Maintaining current customers costs much less than looking for new ones. Besides the return visits from your loyal customers, your salon also reaps the rewards of referrals and positive reviews from that base.
These all drive organic traffic to your salon without having to shell out more money for advertising and marketing. The Harvard Business Review reports that acquiring a new customer can cost up to 25 times more than keeping an existing one.
There are many ways to get creative when it comes to the rewards you offer. Once you’ve established the program, promoting it also requires some creativity.
The true success of any customer loyalty program depends on your staff. From managers and front desk administrators to stylists, each person at your salon plays a powerful role in increasing sign-ups.
Here’s how to implement a strong loyalty program at your salon.
Make the Program Easy for Employees
While explaining the terms of the loyalty program to your staff, convey the value loyal customers can bring to the business. A simple and straightforward loyalty program makes it easier for employees to understand and execute.
Using customer relationship management (CRM) compatibilities with QuickBooks Point of Sale allows those who are completing transactions with customers to easily track customer visits and purchase history. A CRM means your employees can manage customer lists in one place and keep track of special offers and discounts available to returning customers.
Make it Personal for Customers
To appeal to customers, you’ll need to make offers relevant and personal. Building their trust will ultimately strengthen the salon-customer relationship. According to a customer loyalty e-book by CrowdTwist, 55 percent of retailers reported an increase in customer loyalty after the addition of personalized features.
Loyalty programs work best when they’re not one-size-fits-all. If your customers are mostly women in their 20s and 30s and you know what products they’ve purchased in the past, offer points toward their favorite products and offer recommendations and discounts for new ones they might like. If they regularly come to your salon to get their hair cut but only splurge on a color service once or twice a year, offer a discounted color service once they hit a certain number of haircuts.
Chart Progress to Spur Momentum
Because a customer loyalty program is a team effort, show your team the progress they’re making. It’ll help them stay focused and inspired to keep improving. Research by the American Psychological Association says the more often progress is monitored, the better the chances of success. Publicly or physically recording progress increases likelihood of success even more, so consider displaying a chart in the back office or at the front desk that alerts staff to new sign-ups.
To motivate staff even more, set weekly goals for loyalty program sign-ups and reward employees if those goals are reached. These goals can be number specific — say, 20 new signups in the month. Or they can be based on a percentage — increase signups by 10 percent each week for a month, for example.
If every week’s goal is achieved during a month, take your team to happy hour. They’ll be driven to get even more sign-ups, and the group activity will be good for team building.
Reward Individual Employees
Beyond salon-wide recognition, each employee craves kudos for their efforts. A 2016 Gallup report shows the most memorable recognition an employee can get is from the CEO — in the salon’s case, from the owner. A meaningful compliment from you is such a simple action and can greatly increase employee productivity.
You may want to consider employee recognition in more public ways, too, such as by spotlighting an employee to other staff based on customer loyalty program success.
Of course, money talks as well. Calculate how much value a loyal customer who has signed up for your program provides your salon, and give a kickback percentage to employees based on their sign-ups. Or, offer a weekly or monthly cash bonus to the staff member who generates the most sign-ups.
Like any marketing initiative you implement at your salon, manage your employees’ involvement with specific goals in mind. Measure performance, analyze what’s working and what’s not and adjust your efforts accordingly.
Employees who are engaged at work increase productivity and profits. By clearly explaining the customer loyalty program, making it easy for employees to implement it, and offering both team and individual rewards based on success, your salon can harness the power of a staff that is compelled to make the customer loyalty program thrive.