How to build a client loyalty programme that works

How to build a client loyalty programme that works

28 Oct 2020 by Isabella Castle

Marketing efforts often put the focus on attracting new clients rather than keeping existing ones happy and encouraging them to recommend your business to others. While new clients are very important, the cost of keeping an existing client is only 10% of the cost of acquiring a new one! 

So if you’re wondering how to turn your current clients into loyal advocates of your salon, spa or clinic, a great place to start is with a strong loyalty programme. 

This article covers what value client loyalty can provide your business, and how you can build a loyalty programme that works!

Loyalty Box Out2

What loyal clients mean to your business 

It’s important to show your clients just how much you value them, as returning clients provide the main source of revenue for your business. Here’s why loyal clients are so important to your bottom line.

Increased spending 

Loyal clients spend 67% more than new ones, according to a study of 50 million transactions by customer engagement company Thanx. Clients who receive discounts through a loyalty programme are also more likely to try a new product or service, which increases their overall spending. 

Increased frequency 

Special perks and rewards can be quite enticing, so understandably clients enrolled in a loyalty programme visit 35% more frequently.

Increased word of mouth referrals 

When your clients are happy with their experience, they’re more likely to tell their friends about it, and you’re more likely to get referrals! On top of that, referred clients are more likely to become loyal clients themselves.

New clients 

Some clients are always looking for a good deal. If your loyalty programme provides good value, it may be enough to entice someone to choose your salon, spa or clinic over your competitors and keep them coming back!

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How to build your loyalty programme

When building your loyalty programme, there are a number of ways you can structure it. Take into account what type of clients you have, and the rewards they would benefit from the most. Here are some popular types of loyalty programmes to help get you started! 

Loyalty points 

Most often, loyalty programmes will offer points or “dollars” in return for clients’ spending. These points can then be redeemed when the client chooses or when they reach a redemption threshold. 

Memberships and concessions 

Another way to give extra value to your repeat customers is to offer a membership or concession card for a particular service or group of services. For example, allowing your clients to pre pay for 10 eyebrow tint and shape services at a discounted price. You can use physical cards to track concession usage or let your salon software take care of the tracking for you.

Promotions and perks

Reward your loyal customers by offering them exclusive promotions and perks. Select a list of clients and send them targeted marketing offering them something special. Special promotions will delight your clients and can lead to more revenue for you! 

Try offering a free product or service when your clients refer a friend to your salon, spa or clinic. Or, give a free upgrade to one of your client’s favourite services – they might love it so much that they continue to book the upgraded service in future.

Ultimately you also want to ensure it’s easy to understand how it works, easy to sign up or opt in, easy to redeem points, and it’s clear what the value of being a loyal client is. 

 

Loyalty Box Out

 

How to get your clients on board 

Marketing is an important part of a loyalty programme, because your clients can’t sign up unless they know about it!  Be sure to advertise the launch of any new programme or even relaunch your current loyalty programme to get more clients on board. Encourage clients to try it out, and remind them of the benefits by promoting the programme using social media, email and texts. 

Your staff are your best asset when it comes to promotion. They get face to face time with your clients and your loyalty programme is an easy thing to bring up during a service. Make sure your staff have a really good understanding of how it works and why their clients would want to be involved.

Your loyal clients are a big reason why your salon, spa or clinic is able to succeed. So make sure you’re showing them how much you appreciate them by implementing a loyalty programme! 

Learn more about growing your business

Looking for insider tips and tricks for growing your salon, spa or clinic? Check out the articles below. 

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