Salon businesses of all sizes and kinds want to thrive. There is a common misconception that only small and upcoming salons want to increase their revenue. Well, a little extra revenue never hurts. No matter which stage you’re at, you need to constantly be on the lookout for ways which can boost your overall bottom line. We don’t mean that you give away your services or retail products at throw away prices. It’s all about creating a marketing mix of discounts, promotions and programs that will help you attract new clients and bring them through the door.
As a beauty business owner, you need to keep innovating to retain existing clients and attract new ones. One effective strategy to maintain steady revenue – a well-designed membership program.
Memberships have always been a growing trend in the salon and spa space for a while now. It’s definitely a secret weapon for financial success. The sad part? A lot of salon owners don’t know how to create a successful salon membership program. If you’re reading this and are one of them, don’t worry because we have you covered.
You won’t find this kind of a step-by-step guide anywhere on the internet. We’ve listed some tried-and-tested strategies that will help you create the ultimate salon or spa membership program. Your members will thank you and so will your bottom line.
Let’s go!
What is a Salon or Spa Membership Program?
If you’re a new salon or spa owner, knowing what a membership program entails is important. In simple words, a salon or spa membership program is where clients pay a fixed fee on a monthly or annual basis. Don’t mistake it for a loyalty program. It’s slightly more intense than that. When clients purchase a membership, they get to enjoy certain services or retail products at a more favourable rate. This entices them to commit. Instead of paying as they go, they pay a lump sum amount initially and get to enjoy free services as long as their membership lasts. Though the services are not free technically, clients consider it so because they paid for it much earlier. Besides this, clients may also be eligible for exclusive benefits, freebies and discounts by subscribing to a membership program.
It’s a win-win for your clients and you. You get to enjoy recurring, guaranteed income. This further improves client loyalty. They will continue visiting your salon as long as their membership lasts. Over a period of time, you can convert these one-time clients into regular clients.
If you want clients to keep coming back month after month, it’s probably time to launch a membership program.
Guide to Building a Profitable Salon Membership Program
- Identify your Goals
As a salon owner, you need to have clarity about your goals. Starting anything without a clear vision is of no use. For the membership program to be effective, you need to define what you want to achieve. A few common goals salon owners have are client retention, boosting brand loyalty, driving demand for specific services, filling low season slots, encouraging repeat business, and stabilising monthly cash flow.
Your goals will help you shape your program structure and shape the pricing too. For instance, if your goal is to solely increase client visits, you must consider including recurring services in the membership program. This usually includes haircuts, blowouts and massages. Nobody gets their hair coloured often, so don’t include that. If your focus is revenue stability, you can even create package bundles. It all boils down to what you want to achieve for your business.
- Audience Research
Not every client who visits your salon will be interested in your membership program. Thus, just like any other business, it’s important to identify your “ideal clients”. In order to understand your target market, consider their age, gender, location and disposable income. Their purchasing habits and service preferences should also be considered. Thankfully, data can help you understand your target market. Churn out reports on your salon management software to understand key metrics and performance indicators. When you segment your audience, you can tailor your offerings. Youngsters might fancy a blowout every now and then while new mommies in town would love a monthly massage or self-care bundle. It’s best to survey clients to understand what they love the most.
- Choosing a Salon Membership Model
Once you’ve identified your goals and understood your audience then comes the fun part. Shaping a salon membership program isn’t a one-size-fits all deal. It requires a great deal of time and thought. Every membership model has its own pros and cons. The most popular membership models include:
- Monthly Service-based Memberships
This is by far the simplest way to shape a membership program. Clients usually pay a flat fee to receive a certain set of services every month. For instance, Rs. 2,000 for blow dry (short to mid-length hair) and arms and legs waxing.
- Tiered Memberships
Tiered memberships are also quite common. This usually includes different slabs such as silver, gold and platinum. The perks increase with every level. This kind of membership program is great if you want to cater to clients with different needs and budgets. Did you know? 63% of clients are willing to adjust their spending habits in order to maximise loyalty benefits. Thus, make your tiers appealing.
| Tier | Membership Fee | Services Included | Discounts | Ideal Target Group |
| Silver | ₹3000-4000 | 1 haircut or blowoutBasic consultation | 10% off on retail products and birthday discount | Casual clients or Occasional Clients |
| Gold | ₹5000-7000 | 2 services/month (haircut + hair spa)Hair Restyling Consultation | 20% off on all basic services and a complimentary add-on service on each visit | Regular clients |
| Platinum | ₹7000-10000 | 2 hair services and 2 nail services/monthPriority bookingComplimentary services and freebies | Birthday gifts & perksAccess to VIP eventsFreebies25% off across all services | Loyal clients, beauty enthusiasts and influencers |
- Unlimited Services
A lot of clients prefer getting their hair washed in a salon. You need to keep them in mind when you’re creating a salon membership program. Levy a flat monthly fee for unlimited access to specific services. Charge a premium for it because no client will actually come to your salon for a blowout every day. It’s a win for you because you get to capitalise on certain services. For instance, you can create a membership program that allows clients to enjoy unlimited blowouts for a month.
- Hybrid Model
You need to give your clients a choice when it comes to memberships. It’s best to combine discounts, freebies and exclusive access. For instance, Rs. 3,000 includes a 1-hour massage, 10% off on retail products and exclusive access to events. Any client would love this.
- Client Loyalty Membership
A loyalty membership program means that a client usually pays a monthly or annual fee for a set of services or products, and then enjoys a discount on all or certain services. This kind of membership program is perfect as the upfront payment allows you to enjoy cash flow and enhances client loyalty in the long run.
- Packaged Services with Discount over Membership
As the name suggests, a packaged membership gives members a set amount of services for free for a one-time fee. For example, you can charge your clients a fixed amount for a haircut, blow dry and gel nails every year. Any strategy which gives clients total value for their money is attractive and lucrative. Customers usually like purchasing bundles or package services. You can also give them the option to customise their membership plan. Combining different services into a bundle makes it easy for the client as well.
- Unlimited or Yearly Membership
We’ve already spoken about clients making an outright payment for unlimited services for a month or year. By offering a monthly or yearly membership model, clients can avail a specific set of services unlimited times during their membership period. This gives your clients unlimited access to manicures, blowouts or any other service for a year at a fixed rate. For the managing point of view, unlimited services are also easy to administer and keep track of.
- Churn Out the Policies
No matter what kind of membership program you’re offering, the fine print is always important. It’s important for you to adequately lay out the terms of every membership program. This ensures that clients are not misled. Clearly include the cost per service, cancellation terms, late fees, booking restrictions, process of terminating the membership and so on. All the T&Cs will give both you and your client peace of mind. The pricing you determine for every model should give the client value and be profitable to your business.
- Promote it Effectively
Your membership program is of no use if nobody knows about it. Spread the word around by engaging in different forms of marketing. Social media campaigns, email marketing and paid advertising are your best friends. Also, don’t shy away from mentioning your membership programs during in-person interactions. Let the clients know how they will benefit. You can even train your stylists and technicians to upsell memberships during the service. They might be more convinced when it’s coming from a salon professional.
- Brand your Program
Add some flair and personality to your membership program by giving it a name. This also makes your spa exclusive and desirable. A few examples are “Blowout Pass”, “The Wellness Club”, “Grooming Society”, and “The Glow Gang”. If you’re using physical membership cards, make them funky. When you do so, clients will feel proud to flaunt their badge wherever they go.
- Invest in Salon Software to Manage Memberships
Let’s be honest! Managing memberships is not a joke. For a membership program to run successfully, you need a solid backend system or software. Look for a salon or spa software that supports auto-billing, member check-ins, check-out, automated reminders, and detailed reports. This will also help you track the program.
How Does a Membership Program Help You Increase your Revenue?
The benefits of a membership program are huge and definitely cannot be overlooked.
- Helps Combat Uneven Seasonality
Salons, spas and wellness centres experience fluctuations in demand all through the year. In peak season, you will see a salon full contrary to how it is in off season. The trick to have your salon full at all times is implementing a membership program. You can be assured of recurring income. It’s a win-win scenario for both you and your clients.
- Increases Client Retention
If your business is struggling to retain clients, you haven’t given memberships a try. It’s great to have new clients but you know what’s even better? Retaining existing clients. They promise adequate ROI.
- More Bookings
It’s every salon owner’s dream to see their salon appointment scheduling software full. Memberships make that dream come true. It raises your bookings and increases employee productivity.
Closing Remarks
Running a salon or spa is a lucrative business in itself. Every salon owner wants to build long-lasting client relationships and stabilise their revenue. Running a successful membership program is a simple yet tried-and-tested strategy. It’s best to create a program that benefits your bottom line as well as your clients. Let’s not forget, along this journey, the right tools can make all the difference. With salon and spa software like Salon360App, you can run your membership program like a pro.
