Five Ways Appointment-Based Businesses Are Losing Money

Although running a business can be difficult, there are some ways you can make it easier.

You have a lot on your plate, from managing client appointments to keeping your books up-to date and maintaining your books. You don’t have to let your busy schedule stop you from running your appointment-based business as efficiently as possible.

In the sense that service-based businesses are almost entirely dependent upon the customer experience, which is the sum of many small interactions, they are unique.

It’s easy for small inefficiencies to be overlooked when there are so many touchpoints. These weaknesses can have a negative impact on your business’s overall health and cash flow.

These are five areas where appointment-based businesses often lose money. They may not realize how important they can have on their bottom line.

1. No-Show Appointments

You book time with your customer. You review your client notes, sharpen your skills and prepare yourself for a great appointment. You don’t have to wait for your customer’s appointment. Instead, you can make a great appointment and save valuable time.

Do you sound familiar? This is one of many major failures in traditional appointment scheduling.

The classic “No-Show Appearance” is the biggest contributor to frustration for small business owners and lost revenue. Some studies show that up to 42% of customers miss their appointments. What may seem like a few flakey customers could actually lead to a larger appointment scheduling problem.

There are simple and proven ways to decrease no-shows in your small business.

• Reminders for appointments have been shown to decrease no-shows by up to 80%. By automating the process, you can save valuable time using an online booking or online scheduling software like Acuity Scheduling.
• A strict no-show policy and/or cancellation policy that is not possible to be met within the time frame you have set can help deter absent customers. Customers will be more likely to show up if they know they are responsible for paying the service fee if they do not cancel or change their appointment within a reasonable time.
• You might consider opening earlier or staying later on certain days, and making appointments when you’ve traditionally scheduled time for other things. This will help to accommodate “non-standard” schedules.

2. You are not filling in the gaps in your service schedule

It is important to remember that time is money, especially for appointment-based businesses. Every appointment-based business owner must know what their service schedule looks at any given moment. Online appointment scheduling software such as Acuity Scheduling makes it easy to visualize your schedule and see any gaps.

Are you stuck on how to fill the gaps in your service schedule? These are some quick tips to help you get started:

• Social media is a great way to let your customers know you are available for last-minute appointments at times and dates that work with your schedule.
• Send an email blast to offer a special discount for those who book the times you have available.
• Reach out to your loyal customers to ask if they would be open to scheduling an appointment.
• Online payment processing can make it easy to pay, secure a commitment from customers, and reduce “no-shows”.
• Try something different! Offer a unique service that is only available during a certain time to attract new customers and existing clients.

3. You are not required to track your expenses year-round

Small business success is dependent on having a good understanding of your service schedule. Monitoring, tracking, and really understanding your expenses are key components. Although a folder with paper receipts and a spreadsheet called “2022 Expenses”, is a good start, it’s also outdated and inefficient.

FreshBooks makes tracking expenses for service-based companies very easy and even fun. Easy expense tracking is made possible by integrations with many financial institutions. You can also snap photos of receipts on paper.

Once FreshBooks is up and running, you should take time each month to review your expenses and to incorporate them into your budget. These are some quick tips for expense evaluation.

• Ask yourself: Is this an expense I really need? Does this expense contribute to my bottom line or not? Many small businesses fall for the trap of buying products or services they don’t use.
• You can categorize your expenses to gain a better understanding of your business’ overhead.
• You should set a goal as to how much of your total income will go towards expenses. Budgeting basics will help you avoid overspending.
• To better understand your expenses and business, you can use Accounting Reports such as the Profit & Loss Report and the General Leger in FreshBooks.

4. Don’t forget the value of add-ons when booking online

These add-on services or products are exactly what they sound like – they offer smaller benefits and are usually priced at slightly lower prices when the customer book an appointment. One classic example is offering discounts on recurring services and projects when customers book their first project at cost.

Although add-ons should not be considered core to your company’s success, they can increase customer lifetime value and are effective revenue drivers. These are some of the key points to consider when deciding on the right strategy for your appointment-based company.

• Do the math on the price of a product if you are offering it as an add-on.
• You should make sure the service you offer as an add-on is complementary to your main service offering. We recommend combining add-ons with the most popular services.
• Visibility is essential. If customers don’t know that an add-on is available, they won’t book it. Add-on products and services should be included on your website and online scheduler.

5. Make it easy for your customers to book time with you

Although we’ve already discussed why an online booking platform is essential for appointment-based businesses, it’s worth repeating here. A good client management begins with making it easy for customers. This includes the appointment scheduling software and booking software you use.

You’ll lose more appointments if it becomes difficult for potential customers or existing customers to book appointments online. These tips will help you reduce friction and inefficiencies when scheduling appointments online.

• It is a good idea to schedule clients for follow up appointments after the end of any service. This will help avoid scheduling gaps and ensure customer retention. It is easy, cheap, and efficient to ask clients for follow-up appointments at the conclusion of any service. You’ve probably been to the dentist before and know what we mean. You’ll be asked to pay for your next appointment in 6 to 9 years, and also to provide information about your insurance.
• Online appointment scheduling software and appointment scheduling apps allow customers to make appointments anytime, anywhere.
• Your customers who prefer to get in touch with you by phone or email are not forgotten. While small business owners need to embrace technology in order to make their lives easier and improve customer service, it should not be at the expense making customers happy. Customers should be able to schedule appointments online, by phone, via email and text message, in addition to using an online appointment scheduling tool. These channels are great for answering questions and supporting people who may be a little reluctant to use online appointment scheduling software.

• Do the math on the price of a product if you are offering it as an add-on.
• You should make sure the service you offer as an add-on is complementary to your main service offering. We recommend combining add-ons with the most popular services.
• Visibility is essential. If customers don’t know that an add-on is available, they won’t book it. Add-on products and services should be included on your website and online scheduler.

The bottom line

For appointment-based businesses, long-term success is about eliminating inefficiencies and creating processes that enable you to predictably take control. You can visualize and address friction points with a little planning and smart technology (online scheduling software).