Salon Management Software: Salon Software Buyer’s Guide

One of the things we love most at Capterra is helping organizations find business software that works for them…kind of like a good haircut. That’s why we wrote this buyer’s guide, to help you find the salon management software solution that works for you. We know you’re tight on time and would rather spend it with clients than reading a guide, so we’ve kept it to the point.

This guide is full of useful information that will help you understand what salon management software is and how it can benefit your business.
It answers the following questions:

What is salon management software?
Why should you consider a salon management software solution?
Who uses salon management software?
How do you buy the right salon management software solution?
What should you expect to pay for salon management software?
What are the features of salon management software?

What is Salon Management Software?

Salon software helps you manage your:

Calendar: appointment management, email confirmations, online reservations, staff schedules
Clients: client service history, CRM, customer loyalty programs, referrals, style/color formulas
Employees: payroll and commissions management, booth/equipment rental management, time clock management, scheduling
Inventory: tracking, automated ordering, buying trends, best sellers, backbar tracking
Point-of-Sale: eCommerce, credit card processing, gift card processing, retail sales

Similar software solutions: These types of software are similar to or feature some related functions as salon software:

Scheduling Software allows salons to view, manage, and book appointments
POS Software packages are retail management suites for handling sales and transactions and often inventory as well
Customer Relationship Management (CRM) Software is an application for managing client interactions, including sales, marketing, customer service, and more

Typically, these applications are separate products. But we’ve witnessed a recent trend where more functionality is incorporated in niche market software. Salon software combines critical salon management functions in one package.

Why Should You Consider a Salon Management Software Solution?

While salon owners love to highlight hair and pamper clients with pedicures, they must be savvy businesspeople to thrive in such a complex industry. In today’s competitive marketplace, relying on a salon management software program is critical to success.

The opportunities and challenges that your organization is currently facing are usually the best reasons for investing in salon management software.

Would you like to:

Streamline your appointment booking process
Offer appointments online
Reduce appointment no-shows
Track and order inventory automatically
Maintain accurate client profiles, appointments and purchase histories
Upsell your products
Calculate employee commissions quickly and accurately
Communicate with clients via email, Facebook and Twitter
Report on KPIs and employee performance

If so, you’ve identified your significant business needs for considering salon management software.

Reminder: It’s important that any salon management software you consider fits your salon, that you have someone to own the system, and that you fix your issues first. Software is a tool, not the answer.

Who Uses Salon Management Software?

There is no standard salon software user. Salon software has been proven to benefit all sizes and types of salons, including those:

Salons offering a full range of services or those specializing in hair care, spa services, nail care, tanning or other beauty and wellness services
Single operator shops or salons with multiple locations; national chains and franchises
Salons with one employee or hundreds

That covers nearly every salon and spa. So how do you know if the time is right to purchase salon software? It may be right for you if you currently…

Call clients to remind them about appointments
Track customer histories on index cards
Want to remind customers about appointments via email or text
Use an off-the-shelf accounting software package that doesn’t support commissions and product bonus pay or perform other salon-specific functions
Have no way to identify which products generate the most revenue for your salon
Struggle to generate more revenue due to a lack of yield management tools
Are always on the go, and need to check in with your business daily from wherever you may be

How Do You Buy the Right Salon Management Software Solution?

Salon software is a big investment. While all salons and spas can benefit from software, every package is not the same. Buying a certain salon management system simply because it’s used by a mega-salon would be like getting the haircut of your favorite movie star—it might not be right for you.

When researching salon software packages, there are a few resources that may come in handy.

Capterra’s Software Selection Guide covers identifying your needs, creating a shortlist of solutions that fit those needs, and choosing the right software.

Salon Software Directory contains more than 125 solutions and several tools, including:

Product Filter: find products that match based on your criteria
Side-by-Side Comparison: compare up to four products side-by-side
Expert Advice Library: additional resources to help through the process

FREE Expert Consultation: If you like personal help through the process, Email us or call us at 855.GO.SOFTWARE

Salon Software Selection Tips

The tips below are specific to salon software and supplement our Software Selection Guide.

Consider the level of training and technical support your salon requires. Most stylists are skilled with scissors, but may not be computer savvy. Some software companies offer unlimited training and support, while others don’t. You may also be charged a flat fee or usage fee. In addition, your business is likely open at night and on the weekends: Make sure your software provider offers technical support during your business hours.
Study pricing structures to find one that works best for your salon. For example, some packages track one stylist and charge extra for each additional chair. Others charge by computer. Some charge on-going monthly fees and others charge a one-time fee.
Think about a software package that uses passwords or codes for internal security. By limiting access to certain information, you can protect client data and cut down on employee indiscretions and theft. Some programs also feature external security, such as biometric fingerprint readers.
Pick a package with marketing tools so you can customize promotions. For example, you might email clients discounts on their birthdays or remind them when it’s time for a partial highlight.

Common Salon Software Selection Mistakes

Selecting a basic package to save money rather than purchasing one with the features you need to grow your business
Neglecting the importance of cutting-edge marketing tools because your salon has relied on word-of-mouth marketing for years
Ignoring software license options – the way you manage your salon and the number of people you employ should drive your decision

What Should You Expect to Pay for Salon Management Software?

Like with most complex solutions, the cost will differ dramatically based on your specific environment, your requirements, and the added features you include. Software is no different, however, there are a few things you can decide now that will help you begin to define your budget range:

Do you want to pay up-front (license fee) or each month (recurring)?
Do you want to pay per user or a flat fee (unlimited users)?
Do you want a hosted solution (SaaS or Cloud) or an on-premises solution?
What additional software, hardware, or services will need to be purchased?

Your answers will enable you to start calculating the Total Cost of Ownership (TCO). The TCO is an essential item when comparing systems, as it allows you to compare apples-to-apples.

Based on feedback from our vendors, price ranges for salon management software are:

Monthly (recurring): less than $50 to potentially thousands of dollars
One-time license: less than $500 to potentially tens of thousands of dollars

Factor in the answers to the questions above and the price range above and you get an initial idea of the cost. Given the ranges of solutions, you can be sure that there is a quality system out there that fits your budget.

What Are the Features of Salon Management Software?

It’s not uncommon to find software solutions with thousands of features. A lot of them look really cool too. Problem is, you don’t need thousands of features.

Typically, organizations use about 15 – 20% of the features included in an application. So, focus on the top features that you need and forget the rest. Below are some of the typical features you will find.

Basic Features

The following are part of most salon software packages:

Appointment booking and tracking
Client history
Employee scheduling and time clock
Service and product sales transactions
Inventory management
Commission management
Integrated credit card processing
Standard accounting and administrative reporting

Advanced Features

The following are not included in all salon software packages:

Multiple location support
Marketing tools: email, Facebook, Twitter, ect…, social coupon support
Client self check-in and access to their personal accounts
Email and text message confirmations and reminders
Gift card processing
E-commerce capabilities
Yield Management
Recipe-level inventory
Call center capabilities
Mobile access

Ready for additional help?

If you’d like even more help, contact us for a FREE Expert Consultation. We’ll help you through the process of defining your needs and finding the right fit.

Please let us know if you have comments or suggestions for how we can improve this guide. And of course, feel free to share with anyone who may need this.

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Starting at $25 - Vagaro is not just a salon software that does appointment scheduling, inventory, payroll, report, customer management, and email marketing. Vagaro.com is a search engine as well for everyone who is looking for salons and spas in their area. The advantage of Vagaro is that by using the salon software you are automatically added to the website listing and you access to post online coupons, list your styles and stylists, and showcase your business with your uniquely provided URL. [Learn more]

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