How Customer Loyalty Programs Can Be Your Secret Weapon To Defeat Salon And Spa Slow Times
Avoid creating a customer loyalty program just because you can. There are several program models, and finding the right one for your business takes time. Not only do you need to create a program that helps you accomplish your goals for the business, but you need to create one that entices customers to participate.
But, not just any program will do. To be successful, it’s important to factor in core aspects of how your business operates, and how your customers will respond. If you’re looking for ways to improve customer loyalty, consider creating and implementing a customer loyalty program.
Fact: Over Promise, Over Deliver.
Keep It Simple
The more complex the customer loyalty and rewards program is - the harder it is for you as a business, and the harder it is for your customers. Obviously, you want to attach rewards to services, and products in some shape or form, but don’t make customers jump through hoops. Make it easy for customers to sign up - whether it is in-person, online, or digital loyalty tablet.
Create a tier system. Tiers are easy for the customer to understand, and the business to track. Attach a number of tiers for each services/dollar spent/desired customer action. Then, set up milestones for customers to redeem rewards that correspond with each of those milestones.
Key: Use a tiered approach. You’ll reward initial loyalty while also encouraging customers to spend more to obtain better rewards. Choose whether or not those tiers expire - and if so, how often.
Make The Rewards Worthwhile
The rewards need to be not only something your salon and spa can afford but something your customers will truly want to work for. Whether you choose to offer discounts on future services, free rewards, some combination of the two, or rewards for referring new customers - the rewards have to offer value to the customer.
Key: Giving the customer up front for exclusive benefits, you’re enticing the customer to spend more now - to save later. To get the most of the benefits, the customer has to keep coming back for more.
Keep in Touch
After you’ve created the right program for your Salon and Spa, stay in touch with customers. An email, text, and follow up campaigns ensure you’re following the customer throughout each point in the lifecycle, and not just right after signup.
Implementing a campaign to remind customers of renewals (if your program requires it), and special deals just for loyal members can make your program work better for you.
Key: Follow up with your customer with automated campaigns. So, you can continue to run your Salon and Spa while your loyal customers receive your message.
Market the Program
You could have the best program in the history of customer loyalty programs, but unless you’re marketing it to let your customers know about it, it’s pointless. Invest in marketing your program via online ads, social media, press releases, etc. to spread the word. If you have a physical location, invest in signage throughout the store, and encourage employees to mention it to encourage participation with your digital loyalty tablet.
Key: The more complex the customer loyalty and rewards program is - the harder it is for you as a business, and the harder it is for your customers.
Expecting your program to be perfect from the start is unrealistic.
"Be ready to make changes to the program based on how customers are responding to it."
While it can be overwhelming to implement a customer loyalty program, when done correctly and with customers in mind, it can be a great way to drive profits and improve customer retention. Since new customer acquisition costs businesses six to seven times more than retaining an existing customer, loyalty programs can make a tremendous impact on your Salon and Spa bottom line.