Analysis of factors affecting customer retention at “Trends in Vogue” hair Salons: No-show prediction

Abstract

Any business that plans to be a sustainable entity has two main ways of ensuring future revenue, customer acquisition and customer retention. Customer loyalty indicated by repeated purchases by customers is the holy grail of any business. “Trends in Vogue”, the hair care salon division of CavinKare is also suffering from these problems. Along these lines, for many service-based businesses like medical clinics, hair salons, spas etc. clients who do not show up for appointments are very detrimental. These “no-shows” have the following effects on the businesses: 1) Loss of revenue for the Business 2) Opportunity cost for the Business 3) Extra waiting time for other customers Therefore, by analyzing the available data, we plan to design a model which will be able to predict these no-shows in advance so that the businesses can take appropriate measures to mitigate the no-shows and their effects eg. the business can call the client before the appointment as reminders/confirmation. The business can also implement policies like non-refundable deposits etc. to mitigate the chances of no-shows.