Making a success of loyalty schemes in your salon
A loyalty scheme is becoming a prerequisite in today's increasingly competitive market - with practically every major high street brand offering some form of incentive scheme.
And the hair salon is no different, with clients expecting to get a little thanks for their loyal custom.
If you don't already have a salon loyalty scheme that encourages clients to keep coming back and even increase the amount they spend each visit; here are some of the industry's successful schemes.
Incentivise New Clients For Their Loyalty
Russell McGrath, salon manager for Clipso, Watford introduced a scheme five years ago. The idea was the keep it simple so that clients would clearly see their loyalty being recognised. Every new client is given a welcome pack, which includes a loyalty card, offering £10 off a cut on the fifth visit or £5 off a blow-dry.
"A good loyalty scheme is one that is easy to implement and manage," says Russell. "It is all about the perceived value - giving the client something back that, in reality, costs the salon very little, but to the customer is worth a lot."
For any salons not currently offering a scheme, the current economic climate is a good reason for launching one, believes Russell. "Loyalty schemes are preferable and more effective than ongoing discounts," he says.
Points Make Prizes
John Carne, of John Carne Hair Design, Wimbledon, South London specifically wanted to encourage retail sales through his loyalty scheme.
Says John: "We offer a points system for every pound spent in the salon which is redeemable against retail. We feel this helps to drive retail as well as rewarding the client and adding value to the service we offer.
"It also helps bring retail to the attention of the clients in a positive way. Once they have tried the product they will often re-buy."
John agrees that such schemes are far more effective, even during a recession, than discounting. "The worst tact to take in the current climate is to start running offers that you wouldn't normally run.
"If you copy the offers of your competitors, you will end up attracting the wrong clients. Know your brand and stay strong. Making your regular clients feel valued is the most important element of any scheme."
Incentivise Clients to Increase their Spend
For Ronnie Marshall, owner of Byron Hairdressing in Kirkcaldy, Fife introducing a loyalty scheme was not so much about retaining existing clients but to encourage those already using the salon to spend more.
"At the time we introduced the scheme, retention was around 90% and it has remained at that level. The scheme is more to encourage higher spend, while rewarding clients for their business."
Clients are automatically given a loyalty card and rewarded points depending on how many services and products they purchase - three points for colour, two points for cut and dry and one point per product purchase, for example.
If a client earns eight points over an 18 month period they earn £5 off their next appointment.
"We found adding a time limit encouraged a higher spend," says Ronnie. "Clients who come in for a cut and finish every eight weeks don't get much out of it, but it isn't really aimed at them, it's aimed at the high spenders.
"It rewards them, but also encourages them to spend more. If they are a point short, they will often buy a product top reach the target."
The scheme has grown in popularity since its introduction. Says Ronnie: "Three years since we launched the scheme, I'd say 50% of clients always use their loyalty cards.
"When it first started we were getting 500 cards printed twice a year - now its four times a year, so we know it's growing!"
Create an Exclusive VIP Club
Lisa Shepherd launched her loyalty scheme to build up clientele at her new Birmingham salon, but says she wanted to ensure her's offered something different to the competition.
Says Lisa: "I didn't want to offer a run-of-the-mill scheme. I think there is a bit if loyalty card fatigue, with everyone offering them. I wanted to take it to the next level."
The card itself is designed to look different to other cards, featuring a mirror-glass finish, and very much in synch with the salon imagery.
Only 50 cards were produced, with the aim to encourage local professional women to the salon. The card was given away in goodie bags at the salon's exclusive launch party, offering 30% off a first visit and 15% off for six months.
"We wanted to keep it exclusive and create a club feeling," says Lisa. "Card holders are also invited to VIP evenings, which adds an aspect to the card that money can't buy."
While the cards cost £1,500 to produce the return on investment has been substantial. "We made almost £10,000 in bookings as a direct result of the card, from a very A-list group of women," concludes Lisa.
