5 Steps for a Successful Loyalty Program at Your Salon or Spa

Client loyalty is vital to retaining your clients and obtaining new ones. As a salon or spa owner, your loyal customers are brand ambassadors to your business and are a big part of your revenue. So, how can you create a mutually-beneficial loyalty program that rewards your clients, but also improves your key performance indicators (KPIs), or “growth indicators” as we like to call them?

We’ve broken down the process of creating a successful client loyalty program into five steps:

Step 1: Analyze

Implementing loyalty promotions at your business should always be based on growth. Your salon or spa software should be equipped with a robust reporting system to illuminate the path forward. In Meevo, you can run the MA200 report for the last year and analyze your growth indicators. Focus on the following key growth indicators, which are:

1. New Clients Per Month
2. New Client Retention
3. Repeat Client Retention
4. Frequency of Visit (FOV)
5. Average Ticket

Step 2: Develop

The loyalty programs inside Meevo were created around the growth indicators mentioned in Step 1. Here are some loyalty ideas that affect each growth indicator:

To increase Average Ticket, you can utilize a promotion where clients receive X times retail or service purchase as points.

For Example: If a client purchases $100 in services, and the promotion was set up to award 10x the service purchase, the client would be awarded 1,000 points. How you attribute those points to redemption is up to you and what makes sense for your business.

To increase FOV, you can utilize a promo system where clients are rewarded points for a service after being performed X times or points for re-booking at the time of checkout.

For Example: If a client receives 5 pedicures, they earn however many points you attribute and that would, in turn, unlock a free pedicure or free pedicure add-on.

To increase New Clients Per Month, utilize a referral loyalty program where you award points for each new client your existing clients refer to your business.

For Example: Each new client that was referred to you and actually books with you gets $5 off their first service and the referring client gets points they can use toward their own self-care in your shop. Again, however many you decide to attribute is up to you, but since a new client is a pretty big deal, referrals usually earn more points than, say, a repeat visit or tag on social.

To increase New Client Retention, utilize a tactic where you award points for new clients who rebooking during first visit.

For Example: You got a new client through the door—great! Now, give them further incentive to come back again in the form of loyalty points.

To increase Repeat Client Retention, award client a bulk amount of points when they sign up or a membership. This is a great tactic to keep existing clients coming back and to make them feel like they’re instantly earning something of value when they sign up for a membership at your business.

For Example: Honestly, no example needed here! It’s a straightforward system that gives a little while you receive a lot. Learn more about how Meevo helps with salon & spa memberships!

When strategically trying to grow your business, we suggest starting with no more than 2–3 promotions to avoid giving away too much and burning yourself out.

Step 3: Education

Your employees are one of your greatest assets in implementing client loyalty programs. They speak to clients regularly, have already established trust, and have direct access to inform them of current promotions.

Dialogue tips will help your employees be more confident with pitching the client loyalty program to your clients, so don’t hesitate to hold a staff meeting where you can give them quick pointers. For example, if a client is interested in purchasing retail, help increase the likelihood of the sale by mentioning they will receive X-amount in points if they do so. The front desk can solidify a rebooked appointment by informing your guest that they’ll also receive points if they prebook their next visit.

Another way to go about it on the client side is sending out a promo roundup through email marketing outreach each month to let all your clients know which offers they can take advantage of!

Step 4: Launch

After your team is on board, it’s time to launch your client loyalty program. Create printed collateral for clients to inform them of your new promotions and any restrictions in-shop, and don’t forget that email marketing! Fliers should also be placed in new client welcome bags, if that’s a thing you do at your business. And don’t forget to turn on the option in Meevo where points earned will print on the bottom of receipts.

Step 5: Evaluate

In order for your client loyalty program to be successful, it needs to benefit your business. Take the time to reevaluate your points promotions with your MA200 report at the end of each year to determine how your business has grown from the previous year.

If you notice that your loyalty promotions have not increased your growth indicators, evaluate your strategy. Does your front desk have the proper knowledge in place to educate your clients on the loyalty program? Are your stylists or therapists actively discussing rebooking throughout the client’s visit? Make sure your team has the proper tools in place to push your loyalty program to success.

Make Salon & Spa Loyalty Last

Creating, sustaining, and benefitting from a solid loyalty plan is only one way Meevo helps beauty businesses like yours experience long-term success. There are so many other features that the software has to offer your salon, spa or med spa. Not a Meevo client yet? Click below for your own, free & personalized demo. Your clients, staff, and pockets will thank you!