Why is customer loyalty so important?
It is much easier and cheaper to retain a current customer than acquiring a new one. Your current customers are already knowledgeable about your business and are more likely to try new products or services through your recommendations.
Customers who have a bond with your Salon and Spa will provide honest feedback through direct interactions, online reviews, or surveys to help your business improve and grow.
1. Understanding your target audience
Before beginning this endeavor and spewing out reward programs, it is first vital to get a good hold of your target audience. The key to the success of any loyalty program lies in the detailed knowledge of customers including their demographics, current preference trends, their competitor knowledge and their motivational factors. It is also vital to know what they ‘need’ as opposed to what they ‘want’.
2. Interact with your Customers
Whether it’s through an email newsletter, blogging, Facebook, LinkedIn, or Twitter, use these marketing channels to interact with your customers on a more frequent basis. You can tweet your customers a “Thank you for your business” or thank them via your Facebook page for their loyalty.
3. Create appealing referral programs
Referrals are a great way to expand the customer pool. Since the trust and reliability factor is already established, it is much easier to strengthen the bond with the new customer thereby improving sales and retention. Not all customers will be motivated to spread the good word. It is therefore important to devise programs that will either monetize or provide intangible benefits to the referrer.
4. Keep in touch
The key to any successful relationship is communication. Without regular and well strategized communication via e-mail campaigns, apps, social media etc, the reward programs will not only be forgotten but it might end up making the customers feel less valued.
Never underestimate the power of social media. It is an excellent way to stay in touch with customers and also to monitor competitor behavior. Regular communication will also help fine tune loyalty programs.