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A man writing "Salon Client Retention" on a page.

The Top 10 Strategies to Boost Salon Client Retention.

December 6, 2019/0 Comments/in Blog /by Melissa

Salon Client retention is essential to ensure growth in your salon business. Competition for your salon clients is fierce. So, the key to keeping your salon a viable and healthy business is not only by maintaining but increasing your salon client retention rate.

By following the top 10 salon client retention strategies discussed below, you will boost your salon client retention rate and ensure an increase in business growth.

What is Salon Client Retention?

Salon client retention is the continuance of a long-term relationship between you and your client.

Your salon client retention rate is the percentage of clients who remain loyal to your business and continue to purchase services or products during a set period. Client retention numbers are reduced by the number of clients who don’t return during this same time frame, often referred to as churn rate.

Why is Salon Client Retention so Important?

A page with the word "Why?"

Your business relies on a regular income from your clients, which is why salon client retention is vital to the long term health of your business.

Client loyalty is a key component to ensuring client retention. A high client retention rate is a sign that you are taking care of your clients consistently and meeting their needs.

But don’t take my word for it! Here are a few statistics to show you why salon client retention is so important;

  • A 5% increase in client retention can lead to an increase in profits from 25-95%.
  • A 2% increase in client retention is the equivalent to cutting costs by 10%
  • 80% of future profits come from just 20% of your existing clients.
  • Existing clients are more 50% more likely to try a new service or product than a new client.
  • An existing client will spend, on average, 31% more than a new client.
  • Loyal clients are more likely to refer new clients to your salon, and these clients are 16% more valuable than a new non-referred client.

Get the picture? Your existing clients are worth their weight in gold and should be treated as such.

Read on to learn how to improve your salon client retention rate.

The Top 10 Strategies to Boost Salon Client Retention.

 

A salon Team with a sign "The top 10 Strategies".

Provide Exceptional Client Consultations.

To ensure the best outcome for your client, you must provide an exceptional client consultation. Most salon owners think they provide a great consultation, but they often lack consistency in this area. A thorough consultation should accompany every service.

You must be on the same page as your client to avoid poor outcomes. You may perform the best service, treatment or style, but if it isn’t what your client wants, then it’s not a great result, regardless of how great a job you think you have done. Moreover, poor results are sure to reduce your client retention rate.

So, you must take the time to review your clients’ expectations at each appointment. Consultations may seem time-consuming but will pay off when your client is happy. And happy clients return!

Furthermore, happy clients won’t hesitate to refer friends and family.

 

A salon client consultation

Teamwork Makes the Dream Work.

Without a reliable team who are all on the same page, chances are, your business will suffer. It’s essential to educate your staff about client retention to ensure they know all the strategies you will be implementing.

Encouraging teamwork in a salon is a positive and effective way to provide a stimulating and fun work environment. Remember the mantra, your staff work with you, not for you. Treat your team with kindness and respect while remaining firm regarding your expectations.

Proactively encouraging a positive workplace culture helps to keep staff wanting to perform at their best. Providing a little incentive is also a useful tool to have up your sleeve.

Incentivising your staff can help to stimulate more interest in meeting your salon business goals. There are numerous ways of incentivising staff, but you must find an option that is right for your team and budget.

 

A team of salon staff bonding

Here are a few ideas to consider when staff reach a goal;

Commissions.

  • Bonuses.
  • Key performance indicators
  • Competitions and prizes.
  • Try a gamification app.
  • Offer movie tickets or a mystery gift.
  • Provide a free service or product in your salon.

Konnect has all the tools you need to track the performance of your staff members. You can search your database for each staff member and pull up records for numbers on individual sales, client numbers, client retention rates, number of no-shows and attendance records. To learn more on our reporting tools, click here.

Regular Client Engagement.

 A woman receiving a salon SMS

Client engagement is a great way to keep your business on your clients’ mind. There is a multitude of ways that you can engage with your client without being invasive or annoying. Regular client engagement, done right can make your clients feel special and improves loyalty.

Here are a few ways to increase engagement;

  • Send birthday messages with a discount code
  • Send a thank you text after each visit
  • Send a regular newsletter with upcoming specials or events
  • Entice former clients back with a return discount
  • Send holiday or special occasion package deals

Client engagement is a cheap but very effective way to build upon relationships with your clients.

Keep your correspondence light and in-line with your brand. Every interaction counts, so think about these engagement tactics carefully to reap the rewards.

Provide VIP Treatment.

VIP letters in lights.

The salon customer experience must be consistent and of a high standard. Clients often come to a salon expecting to be pampered and to unwind from their day to day monotony.

Many salon owners or staff make the mistake of providing a stellar client experience for the first time client but don’t continue this special treatment at subsequent visits.

Consistently excellent customer service and outcomes are vital to ensure client retention numbers increase.

Let me back this up with some pretty revealing statistics;

According to a study on why customers leave a business, 14% did not return due to dissatisfaction in the service, whereas, 69% did not return because they felt like the staff did not care about them.

69% is a pretty significant percentage, and it shows just how important excellent customer service is to maintaining client retention.

So roll out the red carpet for each and every client. Treat them all like VIPs, or they are sure to go to your competitors.

Look out for my next blog on how to provide the best salon client experience.

Ask for feedback.

A sign with "Feedback" and feedback icons.

You don’t know what you don’t know. Therefore, knowledge is power!

If you know where you are falling short in your customer service or treatment outcomes, you have a chance to improve. But, the only way you can find this out, is by asking your clients.

You may like to send a “thank you for your business” text with a short rating system. However, most clients will feel awkward giving negative feedback, even if it is truthful. A good way around this is to have an anonymous feedback option on your website to gather client insights. You may also like to give out client feedback forms and ask your clients to send them back anonymously.

This type of information is extremely valuable, so take these criticisms as sources of learning for you and your staff. After all, keeping your clients happy is one more step to improving your salon client retention rate.

Start a Loyalty program.

A salon with a hairdresser and client.

Salon loyalty programs are a great way to incentivise your clients to keep coming back. Everybody likes something for nothing. You do! I do! We all do! It’s human nature to feel pleasantly surprised and more valued when we receive a gift or discount from a business. Loyalty programs are one of the best ways to cement loyalty and in turn, increase salon client retention.

In fact, 81% of clients say a loyalty program encourages them to continue going to the same business. Furthermore, clients will even spend more to unlock more rewards.

Konnect has an easy to use loyalty points program that takes all the hard work out of managing such a program. Take a look at our article, The Benefits of a Successful Loyalty Program, to learn more about how to go about implementing a salon loyalty program.

Make use of this great Konnect feature to increase your client retention.

Package Deals.

A cosmetic clinic - rebooking.

Want to guarantee repeat visits from your clients? Then package deals are your answer!

Package deals are a great way to keep clients coming back and allows you to work on making great relationships with your clients.

In combination with a loyalty program, you can’t go wrong. But wait! There is something you must remember here, and that is consistency! This is your chance to show your client how every visit is as good as the last. If your standards slip at each subsequent visit, your clients will go elsewhere.

Remember the previous statistic? 69% of customers left a business because they felt like the staff didn’t care about them. So always keep this in mind at each and every visit.

Use these visits to educate your clients and promote take-home products while you are at it. Always recommend products that you are confident will benefit your client to build trust. Building trust is essential to improving client retention.

Always Re-book and Pre-book.

Nail salon client and employee.

 

One of the most overlooked strategies to maintain and increase client retention is to always re-book and pre-book your clients. Try to make sure every client does not leave your salon without re-booking their next appointment.

Teach your staff to plant the seed of re-booking during treatment. Educate your clients on the importance of maintaining the results of their treatments with repeat visits. Also, always ask your client to re-book before taking payment at the point of sale, as this tactic has a higher re-booking success rate.

Pre-booking is taking bookings in advance. Pre-booking works well in conjunction with selling package deals but can also be work very well in the lead up to Christmas.

Think ahead for your client and show you care by pre-booking from September on, to guarantee they have an appointment before Christmas. Explain to your client that if they want to look fresh for Christmas, they need to book ahead to avoid disappointment. This technique encourages pre-booking and helps to improve salon client retention.

Be Consistently Consistent.

A sign on a cork board "Consistency is Key"

Now I know I have mentioned this before, but it is worthwhile repeating to make sure you take consistency seriously. The key to success is consistency! Small efforts repeated day in and day out will lead to the growth and success of your business.

Consistency in your work ethic and customer service improves client trust, loyalty and retention. Why? Because your clients want predicable and reliable service and treatment outcomes. Even if you are having a bad day, it is essential to keep your work attitude positive. Always treat your clients with respect and kindness, even when they are downright annoying. Deal with complaints calmly and politely. Always make eye contact with your clients and greet everyone with a smile. Addressing your clients by name is also essential.

You can be sure that consistent action creates consistent results. Consistency is the backbone of a successful business with a high client retention rate.

Measure your Results.

A woman looking at a good salon report.

Implementing the above strategies are a great way to increase your salon client retention. But, how do you know if all this extra effort is paying off? As I said before “Knowledge is Power!” Set a quarterly time frame and track all the numbers since the implementation of your new strategies.

Konnect makes this super easy. You can search your database for any information you wish. Bring up client retention numbers. Have they improved in the last quarter? If so, why? Is your new loyalty program making an impact? Are you selling more package deals? Have your pre-booking rates increased?

These are all areas you can track and compare easily with Konnects fantastic reporting capabilities.

Furthermore, as your Konnect database is accessible anywhere, anytime, you can do this research in your own time. Kick back at home with a coffee as Konnect comes with convenient mobile access.

Conclusion.

Salon client retention is a key indicator of the health of your salon business. A high client retention rate indicates you are doing a great job, whereas a low number can mean you need to lift your game.

The statistics given in this article are proof that any increase in client retention results in the growth of your salon business.

Striving to provide the best customer service and treatment outcomes with consistency, is your key to success.

Konnect has all the tools you need to help you reach these new heights by boosting salon client retention.

Konnect provides you with the simple, easy-to-use tools to successfully run day-to-day operations in your salon.

Not using Konnect Spa and Salon Software?  Sign up for a free demonstration today.

Jump on board and let us help you take your business to new heights.
Konnect Spa and Salon Software – the simple, affordable key to making your business brilliant.

 

 

 

A woman paying at the beauty salon for salon loyalty points.

The Benefits of a Successful Salon Loyalty Program.

September 30, 2019/0 Comments/in Blog /by Melissa

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

 

A happy client being served by a hairdresser

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.

 

A happy client getting a reward for a 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.

 

Hands holding up a sign for a salon loyalty program.

 

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.

 

Clients in a hairdressers enjoying the benefits of a salon loyalty program

 

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.

_____________________________________________________________________________________________________________________________

Behind every great client loyalty program is a powerful database.

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Loyalty

 

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.

 

A laptop with a screen showing salon appointment scheduling software.

Salon Appointment Scheduling: Why It’s Important For Your Business.

July 29, 2019/0 Comments/in Blog /by Melissa

Appointment Scheduling is so important for service-based businesses like salons. The salon industry is thriving and as you know the competition is fierce.  To get ahead of your competition you seriously need to consider improving the day-to-day operations of your salon.  Providing a great client experience is paramount to retaining clients, improving loyalty and ultimately your revenue.

But what has all this got to do with appointment scheduling? Think of appointment scheduling as the bones of your salon business. Without a strong framework, your business will just fall apart.  You will find yourself chasing your tail day-in and day-out while not quite getting ahead.

This way of doing business will negatively impact your ability to provide a great service to your clients.

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

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Time-Saving.

A happy woman holding up a large clock for time-saving salon appointment scheduling

One huge benefit of automating your appointment scheduling is the time you save.  And, as we all know, time equals money.

When appointments are automated with Konnect Spa and Salon Software, the chance of human error is reduced.  Which means, no more accidental double bookings, wrong time slots filled out or unreadable details. Forget flipping back and forth through your old appointment book to reschedule a client.  Konnect allows you to re-book your client with one click. It’s that simple and quick. https://www.konnect.software/features/calendar-bookings/

Additionally, your appointments are automatically synched with your SMS reminders, so you dont have to chase up all your clients over the phone to confirm their appointments.  Less time on the phone, more time making money.

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Access anytime anywhere

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Reduce No-Shows and Cancellations.

A handsome man looking at his watch waiting for a no-show or cancellation for salon appointment scheduling.

No shows.  Uggh.  There is nothing more frustrating than waiting around for a no-show and losing money at the same time.  No-shows are a huge drain on your income.  According to one 2019 survey,  the cost of no-shows is roughly 5-10% of your annual profit.  So if you are experiencing alot of no-shows, the implementation of automated appointment scheduling is a must. https://worldwidesalonmarketing.com/how-much-do-no-shows-cost-your-salon-every-year/

Automated SMS reminders are a proven way to reduce no-shows and late cancellations. According to one study, SMS reminders reduced no-shows by a whopping 39%.

Konnects SMS reminder system allows you to customise your texts and gives you the option of how you want your clients to respond. Cancel, reschedule or confirm.

By also introducing your clients to online bookings, they have the flexibility and control over their appointments like never before. This allows them to change or cancel their appointments according to their own schedule.  Taking the hassle out of rescheduling, keeping you off the phone and improves customer satisfaction.

To read more about how to reduce no-show go to https://www.konnect.software/how-to-effectively-reduce-salon-no-shows/

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Happy clients, happy you

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24/7 Appointment Scheduling.

An online booking button with a hand pushing the button for 24/7 appointment scheduling.

Imagine how much more business you would get if your existing clients and new clients could make an appointment any time of the day or night?   By adding an online booking button to your website or social media, clients can book while you are on their mind. This reduces the chance they may forget later.   New clients who come across your great before and after pictures on social media can book as soon as they feel inspired to do so.  A great free marketing tool to get those new client coming through the door.

Giving your clients the flexibility to book online is a valuable tool for client retention and improves customer satisfaction.  A reported 35% of clients prefer to book appointments after business hours.  So providing them with this option can really improve your booking rate.  https://articles.bplans.com/strategies-to-boost-hair-salon-revenue/

Another benefit of appointment scheduling with Konnect is that your online bookings are available on every device.  So whether your client is at home on their desktop, sitting on the train using their mobile or at a cafe with their tablet, you are always accessible and ready to receive appointments.

Clients will love the convenience of 24/7 appointment scheduling and you will love spending less time on the phone while enjoying a much more streamlined and smooth running day.

Personalised Customer Service.

A woman in a spa receiving personalised customer service.

By streamlining your clients’ appointment scheduling experience right from the start of your client/business relationship, you portray a sense of organisation and professionalism.  If your clients are often kept waiting due to you being late, it gives a clear message that their time is not important to you.

Clients have busy lives too and going to a salon is usually a luxury that people find difficult to add into their schedule.  By using appointment scheduling like konnect, you reduce the risk of getting overwhelmed and feeling frazzled.  Feeling like this does not make it easy to provide your client with a personalised and relaxing service.

According to research, a massive 71% of customers find impersonal customer service frustrating.  This statistic shows how important it is to provide the best possible individualised treatment and service. Being rushed and late also decreases your ability to provide a thorough client consultation which can produce unwanted results.

So stop chasing your tail and relax with the knowledge that konnect gives you the gift of time.

Better Insight Into Your Bookings.

three people looking at a report for better insight into your bookings

Using appointment scheduling like Konnect, gives you great insights into how your business is running.  You can access any data regarding your appointments with konnects great reporting tools.  You can get reports on client retention numbers, how many appointments were made online, the number of new clients and even how many no-shows you had. The list is only limited by your imagination.

Accessing this data allows you to gain knowledge about what is and isn’t working in your salon.  For example, if you are getting a lot of online bookings, why not create an online marketing campaign to target your online audience.  Is your client retention rate low?  Investigate why this is the case and take action.  Without these valuable insights, you will struggle to find the areas in your business that need improving upon. https://www.konnect.software/features/reporting/

Conclusion.

As you can see, by implementing appointment scheduling your business will experience many benefits. 

From saving time, reducing no-shows and providing a better customer experience. Furthermore, by providing online bookings you also improve your potential to gain new clients and be open for bookings 24/7.

Having the ability to access detailed reports on all your appointments can really be a great tool in optimising your salon business.

At Konnect Spa and Salon Software, we enjoy providing you with useful business strategies that work in conjunction with our great software.

If you are not already using Konnect Spa and Salon Software, sign up for a free demonstration today.  https://www.konnect.software/free-demo/

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

Recent Posts

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  • Local Marketing Tips for Salons.
  • Salon Upselling and Cross-selling Techniques.
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  • Local Marketing Tips for Salons.
  • Salon Upselling and Cross-selling Techniques.
  • Your Salon and Coronavirus. A Practical Guide.
  • Effective Salon Time Management.

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