Charging clients for no shows and late cancellations can be uncomfortable but that’s why it’s crucial to have a proper policy in place. Vitality Editor, Becci Vallis, spoke to the experts at Timely and Phorest for their top tips.
Owning your own business gives you the freedom to make (or break) the rules, but that doesn’t mean there won’t be any awkward situations to navigate. Take client cancellations – they’re never a fun scenario to deal with and it can feel daunting when there’s the potential of upsetting, or even losing clients, but if you don’t, it’s you that will be on the short end of the stick and out of pocket.
“It’s so important to have a cancellation policy in place to protect your time and income,” says Sally Conchie, UK marketing specialist at Timely. “It sets clear expectations with clients, encourages them to show up on time and cuts down on no-shows and last-minute cancellations that throw off your day. It also shows you’re running a professional set-up – clear, fair and respectful of everyone’s time.”
Without one, there will be empty appointments, staff members with no clients and you still paying wages. It’s equally as important if you’re a sole trader too – your time and resources deserve the same respect whether there’s one of you or an entire team.
How to compile your cancellation policy
Most service-led businesses give clients a 24 or 48 hour window to cancel as this allows you to fill the spot or re-organise your day so first off, decide the appropriate notice period for you. Then it’s worth looking at your data and tracking cancellations. “Pull your booking reports and look for any patterns,” advises Luke Doolin, managing director at Phorest. “Is one particular service seeing more no shows? In which case, is it scheduled at an awkward hour? Is it a staff-specific issue – for example one gets cancelled on more than another? Is it a training gap? If you have staff, are they communicating your cancellation policies properly?”
Once you’ve chosen your time frame, it’s time to decide on the monetary obligations you want to enforce. “A generic ’48-hour, 50% fee is common but you could tweak yours to fit your services. Long, luxury treatments might carry a 75% fee; quick touch-ups maybe just 25%,” continues Luke.
You may also want to consider a strike system. For example, a client cancelling for the first time gets the fee waived or reduced, but the second time you charge 50%, and then the full treatment amount if it happens a third time. You also need to decide when to be compassionate and when to draw the line.
“If there’s an emergency or something out of their control it’s fine to use your own judgement and be flexible. If there’s a genuine reason they didn’t show and you want to offer a bit of wiggle room you can, just make sure it doesn’t set a pattern that’s hard to manage later,” advises Sally. “Clear guidelines like asking clients to notify you as soon as possible in emergencies to avoid penalties is key too. There’s no one size fits all rule, but fairness, consistency and clear communication should guide your approach.”
Educate your team
Whatever terms you decide, the most important thing is that you stick to it, and if you have staff, they feel confident in implementing it. “Equip you team with clear scenarios: a heartfelt “I got stuck at the airport call” merits compassion but a no-call, no-show doesn’t. Create a list of scenarios that you want your staff to follow as this takes the guess work away from your staff and for you,” says Luke. Make sure they know how to have these conversations with the clients too so it’s not just you that has to deal with cancellations.
Make it unmissable
Another absolute must is how and where you publicise your cancellation policy. In short, anywhere and everywhere is key! “The easiest way to do it is through your online booking system so clients have to agree to the policy when they book – ticking a box or a signed form to acknowledge they’ve read the terms and conditions is a great way to implement this,” continues Sally. “You can also then back it up in your booking confirmation emails, SMS messages and appointment reminders. The repetition and reinforcement helps clients remember the rules and reduces the chance of any misunderstandings.”
You could also think about a booking fee and card capture. “A 50% upfront charge for new clients, repeat offenders or high value services creates a financial incentive to show up and if you have a client’s card details on file, even if you don’t actually charge it, the possibility of a ‘no-show fee’ looming on their statement is often enough to keep appointments sacred,” says Luke. Make rescheduling appointments easy too, for everyone’s convenience.
As well as via all communication you could have a discreet sign at reception along with information on your website, social pages and any other touchpoints you have with your clients. And while it might feel ruthless or unnecessary, it doesn’t have to be. Keep the wording and tone friendly and explain that the policy is there to protect your time and their experience.
Of course, you may get the occasional client who isn’t happy about being landed with a penalty fee, but this is where you need to be firm but fair. Reiterate why the policy is there, how it’s the same rules for all of your clients and that it is nothing personal – this isn’t about punishing them, it’s simply a respectful way to run your business. You might even be surprised at the results: “A fun fact for you is that salons that enforce no-show fees actually see twice the rate of returning clients compared to those that don’t,” continues Luke. “It turns out communicating with those clients (even by charging them) gets them back to the salon.”
COPY AND PASTE
Stuck for words when communicating your cancellation policy to your clients? Use the below as a starting point and edit as you see fit…
“We love having you in the salon so we’re sad when you can’t make it, but do let us know within 24 hours as there’s a chance we’ll be able to fill your slot and keep your seat warm until you can come again soon. If you don’t let us know, we will have to charge you 50% of your appointment fee. We hope you understand. It’s nothing personal, it’s just our policy.”