Here’s some facts on why loyal clients are so important:
It’s cheaper to keep clients:
When people think of “marketing” they tend to focus on activities targeted at attracting new clients. While expanding your client base is crucial to a successful business, the importance of retaining current ones can’t be overlooked.
Studies across a number of industries have revealed that the cost of keeping an existing client is around 10% of the cost of acquiring a new one.
This is because you don’t need to spend money or time getting loyal clients through your salon or spa door. In general, the longer the relationship, the lower the cost of servicing that client too.
It’s easier to sell to current clients:
Marketing Metrics state that the chances of up selling to new clients is 5-20%, whereas with current clients it reaches 60-70%. Why? Because client loyalty generally equates to client engagement.
That means it’s easier to sell a new shampoo or get them to try a different facial because they trust your advice and they know you’ll provide quality products and service.
Generally loyal customers also buy more, are willing to pay more and love hearing from you, so are more likely to respond to offers.
They’ll recommend you:
Loyal clients are actually 70% more likely to share your business with others, saving on marketing costs. Plus recommendations from those you know are more powerful than any advertising campaign could ever be!
Loyal clients are also spending more over time and therefore generate more revenue. That’s why, according to The Gartner Group, 20% of your existing customers generate 80% of your profits.
They’re easier to service:
Loyal clients are easier to service which in turn creates increased job satisfaction.
A happy team is crucial as it means they’re more motivated, perform better and therefore provide a better service to your clients – and that’s a key aspect to creating loyal clients.
They’ll give you honest feedback:
If you’ve got some clients that keep coming back, they’ll also be more likely to give you good, honest feedback.
No one’s perfect, so what an amazing opportunity to see where you can improve to give not only loyal, but all your clients the best possible experience with you!
How to get loyal clients:
So how do you get these loyal clients? Well if you focus on your current clients and use smart ways to encourage them to return, it can be easy!
One way is by developing a loyalty programme. It may seem daunting, but here’s some tips to getting your own loyalty programme off the ground:
Who are your clients?
What types of jobs do they have, what’s their income, where do they live, are they male or female, do they have kids? Sit down with your team and talk about who your clients really are.
It may seem obvious, but actually taking the time to write it all down allows you to determine who your target market is.
Understanding your target market is key to whether or not you’ll have a successful loyalty programme. That’s because the reward and type of programme you create needs to be desired and valued by the clients you service – your target market.
Create your loyalty programme:
First you need to determine what your reward will be. You need to keep a few of things in mind when you’re doing this:
Your clients need to feel rewarded and valued, so based on your defined target market, ask yourself what will they enjoy.
Don’t give too much! Remember, your clients need to perceive the reward as high value, but it doesn’t necessarily need to cost you much. Think of things like treatments that are valued at $25 but only cost you $4.
Make sure you can easily provide the reward. For example, have your juniors complete the free treatment reward.
This means your senior stylists can stay on the floor servicing paying clients and your junior is gaining real client experience. It’s a win win.
Next, you need to decide how your clients will work towards their reward. For example, you may give them a free hair conditioning treatment once they earn 200 points. Or they could earn a $50 gift voucher to spend on retail products once they’ve spent $500 with you.
The key here is to make it attainable but not too easy. Basically you don’t want to be giving your client a free facial every second visit, but you don’t want it to take years for them to reach their reward.
So do some calculations and see what will work best for you and your clients.
You’ve put all this work into creating an amazing new loyalty programme, so make sure everyone signs up! There are so many options for marketing, here’s a few ideas:
Design some eye catching posters to display throughout the salon and on the shop window.
Post on social media so your clients know about it.
Send them a personalised email.
Don’t forget to get your stylists on board and ask them to sign all of their clients up to the programme!
You need to think long term too, how will you continue to promote your loyalty programme? Giving your clients something tangible, like visually being able to see their loyalty dollars add up, is an easy way to do this.
It means you’re consistently showing them how they’re being rewarded for their loyalty, which is a key element to making it work. Kitomba’s Online Booking let’s your clients see their loyalty balance.
Having software also means you can easily keep them up to date with where they’re. Are they about to receive their free gift or do they have points expiring? Send them an email with their points balance to let them know.
Easy and professional:
Running a loyalty programme in a notebook or using cards and stamps isn’t only a nightmare to keep track of for you and your staff but it’s also not easy for your clients to know where they stand. Salon and spa software that has a loyalty feature, like Kitomba Loyalty Dollars, not only makes it easy but ensures you look organised and professional.
It allows you to customise your loyalty programme to suit your business and your clients and makes keeping track of everything easy.
How to really make it work:
It’s not all about your loyalty programme though. Loyalty is about everything you do! So ensure your clients always have the best experience with you. Make them feel special and enjoy themselves so they can’t wait to return. The secret to achieving this is getting your staff behind you. You need to train them, motivate them and explain the standard of service that’s expected. And don’t forget to explain the ins and outs of the loyalty programme too. They’re the ones who have to sell it, so you need them to buy into and believe in it!
Tom Murphy was the CEO at Kitomba Salon & Spa Software, New Zealand’s number one salon and spa software provider. To learn more about Kitomba, visit www.kitomba.com or call 0800 161 101.