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The Benefits of Implementing a Client Loyalty Scheme

Salon brand loyalty:  what can you do to generate meaningful loyalty and successfully build a client base that keeps coming back more often and spending more money?  Clients and salon owners face similar challenges and aspirations - clients want to shop at salons that offer fair prices and make them feel valued, while salons want to satisfy clients and increase revenue. 

A ‘loyalty scheme’ rewards clients who attend your salon frequently.  The scheme can give clients additional complimentary services, free merchandise, rewards, points for retail products, coupons, or even advance access to new product releases.  Ultimately, loyalty schemes must provide enough incentives to prevent clients from choosing to shop elsewhere.  Client retention is not always easy and loyalty schemes are not short-term client retention strategies:  The longer the clients enjoy the loyalty programmes, the more likely they stick to a particular brand and remain loyal.

Before starting a loyalty scheme, get to know your client and their expectations.  According to a survey by Vision Critical, 42% of consumers will stop shopping with a salon brand that they have been loyal to after two bad experiences.  Repeat clients spend more over time and it costs up to five times more to attract new clients than retaining existing clients, so catering to your current database will reduce your marketing expenses.  Investing in excellent customer service, combined with an enticing loyalty scheme will therefore improve your bottom line.

A Helloworld survey found that 61% of consumers see a surprise offer or gift as the most important way a salon brand can interact with them. 79% of consumers won’t make a purchase unless companies can show that they understand and care about the customer. Launching a loyalty scheme will tick off both of these important boxes.

To create a loyalty scheme, firstly identify your client’s needs. Your salon business offers something unique, so your reward platform should as well.  Research and explore ow best to create a loyalty scheme that matches your client’s goals. Next determine a rewards structure to use.

For example, you could use a simple point system.  It is adaptable, easily understood and can match many salon business models.  Frequent clients earn points, which translate into some type of reward.  This reward could be a discount, a free item or a special new service. Clients then work towards a certain amount of points to redeem their reward. Keep the conversions simple and easy to manage.

Another example could be to charge an upfront fee for VIP benefits. For some high end services or courses, including a discount for a once off large payment can prove very beneficial to both the business and the client.

 

Loyalty schemes work because they make your clients feel recognized and special, which leads to improved retention, more referrals and increased profits.  Rewarding your clients for their loyalty and frequent business with your salon can help distinguish your business from competitors, while making clients feel valued.  A great loyalty scheme that adds value can accelerate the loyalty life cycle.

Top 10 Benefits of Client Loyalty Schemes:

  1. Increase revenue: Increasing client retention helps boost profits simply because loyal clients already have trust in your brand and therefore are likely to spend more.
  2. Save money: While creating and implementing a loyalty scheme is an investment, client retention strategies are often less expensive than attracting new clients, as acquiring new clients can be up to 25% more expensive than retaining current clients.
  3. Gather valuable data: By encouraging your clients to fill out details as part of your loyalty scheme, you get the data so you can personalise the customer experience, but to also create targeted marketing campaigns, increase your rapport with clients and even implement an added referral programme.
  4. Make clients feel appreciated: A comprehensive, personalised loyalty scheme will make your client feel like they have an emotional connection with your salon brand, especially if you use your points or rewards for special occasions such as a client’s birthday.
  5. Increase in retail sales: By personalising the client shopping experience, through gathered data, you can make better suggestions to your clients, which will then increase the likelihood that your clients will purchase suggested products.
  6. Better communication: Loyalty schemes give you a direct way to communicate with your clients, such as to promote special events and new product launches.
  7. A good loyalty scheme is self sufficient: While it may take a body of work to structure a strong loyalty scheme and find the software to fit your needs, it should then run on your chosen settings and all you need to do is measure the metrics.
  8. Attract new clients: A good loyalty scheme can attract new clients in several ways.  For example, if you offer points or discounts for signup, you will automatically be able to add new clients to your mailing list simply because clients want to take advantage of discounts.  Also, if a clients sees a good loyalty scheme where rewards are within reach, they are more likely to try your salon simply because the rewards are accessible.  Also, clients who are satisfied with your salon may share their experience with friends. 
  9. A good loyalty scheme doesn’t need to be stagnant. You can make changes and improve it by incorporating more marketing aspects, such as referral marketing or points for your online shop.
  10. It will reinforce client trust in your salon business.

Incentivise your clients to sign up, then target with relevant offer, keep rewards achievable, send offers sparingly and monitor the return on your investment.

 

 

 

 

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