Salon client retention is essential to ensure the growth of your beauty business, without it you risk losing your most loyal customers to your competition. Not only can this be financially damaging, but this can also effect the reputation of your salon. Therefore, for you to maintain a viable and healthy beauty business you must understand why maintaining and increasing client retention is essential to your salon.
Here are three reasons why maintaining your salon’s client retention is so important:
- Attracting New Customers is Expensive
Acquiring a new customer, on average, can cost up to five times more than it does to retain an existing customer! Instead save your money and reduce your new client marketing expenses by focusing your efforts on your existing clients. One way to do this is by introducing; client loyalty schemes. Many salon systems may already have a loyalty scheme in place, if not you could start your own. This scheme works by rewarding your existing customers with a free treatment through a points system. Research has shown that 81% of clients say a loyalty program encourages them to continue going back to the same business.
- Repeat Customers Are More Profitable
Existing clients are 50% more likely to try a new service or product and spend 31% more than new customers! This is because loyal and valued customers know and trust your business compared to your competition. Never underestimate the importance of listening to your client’s needs and requests. If you show them you value them, they will value you in return and will be more likely to pay a premium for your products and services. Carry out regular client consultations in your salon, even if that client has had the same treatment numerous times. Consultations will make them feel they are getting value for money and receiving the same treatment as the first time they came to your salon.
- A High Client Retention Rate Increases The Value of Your Salon
According to salon sale experts a high level of repeat customers increases the value of your beauty business when the time comes to negotiate the sale of your salon. This is because a higher client retention rate indicates your salon is performing well and there is a strong opportunity for future growth. That is why many salon buyers will pay a premium for salons who already have a strong client retention base, because there is less risk involved for the new buyer. They can skip the time, effort and money it takes to acquire new customers and instead reopen and continue running the business where the previous owner left off.
Overall, the number one rule for any beauty business owner is to keep your existing clients happy and continue to build strong relationships with them. This in turn, will increase your salon’s profits, performance and reputation.