The latest bulletin from the National Hair and Beauty Federation (NHBF), shows the hair and beauty industry is evolving rapidly. However, it also highlights that over the last five years, hairdressers have only experienced 1% growth – the slowest recorded in the sector’s history.
Although there are clearly challenges, including a net loss of 239 salons in the first half of 2024 alone, the industry is still showing fight and resilience. As client expectations and market dynamics continue to shift, businesses are learning they need to adapt their offerings and connect with clients on a deeper level to survive.
Here, Sam Kendall, Chief Operations Officer at SalonIQ, highlights some ways salon owners can embrace change, along with some forward-thinking strategies they can adopt to position themselves for success in 2025 and beyond.
Implementing Loyalty Programmes
Competition is rife in the hair and beauty industry, and creating a strong customer base has never been more important for salons. Loyalty programmes are a fantastic way to encourage repeat business by offering rewards and incentives, turning occasional customers into loyal brand advocates. These programmes not only incentivise customers to return but also provide salons with valuable insights into customer preferences.
Customers are often willing to spend more with a salon that rewards their loyalty, boosting overall revenue and, by analysing the data collected, salons can personalise their offerings and improve overall customer satisfaction.
Additionally, the information gathered can shape future marketing initiatives and product development, ensuring they fully align with client needs and drive consistent revenue streams.
Offering Seasonal Promotions
Aligning promotions with the calendar can really enhance their impact. Seasonal trends and festivities provide opportunities for salons to attract clients and keep them engaged, for example promoting summer haircare packages or festive Christmas offers.
These seasonal promotions also increase engagement by keeping clients excited about visiting the salon. Tailoring services, such as hydrating treatments in the summer or cosy spa packages in winter, can help salons ensure they meet seasonal demands effectively, and strategically planning and executing these promotions can entice clients to return throughout the year.
Streamlining Operations with Digital Tools
Managing teams and maintaining consistent quality becomes more challenging as salons grow, but digital tools are reshaping operational efficiency in the industry. For example, automating inventory management can help salons ensure their stock levels are maintained efficiently, reducing waste and avoiding service interruptions.
Digital tools can also enhance staff management by allowing salon owners to track individual performance, handle rotas, and manage payroll. Data-driven marketing is another benefit, as these tools are equipped to analyse client preferences and purchasing behaviours to enable precision in campaigns.
Additionally, online booking platforms and automated client management systems create seamless experiences, helping attract and retain loyal clients.
Upselling and Cross-Selling
Salons should always be looking for ways to upsell and cross-sell to grow their revenue while enhancing customer satisfaction.
Training staff to suggest additional services or products naturally and confidently will ensure these strategies are well-received and creating packages that combine complementary services or products can add value and simplify decision-making for clients. For example, offering discounted treatments alongside haircuts can encourage clients to spend more while benefiting from enhanced services.
Staff should also share their own experiences and personal product recommendations to build trust and connect with clients, and discounts should be strategic to maintain service value without undermining pricing integrity.
The best online booking portals will prompt clients to upgrade their appointment and force additional services if required, in turn increasing the average bill.
Investing in Your Team
A salon’s success heavily depends on its team, and investing in your team ensures consistent service quality and helps build a positive workplace culture.
Providing training programmes keeps employees updated on industry trends and techniques, empowering them to deliver the best possible service. Meanwhile, ensuring the salon environment is inclusive and supportive will boost morale and retention, leading to better customer experiences.
Additionally, giving staff the tools and knowledge they need to confidently upsell or cross-sell will further enhance the salon’s ability to grow its revenue while maintaining high service standards.
As the hair and beauty industry continues to evolve, both challenges and opportunities lie ahead. The salons that are prepared to continuously innovate and adapt to changing client expectations are the ones most likely to succeed.
The key lies in understanding client needs, embracing new technologies, and finding ways to deliver exceptional experiences at every touchpoint.
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