When you continuously buy products or services from a business, they sense that you are their loyal customer. Deep down, they want to do something to reward you. It’s just a tiny gesture of them saying “thank you”. Have you ever bought a coffee from your favourite coffee shop and been given a free coffee after you’ve purchased ten from them over a period of time? Well, this is nothing but a reward. Getting that free coffee does make us all feel special. Perks and rewards are given to clients in the world of beauty salons too.
It’s called a reward points program or salon loyalty program. In the salon and spa industry, clients tend to form personal connections with their stylists which drives them to come back again and again. When they visit you often, they too want a little something from you. In simple words, they want a reward for their loyalty. They may not say it but they will definitely want it.
As a salon owner, you must capitalise on this situation instead of letting it go. If a client wants you to run a reward points program, run one.
Loyalty Program Statistics at a Glance
- Did you know? It is five times more expensive to win a new client than retain an existing one. Also, returning clients tend to spend 67% more than new clients.
- 85% of consumers say that loyalty programs make them continue to want to visit a particular business.
- 73% of consumers modify their service spends to maximise loyalty benefits.
- 81% of clients feel that loyalty programs encourage them to stay with the same salon business.
What is a Salon Rewards Program?
As the name suggests, a salon loyalty program aims at building strong relationships with the clients. It’s all about rewarding customers for their continued patronage. A loyalty program also helps encourage referrals. By implementing a loyalty program, salon owners will be able to retain clients better. It also gives your business a competitive edge and boosts overall customer satisfaction. It is your most loyal salon guests that will keep your salon appointment app full and your salon floor buzzing. Hence, as a beauty business owner, it is your duty to invest in your relationship with those who are keeping the chairs in your salon full. The key of any loyalty program is consistency. It’s all about offering excellent service and meaningful rewards.
Another advantage of loyalty programs? It gives you an opportunity to stay connected with your loyal guests. It gives you immediate access to their phone numbers, email address and other information. You can update it in your database and use it when you’re running marketing campaigns.
How to Set up a Salon Rewards Program?
As a salon or spa owner, you need to be creative when it comes to designing a reward points program. A run-of-the-mill program is not going to work. The kind of loyalty program you build depends on the kind of clients you have. For certain salons, a simple punch card system may work whereas for other salons, a points-based system may be better. So, how do you know which program is the best for you?
In this extensive blog, we have chalked out a step-by-step guide to designing, building and running a salon reward points program. Let’s have a look:
- Define your Goals/Objectives
The first step is deciding what you want to achieve. Every salon owner has a different goal. Do you want to increase purchase frequency, average order value, or improve overall customer retention? Once you understand what results mean for your business, you will definitely be in a better place in shaping your loyalty program. It’s better to align your program according to specific KPIs.
Irrespective of the kind of salon program you’re running, identifying your goals or objectives is the first step.
- Research/Identify your clients
Customer segmentation will help you identify your ideal clients. You can start by collecting every client’s personal details. In addition, get valuable insights on their preferences and personal spending habits. This will help you understand what kind of rewards they expect from you. Understand whether they’re looking for discounts or cashback offers, freebies or add-on services or priority when it comes to appointment booking. There is a common misconception that salon reward points programs should only target frequent customers. However, it should be able to target frequent as well as one-time clients. In case of regular clients, you can incentivise them further by urging them to increase the amount they spend on every visit whereas in case of inactive clients, you can convert them.
- Choose your Loyalty Program Type
The next step is choosing the right loyalty program for your kind of salon business. You may not consider this that important. However, it’s the most important step. The key is understanding your clientele and what they want. It’s important to remember that no two loyalty programs are alike. The four types of salon loyalty programs that are popular with nail, hair and beauty salons are:
- Points-based System
A points-based system is pretty simple just like it sounds. A client earns points for every penny spent. These points once accumulated can be redeemed for free services or products at your salon. However, you get to decide the reward, and the terms and conditions. Implementing this kind of a program is pretty easy and doesn’t take much time. Also, you can keep track of every client’s transaction digitally on your salon POS. This ensures you don’t lose track.
- Punch Card System
A punch card loyalty program is as simple as a points-based system. The only difference is that this program includes a physical salon card. It may sound old-school but this system really works and clients love it too. They wait for their entire card to be punched because of it they end up visiting your salon more than they need to. After every service or product purchase, your salon staff can punch a hole in the card. When all the punches are filled, you can reward your clients accordingly. The only drawback of this system is that many forget to carry their punch cards when the visit your salon.
- Tiered Loyalty System
A tiered loyalty program or rewards system is used by luxury or high-end salons. In this system, there are different tiers – silver, gold and platinum. Perks are given to a customer based on their spending levels over a certain period. It’s similar to a membership model too. Clients find this system pretty exciting as the jump between the tiers is what they race for.
- Visit-based system
Though this system is not so popular, a few salons prefer having it. In this system, clients earn rewards after a certain number of visits. For instance, if a client has visited your salon 5 times, they receive a complimentary add-on service of a nominal value.
| Loyalty Model | Ideal For | Description |
| Points-based System | Frequent clients + high spenders | Earn points per rupee spent and then redeem for rewards |
| Tiered System | High-value spenders in luxury salons | Better rewards as customers progress through levels |
| Gamified System | Younger audience/Gen Z | Missions and badges encourage engagement and creates attainment excitement |
| Subscription-based (Paid Loyalty) | Brand advocates + people who have already purchased memberships | Pay to get access to premium perks, beauty events and product launches. |
- Set Meaningful Rewards
The incentives you choose must appeal to your clients but not break the bank. Sit with your team and do the math behind the rewards you’re offering. Ensure maximum profitability. It’s best to decide the rewards based on the kind of loyalty program you’re offering. Don’t impose too many rules or restrictions as this will draw customers away instead of attracting them. Also, the rewards you choose should be achievable and aligned with your brand. A few examples of meaningful rewards include:
- Free retail product samples
- Discounts
- VIP to a new product launch
- Cashback
- Donation to causes (for socially-conscious clients)
- Access to events
- Add-on services on every alternate visit
The rewards you choose should surprise and delight the clients. Remember, not every reward should be monetary. A few salons also offer rewards to customers for non-purchasing actions. This is similar to what fast-fashion brand H&M does. For example, if a client signs-up to your newsletter, give them 20 or 30 loyalty points. Similarly, you can even issue points if they leave reviews, pre-book their next appointment well in advance or if they tag you on social media. The way you structure it is up to you. The end goal is to attract as many clients as possible.
- Invest in Technology
A successful loyalty program relies on great technology. In order to streamline client visits, track their points and more, invest in salon software. The built-in digital loyalty program feature will help clients track their loyalty points and know what they have achieved and redeemed till now. It will also help keep track of every client’s progress. Back in the day, this process was done manually, and it was pretty tedious. However, by investing in the right technology, administrative burdens are gone, and the program becomes more seamless and user-friendly.
The Perks of Building a Salon Reward Points Program
- When you reward regular clients, you can strengthen your bond with them and encourage repeat visits.
- It’s human psychology that everyone wants to get closer to the finishing line. By implementing a loyalty program, you incentivise regular clients to increase their spending as they would want to get closer to receiving their reward.
- It also creates brand advocacy. When you satisfy your clientele, they become unpaid advocates of your brand. They might even refer your business to their friends and family. This may further lead to them participating in your referral program.
Measuring Success
A few key metrics you need to track are:
- Increase in client visit frequency
- Average client spends per visit
- Client retention rate before and after the program
- Reward redemption rate
- Referral growth rate
Final Words
Turning regular salon clients into your brand ambassadors is no mean feat. It is a lot of work. However, by setting achievable goals and understanding your target market, the journey is definitely less ardent and more fruitful. For a beauty business, loyalty programs shouldn’t be a choice. It should be a mandate. A salon reward points program can increase your client retention like never before. If you’re ready to start building a program but not sure where to begin, let Salon360App guide you. With our personalised beauty salon reward program, you can enable points for every service availed or product purchased, and track client points earned and redeemed. It’s super simple and can elevate your salon’s success. Request a free demo.
