Customer Loyalty Programs: How To Keep Customers Coming Back To Your Salon Spa

 

The biggest advantage of a loyalty program is that it has the potential to align your entire business toward the most profitable segment of your customer base. This means that your business will begin catering more to customers who have high repeat purchases or average order value –– depending on what type of loyalty program you implement.

 

Over time, you’ll also be able to use the data collected from a loyalty program to figure out ways to make the least profitable customers more profitable, increasing your customer lifetime value, and thus company revenue and projected profitability overall.

 

"Anyone who has customers can benefit from a loyalty program. However, certain types of internet retailers will see greater value from a loyalty program."

 

The Easy Way to Go – A Loyalty Punch Card

 

If you’re new to loyalty programs and want a low-tech option, the simple punch card formula is a good place to start. Just design and print out a card and offer a free gift after a certain number of purchases have been made.

 

There are a few obvious drawbacks to this method – you can’t track consumer demographics and the program is 100 percent reliant on customers’ carrying that card around with them in their wallet. That’s if they even remember it’s there!

 

Start an Opt-In Program

 

Another easy option is to set-up a simple “sign-up for offers/rewards” program. Ask customers to share their email addresses and add them to an opt-in email, and sms list – you can do this online or at the point of sale. This form of email sign-up eases the application process and spares your customer the hassle of having them download an app or share heaps of personal information. Customer Loyalty Programs

 

In exchange, you’ll promise to send them regular communications and special offers only available to loyalty members. As mentioned above, email and sms campaigns that target loyalty members can be a great source of revenue – and, of course, are trackable.

 

Consider a Premium Loyalty Program

 

If you want to reward customers who spend the most, develop a program that limits who may be eligible to qualify. Use your customer relationship management software to track higher value purchases over time and invite customers who meet certain thresholds to join. Customer Loyalty Programs

 

Alternatively, simply invite high-spending consumers to sign up for your program at the point of sale.

 

Add a Digital Component

 

While not all your customers will be digitally savvy, chances are many are and it’s increasingly important that you cater to the growing mobile loyalty trend. There are many apps that small businesses can tap into for free or for a fee. If your business already uses a mobile payment platform, many of these are now integrating loyalty programs into their offerings.

 

Explore your options and look for services that offer social media integration – making it easy for customers to share your awesomeness with their friends and even earn points for likes, shares and online reviews.

 

Choose Your Incentives Carefully

 

Reward loyalty with some class. Freebies don’t always appeal to all and they can even de-value your services. For small businesses, customer loyalty is founded first and foremost on great service, a personal greeting, and the tried and tested quality of your products or services. So think of ways you can make your incentives and rewards as unique as your business. Experiential rewards are always popular.

 

For example, a hair salon could offer a monthly workshop that offers free makeover tips to loyal customers. These experiences add value to your customers’ lives, build community, help your business stand out and give customers reason to keep coming back.

 

Communicate Regularly With Your Members

 

Treat your loyalty members royally. Segment them out in your email and direct marketing efforts and communicate with them often. Share news of upcoming loyalty incentives or events and don’t forget birthdays – offer something unique to members or opt-in email subscribers during their birthday month.

 

Loyalty programs help you to keep your existing customers buying from you longer and more frequently. Customer retention is top-of-mind for businesses owners because it can drastically decrease the cost of customer acquisition.

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