Loyalty reward schemes to retains clients

• Written by Colin Shove

Loyalty reward schemes to retains clients

In the salon industry, building and maintaining a loyal client base is the cornerstone of a thriving salon.

On average statistics indicate that 85% of new clients don't return after their first visit, and 50% of those who visit twice don't come back a third time, the opportunity for growth through effective client retention strategies is significant.

Once a client visits three times, their average lifetime visits jump to around 11 and visit just over five times a year. This highlights the critical importance of turning clients into regulars.

Relationships are at the heart of client retention. Most of us, after all appreciate being known and liked. There's a pivotal moment in the client relationship where the client transitions from being satisfied to being loyal. They reach a point where they trust and value the relationship enough that the thought of going elsewhere causes more discomfort than staying. In other words you shift from having to impress them to keep them to having upset them to lose them. Once most clients fall into this category, you're set to enjoy a rewarding career looking after people who appreciate you as much as you appreciate them.

Leveraging loyalty reward schemes

Loyalty reward schemes are an excellent tool for accelerating the building client relationships. Every time a client spends money, they earn points towards a reward, creating a tangible incentive for them to return. However, the effectiveness of these schemes lies in their execution.

Here are some strategies for maximising the benefits of loyalty rewards:

1. Rewards based on spend

Instead of rewarding clients for visits, base rewards on how much they spend. This approach encourages clients to invest more in your services and products, increasing their value to your salon.

2. Reward with products

Rewarding clients with products offers them something tangible to take home, enhancing the perceived value of their reward. Since products are gifted at cost and received at retail value, this creates added value for both the salon and the client.

3. Reward with extra services

Offering extra services as rewards encourages clients to try new services and treatments, which they might not have considered otherwise. Booking the reward service for their next appointment also secures an additional visit, enhancing client retention.

4. Utilise non-fee earning staff

Incorporating assistants and graduates to deliver reward services not only frees up your more experienced staff to generate revenue but also provides valuable hands-on experience for your junior team members.

5. Reward with gift cards or vouchers

If you prefer a discount model, consider using gift cards or vouchers as rewards. Often, clients will give these to others, potentially building your clientele through positive word-of-mouth.

6. Charity donations

Aligning your salon with a charity can enhance your brand's reputation while allowing clients to feel good about their contributions. Offering clients the option to donate their points to a charity can strengthen community ties and support worthy causes.

7. Add value

Whatever form your rewards take, ensure they are valuable and memorable. Whether it's a product demonstration followed by elegant packaging, a gift card presented in a box with a bow, or a service carried out expertly, the goal is to leave a lasting impression that keeps clients coming back for more.

Conclusion

Implementing these strategies requires a deep understanding of your clients' needs and preferences, as well as a commitment to providing exceptional service. By focusing on building strong relationships, personalising rewards, and adding value at every opportunity, your salon can significantly enhance client retention.

Remember, the goal is not just to attract new clients but to turn them into loyal advocates for your brand. With the right approach, your salon can enjoy sustained success, underpinned by a loyal and satisfied client base that feels valued and appreciated.

Written by Colin Shove


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