Customer Loyalty For Salons & Spas: 6 Amazing Customer Loyalty Ideas to Reach & Keep Customers

According to the findings of the Harvard Business School, an increase in customer retention rates by 5 percent enhances profit by 25 percent to 95 percent. And it is true that a business must reward their customers every time they do business with them because this encourages their customers to repeat their business. Improving your customer retention has the potential of increasing your overall profit and Customer Loyalty Programs are an effective way to hold your customers to your business. You offer your valuable customers something that encourages them to stay connected with your brand. Small business owners have understood this concept very well and slowly they are turning their heads to implementing Customer Loyalty Management Software.


#1 Keep Simple Point Redemption system




Point accumulation is one of the most common loyalty program methodologies. Under this system, the loyal customers earn points for purchases which then translate into some kind of rewards such as Voucher or Discount. Create a structure that rewards users after they complete specific actions. As customers accumulate points and redeem rewards, they only get more interested in your brand. CLM management software can help you identify how your customers can collect points and redeem them with rewards.


However, the more complex point Redemption system is – the harder it is for your customers. Apart from making the points system easy for customers to sign up, you should keep a points-based loyalty program simple and straightforward because confusing conversion systems can lead to loss of customers.  


#2 Implement Tiered Programs to reward initial loyalty




Tiered Loyalty Programs offer different rewards based on which tier a customer is in. In order to be a part of the next tier a customer must achieve the milestones set with the previous tier. Tiered Loyalty Programs makes good sense as they have the potential of bringing customers to make return to your business more often. Every time your customer moves up a tier they get access to more benefits. A tiered system allows customers to extract both short-term and long-term value from the loyalty program. This programme encourages customers to shift themselves to the next tire and as the result you can clearly see the increase in the sales.


#3 Structure non-monetary rewards




Sometime Consumers may find value in non-monetary programs. While cash rewards are more traditional and used commonly by businesses to boost short-term sales, research has shown that offering non-cash incentives – such as a free gift with purchase, is a great way to boost your program’s customer engagement. For ex. A renowned online gift shopping site offers free designer birthday gift packaging or birthday card. When it comes to purchase intention and brand equity, non-monetary rewards outperform discount based promotions on both counts.


#4 Partnerships




With so many competing Customer Loyalty Programs out there for each industry, giving your customers a good value for their spending is an absolute must. This can be done by partnering with other businesses for the rewards you offer in your program. By partnering with another business, you can offer a higher value reward for less money – the company you negotiate with will offer you their goods and/or services at a highly discounted rate in exchange for the PR value and visibility you will be giving them by offering their wares.


#5 Having a multipronged strategy to win back customers




It’s utterly out of question for businesses to talk to every customer that comes to them. This is true for those with multi-location businesses. Hence it is an absolute must to have a Customer Loyalty Management Software that identifies your top customers.


#6 Giving up on Loyalty Programs altogether




With all the complexity associated with implementing a good Loyalty Program, some marketers are not averse to the idea of giving up on Loyalty Programs altogether. On the other hands they offer a basic rewards program that just gives out benefits with every purchase. If your business is launching a new service or product, you may do without a Customer Loyalty Program. If your offerings are spectacular, customers will be automatically loyal.


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