Regis Corporation (NYSE:RGS) Q4 2023 Earnings Call Transcript

Those are big things from a marketing perspective, a guest experience, there’s better online queue support, you have self-check-in capabilities. We now have the ability to send reminders of like, hey, the queue is ready for new notifications, things that we haven’t had in the past, even with the post visit feedback problems, I haven’t had that in the past. Paying by the chair or by text, enabling further technology to permeate through salons, which could be differentiated and you’re not seeing elsewhere. That’s the benefit that can happen today. Owner experience, access any of your salons queues or operation remotely, really robust customizable reporting, guest tracking, employee management. I mentioned that feedback piece in guess feedback and start really utilizing that and operationalizing it within salons.

So those are some things that are available right now, let alone what we can allot going forward and just a little bit of a — so I’ll stop there as I think that was a pretty decent amount. But yes, I mean, as I said, there’s a path forward here. We’ve had to do a lot of work to ensure that we’re getting to a point where I could have listed off everything I just listed. But now that, that’s there, it’s time to start really kind of pushing the migration a little harder. I think it’s fair to say the product is in a really good place at this point in time. So looking forward to getting through that this year.

Eric Beder: Great. And it seems like the inflation has helped drive the business and it seems like that’s slowing down a little bit. What is the opportunity when you look at it to — I mean, I guess, is there the opportunity to increase the amount of visits to drive the traffic? And how do you look upon that? How big an opportunity is that? And how should we be thinking about that?

Matthew Doctor: Yes. That’s another good question. That’s right. As I mentioned, that has been what’s been holding sales up in a declining traffic environment. And if I were to think about even I put out kind of four areas of focus, but there’s really two for the year that we’re really focused on. It’s traffic driving and Zenoti. And I think there is a real ability to drive traffic into our salons. We have to figure out what we’re going to be doing over the course in short order is figuring out what works, as I mentioned. So there’s going to be a bunch of testing, learning, deploying on the fly here in order to kind of center on what those — what works the best, testing various offers, various bounce backs, various messaging, various creative in various markets with various franchisees, but optimizing the salon staff that we have now that I think is pretty stable and has capacity is key.

And I think that alone driving traffic into our salons optimizing our base has the greatest impact on sales, probably more than anything else at this point. So traffic driving is a huge initiative right now. To your point, I think the ability to continue to raise price, it’s probably slowing down a little bit. And as I mentioned, everything having to come together, there is that fine line walking the quality and value equation here if we start pushing price up too much without the requisite experience and quality that’s going to erode our value. So I think we’re kind of hitting that line a little bit. Maybe there’s some areas to go elsewhere, but to continue to ensure that we’re driving traffic. But also at the same time, ensuring our salons are able to provide the proper experience is important as well.

So I said it’s not one thing, making sure they all come together. So people who we drive in are going to come back. But that being said, I do see a shift into increasing our customer accounts and a focus on finding out how to do that in an extremely impactful way in short order is really the focus from a marketing perspective this year.