The Importance of a Salon Loyalty Programme

In this fast-moving and competitive world where everybody seems to be chasing the buck - 2 for the price of one, 20% off this of that and everybody is out for themselves, you might be forgiven for thinking that, if you want loyalty, you'd better get a dog.

For some people that is their reality but for many there is an alternative reality in which people make decisions based on their heads and their hearts and not on their pockets.

There is a business principle called the Paretto Principle that says that 80% of loyalty is generated by 20% of your clients. So who are your most loyal clients? - the 20% of course. And why are they so loyal - not because your prices are cheap but because they understand the value of the service you provide.

In the pursuit to grow our business we seem to focus a lot on getting new clients, and so we should. However, if growth relies mainly on getting new clients what are you doing with the clients you already have. And what happened to the many clients you have gained and lost over the years?

While there is no mathematical certainty that you are going to retain all the clients you attract, it is clever to focus your energy in giving clients something to which they could become loyal e.g. an excellent customer experience.

In the service industry perception is reality. If your business is driven by gratitude, followed by attitude, it is easier to achieve altitude. Clients go where they feel invited, they stay where they feel valued and grow where they are pampered. This level of recognition brings them back again and again and will encourage them to refer more people to your business.

This becomes a sound business strategy when you have a dynamic loyalty programme. If recognition and gratitude are the underlying values that drive the business then rewarding clients for their loyalty just puts the cherry on the top of the cake.

For example - if your clients earn one loyalty point for every R100 they spend they are accumulating points that could be exchanged (rewards) for a complimentary blow dry or treatment paid for by their loyalty points. If clients refer new business or buy promotional items or reach another anniversary year as one of your loyal clients, additional bonus points can be added to their 'loyalty account' and they receive their reward on a more regular basis.

Such a loyalty programme has very little financial cost to your business but has phenomenal value to your clients.

To learn more about My Salon Software Loyalty Programme: Click HERE

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