How to make your on demand beauty business more profitable?

On demand beauty services chain Mango Salon wins with technology

Previous Platform None

Industry Beauty services

Product Yelo brand

Mango Salon is one of the best rated beauty chains in North India’s Delhi. Started in 2018, Mango has grown tremendously well as a local business. Despite having a prominent physical presence, their home services are stealing the limelight giving tough competition to big brands like Urban Company.

We got on a chat with Rajiv Tevtiya, the founder of Mango Salon to know how he started, what were the challenges and what were the steps he took to scale.

With Yelo, Mango Salon

Standardized their services by 90%
Acquired 50% new customers
Increased customer satisfaction by 65%

Challenges

Management

Rajiv wanted to launch Mango as a brand and franchisee model but Covid struck. Due to Covid, people could not visit his salons which he had highly invested on. However, as it was already a running business, he started getting orders for home services. And that’s when he pivoted the business model.

The salon would take orders via a call centre but it was getting very difficult to stay organised and keep a track of the orders.

Lack of Standardisation

As an online service, Mango salon wanted to standardise their services. Rajiv says, “Scaling is not possible without standardisation. Especially in the beauty industry, and when you are delivering services at home, it is very difficult.”

Mango Salon could not scale despite having the best staff and resources in place.

Solutions

Yelo Marketplace

To compete with big players in the highly competitive industry and to standardise and scale his services, Rajiv started looking for the most efficient technology.

“The era of building technology is long gone. It is highly inefficient to hire a developer. I heard about Jungleworks and their good reputation in the market got me considering.”

Rajiv Tevtiya

Founder, Mango Salon

Rajiv also feels that with Yelo in place, he can focus more on the business and be less worried about the tech with a dedicated team in place.

Results

Efficiency

Mango Salon achieved 78% more efficiency with Yelo. By moving to an online ordering platform, they could organise queries and with the help of technology everybody could achieve more.

“We realised that a 5-star service with 3-star rates was missing in the beauty segment. But how do you achieve that? If you provide high quality, the cost of operations increases. And we did not want to compromise on technology. Only through Yelo we could bring in standardisation and achieve that.”

Higher Customer Acquisition

Mango Salon could get 35% more new customers through Yelo. As more and more customers today prefer ordering online, Mango could reach a lot new customers. Rajiv says, “Everybody wants service like pizza and with an app, it is so much more shareable and the pricing also gets standardised. Even if the customers do not order, we get their data, and through that, it gets very easy to acquire them.”

Increase in Customer satisfaction

Mango Salon saw a 65% increase in customer satisfaction. Rajiv quips, “these days customers do not wish to call and book. After we launched on Yelo, our customers were very happy and complimented us on the easy to book platform.

On local entrepreneurship

Beauty industry is a competitive one but we can have a lot of local champions in it. You just need to identify the gap and launch a good service.

According to Rajiv, “it is a very profitable industry. Gross margins are good and it is scalable too. The most important thing is to understand your customers and go deeper to find a gap. The secret to success is right in front of you, you just need to do it.”