5 Steps to Multiply 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.