How Salon Professionals Can Retain Clients
Many of us are familiar with the “lipstick effect.” The belief that consumers will still spend money on small indulgences during an economic downturn or recession. They may not spend on big-ticket luxury items but give up small indulgences like their regular cut or color? Never!
This prevailing attitude has some believing the salon industry is recession proof. At Salon Concepts we aren’t economic experts with an ability to see whether a recession is coming soon, yet we do know how to help our salon suite professionals prepare for the possibility of an economic downturn.
Your current clients are your best source of revenue. Take care of them and your salon suite business can weather any storm. Research has demonstrated that increasing customer retention rates by 5% increases profits by 25% or more. A few more statistics from Forbes on the importance of client retention:
• On average, repeat clients spend 67% more than first-time clients
• Second-time clients refer an average of three more people to a business
• 80% of your future revenue comes from 20% of your current clients
So, where do you start? Here are six salon suite client retention strategies you can put into practice right away.
1. Maintain your retail inventory.
Retail sales are directly tied to your salon suite client retention average. By educating your clients on the products they’re using during each appointment, you’ll build trust and become the go-to expert on the products they love. Over time, the experience in your salon suite will feel more like a partnership than a sales pitch.
2. Prebook from the chair.
Most salons with a high salon retention rate place prebooking as a high priority. At Salon Concepts we provide our salon professionals with the tools to schedule another appointment with a client before they walk out the door. Consider ending each appointment with “OK, let’s book your next appointment!”
3. Open your book to new clients.
Now is the time to strengthen your business with new clientele. Our Build My Book program has generated over $400,000 in new revenue for Salon Concepts professionals in the last 18 months. Build the core of your business now!
4. Focus on the client experience.
A visit to your salon suite is more than just a routine cut or color appointment for your clients. They look forward to seeing you and benefiting from your talents and expertise. Build relationships with each client by remembering styles and preferences. Allow them to experience the “suite life” you are living each and every day.
5. Reward new clients.
A recent research study revealed that 70% of first-time salon clients don’t come back. Consider offering perks or rewards for the second visit, such as a percentage off the next color appointment. With each successive appointment the new client is more likely to become a regular guest in your salon suite.
6. Listen and communicate.
With the average salon guest going six to eight weeks between appointments, it’s important to stay in touch! Consider marketing emails with information on new products or promotions. Deploy a social media strategy on Facebook and Instagram. And lastly, ask for feedback. Feedback and reviews can fuel your salon suite to continually improve and make changes for the better.
For more assistance with your client retention initiatives, in Cincinnati contact Clara England, clara@salon-concepts.com; or in Minneapolis, contact Lisa Jorgensen, lisa@salon-concepts.com, or Renee Vermilyea, renee@salon-concepts.com. They’re always here to help.