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Charge invoice sample for Customer Service

hi everyone and thank you so much for joining us today uh this is following on from our first webinar we did around understanding your invoice in this one we're going to break down in more depth a bit more about when you are paying commission for a first-time customer uh something called the lifetime value which kate is going to go through today and hopefully you find it super useful and it gives you a really great understanding of what actually goes on behind the scenes and how we work together uh to provide you with a great support network and being able to support you with customers and making sure that you're making your money back and how that works so just before we get started just a brief introduction uh my name is sophie and i'm one of the account managers here um i'm one of the trainers in the uk and my name is kate and i'm the training team lead for the uk perfect so on today's webinar uh what we're going to be covering is the cost of a new customer and a bit more about the lifetime value which i mentioned briefly a second ago then we're going to go through how to make the most of your partnership with us and some really good hints and tips and then just go following on just some key takeaways uh to end us on but what i'm gonna do now is i'm gonna hand you over to kate uh who's gonna take you through the cost of a new customer perfect thank you sophie so um as if you've watched our previous webinar which was just breaking down the invoice that comes to you on the 1st and the 16th of every month we did touch upon the cost of the acquisition costs that we present to our partners for acquiring them a new customer via the treatment marketplace which as you guys all know is 35 plus v80 we realize that when you're a new partner particularly or if you've not used the partnership to its full potential before and now you are beginning to you may actually find that you are acquiring more customers that are new than you had done before and it can feel a little bit costly on your invoice so we do get a lot of questions about that and we understand that it can be a little bit unsettling so i wanted to just break down what the cost of a new customer actually looks like and it's a it's a business model that so many businesses use and we even use it ourselves as to how much it actually costs to require us a new customer so it's an interesting point to look at as how much customer acquisition would actually cost you if you were doing it on its own at the same volume versus with a treat well partnership and hopefully it will then start to feel like the partnership makes a lot of sense to you so first of all what is the cost of acquiring a customer so broken down it's basically your marketing spend so marketing spend being anything that you are spending money on in order to drive business to your platform so whether that's any marketing tools ads that you're doing a website everything that involves marketing is your marketing spend plus the cost of your time so everything that requires effort will also require time going into it and your time costs money so that also needs to be included into the cost and then that's divided by the number of customers that you've actually gained in the time frame that you're looking at so in our industry what are the most popular channels of new customer acquisitions so they're all things you're probably very familiar with so number one is websites with paid searches and ads so having your own website the second one is social media so facebook instagram all of the social media channels again with some ads that added to it so that you are appearing in more customers viewings and the last one is the classic pen and paper version which is leaflets and flyers so that's just boots on the ground going out and delivering leaflets and flyers to your local area to try and encourage people into your salon at that time so i'm going to break down what each of these individual ways of acquiring a new customer actually can look like they cost so with websites and paid searches which is the most popular one that a lot of our industry go for there's a lot to take into consideration in terms of the marketing spend so firstly how much does your website actually cost to run i know that they don't have to be super expensive but they still have a cost added to them i've been self-employed before and the website that i had cost i think about 90 pounds a year it was a paid one you can get free ones but the free ones tend to come with pre-built templates and you can't customize them very much so the membership for mine was 90 pounds per year it meant that i got more control over how my website looked i got some analytics to be able to see what the traffic looked like um but i did have to build a lot of that myself so i would say taking the time into consideration i probably spent past the point of actually building the website so the website took a while to build but on average it was maybe an hour a week that i would spend just looking at my website and adding things and managing my website so if i was to take all of those costs into consideration like uh the national living wage as an example for how much i'm paying myself plus the how much the website actually costs it works out to be about seven pound fifty a month which doesn't sound a lot but when it all adds up to what i'm actually getting as a return to that it can be quite costly especially as for my time that's me not paying myself a particularly high salary either there's then also google adwords so you can use marketing tools such as google ads in order to bump your website to the top of the search results on google so we use google adwords that treat well in order to get you more visibility but the way that google adwords words work is something called ppc pay-per-click so you're basically bidding for a spot first of all so you're competing for advertising space against your business competitors in google to get the highest spot or another one and then you're paying for every single time someone clicks on that ad as well so as an average look at that model the average conversion of ppc is around about 0.5 to 3 percent so it's quite small but if you think how much traffic comes through google it's actually quite significant that you can get the results from there the average cost per click can be relatively interchangeable so it's averages out about one pound 95 per click but as it's bidding it can go up and it can go down so this is just an average as a case study so if you were to get 1 000 clicks on your ad which is advertising your website that would already cost you 1950 pounds and that's not even taking into consideration anyone that might book for example um if you were to then look at the conversion from those clicks so by conversion we mean how many of those clicks are converting into customers as i said the average is between 0.5 and 3 so i'm going to be generous and go for the 3 the higher of the averages and say you've got 30 new customers through those 1 000 clicks in our industry the average spend is around about 30 pounds obviously it could be more than that depending on the kind of services you offer but those services also tend to require a little bit more time as well so you might not get as many customers as a result um but as an average let's say you get 30 new customers at a 30 pound spend taking all of these costs that it's taken to gain those 30 customers into consideration you are actually running at a loss of 65 pounds per customer because you've had to spend so much on marketing time and the time that's spent for you to set that up in order to get them through the door so you're coming away at a loss and that's not including any additional website costs that you might have in place such as adding software for that customer to even be able to book in online with you so the website although can be quite successful when done properly can be a very very very expensive tool to get new customers in and it will require you to get a lot of new customers through the door to make that a worthwhile spend to have so the next one is social media so social media has become a more popular way especially presently to advertise your business online because social media accounts are free so that already cancels out a cost that your website's gonna give you uh it costs money to set up a website doesn't cost anything to set up your social media account so that's already an added bonus but the way um to get yourself seen on social media is slightly different so there are ways in which you can play with the algorithms of the likes of instagram for example where you're more likely to be seen by your targeted audience and you can then increase your engagement and increase your reach but they require a lot of time spent on them a lot of time a lot of know-how into how the algorithm works and how to drive engagement with that particular following so you will end up actually spending an awful lot of your time which will cost you money getting your account to that kind of level or employing someone to do it for you which again will cost you money in a salary so another way that a lot of people do it is through the use of ppc so social media ads they work in a very similar way in which you are competing for advertising space so that's on both um facebook and instagram but with facebook and instagram you're not just competing with your business competitors so you're not just competing with other people with the same business model as you you're also competing with every single business that has the same target audience as you say that's ginormous so they can actually be quite expensive to get the best spot in a social media ad space the conversion works out to be about the same as on google so between 0.5 and 3 for the beauty industry hair beauty specifically the average cost per click interchangeable again because it's bidding can range from 79 pence up to one pound 30 but there's more traffic a lot more that can come through this so i've upped the average of clicks so let's say you get 2 000 clicks based on the lower average cost per click which is 79 pence that's already going to cost you 1580 pounds to get 2 000 clicks on your ad which is still a very small amount of ad clicks you can expect from doing an ad on this kind of campaign if you were to get um 30 new customers from that at a 30 pound average transaction value you're still losing 22 pounds and 60 pence per customer which is less than on the website but all of these little things can add up and your time more than anything will be your biggest cost when it comes to social media because you need to spend a lot of time on it in order to drive engagement to those particular channels and then the last one is leaflets and flying so if you were to print 500 leaflets which around about costs 20 pounds or so looking at an average on the market you then also need to distribute them so you need to get staff involved to actually go around and give out the leaflets to all the various businesses or houses or wherever you're going to let people know about your business say on average you're spending two hours for two employees uh handing out those employers and those flyers the national living wage if you're paying them that is eight pound sixty one so i'm just taking that as a lower point in which a an employee could be paid uh times four for the hours spent distributing the leaflets instead of working at the salon you're looking at a grand total of 50 pounds and 44 pence spent per customer it's much more difficult to know what the conversion is for this kind of stuff as a lot of your customers will probably be online these days but it's still an awful lot of money to invest per customer so you would want each customer you get back to be spending 50 pounds and 44 pence in order for you to make a return on that and good thing to note about all of these online channels where you can advertise is just to think of it in a way that if we at treatwell were to charge you per click to your profile per 30 days instead of commission that would be a lot more pricey as we actually get more target user searches on treat well about the hair and beauty industry than google itself so if we were going to adopt the same model that our competitors might be in order offering your marketing solution and we charged you per click it would actually be a way more expensive model than us just charging you for that um acquisition cost of getting that customer through the door especially as we are advertising on google for you so we have things like the adwords we have facebook ads we are enabling and paying for all of this stuff in order to get customers to our business so that they in turn find your business i hope all of that makes sense would you have anything to add on that safety it's quite a mind-boggling when you add it all up like that it is but i think no i think that's covered everything there and i think as you said you know especially when we're looking at sort of the latter and the impact of the fact that we're getting more searches um it just speaks uh volumes and i think it's a really great thing for you guys to know because you may not necessarily know about that and it's just a great way to look at it so the next part is exploring lifetime value so it's all well and good getting a new customer through the door but it will always be expensive if the only customers you get through your door are new customers because whichever way you try and get new customers through the door it's going to cost you money to get them there unfortunately you have to do some form of marketing to to get people to find out about your business but we just want to help you in terms of increasing the lifetime value of those clients so what we mean by lifetime value is how much that customer is actually costing you throughout their customer life cycle so by them coming back again that should cost you less money which means the more times that customer comes back and spends money in your salon you are then going to make a profit from them eventually but you want to make sure they're coming back often and you want to make sure that you're not spending as much money as you did acquiring them to get them back and that's quite a big key thing to remember so the cost of acquisition should always be significantly less than the lifetime value that that customer has to offer so i'll try and spin that in a way that makes a bit more sense if i'm looking at it as a from a treat well perspective um this is how we help to drive lifetime value within your salon so yes we have the 35 acquisition cost when that customer first comes in so if the first time that customer finds you they come in they spend 30 pounds you pay us 10 pound 50 in commission so you're still making a profit because you're still getting the most part of that booking but you pay 10 pound 50 to us so it feels a little bit more expensive because you'd normally be charging 30 pounds we appreciate that in our industry the overheads can be very very tight as well so it can almost feel like oh am i making a loss here but it's looking at the bigger picture which will see that this is how you're going to grow your business the next time that customer comes in you're spending nothing or just a 60 fee if they are paying online so you would be paying a fee whether they were paying by card in your salon or paying online beforehand so we just take that that off of your hands and you would pay 60 pence the 2 handling fee for the transaction or you would pay absolutely nothing so you are already making a profit from that customer you want them to then come back again they spend another 30 pounds you're then you're then paying nothing for that and so on and so forth so if someone came in four times over a year and they spent you know that amount of money 120 pounds with you you've only spent 10 pound 50 or 10 pound 50 plus those 60 60 pence charges to get that customer in four times so it's a very very good investment and you can soon see actually that's made me a lot of money because i only spent 10 pound 50 to get that customer through my door so breaking down further as i said a customer returning four times will cost you 10 pounds 50 plus v80 in commission fees and 2 pound 40 in processing fees so you make a grand total of 104 pounds and 52 pence out of a possible 120 pounds if you were spending the amount that ppc pays for example per customer you would be on a much lower profit margin because if you were spending 60 pounds to get that customer in you only made 120 pounds you're only making half of that back within a year whereas this way we're only charging you that first time they come in we're not charging you to get them back you will always end up the more times that customer comes back being way way better off so i'm going to hand back over to sophie and she's going to show you a few of the other options that we have in the partnership which we do to help drive that lifetime value specifically so as i said it costs money to retain clients as well as gain new ones and that's another cost that you may not think that you need to consider but we have a lot of these retention tools built into your partnership so that it won't actually cost you anything extra to get these customers back through the door great thanks kate and so let's dive straight in and have a look as kate mentioned some of these options so as she mentioned any customers that book through the options that we're about to go through regardless of whether they are a new customer or a repeat it will only ever be the two percent admin or naught percent depending on how they're choosing to pay so it's a fantastic way of getting that lifetime value even quicker so it's it's it's something that we're going to support you with so we want to make sure that you're taking the absolute advantage of all of these and they're super super easy to get set up and if you have any questions we're here to support and and help you get them going so the first one is going to be booking adding book now buttons to your website and social media so we call them booking widgets on your invoice as you may have seen previously but it means that people can book with you 24 hours a day as kate mentioned social media is already free so it's a great way for you to be able to build an audience and followers and have a call to action wherever they look and i think that's super super important is what we want to help you do at treatment is remove all barriers to booking and the way that we do that is make sure that wherever they look there is a call to action for them to come and book in with you so we can have your book now button on your instagram on your facebook and on messenger and on your website so anywhere they go to communicate with you there's a call to action there and it's going to take them straight to your menu so it's super easy and they can go from looking to booking within about two minutes and then it's all booked in and confirmed so it's super easy and it's gonna take away admin so as kate mentioned when you're having a look at admin costs as well you can take away people having to answer phones or to book people in this is all it does all of the work for you and all of these tools will do that it will all remove all of the admin that you would need to do when having to make phone calls listen to voicemails and that's another tip that we do if you do have a voicemail direct them to your website social media pages if you've got a book now button on there it means that you're not they're not having to wait to book their appointment in and it's directing them again so it's less admin for you guys we also have your own treatment client app so i'm sure that some of you um or have had a look at having your own app built it is incredibly expensive um and it's not just a one-off cost there is the constant up upkeep of keeping that app up to date and updating with any changes that you need to make so although great and a great selling point it's incredibly expensive we actually provide you with what we call your own client app so the way that it works is it's the treat well connect it's the treatment app for clients um but we haven't your own specific link that is found within connect within the marketing tab for you and what you can do is you can send people this link when they download the treatment connect app you are pinned at the top so it's like having your own app every time they open it a picture of your salon is going to appear and it's going to look like the one on the left really where it says it's been a while is it time for another visit let's get you booked in it may be you've booked a recent service and it says is it time for full head of highlights again which i know that i desperately need at the moment so i can literally just click the bookmen button it takes me straight to the services to book it and they you'll have they will be booked in within a minute but it means that if someone doesn't have their diary on them it doesn't matter because they have access to you immediately within treatment connect and as i mentioned you are always pinned to the top you are the favorite salon so you are always going to appear at the top and that's at no extra cost to you you can put that link wherever you want so if you wanted to do a facebook status update or put it on your website if you want to download our version of the treatwell app click here anyone that books that link again regardless of whether they've booked with you before or they are brand new you will never get charged for 35 plus v80 it's either going to be the two percent if they prepay or not that they pay at the venue people that book through the app it is a win-win they book more they leave more reviews and you will get more new clients that book with you so do consider taking advantage of that and again you will find all of the information you need within treatment connect within your marketing tab something that has become increasingly popular recently is qr codes this is the one thing that you won't find at the moment within treatment connect but you can reach out to us and we can get this uh your own qr code printed sort of created for you and again you can plaster this wherever you want so i have seen them more frequently in restaurants on cereal packets and it's just so easy to use they are literally everywhere um so we want to make the same thing so we want you to be accessible anywhere and really easy to find so you could put this poster for example in your salon window when it's out of hours and someone's wandering past they just need to open their phone open their camera and it will automatically bring up your treatment menu it's a great way for people to have a paperless menu as well they can just scan the app and they can look at all of your prices immediately but it's going to give you contactless bookings um it's linked to your book book now button so again commission free right regardless of whether they are new or repeat and again it's saving admin time so it's not something that you and the team need to do you could even have it on a business card if you wanted to so you can get another business card and then they just scan that and it takes them straight to be able to book in an appointment um but again super super easy for you and the team to be able to take advantage of to be able to get that lifetime value down and for you to be getting more bookings through the door um and that was the order that i wanted to cover guys um hopefully some really top tips there that you can take advantage of that you can use uh to your advantage uh as i mentioned before we're absolutely here so if you have any questions or can't quite get your book now better set up or want some advice do reach out to us in the customer care team so that we can we can help you with that but um i'll hand back over to kate just for a final run through i think the most important part to remember and thank you for all of that safety super useful hopefully um it's enlightened uh you guys watching to something that you may not have installed already but i think a really important part to remember from us is that we are here to work with you and not against you so all of these tools are not there for us to you know have access to your clients to be able to market to them or anything like that our vision and our goal for you is is really customer focused just like yours is a customer with a 360 view of being able to book with a salon and being able to book in whichever way they want to at whatever time they want to is a customer that will book more often a customer that will book more often will be more profitable for you and we don't want to fight against you and you know us trying to get customers and you trying to get the same customers and book through the different different means of booking but just by having it all in one and our pricing is very transparent like that like if one of your customers happens to find your one treat well and books you buy a treat well and they're in your client list and they haven't been to you in a long while you're not going to pay for that customer we are aware that they're one of yours and we're more than happy to help accommodate that booking for you the same as say if you mentioned with the client app anyone that books via that app referral link even if they are new to treat well will not be charged that 35 fee to you so we really are here to try and increase your lifetime value increase your customer spend as much as possible and help your customers to come back more often and online is the way to do it customers that have online booking are more likely to book more often than those that don't as it's just so much easier and i think that we've all learned um through living through the pandemic that online is such an easier way more people are adopting the way of working people that i never thought would be adopting online are suddenly booking online for everything and my grandma recently got online banking at the age of 85 because the pandemic has forced her to so i think that it's definitely the way forward and you will see good results from it but hopefully that has helped to explain to you the value of the partnership and how we really are helping you to keep those marketing costs down but please do reach out if there is anything that we can do to help to set up any of these little bits that will help you along the way and thank you very much for tuning in today thanks guys bye you

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