The aim of every salon business is to become client’s “go-to” place. Therefore, it is quite natural that every salon business management plan includes a robust customer retention plan. The idea is further reinforced by multiple studies that indicate that not only returning clients spend more than newer ones, but also businesses incur approximately 7 times more cost in acquiring new clients in comparison of the costs incurred towards retaining existing clients. It is in the light of these statistics that most salon owners, in their marketing strategies, include a well thought customer loyalty program.
So, first thing first – what is a loyalty program? A loyalty program is essentially a tool by which businesses express their gratitude towards their clients for patronizing them. It is a structured system, which allows businesses to rewards its customers with attractive offers such as compelling discounts, free merchandize, welcome drinks, upgrades, and even new products. There are multiple advantages of a loyalty program. Aside from encouraging clients to visit your salon more frequently, it also turns them into your brand ambassadors for organic word-of-mouth marketing. So, in this blog let us help to decipher how to create a functional loyalty program.
The first step to implementing a loyalty program is to choose the right technology. If you’re wondering why you need technology to drive your loyalty program – well the answer is simple. Technology will make your loyalty program fool proof, keep your costs low, and allow you to evaluate its effectiveness. Salon business management software such as the one from Zenoti is one of the best –in-class products. Zenoti salon business management software comes with preset options of creating a loyalty program. Whether you chose to configure a regular points based system or a tiered system, Zenoti salon management software has got you all covered. What we love about it is that the intuitive software demands minimum effort while delivering maximum results.
Choose the Program Type
Having chosen the technology, it is now time to set up the plan. Common loyalty programs are either a single tiered points based system or a multi-tiered system. In the point based system, clients earn points each time they spend on products and services. Once they reach a minimum threshold, clients can redeem them for products and services and start over all again. Alternatively, in a tiered system, the evaluation is done over a fixed interval of time. Clients initially get small rewards, however, with increased frequency of visits and spends, they’re upgraded to higher levels whereby they accrue additional points and receive personalized attention such as prioritized booking, choice of welcome drinks, complimentary upgrades etc. Once you’ve decided on your loyalty program, go all out to promote it both online and offline.
Offer Easy Enrollment
Create a seamless experience for enrollment. The easy appointments feature of Zenoti salon management software not only allows clients to book appointments in just 4 clicks but also automatically enrolls clients into the loyalty program. Alternatively train your team to inquire with the guests if they’re enrolled. If not, encourage them to offer quick sign up. One of the biggest advantages of offering easy enrollment is that you create a vast data base of clients. By analyzing the client profile, you can further improve the effectiveness your targeted marketing campaigns
Set up Rewards that work for you
One of the ways to nudge people to try out newer products and services is to offer them a complimentary service of a big ticket spend. Instead of allowing redemption of points for any services, restrict them to those few services which clients might not otherwise try. Often, clients having tried a service once or twice such as signature hair treatment or gold facial, they’re likely to choose it in during their next visit. The idea to identify those products and services that you wish to promote and restrict rewards redemption to those. One of the easy ways to implement is by using a salon management software, which allows you to easily toggle and configure redemption.
Add a Personalized Touch
When it comes to increasing client satisfaction, there is only one mantra, make it personal. Instead of sending generic communications to the entire client list, leverage data analytics to understand client profile, and choices. From sending greetings on birthdays and anniversaries to curating special offers on anniversary or birthday deals, the salon management software can easily help you curate personalized experience. For clients who have not shown up in a while, the software can easily help you send push notifications to book an appointment.
Salon loyalty programs are a great way to retain clients and ensure that they turn into your brand ambassadors such that naturally engage in organic marketing for your salon. Set up a loyalty program that is simple, fun, easy to comprehend, and makes the clients feel truly valued and rewarded. Further, engage in active promotion of the loyalty program and review its performance to ensure its effectiveness.