Our statistics show that in the average hair or beauty business, regular clients make up around 40% of the client base. Yet they also account for around 70% of all appointments. This suggests that regular clients are worth a lot more to a business than one-off clients.
It has been well publicised that the cost of acquiring new clients in any business is much more than the cost of keeping an existing client. This is certainly true in the hair and beauty industry. When we crunch the numbers, it’s easy to see the value of regular clients, so putting some time and effort into keeping your clients happy and keeping them coming back to you is a great investment.
Hair and beauty appointments made by regular clients in New Zealand
In New Zealand hair and beauty businesses, on average, 45% of all clients are considered regulars (clients who book 2 or more appointments in a quarter). This statistic has remained very steady over the last few years.
These regular clients account for an average of 72% of all appointments, and so we can also assume that regular clients are responsible for the majority of a business’s revenue.
Hair and beauty appointments made by regular clients in Australia
In Australia, the average proportion of regular clients is slightly less than in New Zealand at 40%. For our data, we considered any client who booked 2 or more appointments in a quarter to be a regular client. The numbers were very similar across both hair and beauty businesses and have remained steady over time.
Regular clients in Australian salons, spas and clinics are responsible for, on average, 67% of all appointments.
So, what can we learn from this data?
These stats show that while attracting new clients can be very important if you frequently have gaps in your appointment book, it is hugely beneficial for any business to create a loyal client base. Increasing your number of regular clients naturally leads to an increase in secured appointments and fewer gaps. In sort, your regular clients provide the main source of revenue for your business.
The importance of client loyalty
Your regular clients are your loyal clients who keep coming back to you for services. Creating loyal clients gives you the opportunity to secure future revenue, giving your business more freedom, and to create evangelists who will sell your salon, spa or clinic better than any marketing campaign. Here are three reasons why fostering client loyalty is so important for business.
Increase client spend
Loyal clients spend 67% more than new ones, according to a study of 50 million transactions by customer engagement company Thanx. Creating a relationship with your clients will also lead to them trusting your retail and upsell recommendations and potentially increase their overall spending with your business.
Secure future revenue
A strong rebooking rate is a good indicator of a strong regular client base. Rebooking rate is a measurement of the number of clients who rebook their next appointment within 24 hours. The more clients who do this, the more future appointments and revenue you can secure.
Another great way to secure more bookings from your regular clients is by reducing your revisit period. If you can shave even a day or two off your average revisit period, your clients will be visiting you more frequently, meaning more revenue for your business and less looking for new clients to fill those gaps.
Increase word of mouth referrals
People trust recommendations from family and friends more than any marketing campaign. That’s why it’s important to build relationships with your clients, because when your clients have a great experience with you, they’re more likely to tell their family and friends about your business.
Tips for increasing client loyalty
Create a loyalty program to provide additional value to your loyal clients. Most often, loyalty programmes reward client spending by offering points or “dollars” to redeem on future appointments.
Memberships and concessions
Memberships and concessions also offer additional value to clients who visit regularly for a particular service or group of services. For example, you might allow clients who pre pay for ten visits to only pay for the cost of nine visits.
Promotions and perks
You can also offer special promotions and perks to your loyal customers. This can be part of a perks program, or just occasional treats when they come in. A free product sample or upgraded service might even entice a client to continue using the product or splurging on the upgrade. Just remember to always let your clients know when you’re giving them something extra.
Your loyal clients are a big reason why your salon, spa or clinic is able to succeed, so have fun making them feel special and building those positive relationships.
How this data was collected
The data outlined in this article was sourced from Kitomba Benchmark, which is a feature of Kitomba Salon and Spa Software that compiles and compares anonymous data from the hair and beauty industry. Data from Q1 2018 to Q1 2021 was analysed.
Permission to use this content
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Read more articles like this:
- Industry insights: Average client spend for the hair and beauty industry
- Industry insights: Retail statistics for the hair and beauty industry
- Industry insights: Rebooking rates for the hair and beauty industry
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