How to Adapt for the Recession & Current Consumer Behavior

Hello, friend. Welcome back to the Modern Hair Stylist podcast. I'm joined today with Ms. Caitlin Granger.

What's going on, Ms. Caitlin? Hey, friend. Not much.

How about yourself? Nothing much. I am living my best life this morning. Good.

I got up nice and bright and early to be recording this with you. I'm getting tattooed today. I'm getting on meetings today. Um, the Modern Hair Stylist Summit is this weekend at the rate that we're recording this, so I'm super excited for that.

And I'm super excited to have this conversation with you. So, today, y'all, today, we are gonna be talking about this because I know that it is a, like, weird, unpredictable, scary time for some people, especially within our industry, for every single small-business owner out there, right? We are a little bit nervous about the current times, and what the economic environment looks like, especially in the United States, right? But also all around the world.

Like, shit is expensive everywhere. Inflation is up everywhere. Like, shit is expensive. Shit is expensive right now, and it's no joke.

And, you know, and not only is shit expensive, but because things are expensive, m- that changes how consumers are gonna start to spend their money and use their money and budget for things and where they're gonna prioritize spending their money. And so, in today's episode, we're gonna be talking about how to adapt for a recession/current consumer behavior. And what I wanna make clear here is I'm a firm believer, like, after the- all the research that I've done, after all the shit that I've been hearing, like, I'm a firm believer that, like, nobody really knows what the fuck's going on. Like, I'm so s- like, I'm dead-ass serious.

It's like, I read, like, an Economist, like, article, like, every other day, and it's all from different places and all different ones, and they all have completely different opinions, and it just sounds like everybody's confused. And it seems like indicators are there, but, like, there's numbers that aren't lying, and, like, it's like we're not actually in a recession and people are still spending money, but, like, shit's expe- it's like- it's just kind of, like, all over the place. And so, what I'm gonna say right now off the bat is I'm not here to tell you whether or not we're in a recession or not, okay? Like, that's on period, right?

But I am gonna be telling you, okay? I am gonna be telling you what kind of behaviors successful-ass businesses should be focusing on in order to stand out within any time like this, where- where consumers are really starting to get a little bit more picky and choosy with how they're spending their money, right? And this is, you know, this is all-year, all-lifetime rounds, right? This shit does not change.

Like, th- that's the funny thing. I was actually- I was in a call with my- my business coach, and we were all talking about the economic state of the country and all of the things, and he was like, "The rules don't change." The rules do not change. Marketing, sales, basic psychology of how we apply that to our businesses, the rules do not change.

It's just that now, we really need to make sure that we're ramping shit up and that we're staying consistent and that we're not dropping the ball if we really want to keep that same level of success and momentum going throughout this time, right? Like, the rules of targeting the person that- like, a specific person that you specialize in serving, knowing exactly who the fuck that person is inside and out, understanding their pain points, how your solutions relate to that person, and building the bridge between you and that person in your marketing. That does not change, and it is just as effective as long as it's consistent and as long as you're building the value, right? The psychology of sales, solving problems, hitting pain points, building value, like, it's all the same shit.

But, but, but, consumer behavior is different, and consumers actually are preferring and expecting different ways of you marketing to them, different ways of getting touch by you in your marketing, and what is actually effective in, um, serving those people. So, we're gonna be talking about tha- that today. We're gonna be giving you, like, real actionable steps. Instead of just, like, trying to scare you and saying, like, "Hey, girl.

Like, you, like, really need to fucking get your shit together," we're gonna be actually telling you what the fuck you need to do. Let me guess. You are a hustling, bustling hairstylist behind the chair, working so hard to build a beautiful career for yourself, one that gives you time, freedom, and energy to spend with yourself, your family, and your friends. But you feel like you're always working in your business, even when you're not behind the chair.

My name's Hunter Donia, and I help you automate your systems and implement really beautiful strategies, so you can grow your business without the overwhelm. And this is the Modern Hair Stylist podcast. Okay. So, first things first, is we're gonna be talking about your marketing efforts, okay?

We're gonna be talking about, like, you and, like, how you're outreaching and how you are, you know, speaking to the- your local regional audience that you have going on, right? And how you're actually attracting new clients into your chair. I'm- I- like I said at the beginning of the episode, like, nothing is changing, but what you do need to make sure of is that you are building value. Like, hard, okay?

And that if there's any part of your experience, or any unique part of what you're offering...... Then you need to be taking full advantage of that and you need to be flipping it and you need to making, n-, to be making it obvious and clear and relevant to your client, right? So we talk a lot about, and we, we lean into a lot about how we educate and we entertain our clients on social media. And I think that we, um, lean heavily into that, and I think that it definitely works and it s- and it should not go away or stop at all.

But as we are educating, as we are entertaining, we don't wanna just give people, like, a quick tip and then just be like, "Okay, bye. Have fun." Like, "Peace out, girl scout," you know? We don't wanna just, like, tell people how to get their pretty curls in five minutes and then just say, like, "Okay, bye bye," right?

What we wanna do is, is we wanna educate somebody and hit the pain points of w- of the reason why we're educating them and why they'd be interested in those, in that topic. And then we want to make it so that they want and need to work with you further to really get the results that they're looking for, right? And you wanna make it so that you are really selling your service on the backend of whatever you are sharing, and you're making it super relevant to what your point is, right? So you're hooking somebody in first, right?

You're gonna say, like, "Ever wonder why your curls fall out in, like, five minutes after you, like, spend an hour doing them," right? Like, that's gonna be the hook, right? You can do, like, a cute little reel of you, like, curling hair and, like, spraying h- um, heat protectant or whatever, and then you can say, like, details in the caption, or whatever the f- you wanna do, okay? And then in your caption, you'll go ahead and say, like, like, the reasons why.

You'll give, like, three bullet points or something like that. And then at the end, you can say, "I understand no matter how many tutorials you watch, no matter how many products that you try from YouTube gurus, it seems like nothing ever works and you seem like you never get results. That's why every single time you come to see me in the salon, every single service is an all-inclusive service that includes..." How many times can I say that?

"... a styling lesson that will walk you through exactly how to do this so you can do this confidently every single time you go to do it." Something like that, right? Like, did I spill the tea, Caitlin?

Am I spilling tea? What's the tea? Yeah. I think that that's extremely smart and very strategic.

And like, I mean, especially with marketing strategy, I could sit and, like, talk about that all day long. So I very much agree with what you're saying, and I think that, like, having that very specific call to action to work with you is, like... That's, like, a golden nugget there. I hope everybody, like, really grasped onto that.

Yeah, no, and it, like, might sound basic, but the thing is, is a lot of people don't do it. Instead of saying all that I just said, and all that I just put into it, people will say, like, "If you wanna learn more, go and book an appointment." And it's like, no. Like, you have a real opportunity to, like, sell the reason why somebody would wanna book an appointment with you.

And the reason why I'm saying building value, right, and, and using this as a valuable point in this episode specifically with, like, how we're going into these economic times, is because people are going to be extremely careful and specific with how they are investing their money, and you're, you need to build enough value. You need to make sure the perception of that person of what your, your service is actually worth is as much as what you're charging, and the way that you do that is you sell, and you, and you actually show them and you explain to them that value. You can. You can just go up, uh, ahead and post a post and, like, sell your service, right?

But 90% of the time, we know with the algorithm, it works way worse, um, than if you were going to hit the pain point, educate first, and then sell the service at the end, right? Caitlin, what did you wanna say? I just wanted to add on, basically, to what you're saying. So, like, when I mentioned, like, s- the call to action at the end or whatever, and then you said, um, like, "Click the link in my bio," like, all of that stuff is still okay to do, but making sure that you actually, like, explain why they should work with you, I feel like that is, like, the big missing, missing piece.

Like, tell them why they need to work with you and then say, "Hey, go book an appointment." Like, you can do both. I, I'm obsessed with that. I love that.

Yes. Yes. You couldn't, you couldn't see it 'cause we're on video chat, but I was literally clapping so hard when Caitlin was saying that. Like, that's the, that's the kicker.

That's the, that's the point of difference that is just serving and over-serving, and actually selling, right? Like, if that's... That's the difference between serving and selling, and we are in sales, bitch. Okay?

I'm so sorry to tell you, my friend. If you are a small business, you are in marketing, you are in sales, you are in finance, you are in fucking business, okay? So as much as we hate to be salesmen, as much as it might feel icky, I'm so sorry, girl, but nobody said being a CEO of a company, right? 'Cause that's what you are, was going to be easy and be super...

I mean, I'm sorry, y'all. We live in capitalism. I say this, I say this... When- whenever we are, whenever we are doing an episode about, like, I'm so sorry, like, you just have to show up as a CEO, like, I'm blaming capitalism.

Like, please blame capitalism. But, like, I mean, this is the life that we lived, this is the life that we signed up for, right? And so if marketing and sales is, like, what is essential for you to get the coins, and also, if marketing and sales is what is essential to make it so that somebody trusts you enough to invest the coins with you, then so be it, because that person can really use your solutions. Like, you can really change that person's life and change that person's perspective of themselves and their confidence and give them a safe, beautiful space to come and relax and enjoy their time with you.

People are missing out on that. You are missing the chance to make that type of impact by not showing up and strategically selling in your marketing and in your chair as well. And y'all can go to my retail episode couple episodes ago if you wanna learn more about that. But genuinely, like, you need to think about how you are selling in your marketing, right?

Because it's, it's not enough to just entertain and educate. Like, you actually have to do the call to action. Period. Okay, so now that we've kind of...

now that I've kind of ranted about the, um, marketing efforts and getting new clients into your chair, let's talk about retaining your clients because that is actually going to be where I think the magic happens as we are stepping into this unsure time. And here is why. Statistics show that acquiring a new customer can cost five times more than retaining an existing customer, okay? And when I say that, when I say, "More expensive, costs five times more," I don't want you to just think monetarily.

I also want you to think about the time that it takes as well. So sure, like, you're not doing, like, paid ads maybe possibly, right? Like, most likely, you're not doing paid ads. Most likely, you're not paying for marketing outreach.

However, you might be, I don't know. However, you are paying time. And I th- I mean... Oh my God, I s- I say th- I sh- I feel like I, I'm beating, I beat a dead horse with this shit.

But every episode, I talk about how you have two resources. You have your time and your money, and we need to start treating our time as a very intense, valuable resource. And it's like you're either spending one or the other, right? And so it costs five times more of your time to acquire a new customer.

And I'm not saying that we should stop doing that, but I am saying we should take advantage of the fact that you have existing customers who already love you, who would probably dread going to somebody else and making a new relationship with somebody else or starting to color their own hair at home or st- wanting to stop coloring their hair. Like, they are already dreading that, right? And they already trust you. So let's pour some love into them.

Let's make sure that we are bringing our shit to the next level with them. Let's make sure that we are staying consistent and optimized with our client experience. And like I said, the rules have not changed. We should've been doing this already, right?

Caitlin's laughing. We should've been doing this already, okay? But now is the time where it's going to be more crucial than ever. Increasing customer retention by just 5% can increase profits from 25 to 95%, okay?

This shit's from Forbes. The success rate of selling to a customer you already have is 60 to 70%, while the success rate of selling to a new customer... Just guess. Guess the success rate of selling to a new customer versus the 60s to 70% of an existing one.

It's 5 to 20. So... So, this is what I'm saying here, okay? I'm really building this up.

I'm really building this up. We want to be focusing on our existing clients, like hard, and we wanna be making sure that our client experience is really next level. And if you really think about it, my business coach also just did this exercise with us as well. He asked us, right...

So we have, like, three different systems in our business. We have marketing, we have sales, and then we have fulfillment, right? So marketing is getting new clients in the door. Sales is selling clients into booking with you for the first time or booking with you again.

Um, and then fulfillment is doing the hair and the client experience, like the experience that the person has with you. He asks, like, "Which one should you be focusing on first, like first and foremost out of all of the three?" And everybody said marketing, and I said marketing. I was like, "Marketing."

Like, because, like, if you don't have any business, then you can't, then you can't do business. Like, if you don't have anybody coming into the door, then you're not gonna be making any money. So it's like you need to be doing marketing. And he said, "No, you have to be focusing on your fulfillment.

You have to be focusing on your customer experience and h- and w- the product that you're delivering," right? Because if the product that you're delivering is excellent and amazing, then it takes care of the marketing for you. Because if your client experience is excellent, then not only are you going to be able to get natural, organic referrals because people are gonna be talking about you and sharing that with their friends and their family, but also, you now have content to market. If you have put your heart and your soul into your client experience, then you will now have s- um, substance that you can use in your content to be able to market.

If you don't have a next cl- n- that level client experience, then what are you marketing, right? Like, if you don't have a next-level m- way of serving within your specialty and serving that specific person, then how are you going to be able to show up in your marketing in a really fantastic way? So when you focus on your client experience first, the marketing efforts come more naturally, they come more effectively, and they make more sense. So, if we have not been consistent, if we have not been optimizing, if we have not been focused on our client experience, then this is where we really wanna focus.

And even if you already feel like you have been, I would suggest that you really take a step back and you look at, "What is the possibility of how I can show up more in this, in this space, in this area?" What are your thoughts, Caitlin? The phrase "full circle" just keeps, like, running through my head. Like, everything is tied together.

Yeah. I mean, it's just... It, it's all like, it all relates, it all can flow together and like, if you have one thing figured out then the rest of it just comes so much easier. Like, it...

It's so true and when you really, like, see it, like, on paper it's so simple. But it's, it's also something that we don't really think about. Full circle moment, 100%. Yeah, dude.

There's so many p- things in business that I experience whereas, like, it looks simple and feels simple on paper but then for some reason, as a solo business owner, like, things get confuffled and conjumbled in your brain, and it's really hard to, like, get things out and to fully conceptualize things. And I think that's why education is so important, and I think that's why digital education is fantastic and that's why I choose to do it, is because it gives people the roadmap, it gives p- people the clear vision so that way they have something to follow versus just, like, trying to figure it out on their own, right? And like, that's why I love pre-visit pathway, that's why I love our membership because we can, like, give people the step-by-step and we can give people the checklist and it's just, like, all really cleanly laid out for them and giving them everything that they need. Because I totally understand how it can feel to, like, hear these simple, these simple things but then be like, "Okay, what the fuck do I do?"

You know what I mean? And it's like... And like, not know where to start or not know where to go, right? So here's the tea.

Like I said, we should be focusing hard on your client experience if I haven't already fucking m- made my point. So here's the tea. So right now, people are gonna be way more selective about how they're spending their money, right? And actually, the last time that I did research on how the current consumer behavior is right now, what we're seeing is that people, um, statistically, on lower class spectrum of income are w- people who are taking a big step back from spending, they are starting to discount shop, they are starting to be a, v- very cautious with their money.

Where middle class to higher class people, um, statistically, economically... There's no such thing as fucking tiering people into fucking different classes. It doesn't make anybody lower or higher or whatever. But those people, statistically, economically, they are not.

They're not stopping spending their money, th- from, from my research that I just, that I just did. They're not spending... They're not, they're not stopping. They are just wanting to spend their money in the right places, on the right things.

So, how do you make it so your service is the right thing for them? How do you make it so that your service is that valuable to them that they don't want to stop spending the money and that they, they find it so worth it that even though there was a person down the road who was charging a hundred dollars less than you, they still wanna go to you? Right? And the way that we do that is we touch people in our client experience as much as possible, in our pre-visit experience, our in-the-chair experience, and our post-visit experience.

And you know what? Bitch, when it comes to retention, your pre-visit and your post-visit experience is the way to go, period. Caitlin's laughing again. I'm just on one this morning.

You sound like... Intense, like, microphone moments are... They're my favorite thing. I wish everyone could see when you lean super close to your microphone.

It's, it's my favorite thing. I just got a mic, I just got a mic arm installed, so like, it's like literally, like, right in front of me and I'm like... It's, like, fun to, like, fuck with it. But I actually...

I should not be leaning forward, because my lower back is hurting me. Okay. So, um, so your pre-visit and your post-visit experience is really where you wanna be focusing, is if you wanna talk about retention. Okay?

Because here's the tea. You can murder your in-the-chair experience. Like, you can destroy your in-the-chair experience in such an amazing, beautiful way, where you leave a beautiful impression, where you feel like you changed somebody's life, where somebody cries how much they freaking love it. Last night, I had one of my clients.

She messaged me and she was like, "You don't understand how much, like, s- coming to see you means for me. Like, this is the only time I get to take care of myself. You take such good care of me." That's why we do this, right?

That's... It's so beautiful. But in between the visits, this person is facing reality, right? They're facing other realities in their life.

They're facing stress, they're facing their money, right? They're facing their kids, they're facing, like, a whole lot of shit, right? And they're also getting marketed to. That's the other thing we don't think about.

They're getting marketed to in between when they leave the appointment and when they come back, right? If they come back. And so if they're getting marketed to, if, if other stylists are posting on Instagram, if other stylists are emailing them, if, if other salons have big signs and banners up and they're driving around and seeing those different salons and they're talking to all of their friends and all of their friends go to these other salons, right? Then they are literally getting marketed to every single second between when they leave and when they might come back.

And so then there's the opportunity for them to find somebody new, get sold to and marketed to in a different way, and try something else. So it's so important that you are the one who is marketing to them in between the appointments, right? Because if it's not gonna be you, it's gonna be everybody else. Do you agree with me, Caitlin?

Yeah. I, I definitely do. I'm like... I'm sitting here thinking of my own experience because I am living in a new country but, like, I, I moved away from all of my old service providers.

So I'm, like, thinking of, like, how I get marketed to right now and, like, what kind of marketing I see, how I find new service providers and all of these things. And, like, everything you're saying is 100% like the experience that I'm having as the consumer. And I'm, like, thinking of ways too that...I would like to be marketed to from service providers because, like, I haven't found anyone that is, like, their guest experience is, like, top tier yet.

So, like, I'm thinking like, "Man, I forgot to pre-book my last appointment for, like, my wax appointment and now I'm, like, overdue. I wish that they would have, like, sent me, like, an email like, 'Hey, just wanted to make sure, like, you got your next appointment set up.'" Like, little shit like that would make such a difference. And yeah, so that's just, like, my consumer point of view right now, because that's kind of the brain that I am feeling like I'm most in tune with.

Yeah, thank you for sharing that. And I think that's super valuable. And, you know, like you said, like, even just the small, little custom personalized reminder that is like, "Hey, friend, like, you're probably due to get your hair, hair situation. This is what you should book.

Here's the online booking link." Like, like, that goes a whole long way. And, like, giving somebody a post-visit email where it has, like, all of the things for them, right, like, all the things that you talked about in their appointment, all of the retail that you recommend to them, um, giving them a personal little note saying like, "Oh my god, Christie, like, have so much fun on your cruise." Like, things like that, that is what keeps people coming back, because you are filling in the gap, because nobody else is fucking doing that.

If I can just add as well, I feel like the really big, like, separation that you can provide for, um, clients is actually, like, making yourself, like, more human, as opposed to sounding like a freaking, like, robot auto-response, shit like that. Like, eh, the- the personalized stuff is what makes people realize that you're so much more than just a service provider and you actually give a shit about them. Yeah. You just saw me- You guys did not see me freaking out on video.

Yes! Yes. But I am all about working smarter, not harder, as you guys know. And, you know, whenever anybody used to coach to me to have to write, like, thank you letters and, like, put them in the mail to people, I was like, "Girl, that is way too much work."

Like, "I am not doing that." You know? And my handwriting is chicken scratch. Nobody wants to be reading that shit.

You know? Like, they- it would just go in- right into the trash. Whenever anybody would tell me, like, "You have to be doing this, you have to be doing that." And I'm just like, "This is just so much work."

It's like, I'm already doing so much. Like, my- my responsibilities are so piled up, it's like, when the hell do I have time for this shit? Right? So, like, sending in, like, an- like, sending, like, a post-visit email with all of the stuff and writing it all yourself, and then making sure that you remember to remind them, like, four weeks later that they need to book their next appointment, it's like, it's so much work.

And that's why I have learned how to automate it, but make it so that it is still personalized and customized, right? And we talk about this after pre-visit pathway in Modern Stylist Movement, but there are literal ways where you can just put in a couple sente- a couple sentences of words, you can, like, press a button, and then things are automatically sent for you. And the fill in the blanks are filled in with all of the customized things to make it literally look like you wrote the email from scratch, from top to bottom, and all you had to do was fill out a couple questions, right? Like, like, I- I think that that is the way that the future needs to be for us as professionals, because of all of these insane standards that we're held to.

We need to be systematized. Like, if we want to be doing all of this shit, then we need to be as systematized and we need to be as automated, and you need to make those processes as easy as possible, because quite honestly, it's just not sustainable. It's just- it's just not sustainable to be, like, showing up in that type of way, like, and doing it all manually, and, like, doing it all from scratch. Like, it just doesn't make any sense.

So, um, that's why I teach that. But truly, that personalization of that all, it totally makes a differ- Like, it is so different when some- when somebody gets an automated text message from your booking system, like, it's like, saying, like, "Hey, it's been this many weeks," like, yada yada, versus, "Hey, Karen, I hope that you had so much fun on your cruise. Remember, you're probably going to be ready for this appointment in four weeks, and based upon what we normally do on you, you'll want to book the blank. And here is my booking link.

Please respond to this email if you have any questions." And again, this can be respon- this can be sent automatically, right, just by filling in a couple things. Like, that is what sets you apart. That is what makes it so when that person is getting marketed to in between the appointments, you are the one who's standing out and somebody doesn't even think, so somebody doesn't even blink at the other marketing that's getting, um, sold to them, right?

Like, I know that I'm really loyal to a lot of different companies and people and softwares and things, that I could get marketed to by a different one and I'm, like, literally completely blocking out the noise. But there are other things that I am not super committed to, that I'm like, "Hmm, I would like to see, like, what they have to offer, what they have to see, see if anything's different or better than what I'm already paying for and getting," right? I know you're- you listening to this are thinking the same thing, like, you know there are certain things that you're like, "Oh, yeah, no, I would literally never try another brand." But there are things where you would, and you wanna be the thing where your client would never even think about trying another brand.

And this is how you do it, by nurturing, by being personal, by making your clients feel and setting yourself apart in between the appointments, and showing up differently in your marketing and making sure that you are selling your service and building the value of the service in your client's perspective before they come to see you. Okay. So, I hope that this was helpful for you, my friend. I wanna tell you very quickly that I understand that things might be unpredictable right now, this might be a scary time for us potentially, and that a whole lot of influencers and coaches are, like, trying to scare the shit out of you and, like, make you feel like the world's, like- like, caving in and, like, everything is dying.

And it's like, let me just tell you, my fr- Like, yes, things are scary. Your feelings are so valid. I'm feeling them. Caitlin's feeling them.

We're all feeling the economic pressure of what's happening right now, but you will be just fine. If you show up for yourself as you can, as you are capable of, if you show up as the CEO of your business, if you keep on educating yourself, and if you keep on believing in yourself and showing up authentically, you will be just fine. And I love you and I'm here to hold your hand on- along the way, okay? On every step.

And me and Caitlin are here to spill the tea for you every motherfucking week on the Modern Hairstylist podcast. So, if you enjoyed this episode, if you wanna help us reach more hairstylists just like you who are looking to learn how to bring their business to the next level without working harder, then I suggest that you leave a five-star review wherever you're listening to this and leave a little blurb about your experience listening to the Modern Hairstylist podcast. I would really appreciate it. It would mean so much to me.

And I love you so much and I hope that you have a great rest of your day. Peace out, girl scout. Bye. Bye.

End of transcript. © 2022 Hunter Donia LLC.