As a beauty business owner, you know that happy clients are the lifeblood of your business.
So, imagine this!
You have a steady flow of clients coming into your salon every day. However, how many of these are repeat clients?
May be just a handful. What are you missing that is preventing you from cultivating a loyal clientele? It’s probably the nature of the salon programs you run. You’re probably doing it all but may be somewhere the program is falling short and not giving you the results you’re aiming for.
A smart way to retain your salon clients and keep them coming back is a loyalty program. It’s one of the most powerful ways to boost your revenue and enhance client retention.
A major reason why loyalty matters is because retention is much cheaper than acquisition. Loyalty programs drive repeat bookings, and help your salon stand out.
Key Takeaways
- Any salon program starts with goal setting or by defining your goal. Ask yourself – what is it that I want to achieve by running this program?
- Create the right loyalty program model that aligns with your goals and does not eat into your profits.
- When you’re choosing the reward structure, offer rewards that actually matter. When rewards are achievable, more clients are likely to participate.
- In order to create, manage and track the loyalty program, use salon management software.
How Client Loyalty Programs Work & Why Your Beauty Business Needs One?
If you’re still contemplating whether you should include a salon loyalty program or not, we have all the answers as to why you should.
Every beauty business owner wants to achieve the best from running a loyalty or rewards program. In order to really make it work, here’s what you should be doing:
Goal Setting is Important
Any salon program without a goal is of no use. You need to figure out what you want to achieve by running this program. Is it repeat bookings or increase average spending?
Once you define the outcomes you want to achieve, you will be in a better position to design your loyalty program around them. We would recommend that you prioritise 3-4 outcomes. Having too many goals can backfire.
The point is to keep your program focused and measurable.
Pick the Right Model for your Loyalty Program
Choosing a structure for your loyalty program is an important step. Based on the needs of your business, you can choose a model for your program.
Ideally, most salon and spa businesses follow three types of programs – points-based system, punch-card system and visit-based rewards.
As the name implies, a points-based system revolves around points. For every rupee spent, clients can earn a reward. For instance, 1 point per Rs. 50. Clients can redeem their points after they reach a minimum threshold set by you.
On the other hand, a punch-card system is more interactive. It involves a physical card which clients can get punched each time they avail a service. This structure might seem old-school but it really works.
It makes your clients literally wait for their entire punch card to be punched. In the bargain, they tend to visit your salon frequently which is a win for you. When the card is punched fully, clients can avail their rewards.
Next, we have the visit-based rewards system. This is a no-brainer and works for lazy salon owners. In such a system, all you have to do is reward the clients after they complete a certain number of visits. For instance – Get a free service after 5 haircuts. This is ideal for salon owners who crave repeat client visits.
Invest in Software for Beauty Salons
In order to run your loyalty program seamlessly, you need to pick the right salon management software or platform. Use the marketing tool to set up the loyalty program, manage it and run it with ease.
The working of the app is so simple that even your staff can manage it in your absence. Most salon owners find it very difficult to track a loyalty system. However, with the right digital solution in place, tracking the program is no longer difficult. It can be done seamlessly.
Offer Meaningful Rewards
Next, the rewards you offer matter too. Focus on rewards that will truly be valued by your clients. The rewards you offer should be beneficial to your client and be a win for you in terms of profitability. Thus, it’s best to set rewards based on the kind of reward points program you’re offering.
A few gratifications clients absolutely love are – discounts, free mini services, gifts/free samples on their special occasions, early/VIP access to events and referral bonuses.
When the rewards you set are clear and attainable, clients will automatically want to participate.
A few frustrations clients generally express with regard to loyalty programs are that the duration of time it takes to achieve the rewards, expiry of reward points and the value of rewards being too low.
Thus, choose rewards that are easy to earn and redeem.
Communicate the Benefits of the Program to your Clients
When you’re running any salon program, you need to let your clients know about it. Only then will they be motivated to sign-up. Train your stylists to let the client in the chair know about the loyalty program you’re running.
You can also actively promote it on social media and on your beauty salon software. To reap the benefits of the program, clients will visit your salon frequently.
Turn it into a Referral Program
Client loyalty and referrals work hand-in-hand. When a client is loyal to your salon business, they will automatically want to tell their friends and family. A fool-proof way to turn your loyal clients into promoters is by adding a referral bonus to your existing loyalty program.
For example, “refer a friend and both of you get 20% off on your next visit”. This will further motivate clients to visit your salon and in the bargain your client base grows organically.
Loyalty programs in a salon work only when they’re simple, transparent and less complicated. To attract more clients, keep reworking on your reward points system. If you’re still in two minds whether your beauty business needs a loyalty program or not, we have all the answers.
Unlock the Power of Client Retention with a Salon Loyalty Program
We have listed some of the benefits of running a loyalty program on your beauty salon software:
Boosts Client Retention
Did you know? It’s 5x cheaper to retain an existing client than attract a new one. By running a loyalty program within your salon, you give your clients a compelling reason to stay. In the quest of earning loyalty points, they stick to your salon instead of trying out competitors.
As a salon owner, it’s important for you to keep rewarding their continued patronage. This also helps you reduce client churn.
Aids in Referrals & Word-of-mouth Marketing
Word-of-mouth marketing is one of the cheapest and most effective ways to attract new clients. When clients like your services, a personal connection or relationship is built. This increases the chances of them referring your salon to their friends and family.
Loyal clients are often your best advocates. When your existing clients bring in new customers, you can even reward them for doing so. When you incentivise them, they will be more inclined to refer you to other people.
Enhances Client Lifetime Value
Over a period of time, loyal clients tend to spend more. Compared to new clients, they’re more likely to try new services or purchase retail products. Thus, as a salon owner, you must take all measures to never let them go.
When they feel valued, they will book more frequently. Always remember, customer engagement directly translates into revenue for your salon business.
To track how much a particular client is spending in a month at your salon and what are the most popular services they’re availing, you can use your software for beauty salons.
Helps you Gather Key Client Data
When it comes to sharing contact details online, a lot of people hesitate. However, when your clients’ sign-up for a loyalty program, they don’t mind sharing their phone number and email address.
This is a great moment for your salon as it gives you a chance to gather valuable client data. It also gives you key insights into client behaviour, preferences and overall spending habits.
It also helps you tailor your marketing efforts and send out communication that matters to your clients the most.
Wrapping Up
As a beauty business owner, if you’re looking for a fool-proof way to hold onto your salon clients, loyalty programs are great. You can be rest assured of the repeat rate as well.
If setting up a salon loyalty program is something that is worrying you, fret not! Salon360, salon management software, has a built-in marketing tool that helps you create, manage and run your loyalty program with ease. No messy paperwork, or manually tracking client visits and rewards.
It helps you and your clients efficiently track loyalty points so that you can save time and focus on growing your salon business.
Click here for a free demo.
