RIP Example 7: Double Your Pleasure, Double Your Fun
This RIP was focused on increasing the percentage of multiple-unit sales in a chain of salons. It was designed to promote upselling of retail hair and beauty products, as measured by the percentage of sales that had more than one product involved.
■ KPI: Multiple-Unit Sales.
■ Quantifiable Objective: To increase the percentage of Multiple-Unit Sales (sales with more than one product) from its current 22 percent to 30 percent.
■ Financial Effect on the Company:
• $152k in annual revenue.
• $70k in additional profit before tax.
• Roughly $20k in additional incentive payouts to employees.
■ Actions:
• Create a “Privileged Customer Program,” or PCP.
• Give customers a free membership to the PCP ...
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