This spring, during the height of the pandemic, Kao Salon Division launched the Kao Salon Industry Recovery Initiative and committed to providing Goldwell and KMS salons with tangible resources to help them reopen and restore their businesses in the months ahead.
“During the pause, our senior leadership, along with our field sales and education teams (who support both our direct sales organization and our distributor partners), used the time to prepare for the focused mission of increasing salon revenue when salons could safely reopen and our staff could return to the field,” said Scott Guinter, General Manager of Kao Salon Division in the U.S.
“We put together a package of enhanced benefits for our Loyalty Program Customers through Kao Salon Alliance,” continued Guinter. “In our Salon Alliance program, a salon earns points for their purchases. In light of widespread closures, we adjusted our program to be more flexible in point usage, product and programs available, as well as maintaining member status.”
Program enhancements were designed to provide both short and long term cash flow relief. Understanding that many salons needed an immediate infusion of cash to get up and running again, the Kao program allowed salons to redeem points for VISA gift cards that could be used to pay bills, buy PPE or cover operating expenses.
To increase cash flow over the longer term, Kao offered special pricing on items including back bar, blonding and retail products. Savings on back bar basin enabled salons to generate extra profit on every appointment. Price incentives on service products allowed salons to make more profit on popular, big ticket services, like blonding. Reducing the cost to the salon on retail products increased the cash flow to the salon from the sales to clients who needed to replenish their home care supply after months without access to salons.
In addition, Kao Salon Division supported over 2,000 salons nationwide with Reopening Kits containing hand sanitizer, masks and other sanitation support pieces. The company also created reopening and recovery marketing materials and resources, which are available digitally to Salon Alliance members.
Program results have been outstanding with a 600% increase in point redemption vs. an average pre-pandemic month. The Kao Sales and Management team received kudos from Goldwell and KMS salons across the country:
“Avanti Salon & Spa has been a Goldwell salon for 22 years and counting. We started as a small salon with five chairs and have grown to having two profitable locations with forty employees. During these uncertain times, the support we have received from the Kao team has been exemplery. They have gone above and beyond with ideas on how to grow our business, create promotions and motivate employees. A lot of companies will promise you the world until their product arrives at your door, but Kao delivers. We appreciate the partnership!” said Gary Bilello, Avanti Salon & Spa
“I just want to let you know that going through this difficult time has been made easier because of all the care, love and support of the Kao team. My Kao Sales and Education team has helped me every step of the way. Thanks!” said Glen Goldbaum, Lambs & Wolves