Embracing Change: The Future of Technology in the Salon Industry

In a recent Salon Tech Talk episode of the Social Beauty Makers podcast, host Gordon Miller and industry veteran Paul Tate offered a deep dive into the current and future state of technology in the professional salon industry, highlighting a new wave of excitement and transformative change.

The New Era of Salon Technology

The conversation established a palpable new excitement around salon technology, driven by AI, automation, and user-friendly interfaces. 

The core themes of this new era are:

• Excitement Around AI: Host Gordon Miller noted that AI has been a constant topic in his executive conversations, creating a ripple effect that has led to widespread, unprecedented excitement about technology across the industry.
• Ease of Adoption: Paul Tate suggested the key to adoption is making technology feel normal by creating new software that makes what people love "super simple" and handles the tasks people prefer to avoid.
• Transformative Reach: Modern tech companies now have transformative reach, affecting every part of a salon's business — from financing to color order management to overall operations — making technology a critical, non-optional component of success.
• Consumer Demand: The entire shift is primarily driven by consumer demand, with Gordon Miller summarizing the client's expectation: “If you're not booking me online, you’re not booking me.”

The Power and Purpose of The KIM Report

The KIM Report is a collaborative data initiative that provides unprecedented, unbiased visibility into the salon industry. Paul Tate articulated the importance of this initiative, which brings together manufacturers, distributors, and tech partners to enhance decision-making in the salon industry. 

Here’s how The KIM Report plays a pivotal role:  

• Broad-Scope Data: The report aggregates business data (like average ticket, service mix, and color volume) from 10,785 active salons, providing a near-real-time, broad picture of the industry's health. 
• Insights Over Raw Data: Paul Tate emphasized that the goal is not just to collect numbers, but to find the "aha moments" and insights that can be turned into actionable steps for smarter business moves.
• Privacy and Trust: By emphasizing aggregated metrics and avoiding sensitive salon-specific information, the report helps maintain trust across the industry. Paul Tate said: “We’re bringing manufacturers, distributors, and tech partners together to make the industry smarter and better equipped to make great decisions.” 

The Need for Business Education

The industry vets agreed that the industry has mastered technical education, but there is a significant missing element for game-changing growth: business education. Data from initiatives like KIM provides the facts needed to create and deploy business solutions that help salons leverage challenges into significant opportunities. 

Here are the key points of elaboration on the need for education:

• Technical vs. Business Education: Both Gordon Miller and Paul Tate agreed that the industry has nailed technical education, offering a wealth of training on craft and product application. However, they argue that business education is lacking.
• Actionable Insights from Data: Initiatives like The KIM Report provide hard facts and "brilliant data" on industry performance (e.g., average ticket, service mix, retail decline, etc.). The consensus is that this data must be used to develop and deploy business solutions that help salons turn challenges into significant opportunities.
• The Model for Change: Miller pointed out that when a technical issue arises, brands rush to R&D and then "throw education out there" to show salons how to overcome the challenge. They argue that the same energy and commitment are needed to proactively push out business-focused solutions.
• Re-engaging Around Retail: The discussion highlighted a post-COVID behavior shift, with many hairdressers showing "less interest in attempting to sell a bottle." The duo stresses that the industry needs to collectively re-engage around the idea that retail matters and explain how it strengthens client relationships, not just financially, but through better client service and advice.

Game-Changing Marketing with SalonInteractive

The interview also highlighted the power of technology to revolutionize salon marketing, specifically citing SalonInteractive’s On Behalf Marketing (OBM). This technology enables a brand to market products and services on behalf of salons within the platform. 

On Behalf Marketing is crucial for salons for several reasons:

• On Behalf Marketing: SalonInteractive facilitates OBM, enabling brands to create content and send it directly to salon clients while keeping client data secure within the platform.
• More Engagement & Revenue: OBM enables salons to engage clients more effectively and earn commissions on sales. 
• Boosting Loyalty: Regular communication through OBM helps reinforce client loyalty, encourages repeat visits, and creates a community around the salon's brand.
• Unheard-of Open Rates: Initial campaigns using this model achieved open rates exceeding 40 percent, demonstrating the high level of engagement consumers experience when marketing comes directly from their salon.

Tie Yourself to the Rocket 

Both Gordon Miller and Paul Tate urged listeners to embrace the rapid wave of change impacting the salon industry, with Tate emphasizing, “This phase is happening faster than anything before — from booking to automation to AI. Tie yourself to the rocket, because it’s not slowing down.” 

The overarching takeaway? The key to success in the modern salon industry lies not in resisting technology, but in recognizing it as the essential engine for growth, client retention, and profitability.

For the complete Salon Tech Talk conversation, listen to this podcast episode here.