Pareto’s 80/20 rule indicates that 80% of your salon and spa’s revenue comes from just 20% of your existing customer base. This puts loyal customers among your business’ most important resources. As a manager or business owner, how to improve customer retention in your salon or spa must be a constant pursuit. 

Customer retention is the ability of your salon or spa to keep its existing customers, encouraging them to continue buying products or booking services rather than switching to a competitor.

In this article, I’ll share seven strategies to retain your clients. But first, I’ll explain why inspiring loyalty in your customers is important. 

Why is client retention important? 

Returning customers sustain your beauty business. Without them, your salon or spa won’t be around long enough to grow, add new services, or attract new customers. 

Here is how it works: 

Reason 1: Existing customers make you look good

Think about this for a second: Would you go back to a business that didn’t deliver on what it advertised? 

If you’re like most people, your answer is no. 

The majority of your potential customers think the same way. For them, the presence of other people at your establishment is social proof that you’re good at what you do, which means they can trust your beauty business with their beauty and wellness needs. 

This way, loyal customers boost your credibility. 

Reason 2: Returning customers promise stable revenue

Customers who come for the first time but don’t return pay your business just once. 

Repeat customers, on the other hand, return to book your services and purchase your products, providing your salon or spa with a steady income stream.

This way, loyal customers offer you revenue stability. 

Reason 3: Loyal customers bring new clients

When customers become loyal to your beauty business, they’ve established trust with your brand and its offerings. Chances are, they are spreading the word about your salon or spa to their loved ones and circle of influence. 

This way, loyal customers help you expand your customer base without the extra marketing cost. 

Reason 4: Repeat customers save you money

It’s cheaper to keep a client than to attract a new one. So, the more customers you retain, the less money you spend on customer acquisition. 

This way, loyal customers help you manage your resources. 

7 strategies to improve customer retention in salons and spas 

Now that you understand why customer retention is crucial to the beauty business, let’s see how you can improve it using effective strategies: 

Strategy 1: Provide exceptional customer service

This is non-negotiable and the first key to improving customer retention. Customers tend to return to salons and spas that offer them great services.

Your team must have a customer-centric mindset, from your front-desk personnel to your service providers and assistants. Train each employee to offer personalised, high-quality service.

Make a good first impression. From the moment a guest steps into your salon till they leave, ensure they’re so well taken care of that they look forward to their next visit. Also, ask customers for feedback to improve your beauty business. 

Automate your booking process

Take your booking online. If you haven’t already done so, now’s the perfect time. 

It saves your customer the trouble of coming to your salon or spa unscheduled, hoping the queue is short. Additionally, your business can avoid the common errors associated with manual booking. 

With Splice, your customers can schedule their appointments anytime, anywhere. What’s more, they get automated reminders to ensure they don’t miss their appointments. 

Strategy 2: Invest in high-quality salon equipment

In a way, this is an extension of the first strategy. Your team will need the best equipment to provide the best service. Ensure they have it. At first, it might seem too expensive. But in the long run, it’ll pay off. 

Customers are intuitive, they can tell the difference between a salon or spa offering the bare minimum and one going above and beyond. Be the latter. 

When your customers know you have highly skilled professionals with high-grade equipment, they’ll keep returning. Soon, your beauty business will have a reputation for being a brand clients can trust. 

Strategy 3: Encourage clients to rebook during visits

Another effective way to increase customer retention is to get customers to book ahead of their next visit. Having them rebook before they check out ensures they come back to your salon or spa. 

Target regular clients with this approach. Also, encourage first-time customers to book ahead. Most customers will take the opportunity because booking ahead in person is convenient, as they don’t have to call or go online to find a time to reschedule. 

Strategy 4: Launch a loyalty program

Everyone loves to be appreciated, including your existing customers. They already chose your business over your competitors, so giving them rewards — a discount, free treatment, or whatever you choose — for their patronage will cause them to stick with you more. The rewards can be based on referrals, the amount spent, or the number of visits. 

Splice can help you set up and manage your loyalty program effectively, automating the whole process to reduce errors and make it more effective. See the image below:

Check out our previous article to learn more about the types of loyalty programs. 

Strategy 5: Feature your customers on social media

Everyone, including your customers, likes to feel special. 

After you finish providing services, offer to take pictures or make videos of your clients and post them across your salon or spa’s social media accounts. 

The ideal thing to do is to ask their permission before you post. Also, tag them, so potential customers know they are real people, not random individuals hired to perform. 

Furthermore, you can encourage them to take selfies and post them on social media. Then, you can repost them as user-generated content. 

In any case, it’s an effective approach to keep customers coming back and an avenue to create content for your social media. 

Strategy 6: Engage followers on social media 

Your social media is your public persona as far as your customers are concerned. How you act there will influence how people perceive your brand. The last thing you want to be seen as is a snub who takes forever to respond to customers. 

Respond to direct messages (DMs) as soon as possible. Interact with followers on your posts by responding to comments. Hire a dedicated social media manager if you have to. 

Strategy 7: Elevate your decor and aesthetic

It’s 2024, people return to salons and spas for their stunning interiors almost as much as they would for the quality of service. 

It’s the era of social media. Instead of doing their nails at one place and looking for another place to take pictures, customers would rather go to a place that offers both. 

Ensure your salon or spa is aesthetically pleasing, and customers will look forward to visiting again. Better, they’ll bring their loved ones along for their next visit. 

What’s a good client retention rate for your salon or spa?

A good retention rate for salon and spa businesses is between 60% and 70%. That means for every 10 people visiting your beauty establishment, six to seven should be coming back. 

The strategies in the previous section of this article should help you achieve a good retention rate. 

How can you measure customer retention rate? 

If you’re already implementing customer retention strategies, what’s left is to track them to ensure they’re effective. 

Here are three metrics to keep tabs on: 

#1. Client retention rate 

This describes the percentage of clients who return compared to those who don’t. 

To calculate it, divide the number of returning clients by the total number of clients for a given period (e.g., the last 3 months), then multiply by 100. 

#2. Repeat visit frequency

This means how often each client returns, e.g., weekly or twice monthly. The higher the frequency, the greater the loyalty and vice versa.  

#3. Revenue from retained clients

Here, you track sales and revenue from repeat clients. Then, compare it to what you get from first-time clients. The goal is for the revenue from retained clients to be significantly higher.