Inside Franchise Business

MORE THAN SKIN DEEP

What has beauty chain Ella Baché done to put profits at its franchisee­s’ fingertips?

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What beauty chain Ella Bache has done to put profits at its franchisee­s’ fingertips.

Anew model innovation program at skincare franchise Ella Baché is reaping dividends for franchisee­s with an average 21 per cent growth in service sales for those embracing the change.

Ella Baché CEO Pippa Hallas says a new services menu was the first change implemente­d as part of a larger four-year strategic developmen­t plan for the model.

“Over 30 per cent of franchisee­s have made the change to the new services menu and the results are very positive,” Hallas reveals.

“The business recorded an 8 per cent increase in total and service revenue, along with a 6 per cent jump in retail turnover across the franchise.”

The new services and treatments are more high value and more profitable, says Hallas, which is good news for franchisee­s focused on improving their bottom line.

For a heritage brand such as Ella Baché, the authentici­ty of both product and service is crucial. “We’ve always been really focused on enhancing individual skin on a cellular level, and what that means is not erasing your difference­s to look like everyone else. This is what social media has been pushing to, uniformity.

“We know a big portion of women don’t want invasive treatments, botox and fillers. And if you do, that’s fine but you still need healthy skin.”

Hallas says this need to create the right balance between new techniques while retaining the core values of customer service and skincare expertise was one of the big drivers for change.

“We have less time in our lives and time is really precious. I k now I won’t use a service, whether restaurant, airline, bank, hairdresse­r, unless I c an book it at 10 pm and online. You have to solve customers’ problems when they need to be solved.”

Ultimately customers want things that work, she says.

“You have to continue to excite and delight customers – whether that’s how you communicat­e, how you treat skin, or how you wrap up their solution.

“There is so much change in how we live our lives, in the digital world influenced by social media, and there are a lot of what I call fast food beauty pop-ups. In every shopping centre you can get a n ew pair of lips – t hat’s the reality of the unregulate­d marketplac­e,” says Hallas.

But it isn’t the way for Ella Baché, and that started the chain of innovation that’s now rolling out through the network.

While the focus is on profitabil­ity for the franchisee­s, for the consumer, the new approach at Ella Baché is to move away from a transactio­nal relationsh­ip.

“Therapists are caring and beautiful people, and can be really frightened by asking people for money. The focus needs to be on education, simply recommendi­ng a service and solution, not closing a d eal,” reveals Hallas.

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