The 5 Step New Client Retention Multiplier

The secret to tripling new client retention.

On average only 15% of new clients who visit a salon return for a second time, and only half of those become regulars. Which equates to about 1 in 10 new clients becoming long standing regular clients.

The good news is that once a client visits three times, they typically stay for eleven visits.

We surveyed salon owners and over 80% felt most new clients found them by word of mouth or referral. Yet, when we track the data we found the vast majority of new clients found salons by either walking in or booking after passing by.

This may sound overly pessimistic or even inaccurate, but, if you are a salon owner or manager working a column with an established clientele, you will typically rely less on new clients. The new clients you do get are more likely to be recommended and your retention will be far higher.

The problem is most salons are not full of team members performing at the same level as you.

This goes some way to explain less solid retention numbers. Walk-ins, who have less commitment and are less likely to return are usually taken care of by staff with the most availability, and they are often your least experienced team members.

Imagine if you looked after all walk-ins, would return? Obviously there is little possibility this will happen but how about training your team to follow your process.

A successful business owner gets most of their team, doing most of what they do, most of the time. (Michael Gerber - The E-Myth author)

The 5 Step New Client Retention Multiplier is a strategy that converts more new clients into regulars and dramatically improves profitability.

Keeping a client is costa less than getting a new one, making it doubly important to ensure your new clients come back.

Salons implementing the New Client Retention Multiplier have seen retention triple. That equates to 45% of new clients becoming regulars and your business growing at 3 times the pace!

A mix of excellent service, appropriate incentives, and regular engagement will increase retention, boost revenue, staff morale and strengthen your reputation.

Every new client is potentially worth so much more than one appointment. With a £50 average bill, lifetime value can morph from £61.25 (15% retention) to £512.50 (45% retention) .

Let’s get started:

Step 1 - Concierge

Be more than just a another salon; be a place that new clients love, feel welcomed and comfortable in. More importantly, somewhere they'll want to come back to.

Draw on the best practices of other hospitality sector businesses like luxury hotels, that have long relied on concierge style questionnaires to ensure their guests have a memorable experience.

Here’s how it works:

Create a New Client Concierge Form. Keep it short and easy to complete, and include information your team can use to easily impress their new client from the start.

For example:

• Refreshments preferences
• Preferred magazines
• Sit quietly & relax during appointment or happy to chat?
• Would they like a head massage?
• Receive product information and demonstration?
• If digital an upload option to share desired results.

Ask new clients to complete your New Client Concierge Form before their initial appointment starts. If they book, email or text the form, and if they have arrived have them complete it in reception.

The aim is to impress new clients from the start. To demonstrate that you understand, you care, and you’re here to provide an unforgettable salon experience.

Download this example to get started.

Step 2 - Consultation

You never get a second chance to make a good first impression. Will Rogers

Use the completed concierge to make an outstanding first impression. Just imagine the impact if all new clients received a greeting like this?

"Hi Mary, it's lovely to meet you. Thanks for coming in today. Let me get your coffee (it’s white without right?). Now I can see you like to use your time here to relax quietly, so while your colour is processing I am going to leave you to enjoy your coffee and a copy of Vogue. When it's ready Sam will give you a relaxing head massage."

When you standardise the information your staff can access before an appointment it's simpler to systemise the consultation.

Step 3 - Courtesy

Example: Hi Paula, Just a quick follow up to say thank you for visiting Hair Experts for the 1st time today. I hope you are delighted with your hair. Just in case you need me before next time here are my contact details. I'm Colin & my number is 01273 074611. Thank you, I hope to see you again.

How would you feel if you received this message after visiting a salon for the first time?

Marketing campaigns are often thought of as promotions, offers and incentives but they don't have to be. The New Client Courtesy is designed to only impress. It doesn't include a deal, a review request, or ask for a referral. It's a simple thank you.

Here are some options of how you could implement this:

Phone: A personal touch is superb and a phone call can be extraordinarily impressive. Especially if you have a confident person doing the call. However, in the absence, in most cases of a full time front of house specialist, doing this consistently can be a chore. Not least of all because many calls go unanswered which means leaving voicemails and scheduling callbacks which is very time consuming (and expensive).

Email: An email can be automated which makes it more reliable. They are also free, but consider this is a time sensitive campaign. To impress your new client needs to see it soon after their appointment. Email open rates average at about 21% which so up to 80% of your clients won't see it, and some who do see it may open some time after receiving.

Text: The beauty of a text message is that 90% are opened within 3 minutes. Think of when you receive a text. How often do you actually ignore it? So if you are looking for a reliable way to get your welcome courtesy message to your new clients, texts are a good option. These too can be automated using salon software like The Salon App.

Here's an example:

Hi Mary, it was lovely to meet you today. Thanks for visiting [salon_name] for the 1st time today. If you need anything before next time this is my number 01273 074611. All the best until next time, Tina

Step 4 - Rebooking Cue

More new clients than regulars leave the salon without rebooking, making them less likely to return.

The Rebooking Cue is an effective micro campaign designed to get your new clients to rebook sooner.

Here’s how to start:

Send a message after about four weeks catching new clients before they make another salon appointment. Even with the concierge, your supercharged consultation and your classy courtesy message some clients will not have rebooked, so this stage is a very important part of the process.

Ensure your client feels they are being contacted personally amd not getting a “send to all” type campaign. Be sure to exclude clients who have already revisited or rebooked.

Nothing you have done so far indicates you are the type of salon offering deals so avoid including an incentive, think of it as a gentle nudge.

As with the courtesy message personalise your message, include your clients name and that you know they are new to your salon. The call to action is “book online” and or “call to book”.

Example Message:

Hi Jane, it was lovely to meet you a few weeks back, I hope you have been delighted with your [booked treatment/ service]. I just wanted to drop you a quick reminder that it’s time to rebook. My diary is pretty full & I want you to be able to get the time you want. Call [salon number] or [book online]. take care, [Team/ Salon Name]

Step 5 - New Client Win Back Offer

This is possibly your last chance to win back your new client.

Many people graze from one salon to another and tend to go wherever they can get in. One element that can change this behaviour is for them to establish a relationship with you. Your challenge is to get them to visit again. Time to bring out the big guns!

Introducing The Irresistible Offer! Many salon owners object to offering discounts but consider this before you decide.

If your average bill is £50 and a client visits once their client lifetime value (LTV) is £50. If you send a £20 offer and your client revisits their LTV is now £80. We know that clients who visit twice are more likely to visit three times when this happens they are increasingly likely to stay for an average of eleven visits increasing your LTV to £530. £480 more than if you just leave her to go elsewhere.

Worth a try?

Here’s How:

Send a message after about ten weeks. The client may well have already visited another salon so we are going to have to be persuasive to get her attention.

Personalise your message and follow immediately with your irresistible offer (your client has already demonstrated she can ignore your messages so you need to grab her attention). Then add a simple call to action and include a valid till timeframe. Creating scarcity or demand will increase your response rate.

Roll out the red carpet! Coach your team to make genuinely and sincerely thank the client for responding to your invitation (sounds better than offer) and that they really do and consider offering an incentive for them to rebook before they leave.

If you would like to see how to automate the New Client Retention Multiplier please feel free to book Salon App Demo and we will be delighted to set it up for you.