Do you ever wonder whether your salon, spa or barbershop should implement a salon loyalty program?  Is it really worth the effort?

Well, to answer these questions, you need to ask yourself a question. Do you want to improve client retention and increase revenue? If you answered yes, then you have your answer. You NEED a salon loyalty program, and it IS absolutely worth the effort! Let’s look at the benefits a successful salon loyalty program will bring.

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Konnect provides you with simple, easy-to-use tools to successfully run day-to-day operations

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The Benefits of a Salon Loyalty Program.

• Increased client retention
• Improved brand recognition
• Improved business reputation
• Attracts new clients
• Increased client engagement
• More referrals
• Increased bookings on slow days
• Easier to Upsell and Cross-sell
• Increased revenue

 

Why do Salon Loyalty Programs Work?

So let’s start with the cold hard facts.

•  75% of businesses see a return on their investment in a loyalty program.
• Clients who join your loyalty program ensure 12-18% more revenue annually compared to clients who don’t participate.
• 66% of clients will spend more to unlock rewards.
• 81% of clients say a loyalty program encourages them to continue going to the same business.
• 73% of clients are more inclined to recommend a business with a good loyalty program.  2019 loyalty statistics

Are you convinced yet?

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With Konnect, it’s super easy to introduce and manage your loyalty program.

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How to Start a Successful Salon Loyalty Program.

Whether you are a salon, spa or barbershop, do some research on who your top clients are. On average, the top 20% of loyal clients provide you with 80% of your business. So finding out who these clients are should be first on your agenda. Loyalty program Statistics.

Konnect Spa and Salon makes this task easy by allowing you to bring up a report on just about any parameter you can think up. If it’s in your database, you can measure it. Konnects reporting tools are a quick and easy way to check the health of your business. Reporting tools

A successful salon loyalty program should focus first on cementing the loyalty of your current clients. After all, these clients are the backbone of your business. Clients are more likely to feel valued by you and your business when they receive special treatment or small discounts and gifts.  67% of customers said surprise gifts are very important for loyalty programs.

Think of other areas in your salon, spa or barbershop that need a little help. Do you fall behind in gaining new clients? Do you fall short in selling retail products? (Which by the way are an easy way to boost your profits). By running reports on these areas and knowing what needs improving gives you direction in how you should set up your salon loyalty program.

 

How to set up salon loyalty program points.

The most popular reward system is to award 1 point for every $1 spent. However, this is by no means the only way you can tailor your salon loyalty program.

Setting an achievable and financially viable salon loyalty program is the key to ensure success. Depending on your unique salon goals, you may decide to allocate extra points in the areas your business needs boosting.

For example, points are only redeemable on products if your retail sales are low.  Here is a guide for point allocations,  However, you should tailor your program according to your salon.

• Encourage spending by allocating 1 point for every 1 dollar spent.
• Offer a reward, discount or VIP treatment when a client reaches X amount of points.
• Encourage clients to book on slow days by giving extra points — for example, double points on Tuesday.
• Encourage upselling and cross-selling by offering extra points for add-on services or products.
• Entice clients to buy gift cards for friends and family by giving extra points.
• Encourage online bookings with points.
• Increase positive online reviews by incentivising clients with points.
• Make sure your clients feel the love by giving special birthday points.
• Gather client emails by giving points for signing up to newsletters or blogs.
• Incentivise clients to follow you on social media with points.
• Encourage word of mouth by rewarding points for client referrals.
• Move older or overstocked products by allocating extra points for the purchase.

 

 

Things to Consider.

When designing your salon loyalty program, remember that you want to attract clients by providing rewards that are tangible and attainable. On the other hand, the rewards must not be so high that your business suffers a loss of income. Tailor programs to suit both your business and your client’s expectations.

To maintain trust and loyalty, you must be willing and able to provide the promised rewards. Thorough planning and crunching the numbers is the only way you can be sure not to overextend your promises.

Salon loyalty programs also require clear and transparent restrictions on the redemption of points, such as points not redeemable for cash. Ensure you have a strict terms and conditions policy to support your salon loyalty program. This policy must be appropriately worded to avoid misinterpretation.

 

 

Do You Need Software for a Salon Loyalty Program?

Punch cards are no longer seen as a valuable system. A large number of clients will hesitate to join a program that requires a card. In fact, 79% of consumers say they would be more likely to join a loyalty program without a card system.

Punch cards are often lost, damaged or misplaced which only serves to frustrate clients as they have no proof of accrued points. Furthermore, punch cards are outdated and look unprofessional.

Konnect Spa and Salon software takes the guesswork out of calculating points and remove the chance of human error. Salon loyalty program feature

Behind every excellent salon loyalty program is a powerful database. Konnect delivers this for you and gives you the ability to run whatever type of salon loyalty program you choose. You set the parameters, and konnect does all the allocation of points of and values at the point of sale. So there is no more manual calculation of points. How easy is that?

Salon loyalty programs take around 3-6 months to show results. After putting in a lot of thought, time and energy into the implementation of your program, you must be sure that you can measure the improvements made. Without an automated system like Konnect, it is tough to calculate these improvements and to compare them with previous months. With Konnect, it’s all right there at the touch of a button.

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Behind every great client loyalty program is a powerful database.

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Conclusion

A salon loyalty program is just what you need if, you want to encourage spending in a specific area, plus improve client retention and increase revenue in your salon.

The benefits of a successful salon loyalty program definitely outway the time and effort it takes to implement one. And the statistics prove this.

Konnect provides your salon, spa or barbershop with all the tools you need to run a successful and automated salon loyalty program.

So why not check out all the other great features Konnect Spa and Salon software has to offer your salon, spa or barbershop.

Konnect is a complete all-in-one management system that will help your business reach new heights with less work.

Want to see for yourself? Go to  https://www.konnect.software/free-demo/ and sign up for a free demo.

Konnect Spa and Salon Software – the simple, affordable key to making your business brilliant.