Is Salon Loyalty Program Worth It? How to Acquire, Engage and Retain Happy Clients
What is the definition of customer loyalty? We hear about it almost every day, about its importance in business management, and see how businesses struggle to earn the loyalty of their customers.
According to Frederick Reichheld of Bain & Company, a 5% increase in customer retention rate can increase profit by 25–95%.
If we would try to define customer loyalty, it would sound like “Customer loyalty is the level of customer satisfaction when the brand establishes an emotional, strong, personal relationship with its consumer”
Loyal customers are inclined to use the services and goods more frequently, refer and review them.
Loyal clients base is crucial especially for SPA and salon business, as the competition in this field is tough․
Actually, every salon owner takes action to attract new customers and grow the client base but almost nobody makes efforts to keep clients, which is crucial for salon business sustainability. As a result, the resources spent on advertising, new products, salon renovation, and new specialists turn to be less effective.
Even if the clients are satisfied with the provided services, they are often tempted to visit new salons, to explore new alternatives.
Thus, if you have decided that your salon has enough clients and doesn’t need customer loyalty, you are successful and satisfied with your income, you will definitely stay behind your competitors, who have already included client salon loyalty programs in their marketing strategies.
Every salon owner wants loyal customers like Susan Parker, who travels 400 miles 6 times a year for a trim after favorite stylist moved to a new salon. But the problem is not everyone understands that loyalty should be earned.
According to recent research in the salon industry, 60 percent of the clients don’t come back after the first visit, even if they are satisfied with your service. The reasons for this may be different: they may have forgotten your salon name, lost the salon’s visit card, or just have decided to try something new in a new and more innovative salon.
For establishing a strong emotional bonding, clients should have the feeling that they are important for that particular salon, their feedback will be taken into consideration, and after all, they are valued.
