Table of contents
The beauty industry is heading into 2025 with a new focus on building stronger, long-term customer relationships. From loyalty programs to seamless experiences, businesses are prioritising ways to connect with clients on a deeper level and keep them coming back for more.
To uncover the top shifts happening in Australia’s beauty industry this year, we gathered insights from 500 local beauty leaders and 1,000 consumers. The research outlines tech streamlining everything from bookings to marketing, loyalty programs becoming a must-have, and beauty businesses embracing new payment methods to improve client experiences.
These insights are part of the bigger 2025 Square Future of Commerce report, where Square joined forces with Bredin to survey 6,000 business leaders and 4,000 consumers across the beauty, retail and restaurant industries in Australia, the US, Canada and the UK. All the data shared below comes from these survey findings. For a deeper look at the beauty trends shaping 2025 and beyond, download the full 2025 Square Future of Beauty report.
Beauty leaders are embracing the upsell – and clients are buying in
Beauty business owners are getting savvy with their revenue strategies. Instead of just bumping up prices for regular services like haircuts or facials, many are thinking outside the box and adding extra offerings – like loyalty programs, new products and even in-person classes. Forty-six percent of Australian beauty leaders we surveyed are introducing loyalty or rewards programs, while 38% are diversifying with new services or products. The idea is simple: give clients more to love, and they’ll come back for more, helping grow the business.
Clients are all in for it, too. Over half (56%) of Australian consumers told us they’re likely to buy products their beauty experts recommend, such as shampoos, cleansers and other goodies. In fact, 44% bought retail items from local beauty businesses at least once last year, and 15% bought them four or more times. There’s definitely room for beauty businesses to boost their sales with these add-ons.
But the upsell isn’t just about the money – it’s about building stronger relationships with loyal clients. When beauty leaders diversify their offerings and create tailored experiences, they’re able to cater to clients’ needs and make additional sales in the process. This strategy can turn regular clients into repeat buyers and even brand ambassadors. When they’re happy, they’ll keep returning, filling up your appointment slots.
Tools like Square Appointments can help you manage both product sales and appointments, so you can easily add new revenue streams as your business expands. So, if you’re not offering those extra little things, this year could be a great time to start.
Think about what memberships and subscriptions could do to grow your revenue and customer base
Looking for other ways to secure steady income while keeping your best clients around? You might want to consider memberships and subscriptions.
Eighty-seven percent of beauty business owners agree that these programs bring a positive return on investment. Over a third (36%) are already offering memberships or subscription options, and 26% are thinking about it. These programs let clients pay upfront for services or products while giving businesses the chance to offer them exclusive upsells throughout the year. Plus, you get the benefit of predictable income in advance.
Consumers are open to these ideas as well, with respondents saying they’d be keen on paying for memberships or clubs (19%), online tutorials (11%) and subscription boxes (10%) offered by beauty businesses. The findings highlight a growing interest in services that extend beyond one-time visits.
Salons and spas can use memberships as a way to lock in customers who will likely spend more over time, with the added benefit of deepening loyalty through exclusive upsell opportunities. It’s a win-win – more value for clients, and a reliable stream of income for businesses.
Beauty businesses can grow with technology – if they integrate based on clients needs
Tech is becoming a bigger part of the beauty world every day. More and more beauty businesses are embracing it, using artificial intelligence (AI) and automation to save time. 43% of beauty leaders said they’re using AI to analyse their businesses, and many are finding new ways to automate things like marketing, appointment scheduling and payments. For example, 45% are using automation for email marketing, and 43% are testing AI-generated social media posts.
But it’s not just the businesses that love using smart tech – consumers do, too. Around half prefer using things like automatic appointment reminders (61%), mobile apps (58%) and automated appointment scheduling (49%). Younger clients (Gen Z and millennials) especially love these tools, while older clients still lean towards more traditional ways of doing things.
The key here is that tech can help your business run smoothly, but it needs to align with your clients’ preferences. Start with a few tech upgrades that make sense for your clientele, and consider how they can improve both your operations and customer experience. You don’t need to jump into everything at once, but experimenting with and embracing the right tools can give your business the edge.
Christine Barber, owner of Cosmetic Injectables by Christine, prioritises the booking experience at her business, which lets her dedicate more time to her clients. “Square Appointments looks after itself,” Barber said. “Once you have your appointment options and durations entered, the patients are able to easily book and cancel at any time, day or night. Interestingly, many of my appointments are made after hours, when people have the time and means to make the online booking. This gives me time back to focus on my patients.”
Technology is changing the way the beauty industry upskills its employees
Keeping your team’s skills up to date is important, especially with beauty trends changing so quickly. Most beauty leaders (84%) agreed that training their employees is critical to their salon’s or spa’s success.
While traditional in-shop training (47%) is still considered valuable, social media tutorials have become the top choice, with 49% of beauty leaders saying they’re essential for staff development. These tutorials allow staff to stay updated on the latest techniques, trends and best practices – often in a more flexible, accessible format.
In addition to social media, beauty leaders also view other opportunities as important for boosting their employees’ professional growth, such as getting industry certifications (44%), joining online forums (41%), building mentor relationships (35%) and attending conferences (35%).
With so many options available, staff can pick what suits them best, keeping their skills sharp and helping you build a stronger, more knowledgeable team to provide the best service possible for your clients.
Social media is still vital in the beauty industry, but don’t overlook the impact of email – yes, email – for meaningful communication and business growth
Social media is still a big deal for beauty businesses, with 82% of beauty leaders saying it plays a huge role in driving sales. Instagram and TikTok are great for connecting with clients, showing off products and building a brand’s personality. Over three-quarters of beauty leaders are using educational content, like how-to videos, to engage clients in between appointments and show their expertise.
But let’s not forget about email. While social media is important, email is still one of the best ways to reach clients. Sixty-three percent of consumers actually prefer to hear from beauty businesses through email, so it’s far from outdated. For beauty businesses, combining email with social media gives you a well-rounded approach to keep clients in the loop about promotions, new services or appointments.
Email is the perfect way to communicate directly with clients in a way that feels personal – and which social media just can’t match. Square Marketing makes this even easier, with features that help you create and send customised email campaigns in just minutes. Mixing email, SMS and social media into your strategy helps you reach customers in more ways that will pay off in the long term for your business.
The beauty industry is seeing a shift when it comes to payments
Payments are changing fast in the beauty world, and it’s all about making transactions easier for clients. Mobile wallets are a top choice for many, with 89% of beauty leaders agreeing they make payments smoother and faster. Flexible options like buy now, pay later (BNPL) are also on the rise, which one-third of beauty consumers said they find convenient. This applies especially to salons and spas with Gen Z and millennial clients, as younger generations are more likely to use BNPL to spread out their payments.
That said, traditional register services aren’t going anywhere just yet – 78% of consumers still find them convenient. But newer options are gaining traction, such as in-app pay (46%) – great for those who want quick, fuss-free transactions.
As payment methods evolve, beauty businesses are adapting to make things as smooth as possible for their clients. Some customers love the speed of mobile and digital payments, while others feel more comfortable with tried-and-true methods. Offering a mix of digital and traditional options means you can meet everyone’s needs, no matter how they prefer to pay. With Square’s integrated tools, beauty businesses can streamline the payment process, take bookings and even manage staff all in one place, helping you stay organised and focused on what really matters: making clients feel amazing.
Loyalty programs are key business drivers, and beauty leaders are going to invest more in them
Loyalty programs are becoming a must-have for beauty businesses wanting to keep clients revisiting. Around 79% of beauty leaders said they have a loyalty or rewards program in place. As for the rest, every single leader we surveyed said they plan to roll one out in the future.
It’s easy to see why. Clients love earning rewards, while businesses benefit from stronger customer loyalty. In fact, 85% of leaders said loyalty programs lead to higher spending, and 84% said it yields repeat visits. Personalisation plays a big role, with 68% of consumers telling us that it makes a loyalty program even more valuable.
If you’re among the rare few who haven’t yet considered starting a loyalty program, 2025 may be the time to do so. Your clients appreciate personalised experiences, so why not tap into that to build stronger relationships with them? Plus, customers enrolled in a Square Loyalty program spend 53% more and visit 40% more often.
For more comprehensive insights on how beauty businesses are adapting and innovating in 2025, access the latest beauty trends in the 2025 Square Future of Beauty report.
