4 Salon Retention Marketing Tips For Every Budget

Posted by Natasha Gupta on September 6th, 2018

If you’re an owner or manager at any spa or salon, you’ve probably heard the term ‘customer retention’ a zillion times. Just as the name implies, it means retaining as many customers as possible by implementing customer and brand loyalty initiatives.

In the 21st century, the beauty and personal care industry are like two sides of the same coin. It is one of the booming industries growing at 15-20% annually. As a salon owner, numbers are crucial to the growth of your business. Apart from service revenue, employee retention rate and retail revenue, customer retention is equally important.

Before moving on to the retention strategies salons can adapt to retain their customers, let’s understand key takeaways of consumer behavior at salons/spas:

• If a customer is used to a particular stylist at a salon, they’re ready to wait for him/her to finish on another client rather than visiting another salon.
• If a customer wants his/her hair cut promptly and on that day, they may walk-in to a salon and avail services from any other stylist.
• Most women take appointments prior to visiting a salon than men.
• Women choose their salon based on cleanliness, hygiene, the experience of the stylist and brand of products while for men, the price is a critical parameter.
• Men prefer loyalty cards while women are more inclined towards combo packages.
• Location of the salon is also extremely critical. If a particular stylist has shifted to another salon, women are ready to travel because they know exactly what she wants to be done. However, in the case of men, they may simply switch over to another stylist in the same salon.

Retaining customers in the salon business is similar to the age-old verse “Make new friends, but keep the old. One is silver, the other gold.” A regular customer adds more merit to the growth of a salon than a one-time customer. However, this does not mean that a salon should not attract new customers. This simply means that a salon should focus on strategies that would drive growth and profitability by retaining old ones and attracting new ones.

According to the Harvard Business Review, acquiring a new customer is 5% to 25% more expensive than retaining an existing one.

Before understanding what kind of customer retention strategies best fits your salon business, basic financial planning is a must. Ask yourself three questions:

• What is your monthly revenue range?
• What is your average monthly marketing budget?
• What is the current retention percentage of your salon?

After gaining a thorough understanding of your financials, allocate a budget towards focused retention marketing strategies including:

• Loyalty programmes: Many salons today implement loyalty schemes to retain their existing clients. From freebies to discounted treatments, the programme offers great incentives to customers’ thus building loyalty.
• Email & SMS marketing: Email and text message marketing is an affordable and convenient way for salons to keep customers abreast of new offers and deals. From distributing mobile coupons to sending appointment reminders, salons are leveraging on this tool to engage with their existing and potential customers.
• Gift vouchers: 70% of beauty-related businesses sell gift cards to generate revenue. Gift vouchers are great to drive sales, they’re a kind of free marketing, and they increase customer spending as most people spend more than the card’s value.

To avail the benefits of all these focussed retention marketing strategies under one roof, signing-up with salon management software is a great idea. It is also a fool-proof way to keep clients coming back to your salon, and making your business agiler.

It aids in acquiring new clients and retaining existing ones by offering referral incentives, loyalty points, and gift cards. Salon management software also helps salon owners with business management, scheduling appointments, automated marketing, online billing, client management and customer feedback management.