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Tips on how to market your Salon Part 8

Tips on how to Market your Salon Part 8

Start a Loyalty Program

Loyalty programs go a long way in helping build relationships. Building a relationship with customers leads to improved loyalty and to increased bottom-line profits. Offering a loyalty program encourages clients to rebook. A client that regularly goes to have their nails done are spending the money anyway and offering them a loyalty program could ensure they spend it with you. This offers you the opportunity to build a relationship with these clients.


Loyalty programs help retain existing customers. The effect of the customer retention on actual, bottom-line customer numbers cannot be over-estimated. Not only does a loyalty program provide a practical, hard reason for continuing to buy but it also provides information about your customers that allows for you to better meet their needs. This, in turn, makes them more likely to remain customers. Once a customer starts redeeming their rewards, enthusiasm rises and with this comes customer loyalty.


A loyalty program should attract new customers as well. How effectively will depend on how exciting and how valuable the rewards seem to be to the customer. Acquiring customers is essential to any business, but it can be expensive if compared to nurturing existing good customers. It should not be the central focus of a loyalty program; there are cheaper and more effective ways of acquiring new customers. One of the most effective ways of getting new customers from your loyalty program is posting about the program on your social media and encouraging your existing customers to post or review their experiences with the program.


The quality of new customers acquired can be raised by the careful use of a loyalty program. By grading rewards, for example, offering extra points for exceeding a specified spend threshold in a time period, customers can be moved up from one spend level to the next. You can create a step-up loyalty program to encourage lower spending customers to move up through the step-up program.


One of the biggest advantages of a loyalty program is the fact that it can be used to deselect undesirable customers. It can be more profitable to lose a bad client than to gain new ones. Cherry pickers (who buy only your discounted lines and nothing else) cost you money, as does any low-spending customer. They cost more money to service than they generate. Designing a loyalty program that rewards better customers without rewarding this group at all gives them less reason to stay. With this approach, you simply don’t reward them in any way and hope that they will leave or alternatively might encourage them to start spending more money with you.


Loyalty programs help create brand advocates. Advocacy is one of the highest forms of loyalty that a customer can show. Advocates are so satisfied and pleased with your offering that they refer their friends and associates. And as mentioned in previous posts, to most people, a personal recommendation or referral is far more convincing than any amount of promotional material.


Loyalty programs help you work on all aspects of building your business from client retention, acquiring new clients, getting clients to rebook and building your social media following.