Customer Loyalty Programs Keep Clients Coming Back

December 10, 2014 Kate Rankin

Spa and salon client retention tactic: Loyalty Program

Building a loyal client base is essential to a successful, thriving spa or salon. How do you nurture your clients so they keep coming back and — better yet — bring a friend?

I’m sure you’re already using the customer profiles in your spa or salon management software to do the basics:

  • Send email and newsletter updates on new treatments and products.
  • Acknowledge personal milestones like birthdays and anniversaries, or seasonal celebrations like the holidays.
  • Pass on service and product information that matches their preferences.
  • Provide personalized customer service.

But there’s one more incredibly effective way to give your customers the added incentive they need to return to your business regularly and more frequently — a customer loyalty program. This powerful customer retention tool isn’t just a way for your clients to benefit. Your facility should use it to drive and reward specific behaviors from your clientele.

If the idea of creating a customer loyalty program scares you, never fear! Your spa or salon management software should make it easy to define and implement loyalty programs for your business. But before you start, here are a few key factors to think about that will help you get the most out of the loyalty program you create for your business.

Customer Loyalty Programs Drive Business

Like it or not, the bottom line today is that customers expect loyalty programs from businesses. A recent study* showed that there are more than 2.6 billion loyalty program memberships in the U.S. with the average U.S. household active in 6.6 programs. And I’ll bet that if you were to look right now, there would be at least one loyalty card or tab in your wallet, in your purse or on your keychain. Research also shows that members not only spend more when they visit, they also visit about 20% more often than non-members.

The More Points, the Better

There are no set rules around how to structure a point system in the beauty industry, but it’s safe to say that clients like to see a lot of zeros on a total, so you can award 10 or even 100 points per dollar spent at your business. Keep in mind that if you award more points per dollar, you also need to adjust the number of points needed to receive a reward. For example, if you award 100 points for each dollar spent, your first reward might require 25,000 points ($250 worth of spend).

Invite Clients to Participate

Some businesses automatically enroll every customer in their loyalty program; however, this can be a lot of work for you or your staff without the guarantee of active participants. Invite clients to join your Loyalty Program. This will increase their awareness of your program and its benefits, as well as make them feel as if you consider them one of your more “exclusive” clients.

How You Benefit

Once you’ve got your customer loyalty program set up and enroll your customers, you should begin to see an increase in repeat business. Similar to the way you motivate your staff, customers are more apt to display behaviors they are rewarded for, so design your rewards with that in mind. After you determine the value of a point in your system, you’ll have a solid framework for a rewards menu. For example, if a haircut at your salon or a massage session in your spa costs $80, and customers receive 100 points per dollar spent, then you could say each point is worth 1 penny. You can use point status update and redemption emails to encourage people to book their next appointment or class.

Customer loyalty programs benefit your clients with added savings and perks. At the same time, your spa or salon will benefit from increased customer retention and larger purchases.

For more tips on how to retain your clients, check out our guide.

*Source: COLLOQUY Research

About the Author

Kate Rankin

Kate Rankin is a writer and communicator with extensive experience in Public Relations, Media Relations and Marketing. She's spent the lion's share of her career in networking, which served as the perfect segue for writing about Booker's innovative software platform.

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