Loyalty: Why you need clients that love you
Posted on 4th October 2013 by Madeline Maguire
Client satisfaction and loyalty may seem like two sides of the same coin: if your clients are pleased with their service, they’ll probably stick with you, right? In reality, thinking your satisfied clients will automatically remain loyal is a costly assumption to make. Why?
Because loyalty is about a long-lasting relationship, and satisfaction is fleeting. In other words, while your ‘satisfied’ clients will be tempted to leave you for the salon down the street offering lower prices, your loyal ones stay because they know the experience they get with you is simply better.
A loyal client is one of the most valuable assets a business can have. Don’t believe me? Consider these facts:
- It costs 5 times more to attract a new client than keep an existing one
- A 5% increase in customer retention can increase a company’s profits by between 25% and 95%
- 80% of your company’s future revenue is likely to come from 20% of your existing customers
- Studies show that in our industry when a stylist leaves, up to 30% of their clients follow them. It is your clients' loyalty to your business rather than just to your individual stylists that will help to protect you from these losses.
The important point about loyalty is that you should never take it for granted. Above and beyond offering a great quality service, you need a strategy for recognizing and rewarding those clients that stay with you, and refer you new business.
Many of our clients already do this using our Clubs tool, and this month we are excited to announce that we will soon be launching another great Loyalty feature, which will be part of our S.M.A.R.T. suite. Our new Loyalty feature will give you new and exciting ways to reward your clients and more flexibility to do it in a way that suits your business. Register here for our FREE Education webinar to get a sneak peek into the new program and find out how it could work for your salon.