Loyalty programs and their business value
Salon loyalty programs allow to enhance customer experience, minimize if not avoid natural customer churn rate, and retain existing clients which is a strategic imperative for any Salon enterprise. Although both B2C and Salon loyalty programs pursue the same purpose, the methods of implementing a Salon program are somewhat different.
To start developing a meaningful Salon loyalty program, you should first define how to use customer data to enhance customer relationship.
Here’s an approximate scenario to begin with:
Define your profitable accounts and customers
Ensure you understand strategic goals of your business and tailor your loyalty activities respectively
Consider internal situation within the company you sell to and think of a personalized (ideally competitive) loyalty solution
Research customers, monitor interactions with your customers throughout all touch-points
Segment your customer base to target each segment in a most effective manner
Develop a system for scoring and ranking most valuable customers
Initiate and encourage dialogue with your clients, collect customer feedback
Determine what triggers or incentives facilitate meeting mutual objectives
Measure and track progress towards these objectives.
Successful Salon loyalty programs: Suggestions and real-life examples.
Using tier incentives
Tiered systems allow engendering customer loyalty from the very start and prompt business clients to purchase more. You can begin with petty rewards to encourage customers to sign up for the loyalty program and offer more valuable rewards to the repeat clients already enjoying a program membership as they get promotions within it. Unlike the points system, the tiered system enables its participants to redeem the gratification points without having to wait too long.
Partnering with third parties to give customers extra bonuses
By establishing a strategic partnership with a company providing affiliative products or services out of your scope, you can offer all-inclusive packages relevant to the business activity of your business customers.
If your company sources raw materials used by other businesses for production, you may partner with a firm that offers services that can streamline production. As a company selling tires to an automobile manufacturer, you can partner with a windscreen reseller and offer your customers a combined product’s package at a discount price.
Arranging member events
As a rule, enterprise customers tend to build long-term and sustainable relationships with partners and suppliers. In this regard, in-person events give businesses a great opportunity to recognize their clients, expand and strengthen ties with them, and simply encourage giving feedback on customer experience.
Providing transaction-based immediate discounts
This loyalty program type echoes B2C approach, however, perfectly fits in the Salon environment. When completing an order, customers are being offered exclusive single or permanent discount that can be applied to the current or future purchase. This method is used to encourage the clients to join the loyalty program membership.
A textile clothes distributor selling to the apparel shops offers an instant discount applicable to every order made within a certain timeframe.
Despite the business model, customer-committed companies design gratification programs to cultivate loyalty in their clients. Establishing and rewarding relationships with the customer base has an economic value behind it since retaining already existing clients costs your business less effort, boosts up revenue and allows to gain faster ROI.
It pays to know though that not all B2C loyalty initiatives smoothly apply to the Salon environment, first of all, due to different purchase behaviors and purposes of both target markets.
Building effective loyalty programs in Salon implies having a holistic view of your customers to clearly perceive their expectations, knowing peculiarities within the branches they are active in, and coming up with a customer-tailored reward strategy.