Whether you run a large or small business, having a barbershop or salon loyalty program can help you attract and maintain loyal customers and boost retention. Implementing a reward program will give clients an additional reason to choose you, thus giving you an edge over your competitors.
Given that existing customers spend, on average, 67% more than new customers, it’s certainly a worthwhile investment to nurture your existing client base, not to mention that it can cost 5 to 10 times more to attract new customers.
Providing your clients with opportunities to save money can also help you to retain your customers by making your services feel more affordable.
What is a loyalty program?
A salon loyalty program is a reward system used by businesses to incentivize and reward loyal clients, encouraging customers to visit their salons consistently.
Loyalty rewards are one of the most successful marketing tools for salon owners. It’s important to consider the type of loyalty program that is most suitable for your client base and the rewards your customers will value most. Knowing your customers and tailoring your loyalty program to their needs will have a significant impact on its effectiveness. For example, would your customers value discounts or money-back offers, premium customer service, complimentary add-on products or services, etc?
The benefits of a loyalty program
Customer retention
It’s in the name, customers feel a sense of loyalty toward businesses that offer rewards and perks, it makes them feel as though they are valued and they are getting something back. It’s a no-brainer that people will be more likely to return time and time again if they are incentivized to do so.
Higher frequency of visits
You can increase customer visits by incentivizing your customers to make repeat bookings, for example, if the reward system requires them to book a certain number of appointments within a set timeframe to obtain their reward.
Increased referrals
People will be more likely to refer your salon to others if you offer an attractive reward system, generating highly-valued word-of-mouth referrals.
Standout from competitors
This marketing strategy is an effective way to make your salon unique so that you can stand out against competitors who don’t offer customer loyalty programs especially because people want to get more for their money.
What are the different types of loyalty programs?
Below we have outlined 5 hair salon loyalty program ideas for you to consider.
Punch card
This is one of the most traditional types of loyalty programs and is one many of us will have experienced at some point. Customers get a loyalty card they can use when making purchases, whether it’s a treatment or retail product. The card will be punched or stamped with each purchase, and when the set number has been reached, the customer will be eligible for a free product or service.
Points-based
The points-based money-back system allows customers to collect a set amount of points when they spend money, the points will equate to a monetary value determined by the business. Once the client accumulates a set amount of points, these will be converted into money that can be used in the salon. For example for every $1 spent the customer will receive 4 points, each point is worth a penny, and once they have 100 points they’ll have $1.
Tiered points-based
To create a tiered points-based system, you would need to create at least 3 different levels, for example, silver, gold, and platinum. You would then set the requirements needed for each level and your clients would receive a variety of discounts or perks based on which tier they are in, the more they spend, the better the rewards will be.
Subscription
A slightly different approach to the other loyalty programs, instead of rewarding your clients based on how much they spend and tracking points, customers would sign up for a monthly subscription and pay a set fee to gain access to ongoing discounts.
Referrals
Reward clients for referring new customers, this is another great win-win for both you and your clients, they receive a discount for referring new clients to you and you’ll generate an increase in bookings thus boosting your profits. For example, existing clients could receive $10 off their next booking for every new customer that they refer who attends a booking of a set value.
Reward and Retain Your Clients With Shortcuts
Take the stress out of setting up a loyalty scheme with our dedicated Loyalty feature that has been expertly designed to help you incentivize and reward your clients.
If you’re ready to impress your clients and increase your bookings, it’s time you thought about getting your own salon app with an integrated loyalty scheme. Make it easy for your clients to keep track of their rewards on their phones, and when it’s time to make a booking, they’ll be able to see their incredible savings and perks.
If you’re interested in learning more, get in touch with us or book a demo.
