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Loyal customers are the best customers. That’s not just an opinion, it’s a fact. Finding a new customer is more expensive than keeping a current one, and retained customers tend to spend far more — according to Square data, customers enrolled in a loyalty program spend 53% more than those who aren’t.
A dedicated customer loyalty program makes the process of creating and maintaining loyal customers far easier. Rather than just running a tight ship and hoping for the best, a loyalty program brings structure and intent to your loyalty efforts and can achieve far better results because of this considered approach.
In this article we’ll zoom in on salon loyalty programs in particular: why you should have one, what they look like, and how you can get the most out of yours.
What is a loyalty program?
A loyalty program is a system of rewards, perks, discounts, and other special incentives offered to repeat customers. It’s designed to inspire your customers to choose your business over your competitors.
Salon loyalty programs usually achieve this goal by offering rewards to customers who return again and again — points that you can redeem for products and services, special offers and deals, free merchandise, invitations to special events, or the chance to test new products and services before they’re released.
Square Loyalty offers a simple way to set up a system of points and rewards for every customer. Points are added to the customer’s profile automatically every time they make a purchase, and they can be redeemed for whatever reward you offer and they choose.
Why your salon needs a loyalty program
There are a number of reasons why your salon should create a loyalty program, but here are five of the most compelling.
1. Retention is cheaper: The time, effort, and investment spent on advertising and marketing makes customer acquisition an expensive pursuit. Retaining customers who already know about and have experienced your salon is far easier and five times cheaper.
2. Bigger customer spend: On average, returning customers spend 67% more than new customers. Square found that customers who are enrolled in a Square loyalty program visit 40% more often than those who aren’t, increasing overall visits and spend per client.
3. Happier clients: A loyalty program is your chance to give back to your clients, to say thank you for their business, and to reward them for choosing you. These rewards help make their experience more positive and establish a connection with your business. Who doesn’t love a freebie or a special offer?
4. More social proof and a better reputation: Loyal, happy clients tend to be the type who tell the world about your business, whether face to face with family and friends or by writing a review on Google or Facebook. In the process these brand ambassadors create valuable social proof for your salon, building your online reputation in a way that attracts more customers.
5. More targeted marketing: A well-designed loyalty program will carefully log every interaction you have with a customer, meaning you get a more complete view of each customer. This data can help you understand which products and services are client favorites so you can create more targeted marketing campaigns. If you know that a customer comes in for a cut and color at the start of every month, email them with an offer for a blow dry or style near the end of the month.
How to make the most of your loyalty program
When done well, salon loyalty programs can prove to be incredibly lucrative. How can you ensure your loyalty program is a success?
Get the right tech: The first and most important step is to choose the right technology to support your loyalty efforts. A tool like Square Loyalty demands minimum effort while offering maximum reward.
Promote the program: Jump on social media and tell the world about your loyalty points and the rewards they can unlock. Not many salons offer customers the opportunity to earn points from their regular visits, so this can be the sort of unique selling point that can separate your business from the rest.
Make sign-up easy: If you offer the ability to book online — like you can with Square Appointments — be sure to make it easy for a customer to join your loyalty program in the process. In-store, train your salon staff to always ask whether a customer is part of your program. If they aren’t, offer to sign them up then and there.
Reward referrals: Your points and rewards don’t have to apply exclusively to purchases. Loyal customers who invite friends and family members to check out your business should be rewarded for their valuable efforts, so consider applying points to each referral.
A loyal customer is a happy and valuable customer, particularly in a service business like a salon, which deals with its clients every few weeks or months. When a loyalty program is done well with the right tools and the right approach, it can be a profitable and fulfilling experience for the business and customers.
Once you’ve set up your loyalty program, take a deep dive into how to leverage specific parts of your loyalty program to track customer spending and boost your salon profits.
