Salon Tips || Things That Can Make Your Salon Unsuccessful

               Being in the beauty business isn’t easy. Did you know? Almost 80% of salon businesses fail within the first eighteen months of opening. A common mistake most salon owners make is that they only focus on specific aspects while overlooking the most important ones. To make your salon business venture successful, you must deal with every bit of factor before it turns into a significant problem. Some of the most common things that make your salon business unsuccessful include

  • Low client retention rate
  • Aimless marketing
  • Poor customer service
  • Hiring the wrong talent
  • Lack of technology use (salon software)
  • Failure to maintain client appointments

If you relate to any of these, it means your salon or spa is functioning poorly. A low client retention rate can hurt your business the most among all these factors.

In this article, we will be discussing all client retention and what you can do to keep customers coming back.

 

What does client retention mean?

If your best customers enjoy your services, they don’t just do business with you once but come back again and again for more. When a salon or spa can turn new customers into repeat customers, it is referred to as client retention. To prevent clients from switching to a competitor, a salon or spa owner has to initiate various marketing activities to increase their brand loyalty.

What is good client retention?

While every business owner dreams of a 100% client retention rate, it is far from reality. Client retention rates usually differ based on the industry and size of the company, and the client retention rate for a music app would differ from that of a company that sells hair and beauty products. Usually, a 15% retention rate is considered bad, and anything in between that suits your industry and business size is usually good.

What is the average client retention of a salon?

Did you know? It is 5 times cheaper to retain an existing client than acquire a new one. Despite your best efforts, only 30% of your clients will return to your salon after their first visit. The numbers might seem appalling, but this is the reality. Also, for every 10 clients you retain, only 3 will come back, and 2 will consistently do business with you.

Tips to Increase Client Retention

To bring clients into your salon or spa, you need to have a certain process in place. With the best salon management software, client retention becomes a breeze. Remember that even a 5% increase in your customer retention rate can increase your overall profits/revenue by 25-95%.

Run a Membership Program

Introducing a membership program in your salon or spa offers numerous benefits. It is a win-win situation for you and your clients as they will get the services at discounted rates, and you will have them coming back because of their membership.

Introducing a membership program is a stress-free option as you know a steady stream of income is generated. Also, you don’t have to worry about when clients will book their next appointment.

When you create a membership program, you need to be sure of the services you plan to offer and their duration and price. Your clients will value you even more when you offer valued services through a world-class membership program.

Benefits:

  • Easy client retention
  • Better client communication
  • Enhanced brand awareness
  • Automated sales machine
  • Prevents loss of clients to competitors
  • Increases overall bottom line
  • Ensures employee productivity
  • Extra retailing and upselling opportunities
  • Clients are inclined to pay and try new services

Sell Gift Vouchers

If you want to encourage customer loyalty, build brand transparency and improve your overall client retention rate, consider selling gift vouchers or gift cards. When your client gives a gift voucher to their friends or family, it brings them happiness while bringing in revenue for your business.

Salon gift cards ensure you make money even during slump months. During the pandemic, a lot of clients ended up buying gift cards for their friends, which could be used once a business resumes. It is a great marketing tool too.

Instead of selling physical gift cards, just incorporate them on your hair salon software to make it convenient for your clients to purchase. 

Here are some relevant statistics related to gift cards:

  • Almost 7 out of 10 gift-card redemptions go over their actual value.
  • More than 70% of people spent more than the card’s value.
  • About 55% of customers had to return to the business to use all the money on the card.
  • More than 60% prefer gift cards over gifts
  • The gift card industry alone has a $160 billion business

Benefits:

  • Helps increase revenue
  • Enhances brand awareness
  • Encourages loyal and repeats visits
  • Increases revenue since customers spend more than the actual gift card amount
  • Keeps existing clients involved
  • Promotes holiday sales
  • Enable better customer engagement
  • Improves cash flow
  • Safe and convenient

Prepaid and Credit Management

Consider incorporating a prepaid and credit management system if you want to sell beauty products and services with ease. When clients prepay for their appointments, you can be assured of your business even if they don’t turn up. With salon management software, you can easily manage prepaid and postpaid payments. It becomes easier for you to track your finances and minimizes loss in the business.

Benefits:

  • Enhances business efficiency
  • Minimizes loss in the business
  • Guarantees revenue irrespective of whether a customer turns up or not
  • Increases the reputation of your brand
  • Ensures swift processing of payments
  • Instantly get notified about pending payments

Run a Loyalty Program

Consider running a loyalty program or rewards system to keep clients coming back and make your salon successful. For every rupee a client spends, they earn a reward point. Once they accumulate a certain number of points, they can redeem it for a complimentary service. To create a feasible loyalty program, it is important to understand a customer’s buying patterns. When you run a loyalty program, your clients will also want to visit your salon.

Some salon loyalty program ideas you can use include:

  • Creating a salon VIP program for all your regular customers
  • Issue reward points when a client refers a friend
  • Offer birthday and anniversary reward points
  • Offer rewards for social media reviews
  • Introduce a punch card system

Benefits:

  • Client retention
  • Reduced marketing costs
  • More referrals
  • Increased client engagement
  • More bookings on slow days/months
  • Enhanced revenue

Introduce Packages

Every salon owner has just one goal – to guarantee repeat visits from their clients. To facilitate the same, consider offering package deals, and it gives clients the impression that they are getting a great discount. However, consistency is key here.

You can offer packages on products as well as services. To win a client’s trust and make sure they return, offer highly personalized services. Go the extra mile by educating them on the benefits of a certain product. It’s always better to create package deals of related services and products. For example, you can bundle services such as a manicure, pedicure, and nail polish at a particular price.

Benefits:

  • Boosts profits
  • A chance to sell tailor-made services
  • Can be customized to suit individual needs and budget
  • Brings new customers through the door
  • Ideal when you want to introduce new treatments
  • Promises holiday sales
  • Bundling increases sale unit volume of retail products
  • Helps products sell before their expiry
  • Package deals can provide exposure to new potential customers

Send out Personalized Offers

To create a top-notch experience for your salon clients, you must regularly churn out personalized offers and deals. Discounts can also help you acquire new customers while retaining old ones. Some marketing strategies that can help you maximize revenue include upselling, cross-selling, introducing a “3 at the price of 2” offer, and happy hours.

You could also use your salon software to track your active customers. Use SMS and email marketing to make them aware of these offers. When your salon or spa creates tailored marketing campaigns, you’ll have more customers coming through the door.

Benefits:

  • Creates word-of-mouth
  • Increases your revenue
  • Gives customers a reason to shop from you
  • Helps create a focused marketing approach
  • Gives you a chance to communicate with your clients via SMS, email, and social media
  • Creates brand memorability
  • Makes your salon desirable amongst millennials

Salon Client Retention: A Comparison

Let’s examine two salons that set out to improve their client retention rates.

For easy understanding, let’s hypothetically refer to them as salon A and salon B.

Both are upmarket salons and fast-growing chains that operate in a bustling area of a metro city.

Salon A and B want to consistently beat industry benchmarks and improve their client retention, visit frequency and average visit spend.

While both the salons have these goals, only salon A deploy measures to achieve them. To retain clients, you can’t just sit back and do nothing about it.

Steps were taken by Salon A to Retain Clients

  • Invested in beauty salon software
  • Created a well-defined system for their clients to schedule appointments
  • Crafted meaningful communication and sent out timely reminders
  • Offered a free consultation
  • Offered full-service treatment to their customers
  • Ran a loyalty program
  • Held at least one event per month
  • A timely examination of salon analytics
  • Regular follow-ups with clients

Steps were taken by Salon B to Retain Clients

  • SMS and email marketing campaign
  • Introduced a membership program

As you noticed, salon A has taken more steps toward retaining its clients than salon B. The latter solely relied on SMS and email communication to retain clients. While this can help, it’s not sufficient.

Both the salons tested their campaign for 60 days, and the results Salon A achieved far exceeded their expectations. The campaign resulted in a 10% increase in on-time repeat visitors, and the visit frequency for certain niche services also increased. On the other hand, Salon B also had some new clients walking through their door, but it was marginal compared to Salon A’s results.

Projections and analytics show that if Salon A continues the client mentioned above retention strategies, they can definitely drive in more clients, significantly increasing their revenue.

Today, client retention is more important than you think. Keeping in mind the times we live in, your beauty business needs to take all the necessary steps to retain clients. If you too want to achieve amazing results like Salon A, get MioSalonsalon management software, and it has a chock-full of features to enhance your average client retention rate.

For Demo Request———-> https://www.miosalon.com/request-demo

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