Skip to main content
woman on her laptop at table

8 Power Metrics That Will Increase Revenue at Your Salon or Spa

By Ma-Keba Frye

February 3, 2025

If you want your salon or spa business to thrive, offering great services and experiences is just the beginning. It’s equally important to understand how your business is performing behind the scenes. By diving into your business performance metrics, you can gain valuable insights into your operations, highlight areas for improvement, and make smarter decisions that boost your bottom line. Let’s explore the essential metrics that can directly impact your revenue and help you optimize your strategy for long-term success.

8 metrics you can't afford to ignore

No single metric can provide a complete picture of your salon or spa's overall health. Instead, a combination of key performance indicators (KPIs) is needed to fully understand how your business is performing. KPIs are the most impactful measurements tied directly to your business goals. We've identified eight critical KPIs that go beyond surface-level data, providing actionable insights to help you optimize operations, stay competitive, and drive long-term growth. We’ll also show you how to monitor them using Mindbody's reporting and analytics feature, Analytics 2.0. 

1. Average purchase value

The average purchase value represents the typical amount clients spend during each transaction. This metric provides valuable insights into client purchasing behavior by highlighting their average spending per visit.   

Why it matters: By tracking the average purchase value, you can uncover opportunities to increase revenue during each client visit through both upselling and cross-selling strategies. For example, you might use an upselling tactic by suggesting a more advanced or premium facial service to a client booking a basic facial. At the same time, cross-selling can help boost transaction value by recommending a facial moisturizer for aftercare, ensuring clients maintain hydration and extend the benefits of their treatment between visits. 

You can track your average purchase value in Analytics 2.0 using the Average Net Ticket/Receipt Value metric. 

How to track it in Analytics 2.0:   

  • Navigate to the Sales tab.
  • Check the Average Net Ticket/Receipt under Summary Metrics to see how your per-visit revenue trends over time
Analytics 2.0 Average Net Ticket/Receipt Value

2. Profit by category

The profit by category KPI helps you understand which areas of your business contribute the most to your bottom line, whether it’s services like massages and facials, retail products, or memberships.  

Why it matters: Analyzing profit by category helps you pinpoint your most profitable revenue streams, enabling you to make strategic decisions that drive growth. With these insights, you can focus on high-performing areas while identifying opportunities for improvement. For example, if retail products like skincare kits are underperforming, it may signal a need for staff training on effective product recommendations or a refreshed merchandising strategy to boost sales.   

You can track profit by category in Analytics 2.0 using the Revenue Category metric. 

How to track it in Analytics 2.0:   

  • Go to the Sales Deep Dive tab.
  • Group your data by Revenue Category to see a breakdown of your revenue sources.   
Analytics 2.0 Revenue Category

3. New customer retention rate

The new customer retention rate KPI tracks the percentage of first-time customers who return for a second visit or purchase within a specific period. It helps businesses measure how effectively they turn new clients into repeat customers, which is crucial for long-term growth and loyalty. 

Why it matters: Measuring and tracking first-time client retention is essential for the long-term success of a spa or salon business. High retention rates indicate that you’re building a loyal client base, which is more cost-effective and sustainable than constantly acquiring new clients. On the other hand, tracking first-time visits helps you evaluate the effectiveness of your marketing efforts in attracting new clients. 

The First Visits and Total Visits tool in Analytics 2.0 provide valuable insights into client retention by tracking the number of first-time and returning clients. 

How to track it in Analytics 2.0:   

  • Go to the Visits tab.
  • Compare First Visits with Total Visits to monitor your mix of new and returning clients.   
Analytics 2.0 First Visits and Total Visits

4. Membership growth rate

The membership growth rate KPI measures how quickly your business is gaining or losing members over a specific period. 

Why it matters: Memberships are a reliable source of recurring revenue. Tracking membership trends over time provides insights into your business's overall growth. It allows you to identify patterns, such as seasonal fluctuations or the success of promotions, and evaluate membership sales and retention strategies.  

For businesses with multiple locations, this metric is invaluable for making easy month-to-month comparisons. It helps you pinpoint which locations are thriving, where improvements are needed, and how best to allocate resources.  

With the Memberships tab in Analytics 2.0, you can monitor and compare trends for both active and new members. 

How to track it in Analytics 2.0:   

  • Open the Memberships tab.
  • Track metrics like Active Members, New Members, and Active Member Growth to spot opportunities to grow your membership program. 
Analytics 2.0 Memberships

5. Monthly sales growth

The monthly sales growth KPI measures the month-to-month growth or decline in sales. This helps you track your business's performance over time, identify trends, and assess your sales strategies.  

Why it matters: Using your monthly sales growth metrics, you can uncover periods of strong growth, seasonal declines, or consistent client spending trends. These insights empower you to make more informed decisions, such as optimizing promotions, adjusting pricing, or managing inventory to align with peak demand. For instance, if you notice a dip in sales every January, you could launch a “New Year, New You” promotion to attract clients and boost engagement during slower periods.   

You can monitor your sales over time by tracking your Sales Trends in Analytics 2.0.  

 How to track it in Analytics 2.0:   

  • Use the Sales Trends chart under the Sales tab to see daily, weekly, or monthly sales trends.
  • Group by Revenue Category or Item Type to dig deeper into specific trends.   
Analytics 2.0 Sales Trends

6. Customer retention rate

Unlike the new customer retention rate, which measures how many first-time clients return, the customer retention rate KPI tracks the percentage of all customers, or returning unique visitors, who continue to do business with you over time. This broader metric provides insight into overall client loyalty and long-term retention trends. 

Why it matters: Tracking returning unique visitors sheds light on your long-term client retention and business stability. If total visits are high but unique visitor numbers are low, it suggests you have a small yet loyal group of clients. This insight can help you tailor your marketing efforts to attract new customers while maintaining strong relationships with your existing loyal clientele.  

In Analytics 2.0, you can assess your customer retention rate by comparing your Total Visits to your Unique Visitors.   

How to track it in Analytics 2.0:   

  • Go to the Visits tab and review the Total Visits and Unique Visitors metrics.
  • Identify trends in client engagement over time.   
Analytics 2.0 Total Visits and Unique Visitors

7. Monthly recurring revenue

Monthly recurring revenue (MRR) is a KPI that measures the predictable revenue generated by your business each month, such as membership programs or automatic payments. Autopay Sales provides insight into the revenue generated from your membership programs, offering a clear view of the predictable, recurring income that forms the foundation of your business's financial stability.  

Why it matters: In the salon or spa industry, offering autopay memberships helps create a consistent and predictable revenue stream while strengthening client loyalty and supporting long-term business success. The MRR metric allows you to track this steady income, providing clear visibility into your financial health, growth trends, and revenue stability. We recommend that 50% of total sales come from autopays.  

You can evaluate your MRR in Analytics 2.0 by checking how many clients utilize Autopay.  

How to track it in Analytics 2.0:   

  • Under the Sales tab, check the Autopay Sales metric to monitor the performance of recurring payments.   

Analytics 2.0 Monthly Recurring Revenue

8. Total attendance KPI

The total attendance rate KPI measures how effectively your salon or spa fills available appointment slots over a specific period. It helps assess demand, scheduling efficiency, and overall business performance. 

Why it matters: Knowing when your business is busiest allows you to optimize staffing levels and create strategic promotions to fill slower periods. For example, if weekends are consistently fully booked but weekdays see less traffic, you could introduce a midweek special to attract clients and balance your schedule. This insight helps you improve efficiency and maximize revenue.   

You can monitor your total attendance KPI in Analytics 2.0 through the Visit Trends report.  

How to track it in Analytics 2.0:   

  • In the Visits Trends section, view visit patterns by day, week, or month.
  • Group by Visit Type to see which services are driving traffic.   

Analytics 2.0 Visit Trends

Empower your salon or spa with reporting and analytics

You can’t truly understand your salon or spa business without knowing how it’s performing in key areas. From tracking weekly client visits to analyzing seasonal sales trends, Mindbody's Analytics 2.0 feature can provide a clear picture of your business’s health. These metrics aren’t just data points, they’re powerful tools that reveal what’s working, what needs improvement, and where there are new opportunities.  

By putting these insights to use, you can make informed decisions that ensure long-term success. After all, the numbers don’t lie and understanding them is the first step to unlocking your business's full potential. 

Drive growth with Analytics 2.0

Get Started

About the author:

A headshot photo of Ma-Keba Frye

Ma-Keba Frye

Senior Content Marketing Specialist

Mindbody

Ma-Keba is a fitness enthusiast and content marketer at Mindbody. Her passion for health and wellness, combined with her experience as a content writer in this field, allows her to create informative and engaging content that empowers individuals in the health and wellness industry.

New resources, straight to your inbox

Get updates on the latest industry trends, tips, and news.

We're committed to your privacy. Mindbody uses the information you provide to us to contact you about our relevant content, products, and services. You may unsubscribe at any time. View Privacy Policy

Back to top