Sarah cross - daring to be different to drive revenue
Managing director of Über, Sarah Cross specialises in loyalty and client relationship management. In her illuminating presentation at Salon International's Business Extra, sponsored by Salon Genius, Sarah shared with the audience her tips on innovative loyalty strategies, tools and techniques.
The crux of Sarah's presentation was that customers are your most precious asset, but that to harness their loyalty and the commercial gain that goes with it, it was necessary to "dare to be different".
Sarah told delegates they needed to create a different type of loyalty programme that worked for the salon owner, stylist and client.
"Today I'm going to spend some time talking to you about how to stand out from the crowd," she said. "I'm going to start with a controversial statement - points-based programmes are dull. The reason I say they are dull is that everybody has them and they are ordinary and there is nothing ordinary about our business. This is an extra-ordinary industry."
It was worth investing in a loyalty programme that worked, said Sarah. "Looking after clients means keeping them for longer," she said.
Research by Über revealed that 93% of clients were more likely to spend if there was a great loyalty programme - one in which they saw real value, Sarah told delegates.
"Consumers are telling us that only 11% are interested in collecting point to get rewards," she added. "Clients interested in feeling special and being personalised. This is the key to capturing the hearts, minds and wallets of consumers."
The overriding message from consumers was that they wanted something that gave them immediate value - a personal treat that made them feel special, said Sarah.
"It's about trust. The more you get to know people the more personalised you can be and data gives you insight and knowledge to do this. Don't underestimate the value of data," said Sarah.
To encourage clients to offer personal information it was necessary to have a strong proposition as to why they should share it, said Sarah. "Collect this data over a period of time. You want to know where they live, what they do in their social lives, if they have friends coming to the salon," advised Sarah.
"While the stylist has someone in the chair key chance to build this relationship and find out information. Have to make sure you use the information you collect intelligently. When you get to know people you learn how to interact with them."
A good loyalty scheme should be based on a simple structure with three levels, Said Sarah:
- Level One: Just Because - this level is about giving them an exclusive benefit so they can get discount at a non-competing local business such as a restaurant or bar. This won't drive revenue but will create a feel-good factor to tell their friends about.
- Level two: Behavioural-based rewards - this level is based on the proposition 'if you do this for us, we'll do this for you'. For example, if you recommend a friend we will give you a reward. The reward can depend on what your objective is at the time
- Level three: Random Acts of Kindness - look at the data about the individuals and reward them in a surprising and delightful way. For example, one salon we work with texted its top 10 spenders for that quarter and told them they had something beautifully gift-wrapped for them to collect in reception. They came in to pick up their gift, and ended up spending money. They also went back to work and told their colleagues.
"The combination of these three levels operating simultaneously will build revenue," Sarah assured delegates. "In terms of profitability - it doesn't cost you much to run. You are rewarding profitable behaviour. With a points based programme you are rewarding people who were going to spend money with you anyway. With this structure you are in control."
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