The Need-to-Know About Customer Loyalty Programs

How to Make Your Customer Loyalty Program Profitable

The salon industry can be fickle, and if there’s one thing that’s crucial to a successful business it’s loyal customers. It’s a competitive world out there and keeping your customers coming back is a necessity. A customer loyalty program is a perfect thing to keep your customers coming back time and time again.

This is everything you need to know about customer loyalty programs, why they work and how to make them a profitable tool for your business.

So, what actually is customer loyalty?

Before you get your customer loyalty program underway it’s crucial to know what customer loyalty actually means for your business. Customer loyalty is about building a long-lasting relationship between your salon and your clients. It’s about growing trust and forming a connection that is more than just transactional. Loyal customers are more likely to recommend your salon, refer friends and family and keep your salons reputation positive for years to come.

Why is customer loyalty important?

Customer loyalty is crucial when it comes to beating out the competition. Customer loyalty goes beyond the obvious benefits of repeat customers and consistent business, loyal customers are likely to pay higher prices for services with you and also often spend on other services or retail products. Personal relationships are critical when it comes to the overall salon experience and keeping loyal customers happy is guaranteed to set your salon up for success.

What kind of loyalty programs could I implement?

When it comes to customer loyalty programs there are a range of things you can do to reward your returning customers. These different loyalty programs come in so many shapes and sizes but all have one common goal – strengthen your relationship with your customers.

Points & Rewards: This one is probably the most popular in the salon industry and it works by rewarding customers with points for every visit. Points then add up and can be redeemed for discounts, freebies or added perks!

Tiered Memberships: You could consider creating a tiered membership system for customers that gives customers better benefits as they level up. As clients move up the tiers they get more valuable rewards encouraging them to come back to your salon over and over again.

Special Promotions: You may want to give exclusive promotions and discounts to loyalty program members in order to make them feel valued – these also help to build loyalty.

Referral Rewards: If you’re looking to increase your clientele, you could encourage clients to refer their friends and family to the salon and reward them for successful referrals. This results in rewards for your clients and more new customers for you! It’s a win-win.

How do you use loyalty programs to make a profit?

It may seem like the main value you get from customer loyalty programs is returning clients – but the truth is customer loyalty programs work to contribute to the overall profitability of your salon.

Here’s some of our favourite ways to use your customer loyalty program to your benefit!

Strategic Point Structure: You want to carefully design the point structure to balance client rewards with your overall profits. Consider things like the average spend per visit, service frequency and the cost of rewards to make sure your rewards program is sustainable.

Data Utilisation: You can use the data you collect to improve your knowledge on client behaviour, you can then use this to recommend new services or retail products so you can make more money for your salon.

Offer Partnerships: You might want to consider befriending other local businesses to enhance the overall value of your loyalty program. Collaborate with spas, fitness centres or other beauty services to offer joint promotions and added incentive for your clients.

What can Simple Salon do for you?

At Simple Salon we know that customer loyalty programs and loyalty points are crucial for gaining and maintaining success. If you want to take your business to the next level and transform your one time clients to clients for life – a loyalty reward program is a surefire way to make long-lasting relationships whilst also maintaining your profits.