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Best Customer Loyalty Programs For Your Spa & Salon Business Growth

Some of the alarming facts:

  • 65% of a company’s business comes from existing customers.
  • 82% of companies agree that retention is cheaper than acquisition.
  • 56% of customers stay loyal to brands which “get them.”
  • 75% of consumers say they favor companies that offer rewards.

With plenty of choices, the people give more credence to customer service than quality and impactful products. Rewarding the customers’ advocacy via a loyalty program is the best solution.  

What’s the science behind a loyalty program?

The social psychology phenomenon- reciprocity is a new norm among customers that involves responding to positive action in the return of positive action. When the customers are given special privileges such as discounts or offers, they appreciate such things and are willing to return the favor. The favor includes buying beauty products from the business, referring the business to family and friends, and visiting the business again.

Read More: Set Up an Ecommerce Loyalty Program to Improve Retention?

When salons launch loyalty programs in addition to the best customer service, it’s appreciated by the existing customers and makes them feel valued. It makes sense to create a loyalty program that gives a reason to the customers to stay with the salon.

Finally, you have decided to earn loyalty with an excellent customer loyalty program. That’s great! Before launching loyalty programs, you need to understand the following things that are- customer buying patterns (buy frequently or use products less often), visiting patterns (regular or visit salon just during occasions), and satisfaction level (Ready to tolerate minor slip-ups or very much particular).

The assessment helps you create compelling loyalty programs that engage the customers. Here, we have created a list of loyalty programs that encourage the customers to visit the salon repetitively and book services. They are:

Loyalty cards
Loyalty cards

Loyalty cards that come in various fashion

Loyalty cards come in two forms- digital and physical cards, where each one is packed with its pros and cons. The physical loyalty card is an old-age technique, where the card is made up of plastic or paper long with scannable barcode or magstripe printed. This type of loyalty card is easy to use, and a large number of users are familiar with this. However, it lacks the tracking capability of the loyalty points accumulated or redeemed and associated loss or damage concerns.

Thanks to technology, the physical wallets stored digitally or loyalty app creation allow salons to keep the customers informed about accumulated points, purchase history, rewards, and others. The eco-friendly card eliminates the need for card replacement or reprinting.

Implement point-based system

The popular method to lure in customers is straightforward to understand customers. It includes crediting a specific number of points upon the purchase of a particular amount. Deciding how many points to give to the customers is at the discretion of the salon owner.

For instance, the salon can assign 100 points on the purchase of 1000 RS, 50 points on customer referral, 20 points on online scheduling, and 10 points on appointments via physical visits.

Also, the terms and conditions are specified for the points accumulation and redemption. It fosters the customer to make more bookings and refer the services to others.

Punch card Customer loyalty program

It’s the best approach to make the new users keep coming to the salon after the first visit. The effective punch card loyalty program includes creating a reward against several punches. Every time the customer visits the salon, one punch is added to the card. For instance, the free service or discounted service is facilitated, when five punch cards get added to the customers’ account.

Handing out punch cards makes the customers visit the salon more, and thus, the loyalty reward card helps you increase the retention rates at the salon.

Tier-based Customer loyalty rewards

It’s a unique type of loyalty reward wherein the point-based loyalty programs are segmented based on the customers’ bookings and frequent visits. Different loyalty tiers were created, which encourage the customers to make more appointments to receive better privileges with special rewards. Conclusively, the customers spend more not only for point redemption but for their status and extra perks.

Additionally, the customers with VIP status tend to show high tolerance towards bad experiences and stay loyal to the salon. The high spending and loyalty make them a brand ambassador of your salon.

Messenger-based Customer loyalty programs

The days of keeping plastic cards or loyalty cards have gone because people find it full of hassle to carry the cards everywhere. That’s where the move towards messenger-based loyalty apps to reward the customers is more interactive and engaging. For instance, the customers can give feedback and get loyalty points. They can either redeem the point or choose to move a tier up.

It eliminates the need to download the app that delights the customers and brings them back to the salon without using any program. Plus, customer behavior, purchase history, and browsing patterns tracking capability help rewards personalization, which adds extra appeal to the loyalty program. The data-driven loyalty programs work wonders in making the salon successful.

VIP loyalty program
VIP loyalty program

VIP Customer loyalty program

Segment the customers based on the number of bookings they made and salon products they purchase. When the VIP customers are treated with special rewards or given a special badge, it motivates them to refer the salon to others. This, in turn, helps the salon to get a brand ambassador for the salon marketing for free. Make them feel special to earn exclusivity in the market.

Social network promotions

Nowadays, people spend a lot of time on social channels. If the salon rewards the customers on social platforms, it entices and excites them. You can launch promotions, contests, and deals on social media platforms. Also, the satisfied customers are asked to take the picture of salon services such as new haircut, or nail art, and post it on the salon’s social media page.

The picture with the most likes and comments is rewarded with discounted visits. Even the customers who have provided positive reviews are rewarded for their gratitude as they take out the valuable time to give feedback.  

Takeaway

80% of the salon’s revenue comes from 20% of existing customers.

The impressive fact showcases the power of customer retention. The salons should give importance to loyalty program launches to ensure higher customer retention rates. Effective customer loyalty programs implementation from early on is essential. That’s where the list of best-in-class loyalty programs can help you.

Himanshu Patel

Himanshu Patel is the founder & CEO of NectarBits, a fast-growing Taxi app development & OnDemand mobile app development company. The current innovation and updates of the field lure him to express his views and thoughts on certain topics.