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Client loyalty and reward points

Client Loyalty System

Client Loyalty Systems

Are you rewarding your clients?  What’s been holidng you back?  Is it the amount of profits you could be losing.  Is it the difficulty in implimenting and then, keeping track of?
Your competition is probably running a rewards system.  Imagine if your client visits them whilst you’re away or on a whim.  If they have an incentive to re-visit them rather than you with a rewards system you could well lose a client.
If you’ve got an inkling to implement a rewards system I highly recommend reading this article.
There’s basically two types:
  1. Client gets X points per dollar/pound spent and can redeem them later
  2. Client gets a free service after X services (usually 1 in 10 or 1 in 8)
Both are valid and are easy enough to implement.  What you need to determine is how much discount you’re giving back.
With (2) the client usually gets a better deal, which cuts into your profits more whereas with (1) the client gets points and you can control this better, making them feel like their gathering whilst making sure they only get an exact percent of profits when they redeem.
Examples
For example, if I said 1 point is worth $0.10c and for every $1 a client spends on services they get one point, they are essentially getting 10% back when they claim their points down the track.
If I said 1 point is worth $0.05c and for every $1 a client spends on services they get one point, they are essentially getting 5% back when they claim their points down the track.
As far as the client is concerned they are still collecting points, eg: a $100 service will give me 100 points, which feels great.  Depending on what the points are worth is how much profit they take from you in the end.
What’s best for you?
As you can guess from this article I’m a fan of points rather than the (2) method of a reward card.  This is just my opinion and both are valid, you just need to make the choice for yourself based on your own requirements.
As a benefit, when using Salon Swift, the software will keep track of everything for you.  No need to have cards or try and keep track of who has how many points.
For example, when a client comes in you could prompt them “oh Jane, you have 300 points worth $20, would you like to claim them or continue to build them up?”.
It’s a great system and is fully automated.  It keeps clients happy and loyal and takes away all the paperwork and stress.
What now?
If you’re not using a client reward system it may well be the time to have a go at implementing one.   It takes only minutes to setup and you can then market the fact to your clients using Salon Swift’s marketing tools.  A great excuse to contact your clients and get them back in.