by making the
payment in advance through credit cards, Pay Pal etc. This helps the customers in
minimizing the time for waiting by standing in queue for their services. The E payment
system helps out the customers not to make carrying cash and book their services in
advance (Durgun & Timur, 2015, p. 683). Now there are various software available in
the market that handles all such processes. Various beauty software are coming into
the market that offers several services like an online salon booking system, pre-booking
of appointments, employee schedule, marketing promotions, and online sales. The E
payment system not only reducing the cash handling transactions but also saves the
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time of both the customers as well as management (Azmi, et al., 2016, p. 393). E –
payment system to assist in building the customer base and loyalty. It also encourages
customers to stay connected with the business. It also helps out in reducing the cost of
the transactions and there is no additional charges need to be paid through an online
payment system. Customers also feel comfortable in using the electronic system of
payment. Electronic payments assist in adjusting the amount of money that the
hairstylist needs to be paid to the customer. This system helps the Cut short to keep the
track record of the payment made by the customers. With the use of payment methods
like credit and debit cards make the payment process easier. The use of credit cards
also makes the Cut short more desirable for the clients who have already booked an
appointment but have no time for the payment to be made in cash (Chatterji &
Seamans, 2012, p. 182). This method helps out the customers to pay in advance so
that there is no time required to end up with one customer and starting with another
customer. It is important that the customers pay their amount within 24 hours of the
appointment and if they not then it deemed that the appointment will be canceled.
Introduce exciting offers
For encouraging the pre-booking and appointments it is recommended to the Cut short t
introducing several exciting offers on their services which make the client attract for
receiving the salon services. Cut short can introduce discount offers about 10 to 20% of
the service charges or can provide free vouchers. For increasing the demand for
services among the clients, the company can introduce combo services or by
introducing the schemes like buy one get one free (Wang, et. al., 2015, p. 109). Cut
short can also provide an online shopping option to the customers for instance styling
products, conditioner, and shampoo. Discounts assist in improving customer loyalty and
also help out in introducing clients to new services products and different type of
treatment. Cut short can also provide marketing discounts to deal with cosmetic
treatments. For this purpose, the company can use various social media platforms for
attracting the customers because social media is the imperative platform to make the
company and its products popular among the customers. The company can also
introduce the flash sale for advertising the products of the company and make it to the
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reach of the customers. On the other hand, the company can also implement the
policies like if the customers who are not arriving at their appointment time will also
liable for the payment of surcharge. By providing the online for shopping the products of
the company helps in increasing the sale of the company product. The company can
also make the option to make the immediate payment of the product purchase through
online or have the option to pick the purchases of the customers at the time of their
appointment. Hairstylist also offers a wide range of services includes haircuts along with
conditioning, curling and shampoo (Kant, 2014, p. 417). Such schemes and offers
support increasing the number of customers.
Conclusion
The main aim of this report is to enhance the role of the information and technology
related services in modern business organizations. It provides a thorough knowledge in
by replacing the traditional methods to digitilisation. The above-mentioned
recommendations support in increasing the customers base and supports in satisfying
the needs of the customers. The above recommendations not only help in attracting
customers but also help in saving the time of the customers as well as of hairstylist.
Through pre-booking system it eliminates the system of standing in a queue of a long
time. By introducing exciting offers it assists in attracting more customers which
ultimately increase the profitability of the company. Customers are also attracted with
discount offers where they get similar services at fewer prices. In the end, it concludes
that for increasing satisfaction among the customers it is important that the company
understand the customer need and work accordingly. The second recommendation
assists the Cut short to get familiar with the information and technology related
methods. It is important that the company get familiar with modern technologies for
enhancing the growth of the company. The third recommendation supports the
company in building a customer base as well as support in attracting the customers
towards the company. All the above-mentioned recommendations help the company in
a positive way to enhance and build up the customer base of the Cut short.
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Question 2
With increasing competition in every industry, it becomes imperative to improve
business services. Continuous improvement helps in the long term future growth and
success of the business. For improving the services of the Cut short, there are two
suggestions are mentioned below that supports the company and its management for
making improvement in providing services to the clients. These are:
Suggestion 1
With increasing in the demand of the customers, there are various companies that give
cut throat competition to the Cut short salon. In this context, it is important that the
company makes some improvements so as to give competition to the companies
dealing in the same field. Cut short can take effective steps in reducing the prices of the
product and services so that it can be within the affordable limit of the customers. It is
important that the company provides quality services to the clients as per their needs
and requirements (Kim, 2013, p. 214). The further company can also take feedback
from their clients in improving their services. Management of the company must update
with the recent fashion trends in the fashion industry so as to face the tough competition
in this field. The company can also make efforts in winning the hearts of the customers
by understanding their perspective.
Suggestion 2
For increasing the satisfaction base of the customers it is important that the salon
provides the best services to their customers. This helps in attracting customers and
increases the profitability of the company. Cut short can also organize seminars and
campaigns for providing training to the staff to deal with the customers. For improving
services to the customers it is vital that the company must focus on their customers and
providing them the best products, services and beauty treatments. It is significant to
train the staff for providing effective and efficient services to the customers. One of the
important strategies is to pay attention to every detail that assists in dealing with
customers and win their hearts (Wan, et al., 2016, p. 746). It is important that the
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company invest in the improvement to make the furniture more comfortable and also
serving drinks or tea to the customers.This makes building a long-lasting relationship
with the customers. It is important that the managers of the Cut short updated with the
service standards. Cut short must focus towards providing proper training to the staff so
as to get known with their work and understand the concept of art in the hair styling
process. They should be trained as dedicated individuals who will not disappoint their
customers by delivering poor services (Chen, et al., 2015, p. 76). For instance, hair
stylist must update with the prevailing fashion trends in the modern world. It is important
that the Hairstylist is properly trained so that they provide satisfactory services to the
customers.
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References
 Azmi, A., Ang, Y. D., & Talib, S. A. (2016). Trust and justice in the adoption of a
welfare e-payment system. Transforming Government: People, Process and
Policy, 10(3), 391-410.
 Chatterji, A. K., & Seamans, R. C. (2012). Entrepreneurial finance, credit cards,
and race. Journal of Financial Economics, 106(1), 182-195.
 Chen, X., Feng, Y., Keblis, M. F., & Xu, J. (2015). Optimal inventory policy for
two substitutable products with customer service objectives. European Journal of
Operational Research, 246(1), 76-85.
 Durgun, Ö., & Timur, M. C. (2015). The effects of electronic payments on
monetary policies and central banks. Procedia-Social and Behavioral
Sciences, 195, 680-685.
 Kant Hvass, K. (2014). Post-retail responsibility of garments–a fashion industry
perspective. Journal of Fashion Marketing and Management, 18(4), 413-430.
 Kim, B. (2013). Competitive priorities and supply chain strategy in the fashion
industry. Qualitative Market Research: An International Journal, 16(2), 214-242.
 Li, L., Peng, M., Jiang, N., & Law, R. (2017). An empirical study on the influence
of economy hotel website quality on online booking intentions. International
Journal of Hospitality Management, 63, 1-10.
 Rrustemi, V., & Jashari, F. (2018). Impact of Online Reviews in Online Booking–
Case Study Capital City of Kosovo. EuroEconomica, 37(1), 151-165.
 Wan, E. W., Chan, K. W., & Chen, R. P. (2016). Hurting or helping? The effect of
service agents’ workplace ostracism on customer service perceptions. Journal of
the Academy of Marketing Science, 44(6), 746-769.
 Wang, L., Law, R., Guillet, B. D., Hung, K., & Fong, D. K. C. (2015). Impact of
hotel website quality on online booking intentions: eTrust as a
mediator. International Journal of Hospitality Management, 47, 108-115.
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