Don’t Lose Revenue: Get Your Clients to Keep Appointments

There are many ways in which small businesses may find themselves losing money that they can ill afford.  They may not be tracking waste within the office, employees could be using work hours to check Facebook or Twitter, or they might not be using the right services (paying too much for hardware, software, and online services that they don’t really need, for example).  But one thing that can really impact a small business negatively is the failure of clients to keep appointments.  This is especially detrimental to businesses that offer booked services at their location.  Clients that miss their appointments not only result in lost revenue, they could also mean the loss of other potential clients (that may have been unable to book due to a full schedule).  But what can a small business do to ensure that clients show up (without alienating them completely)?  Here are a few options.

1. Cancellation policy.  This is pretty standard fare.  Most service-oriented businesses, whether large or small, have policies in place that allow their clients to cancel should something come up.  Many give clients anywhere from 24-48 hours to cancel without penalty.  Although this won’t account for last-minute emergencies, it will certainly let clients reschedule should they realize a conflict a day or two in advance.
2. Cancellation fee.  Again, it is well within the rights of a business to demand that irresponsibility on the part of the client not result in total financial loss for the company.  You may not want to charge the full amount for a missed appointment, but there are other ways to recoup at least some amount of lost revenue for the no-show.  You could charge a percentage of the cost of the appointment (or a flat fee) or you could charge the full amount but apply a portion of it to the client’s bill should they reschedule for a later date.  And most offices are pretty flexible with refunding fees should clients be detained by a bonafide emergency.
3. Appointment reminder.  Sometimes people simply forget that they have appointments.  Many small businesses have taken to sending out reminders via phone message, email, or text (depending upon office capabilities and client preferences).  These can be automated or in person, but they should be sent prior to the cancellation cutoff so that clients have a chance to avoid fees should they remember that they need to reschedule.
4. Offer bonuses.  If there is a real problem with no shows, businesses can think about offering incentives for clients to arrive in a timely manner for their appointments.  For example, if a client makes appointments several times in a row, the business might give a discount or a freebie for the next time.  Sometimes rewards are a better motivation than punishments (like fees).
5. Deny service.  This should be a last resort for any business, but if a client repeatedly fails to show up or refuses to acknowledge fees for no-shows or late cancellations, then a business cannot afford to keep losing revenue on a client that is clearly not worth the effort.