Service innovation treats Ella Baché to growth

By Nick Hall | 21 Sep 2018 View comments

Inside Franchise Business: Service innovation treats Ella BachŽ to growthFranchisees at skincare brand Ella BachŽ are reaping the rewards of a new model innovation program designed to maximise service sales across the network.

The latest initiative has seen an average growth of 21 per cent in service sales for those embracing the change, strengthening the brand’s commitment to franchisee support.

Pippa Hallas, Ella BachŽ CEO said a new services menu was the first step in a dedicated, 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 said.

“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.”

Hallas said Ella BachŽ management had invested a large amount of time and resources, focusing on developing the business model to drive further success and profitability for franchisees.

“We listened to what our franchisees wanted, starting with a focus on getting more clients through the door. This led us to customer research, which revealed there was a disconnect in what clients understood we did versus the expertise actually available to them in our salons. We saw the opportunity immediately and conducted a full review of our service menu,” Hallas said.

The new service innovation marks a bold move for the franchise brand, moving toward more personalised treatments with a greater focus on new technology.

Among the changes, clients can expect to find 14 new skin solutions, new personalised treatment packages, professional products, techniques, technology and a clear connection to how the service relates to at-home treatments and a regular skincare program that drives results harder without harming the skin.

“Change takes time, but we are pleased with the results so far and the positive feedback from our franchisees,” Hallas said.

For participating Ella BachŽ franchisees, the focus on consumer demand has seen a consistent upward trend, capped off by strong growth results.

Doncaster franchisee, Mandy Kaur was one of the first franchise operators to convert to Ella BachŽ’s latest program and has since experienced 32 per cent store growth.

“We saw an immediate change when we introduced the new service menu. It seemed to make everything more appealing for clients. We have a higher customer return rate now, especially in the younger under 25 demographic, and better product sales,” she said.

Kaur said her business had also experienced a 45 per cent increase in service sales, in addition to a 10 per cent increase in product sales as a result of the changes.

“What they have done is so fresh. I’ve never seen anything like it in the industry before. There is no one really owning the benefits of safe, long-term, effective skin care like Ella BachŽ does and the new menu really brings that to life for the company,” Kaur said.

Ella BachŽ expects all 145 salons nationally will be converted to the new service menu by the new year.

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