An iBLeague client creates a set of new client retention metrics to reveal and improve what’s really happening.

We recently activated a new client on The iBLeague™, our software-as-a-service (SaaS) solution, to provide business metrics, scorecards, and data mining capabilities to this small company.  One of the reasons they joined The iBLeague™ was to replace the inaccurate client retention metrics their point-of-sale (POS) system produces.

As part of their activation, we created a custom set of metrics for their new client retention and their established client retention.  The new client retention metrics:

  • are more accurate,
  • are produced much more timely,
  • account for the nuances of the salon and spa business, and
  • calculate differently at the technician level versus the salon level.

New client retention metrics were created to reveal the reality that was masked by the POS metrics. This allows for an environment of greater trust and ownership, giving employees the opportunity to know and understand reality and then take action to make the future better than the past.

This may sound easy, but switching to new client retention metrics requires boldness and leadership.  Our client exhibited many qualities of effective leadership:

  • Confronting the brutal facts of their current reality, even though the POS metrics produced a “nicer” number than The iBLeague™ metrics
  • Clarity of vision to define a new metric and a preferred future, realizing there would need to be a period of uncertainty during the transition
  • Courage to make the change even though employees had previously been held accountable to a different standard
  • Communicating the change, reasons for it, and the benefits of making the adjustment
  • Conviction to stick with it because the metric change was made for the right reasons

These new client retention metrics were implemented just one month ago so the jury is still out on the hard, quantifiable results to their bottom line.  Regardless of the results of this specific change, I know our member will make progress and realize positive gains in their business because of the qualities of leadership exercised in their company.

Question: Have you had a similar positive experience by changing how you measure and evaluate results?  Please leave a comment below.