Loyalty programs are becoming increasingly more popular across all industries as a means to boost customer happiness and client retention. For spas, these programs can be very effective in growing business, but they must be implemented smartly.
What is a customer loyalty program? There are many different programs and ways to offer them, but at the heart of these marketing initiatives is the purpose of rewarding a client’s purchasing behavior and, therefore, increasing the urge for the client to stay loyal to the company. Loyalty programs can span across both your service and retail offerings or include both. No matter how you chose to design your loyalty program, there will be costs associated with it. Therefore, it is important to understand how the program will drive sales and, in the end, grow your bottom line. If you haven’t yet implemented a loyalty program and are considering it, here are a few tips on why a loyalty program might be a worthwhile option.
LESS EXPESNIVE TO KEEP CLIENTS THAN ACQUIRE NEW ONES
As a business owner, you are constantly thinking of ways to grow your business and, often, the focus is on growing the number of clients you have. This makes sense, as the more clients you have coming through your door, the more revenue you will generate. However, you should be careful not to overlook the importance of also growing through your current client base. Consider that the cost of attracting and acquiring new clientele is much higher and more time consuming when compared to that of retaining current clients. When you build trust and loyalty with clients, growth naturally happens, as they return for additional services more frequently and spread the word of your business by telling their network and showing their support. When considering a loyalty program, your focus should be on how you can build loyalty with current clients and keep them happy, while simultaneously tailoring the program to include attracting new ones. For example, to attract new clients, perhaps you offer a small perk on their first visit like a small percentage off or a gift with purchase. For current clients, a loyalty program could be built on a points system and, once they reach a certain level of points, they are rewarded.
DIFFERENTIATING YOURSELF FROM COMPETITION
Loyalty programs are designed for two main purposes: to incentivize new clients to return in the future for services and to ensure that existing clients still feel valued. By establishing a loyalty program, you are letting current and future clients know that you value them and their business, and your intentions are not just to make money off them. Your competition may not be offering the same incentives as you or maybe none at all. Try to understand what is being offered by others and how you can make your program stand out with added value and benefits.
GATHERING MARKET RESEARCH
Understanding the market in which your spa operates is key to having a successful business. Who are your clients? What age are they? What services do they want most? How frequently are they visiting? Where are they coming from? These are all questions that can be addressed through a loyalty program. You are able to gather information and track each client that joins. The more information and data you are able to gather, the more targeted you can make the loyalty program and overall marketing initiatives. Establishing timelines to review the information and looking for trends (for example, every month) will help you to stay on top of it and spot any changes. Additionally, this data can help you to make the right choices and necessary adjustments to reach your goals.
CREATING A COMMUNITY
A loyalty program will create meaningful engagement and connection. What does this mean? Try and make your program personal, so that it allows you to develop and deepen relationships with clients. This can be achieved the second they walk through the front door of the spa. Welcome them with a smile and greet them by name. Let them know of any promotions that you have for loyalty program members. During the service, have a check-in and ask if they have had any concerns arise since their last waxing appointment. Perhaps they have recently experienced some changes, such as ingrown hairs and might have some questions. Establishing a level of trust will make clients feel more comfortable and want to continue coming to see you for their waxing service.
It is important to spend some time and reflect on what makes clients happy and why they will want to return every four to six weeks. Design a loyalty program around these ideas. Once you begin to implement the program, make sure that you are constantly communicating with clients to make them aware of any new offerings. Customizing a loyalty program will set you apart from the competition and help to successfully grow your bottom line.
Lindsay Miller is the president of LYCON Wax North America. Having first discovered LYCON Wax in the United Kingdom 10 years ago, she has dedicated her time to growing the brand across North America, including introducing LYCON to Canada. Training and product quality are extremely important to Miller and she prides herself on building a strong team around her that can offer the best customer experience possible. LYCON continues to be a market leader in hair removal wax and is used in top spas and salons around the world.