How to Increase Salon & Spa Business by 30%?

by Megha Choubey February 24, 2021
salon and spa businesses

Spas and salons provide an ideal place and atmosphere for the people to relax and groom themselves simultaneously. If you are a Spa or Salon owner, you might be thinking all the time about how to increase your customer base. Growing a Salon and Spa business requires implementing the right set of marketing strategies and ideas.

It is estimated that 28 percent of the retail market is made up of the cosmetics industry alone. One of the most lucrative businesses is running a salon or spa. However, it is crucial to know where to put your money, because of the overheads and such variables that rob profits, most salons or spas fail to break even.

Standing out from the crowd is not a daunting challenge in a saturated salon market if the right tricks and techniques are implemented. It is costly and time-consuming to obtain fresh clients. A salon should, therefore, make efforts to increase its sales from current customers. It’s 5X more costly to recruit new clients than to keep your clients. Therefore, after the first sale, if you really want to increase your customer base, don’t let the existing customer relationships fizzle out.

We will look at some of the most common tactics implemented by salons in this article to raise sales and increase revenue.

Create a loyalty program for regular clients

Your salon marketing campaign is a fool-proof way to maximize the number of visits a client makes by incorporating a loyalty program. Like every other industry, in the beauty salon industry, loyalty schemes operate too. Average salon sales can be increased by 5 percent by implementing a loyalty program. To keep consumers coming back for more, a loyalty program is intended. Don’t give up big revenue-making opportunities in the effort to reward your customers. Your bottom line could be adversely impacted by the possibility of providing 50 percent on their next service. During their next visit, you can either come up with a points system or give a free service that is of far less value than what they are paying for. The loyalty program of each customer will be reported on spa or salon management software. The bonus points will be applied to their account every time a customer has a service. Customers can keep track of how many points they have toward their next visit by doing this.

Referral program to boost income

If referral systems are done correctly, they are a win-win option. When a current customer refers to a friend, a discount is not only offered to them, but also to their friend. Whether it’s a free product, a free consultation, or some other facility, when they get rewarded, current customers love it. Running a referral program often increases some clients’ loyalty to your salon. They are more likely to be attracted to your salon when you offer certain benefits and become retainers altogether. Each time a client refers to a friend or family member, you get a new client. Research says a referral program is a perfect way to turn your failing salon company into a flourishing business. You need to be strategic when it comes to picking an incentive in return for a referral. Don’t provide a service that is costly or time-consuming.

Choose a niche and make the most of it

It is almost impossible to be a jack of all trades, no matter how big your salon business is. Clients would doubt your talent when you specialize in everything. It is therefore important to find your niche in the company early and excel in it. There is no going back once you know your comfort zone. Focusing your marketing efforts on a particular category of individuals does not mean that you are ignoring others who do not suit your niche. It simply means that you are focusing on developing a message that suits the type of clients who regularly visit your salon and bring in the most sales. You can easily decipher your niche with the aid of spa and salon software. Understand why consumers visit your salon over your contest, based on the most used facilities. For instance, brand yourself as a hair salon if most of the appointments you receive are for hair services. This way, you’re going to have customers coming in for haircuts, blow-dries, the color of hair, etc. You will also know what voice to use in your marketing material by defining your niche.

Turn one-time service into a subscription model

By turning a one-time service into a subscription model, you know you have a steady flow of sales for your salon. A subscription model is like a pre-paid plan where customers already pay for the services they want to use in the future. Marketing subscription models through salon software is an effective way to improve your salon revenue. Current customers often provide great opportunities for up-sales and cross-sales. An upsell occurs when you encourage a regular customer to go in for higher-value service.

For example, if a customer walks in for a normal pedicure, you might try to market the premium pedicure to them, resulting in a higher chance of generating sales. Cross-selling is equivalent to up-selling. In cross-selling, in addition to the service they have come for, you encourage a customer to access another service. A customer comes in for a haircut, for example, but you tell them that their roots need to be touched up and they need a hair color. In such situations, a customer is bound to listen to you because, in one session, they find it easier to use two facilities rather than making the effort to visit the salon at another time.

Use salon software for appointment booking

Many salons suffer because they do not have a full-fledged system for pre-booking entertainment. Most people are lazy enough to pick up the phone and book a hair salon appointment. In fact, 25 percent of millennials prefer to book online appointments. You could be losing business if you don’t have a 24-hour online booking system. Therefore, it must be a part of the game to use salon apps for appointment booking. You’ll see more customers coming into your salon when you provide flexibility in the booking process. You can also decrease no-shows because salon software sends out automatic appointment notifications to customers. Allowing the clients to do so within the comfort of their home, and cancellations will certainly decrease at a time that suits them. It also saves the salon receptionist time because they won’t have to continuously call clients to remind them of their appointments.

Conclusion

For most salons and spas, the problem is learning how to use what you have and to be more effective. Use these six ideas to get you started if your productivity rate is below 85 percent. Some of the tactics will work for you immediately, others will yield outcomes down the line. To track progress, run your productivity reports each month.

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