What would you prefer — a shiny new luxury car or a used but dependable vehicle? 9 out of 10 of you most likely went with the luxury car. Many (too many) local spa and salon owners set up their marketing efforts in a similar manner. The promise of new clients hold the same allure of the new car. They're something new, something fresh, and give you a sense of growth you can visibly see. That's why so many local spa and salon owners crave attracting new clients. Although client acquisitions is certainly an important part to the success of your business, spa and salon owners should never sideline client retention.
As we've discussed in many previous posts on this blog, focusing on your spa and salon client retention can be massively beneficial for two huge reasons...
A). Repeat clients spend more per transaction ~ Returning clients spend 67% more than new clients ~ business.com
B). Attracting new clients can get costly ~ It is 6 times more expensive to win a new client than to retain an existing one ~ Business2Community.com
So, although attracting new clients should be important, spa and salon client retention should always take equal precedence. One of the most popular, effective, and easiest ways for local spa and salon owners to grow a strong base of repeat clients is through client loyalty programs.
Why a Client Loyalty Program is the Answer for Boosting Your Spa and Salon Client Retention?
Clients today expect loyalty rewards from businesses. American businesses spend an average of $50 billion annually on these programs, and 75% of consumers carry at least one loyalty card. One of the earliest instance began by American Airlines in the 1980s has become ubiquitous among businesses of all sorts, from coffee shops to office supply and pet food stores.
Consumers have countless options when it comes to spending money on services and products. Now more than ever, they need a reason to consolidate their purchases with a particular business. A loyalty program, paired with excellent service from technicians they know and trust, can tip the scales in your favor. The concept of receiving extra value for everyday purchases can also counteract consumers’ obsession with discounts and coupons that often lead them elsewhere.
What Kind of Loyalty Programs Should You Offer?
There are tons of creative and fun ways to engage with your clients and get them back to your shop. Below are the 3 most widely used client loyalty programs and the steps you need to get them up and going!
A). Points System Loyalty Program
Establishing some sort of points system to reward acts of client loyalty is the perfect method for creating more lucrative spa and salon client retention.
Step 1: Start by figuring out which actions you think will prompt clients to return and spend. These are the actions they will have to perform in order to earn points. For instance, some actions you may deem point worthy could be: making a client referral, booking a visit through your app, appointments made during birthday month, etc.
Step 2: Now it’s time to assign point values to each action. A good recommendation is to make the point denotations clean and simple. For example, an effective points loyalty plan may look something like this:
Client Referral = 500 points
Each appointment booked through spa app = 250 points
Appointments made for birthdays = 300 point
Give whichever action is most important to you the highest amount of point value.
Step 3: Finally, list out possible rewards and denote point values to each. For example, perhaps once a client acquires 1500 points they are eligible for a $15 gift certificate. Keep the rewards tangible and enticing. Your rewards will act as that extra bit of incentive for getting clients back to your cryo spa and spending more.
2. Punch Card Loyalty Program
This simple loyalty program can work wonders when it comes to driving clients back to your spa or salon.
Step 1: The way this works is that one visit = one punch. So, first, you want to decide how many punches will equal a reward. Try to make it a ‘clean’ number such as multiples of 5.
Step 2: Once you’ve chosen the number of punches/visits it takes, it’s time to choose what you will reward your clients’ loyalty with. For example it can be something like — $20 off next visit, half off next visit, or maybe even next visit free. Remember — the more compelling your loyalty reward is, the higher chance you’ll have of keeping clients coming back.
Step 3: Hand your punch cards out like candy. A client comes in for a blowout? Give them a punch card. A client comes in and purchases a gift certificate? Give them a punch card. The more people who get their hands on your punch cards, the more success you will be at building your spa or salon client retention.
3). VIP Tiers Loyalty Program
The last of the client loyalty programs for you to consider is a VIP tiers loyalty program. These are pretty easy to set up and work wonders when it comes to getting clients to come back for a visit.
Step 1: Establish how many tiers you want to have. If you want to keep things basic a good place to start is 3 tiers. If you’re looking to get a little more involved you could shoot for something like 5 tiers.
Step 2: The next thing you want to do is pick out some rewards. They can be anything from $10 off one visit, all the way to get a cut half off. Once you’ve picked a few out arrange them into tiers by most valuable. So, if you choose a 3 tiered VIP program, a barebones example might look something like this:
Bronze Members: 1 visit $5 off per month
Silver Members: Buy one product get second half off (one redeem per month)
Gold Members: 1 visit half off per month
It’s vital that you assign the frequency of reward redemptions (i.e. month/bi-monthly/year). Again, think of rewards that make sense financially for your spa or salon to do while keeping in mind what's going to be most enticing for clients.
Step 3: Once you’ve established your tiers simply assign spending amounts or number of visits to each. For example, perhaps in order to be acknowledged as a bronze member at your spa or salon a client must visit at least twice a month and/or spend $75. Always make the requirements lucrative for your business, while keeping the rewards appealing for clients. This helps guarantee that you're building client loyalty while reaping the benefits of repeat patronage... AND your clients feel they're getting rewarded/special treatment.
Who Should Be Participating?
Some spas or salons automatically enroll everyone in their client loyalty program; however, this can result in a lot of work for your business without the guarantee of active participants. Asking clients to elect to participate will increase their awareness of your program and its benefits. It’s not uncommon for businesses to go a step further and charge a modest enrollment fee, especially when the program carries benefits such as automatic discounts on retail products that more than pay for the initial fee over the next year.
client, just be sure to get the word out to your clients about your client loyalty programs. Promote your loyalty programs on high visible locations such as your...
- Social Media Pages
- Online Listing Profiles
- Checkout Area
- Front Window
Get More from the Clients You Have!
Sometimes a bird in the hand truly is better than two in the bush. Start focusing on your own spa or salon client retention strategy — use this post to get some awesome client loyalty programs up and running — and watch how much such a small adjustment can help your spa or salon grow!
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