Loyal customers are the best kind of beauty clients because they sustain your business, day in and day out. That’s not just because it’s the opinion of several major players in the beauty industry; it’s a fact. This is why your salon or spa needs a customer loyalty program. 

A well-implemented customer loyalty program will simplify the process of sustaining loyal customers. 

In this article, I’ll give you nine reasons why you should launch a customer loyalty program and how to make the most of it.

What is a customer loyalty program?

It’s a system that rewards customers, designed to inspire them to choose your beauty business over your competitors.

The reward can be discounts, cashback, or freebies, and it can be based on the amount they spent, the number of visits, or the people referred. 

The Splice loyalty feature offers a simple way to set up a reward system to serve all your customers.

Read more on loyalty programs and the types of reward systems in our previous article. 

Why does your salon or spa need a loyalty program?

Here are nine compelling reasons why your salon should develop a loyalty program: 

Reason 1: Loyalty programs improve customer retention

Your beauty business needs repeat clients to thrive, and a loyalty program is an effective way to get them. 

Customer retention is the ability of your beauty business to keep existing customers, encouraging them to continue booking services or purchasing products, instead of switching to a competitor. 

A loyalty program is an effective tool for building such long-term relationships. By offering repeat clients rewards and exclusive perks, you’d be giving them reasons to keep choosing your services over others, increasing overall client retention rates. 

Compared to the time, effort, and investment spent on advertising and marketing to attract new clients, retaining existing ones is easier and five times cheaper on average. Also, returning customers tend to spend significantly more money than first-time customers. 

Reason 2: Loyalty programs boost customer acquisition

Let’s say your salon or spa opts for a referral-based reward system (a type of customer loyalty program)  existing customers will be motivated to tell other people about your business. Naturally, this word-of-mouth marketing will bring in more customers for your business, even as your existing clients get their rewards.  

That said, a well-marketed and attractive loyalty program, by itself, without word-of-mouth, can also attract new clients. 

Online marketing buzz, coupled with word-of-mouth and positive online reviews about the program, can attract potential customers seeking to be part of a business that values them. 

Note: While the influx of new clients further expands your customer base, it also presents additional opportunities to convert first-timers into regulars.

Reason 3: Loyalty programs drive client engagement

Customer engagement describes any interaction with your customers.

Engagement is key to maintaining a good relationship with your client base, it’s the bridge between customer acquisition and retention. How your business engages with new customers largely determines whether they’ll return. 

A loyalty program provides a structured platform and ample opportunity for ongoing interaction. Other common channels to regularly engage with customers include social media and email. 

Reason 4: Loyalty programs enhance customer satisfaction

Most of your salon or spa resources are focused on making your customers happy with their visit, purchase, and overall experience. This is because, like all business owners and managers, you realise customers typically return to salons or spas that make them happy and feel valued. 

A loyalty program is your chance to give back to your clients — a way to thank them for their continued patronage. The rewards, whether discounts, freebies, or cashback, help make their experience more positive and establish a connection with your brand. 

Who isn’t happy to receive a free hair treatment or 50% off their next purchase? 

Reason 5: Loyalty programs build brand reputation

The positive impact of a loyalty program goes beyond just the rewards that repeat customers get. It makes your salon or spa appear customer-friendly. 

Every business claims it’s about the satisfaction of customers. But with a loyalty program, you can match your claim with action. And your potential and existing customers will see you mean business. 

This improved perception by customers will help you build a solid reputation, setting your beauty establishments apart as the go-to place for clients with taste.

Reason 6: Loyalty programs enable more targeted marketing

If you use Splice to design and implement your customer loyalty program, it’ll meticulously log each customer interaction. 

This means your salon or spa gets a detailed insight into how your client base interacts with your salon, including what they want and which offerings are their favourites. You, in turn, can use this information to create more targeted marketing campaigns. 

For example, if you know that a particular customer visits for pedicures twice monthly, you can email them a special promo for a manicure at the end of the month.

Furthermore, such insight will help drive strategic decision-making processes in all aspects of your business. 

Reason 7: Loyalty programs increase appointment bookings 

You can leverage a loyalty program to boost salon or spa visits, especially in typically slow periods. 

For example, if your Splice Insight & Reporting feature shows that June to August are the three months your hair salon usually sees a dip in bookings, you can target your loyalty program to run through that period. The promise of rewards will encourage clients to visit.

This approach will not only ensure your hair salon stays busy, but it’ll also secure a steady revenue flow throughout the period.

Reason 8: Loyalty programs simplify upselling and cross-selling

If you know one thing about loyal customers, it’s this: They love and look forward to trying new things. In fact, they’re often the first to encourage you to expand your service offerings and product catalogue. 

This makes a loyalty program the perfect tool to introduce new packages, product lines, additional services, or premium offers. 

Since existing customers already trust and value the benefits of your ongoing program, they are more likely to explore and invest in upgrades and complementary offerings, especially if they get rewarded for doing so!

Reason 9: Loyalty programs lead to revenue growth

Ultimately, a well-designed and implemented loyalty program is a revenue magnet. As you must have noticed, revenue is the goal of everything on this list. 

Everything on this list — more customers, brand reputation, turbocharged marketing, upselling and cross-selling opportunities, and increased bookings — leads to revenue growth for your salon or spa.

5 tips for running a successful loyalty program 

Now that you know why your salon or spa needs a customer loyalty program, how can you ensure it’s successful? 

Tip 1: Use the right software

Certainly, you know running your loyalty program manually isn’t an option if you value efficiency. You’re left with choosing the right technology to support your loyalty efforts. 

Splice, our all-in-one management tool, is specially designed for setting up and managing loyalty programs, demanding minimal effort.

Tip 2: Promote your loyalty program

It’s one thing for your program to be well-thought-out with the right tool to implement it, but it’s yet another thing for the target audience to know it’s live. 

Ensure you adequately publicise it. Use all your marketing channels, including social media, emails, websites, and Google Business Profile (formerly Google My Business). 

Tip 3: Make it easy

Make sure it’s easy for interested customers to join your loyalty program. No one wants to spend too much time signing up for it. 

If it’s online, it should be quick and seamless. In-store, train your team to ask customers if they’d love to join your program. If yes, offer to sign them up then and there.

Tip 4: Seek customer feedback

Client feedback can tell you a lot about how your loyalty program is doing. Pay attention to what they say and be open to adjustments where necessary. 

Tip 5: Review routinely

Review your program if it’s been live for some time. Keep what’s working, remove what’s causing inefficiencies, and improve what needs work. Do this often from time to time. 

Conclusion 

If you’ve made it this far, it’s clear that a loyalty program is no longer a “nice-to-have” for your beauty business. It’s a must-have.

Whether your goal is to boost bookings, increase revenue, or simply make your clients feel seen and valued, a customer loyalty program can help you get there faster and more sustainably. And the best part is that you don’t have to figure it out on your own.

Splice makes it easy to set up, manage, and optimise your salon or spa loyalty program, all from one place. From automated tracking and rewards to targeted client insights and effortless marketing, everything you need is built in.

Get started with Splice today.