Key Performance Indicators (KPIs): The Building Blocks to Success – #Aesthetics #Business
September 22, 2020
Maximise profit, minimise losses and ensure you are always playing to your strengths – setting up a few simple KPIs could revolutionise the way you run your aesthetic beauty business.
Many aesthetic business owners, start up because they love the industry and the job, not because they have always wanted to run their own business. This is clear to see, with many businesses being strong on customer care and service delivery, but weaker on profitable decision making. In this article, I’ll give you a really quick introduction to KPIs, why they are important and the six you should look at. If, after having a read, you want to talk about your business, you can reach me on josh@the-smartgroup.com!
All successful businesses have KPIs and measure their performance against them – so aesthetic beauty operators should be no different.
Just looking at your bank balance doesn’t show a clear picture of the health of your business. In contrast, KPIs can quickly show where there is profit and maybe loss in your day-to-day activities. In this way, you can decipher what makes you the most money and what may actually cost you money, so you can work smarter.
The old adage “Turnover is vanity, profit is sanity but cash is reality” has never been truer. A business’ health is a sum of its environment and what is happening within, and that is exactly what KPIs enable you to explore. By using some simple KPIs, you can start answering why and how you get the bank balance you see every day!
6 Simple KPIs
Everyone’s top KPI is a growing bank balance. Try setting up some of these simple KPIs to give you an idea of how your business is performing:
Average revenue per hour KPI – Divide your total treatment income by the total hours worked.
- This is a great KPI to show you what is being achieved. As well as a business total, it can be done by treatment and therapist. This creates a measurable and visible indication of which treatment to focus on, as well as therapist performance.
Cost per hour KPI – Take all your fixed costs and divide by your total hours open.
- This gives a good benchmark figure to show how much it costs per hour to keep your business open. So is a great ‘mean’ indicator to refer to before pricing any activity or treatment.
Treatment revenue per hour KPI – Take a fixed period of time (week/month), capture the revenue generated by a treatment and divide it by the hours taken to deliver.
- This KPI shows you what each core treatment is generating on an hourly basis. We strongly recommend that all core treatments are measured like this at least monthly. Compare this with the average KPI of the business and then focus your team on promoting the higher £ per hour treatments.
Treatment cost per hour KPI – Take the same period of time, all consumable costs and divide by treatment hours delivered.
- This gives you a running treatment cost to compare against revenue and to allow you to explore profitability. Again, this provides you with important information so you can focus on the more profitable treatments.
Revenue & cost per therapist per hour KPI – calculate the revenue achieved and divide by hours worked by individual.
- This is a great benchmarking tool; it shows (irrespective of hours worked) the revenues and profits generated by your team individually and their effect on your business. Whilst senior therapists are expected to deliver higher priced treatments, it can motivate juniors to obtain and reach agreed levels and goals. Also, this is a great way of calculating commissions and creating incentives to up-sell. Don’t be surprised if a part-time therapist turns out to be your best contributor to hourly bottom line profits.
- Promotions KPI – Record the revenue/profit and numbers sold with each promo.
All businesses need promotions, and by recording the results you can measure which types work best for your business and appeal most effectively to clients.
Hopefully this has got you thinking a little more about how to conduct your business intelligently and efficiently, maximising your strengths & profits and minimising your losses. If you have any questions, please feel free to get in touch – we’re happy to help!
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The aesthetics industry has spent years talking about laser hair removal in terms of technology. More power. Faster treatment times. Better cooling. Larger spot sizes. While these innovations have undoubtedly improved clinical outcomes, they've also distracted attention from a far more important question: What actually drives growth for a clinic? The answer isn't simply owning a better laser. In today's market, where many clinics have access to excellent technology, competitive advantage is shifting away from the device itself and towards how that technology is used to improve profitability, efficiency and client retention. That's a significant change in thinking, and it's one that many businesses are still overlooking. Laser Hair Removal Has Become a Business Strategy For many clinics, laser hair removal is the treatment that introduces a client to the business. A course typically involves six to eight appointments, creating months of regular contact rather than a single transactional visit. That's a commercial opportunity that shouldn't be underestimated. Every appointment allows practitioners to strengthen relationships, educate clients and identify other concerns they may not have originally booked to address. The clinics generating the greatest long-term value are no longer viewing laser as a standalone treatment; they're using it as the beginning of a wider patient journey. As client acquisition costs continue to rise and competition becomes increasingly local, maximising the lifetime value of existing clients is often more profitable than continually chasing new enquiries. Faster Treatments Don't Just Benefit Patients When manufacturers talk about speed, the conversation usually centres around patient convenience. While shorter appointments are undoubtedly attractive, the commercial impact for clinics is arguably far more significant. Reducing treatment times creates additional capacity without increasing staffing levels or extending clinic hours. Over the course of a year, those seemingly small efficiencies can translate into hundreds of additional appointment slots, improved utilisation of expensive equipment and greater revenue potential from the same physical space. Technology should therefore be assessed not only by how quickly it treats a patient, but by how effectively it improves the productivity of the business behind it. Stop Buying Technology. Start Solving Problems. One of the biggest misconceptions in aesthetics is that growth comes from continually investing in the latest device. In reality, successful clinics rarely buy equipment simply because it's new. They invest because it solves a commercial challenge, whether that's increasing capacity, improving patient satisfaction, reducing treatment times or opening opportunities for complementary treatments. The question isn't "Is this better technology?" It's "Will this make our business stronger?" That shift in thinking often separates clinics that consistently grow from those that continually compete on price. Looking Ahead Laser hair removal will continue to evolve, and advancements in speed, comfort and technology will remain important. However, the clinics that lead the next phase of the industry are unlikely to be those with the longest list of devices. They'll be the businesses that understand technology is only valuable when it delivers measurable commercial outcomes. The future of laser hair removal isn't simply faster treatments, better experiences and smarter technology. It's using those advancements to build a more profitable, efficient and resilient clinic.
You’ve Built a Successful Laser Business… What Comes Next? For many salon owners, laser hair removal has been a game-changing addition to their business. It attracts committed clients, creates opportunities for treatment programmes, and generates reliable recurring revenue. But once your laser offering is established and performing well, an important question often follows: What comes next? As the aesthetics industry continues to evolve, many successful laser businesses are looking for ways to expand their treatment menu, increase client spend, and strengthen client retention. For some, the answer lies in a natural next step: skin. Is Skin Your Thing? If you've already built a loyal client base through laser hair removal, chances are many of those clients are interested in more than just hair reduction. They're also concerned about skin health, ageing, pigmentation, acne scarring, texture, redness, and overall skin quality. By introducing advanced skin treatments, salons can begin serving a wider range of client concerns while building on the trust they've already established. The beauty of adding skin treatments is that you're often speaking to the same client. Instead of constantly searching for new customers, you're expanding the services available to the people who already know and trust your business. Increase Client Spend Without Increasing Footfall Growing a business doesn't always mean attracting more clients. Sometimes the biggest opportunity comes from increasing the value of each client journey. Advanced skin treatments can help create treatment plans that span multiple appointments, support ongoing maintenance programmes, and introduce complementary retail opportunities. This allows salons to increase revenue per client while delivering a more comprehensive treatment experience. Rather than being known for one service, you become a destination for results-driven aesthetic treatments. Strengthen Client Retention The most successful aesthetic businesses understand that retention is often more valuable than acquisition. While laser hair removal naturally creates repeat visits, advanced skin treatments can provide even more opportunities for long-term client relationships. Many skin concerns require ongoing treatment plans, seasonal maintenance, or progressive treatment journeys. This creates regular touchpoints with clients and helps keep your business front of mind long after their laser course has finished. When clients can achieve multiple goals under one roof, they're less likely to look elsewhere. Become a Destination Salon Today's clients are increasingly looking for clinics and salons that offer expertise rather than individual treatments. They want personalised recommendations, treatment plans tailored to their concerns, and a trusted professional who can guide them through their aesthetic journey. Expanding into skin allows your salon to position itself as a destination for advanced aesthetic treatments rather than simply a laser provider. This not only enhances your reputation but can also help differentiate your business in an increasingly competitive market. Why Advanced Skin Treatments? For salons considering their next move, advanced skin technologies can offer several advantages: High-value treatment programmes Strong profit margins Growing consumer demand Opportunities to treat multiple skin concerns Increased client retention Enhanced business positioning Treatments such as RF microneedling, skin rejuvenation, skin tightening, collagen stimulation, and advanced facial treatments are becoming increasingly popular as clients seek visible, long-term results. Building on Your Success The skills, consultation process, and client relationships you've developed through laser hair removal have already laid the foundation for growth. Adding advanced skin treatments isn't about starting again—it's about building on what's already working. For many salon owners, expanding into skin has become the natural next chapter in their business journey. It's an opportunity to increase revenue, strengthen client loyalty, and position your salon as a leader in advanced aesthetic treatments. So if your laser business is thriving and you're thinking about the future, perhaps it's time to ask yourself: Is skin your thing?
The beauty industry has never been more visible than it is today. Social media has opened the doors to endless treatment trends, dramatic before-and-afters and bold promises around what certain technologies can achieve. But whilst visibility has increased, so has scepticism. Today’s clients are more informed, more cautious and more selective about where they spend their money. They are researching treatments before booking, comparing providers online and questioning claims more than ever before. For salons and clinics, this shift is changing the way treatments are sold, positioned and delivered. The Rise of the Informed Client A few years ago, many clients relied heavily on recommendations from salons or word-of-mouth. Now, they often arrive at consultations already armed with information from TikTok, Instagram, Reddit, Google reviews, online forums and even AI. They have seen conflicting opinions, unrealistic results and treatments marketed as “miracle solutions” that may not always deliver long-term outcomes. As a result, many clients are becoming more cautious about what they believe and who they trust. This does not mean clients are losing interest in aesthetic or beauty treatments. In fact, demand continues to grow. However, expectations around transparency, professionalism and proof are evolving rapidly. Why Beauty Claims Are Being Questioned The accessibility of social media marketing has made it easier than ever for businesses to promote treatments. Whilst this has created opportunities for salons and clinics, it has also contributed to an increase in exaggerated claims and misinformation. Clients are becoming increasingly aware that: Filters and lighting can distort results Viral trends are not always backed by evidence Some treatments are oversold online Not every treatment is suitable for every individual Because of this, trust is becoming one of the most valuable assets a salon or clinic can build. Clients no longer simply want to hear that a treatment “works.” They want to understand: Why it works How it works Whether results are realistic What evidence supports it Whether the technology is reputable and clinically backed The Shift Towards Evidence-Based Beauty As the industry matures, evidence-based beauty is becoming increasingly important. Salons and clinics that invest in professional-grade, clinically-backed technology are often finding it easier to build long-term trust and credibility with their clients. This is where treatment consultations are becoming especially valuable. A consultation is no longer just a step before booking. It is an opportunity to educate clients, manage expectations and demonstrate expertise. When salons can confidently explain the science behind a treatment, the expected outcomes and why a specific technology has been chosen, clients are far more likely to feel reassured. Clinically-backed devices also help support these conversations. Instead of relying solely on trends or marketing language, salons can focus on treatment rationale, technology standards and real-world results. Transparency Is Becoming a Competitive Advantage One of the biggest shifts happening within the beauty industry is the move away from overpromising. Clients increasingly value honesty over perfection. In many cases, being transparent about treatment plans, timelines and realistic expectations can actually improve client trust and retention. This includes: Explaining that multiple sessions may be required Being honest about downtime or limitations Recommending alternative treatments when appropriate Prioritising suitability over sales Salons and clinics that take this approach are often building stronger, longer-lasting client relationships because they are positioning themselves as trusted professionals rather than simply service providers. Why Technology Choice Matters More Than Ever In an increasingly competitive market, the technology a salon or clinic chooses says a great deal about their business. Clients are becoming more aware of the difference between low-cost trend-led devices and established technologies backed by training, support and clinical credibility. Investing in trusted technology not only supports treatment outcomes, but also strengthens client confidence during consultations and throughout the treatment journey. As client scepticism grows, professionalism, education and evidence are quickly becoming the foundations of successful beauty businesses. Final Thoughts The beauty industry is evolving, and so are client expectations. Today’s clients are not simply buying treatments. They are buying trust, expertise and confidence in the experience they are investing in. For salons and clinics, this presents a real opportunity. Businesses that focus on transparency, education and clinically-backed technologies are likely to stand out in a market where credibility matters more than ever. At SMART Group, we believe the future of beauty lies in combining innovative technology with honest, evidence-led conversations that help salons build trust, loyalty and long-term growth.
