How to Build Your Own Salon & Spa Loyalty Program in India?
There are many reasons for salon and spa owners in India to build their own loyalty program as it can help them engage their clients, grow revenue, and increase client retention.
It is essential to invest time in setting up a salon and spa loyalty program to make it successful and actually work and help grow your business in India. Don’t do mistake to just randomly assign points and launch without a plan in place.
SET YOUR OBJECTIVE
Beyond loyal clients, what do you want to achieve through your loyalty rewards program? Build your program with a goal in mind. This will help you to ensure that you are not throwing away profit but rather investing it to grow your salon and spa business in India.
A few possible goals include:
- Acquiring your salon and spa client contact & other information
- Increasing the number of repeat clients or frequency of visits in your salon
- Raising the average transaction per client.
- Growing retail sales of your salon products.
MOTIVATE & REWARD
With your goals in mind for your salon and spa business, consider what actions you want clients to take. How will you reward your salon and spa clients for those behaviours?
Membership Wallet
This is the most effective way to reward and show value to your salon and spa high-spender clients. Add value to their spending’s. For eg.if they buy a membership wallet of Rs 10,000 from you then you can top it up and give them actual spend value of Rs 14,000.
This way your salon and spa client will not only be more regular in their visits but, you can also make upfront revenue through your own salon and spa wallet membership.
Spend Based Membership
By applying to spend based membership, you can reward your salon and spa discount-seekers client with more discount, if they spend more value with you. For eg., you can offer different slab membership to your salon and spa clients. So, if they are spending up to Rs 1000 they will be getting flat 10% discount but, if this value crosses Rs 2000 mark then the discount applied will be 20%
This way you can make your salon and spa client spend more to get more benefits.
Service Packages
Client feel delighted to have something in addition to their services especially those who are your salon and spa regular visitors and taking only specific service package.
You can value add clients by creating combo packages or a deal package. For eg. in a combo package, the client can avail combo of services which covers most of her or his needs by paying 20% less price of the actual price of individual service. Otherwise, in a deal, they can take a fixed count of services out of set bouquet of services by paying a fixed cost.
This the way you can make your salon and spa client visit more worthful for them
REFERRAL REWARD
Word of mouth is still the most effective way of bringing a new client to your salon and spa business. However, with digital evolution, it is now fairly possible and easy to collect the referral from your salon and spa clients.
Rewarding a referee (new client referred) and referrer (your existing client) could be a win-win situation both the clients as well as for your salon and spa business. For eg., you can give 20% or Rs 200 discount benefit on every successful reference by the referrer. Once the referee avails her or his benefit, the referrer can be rewarded with her or his part of the discount.
This the way you can not only add new clients into your salon and spa business but, also make your clients to give further more reference to win more rewards.
LOYALTY POINTS
The most popular way to run a loyalty program is to reward clients on their spend. It motivates clients to buy products, try new services, or spend more money.
By doing this, you can up-sell a product or an add-on service to get them to the next level. For eg., clients will get 50 points for every Rs 1000 spent. Someone with an invoice of Rs 800 may choose to spend an extra Rs 200 (or more) to get those 50 points.
This the way you can let your client win more points on if they are spending more. Also, they can be rewarded with a bonus point on reaching a level.
DESIGN THE PROGRAM
DETERMINING VALUE
When deciding how many points to award clients or the value of wallet membership or adding relevant services to a combo package offer, consider what the action is worth to your salon and spa business.
You may want to give sell the loyalty reward points program or by default applicable to all your existing client or considering GST on your salon and spa business after you sell the wallet membership to your client, you need to be careful and should also know the implication
Also, consider if the point value, wallet amount, services or referral discount is enough to make it worth taking the action. Every salon and spa business in India will have different valuations. For a salon and spa business who is not using the best salon and spa software, it will be difficult to manage all these loyalty reward programs.
On the flip side, a salon who uses salon and spa software may find it pretty easy to collect contact details, sell and manage multiple salons and spa loyalty rewards program easily and effectively to grow their salon and spa business.
REDEEMING REWARDS
For a loyalty program to succeed, clients must feel that they are benefiting from the program. Are they receiving a reasonable amount back within a fair amount of time?
If they get Rs 100 value benefit in any way after spending Rs 1,000 in their salon and spa visit, the reward may be enough to interest them as they may see the value of your salon and spa loyalty program. Further, are they able to use redeem the points, wallet amount or service session towards something they actually want?
A salon and spa business should always give easy access to redeem the loyalty benefit and should also notify clients on their benefit addition and redemptions.
MEASURE SUCCESS
A few months after launching your client loyalty program, take a look at some of your salon and spa business reports. Are you achieving your goals? Have you seen an increase in client retention, appointments, retail sales, and/or referrals? Have you seen a greater rise in revenue than what the program is costing you?
If you aren’t seeing the desired results, investigate why the program isn’t working the way you want it to. Be willing to fine tune the program to make it work for your salon and spa business.
CONCLUSION
A salon and spa loyalty program is a great way to boost business and motivate clients to spend and visit more. However, slow down to think through your strategy to ensure that it will help your salon and spa to grow.
Many salons still use physical loyalty cards but consider using software like Invoay to make managing your loyalty program easier. It can help you determine wallet amount, point value, pending service and redemption, set expiration dates create loyalty levels and performance analysis for your salon and spa business.
Don’t let your clients miss out. Book a demo or Call +91-7982703982 and Email – [email protected] to learn more about the salon software used by more than 2,000 India salons and spas, and make their salon experience even better!
