salon memberships

Getting Inside the Membership Mentality

April 08, 2016

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Spa and salon memberships are becoming more common among salons and spas; incentivizing clients by offering multiple visits at a flat rate. While you may think that offering multiple visits at a “discounted rate” will negatively impact your bottom line, the truth is, if implemented properly, memberships can increase your frequency of visit, retention rate, productivity, as well as drive revenue and increase your bottom line.

The membership mentality of “saving while receiving more” may encourage your clients to visit your business a few more times than they normally would. This provides the opportunity to generate new revenue from retail sales or add-ons. In addition, memberships are guaranteed recurring revenue. That means if you maintain 10 memberships at $100 per membership per month, you bring in guaranteed $1,000 revenue for each month, totaling $12,000 per year.

Client Loyalty

Client loyalty, which drives frequency of visit, is a major area of focus for salon and spa owners. Clients now have more options than ever, which greatly impacts client loyalty. Offering an enticing membership program, unique from competitors, is a great way to keep your loyal clients coming back. Another upside to memberships is the increased productivity. Those 10 memberships that we mentioned earlier are at least 10 additional appointments in your book, 10 opportunities to pre-book for another visit, sell retail, up-sell, cross-sell, and suggest add-ons; drastically increasing revenue.

Starting Membership Programs

So how do you properly implement a membership program? Determine what services you are able to offer multiple times a month at a flat rate with little overhead. Do you offer blow outs? How much does it cost you to provide a blowout service? How many times a month do you think a client would be willing to visit your business for a blowout? Use these numbers to determine a reasonable monthly membership price to offer clients that still incurs revenue for your business. Now, what can you offer to make your blowout membership stand out from the rest? A complimentary drink, a sample bottle of hairspray or dry shampoo, etc.? Maybe offer a membership exclusively to men or offer discounted memberships to fill “down time”.

Need More Info?

If you’re looking for new ways to boost your client loyalty, productivity, and revenue, a membership program is the way to go. Check out what other businesses are doing, and come up with a program that makes sense for you and your business. To learn other ways to promote client loyalty, check out our presentation slides from our past webinar on 5 Ways to Increase Retention on April 18, 2016.

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