While the ultimate goal of any business is to grow, you don’t want to become so focused on recruiting new clients that you forget about the ones you already have. The key is to cultivate and reward client loyalty so that those clients continue to be loyal for years to come. Here’s how:
Track Your Clients
Clearly, your most valuable clients are those who frequently visit and spend money in your salon. But to ensure that loyal customers remain loyal, you must keep track of them. Specifically, you want to look at the last dates each customer has visited the salon (recency), how often they are coming in during a given timeframe (frequency) and what they spend each time they visit (monetary value). Shortened, these three profitability measures are known as RFM. (Hint: Your software should provide some or all of this info.)
Once you have started gathering client data, you’ll need to categorize your findings. Group customers by dividing them into two subcategories based on how they rate in each of the three tracking categories. For example: an R1 customer would have come into the salon more recently than an R2 customer; an F1 customer visits more frequently than an F2 customer and an M1 customer spends more than an M2 customer. In simplified terms, an R1F1M1 is your VIP customer, while an R2F2M2 has less value to your business. Keep in mind that the reason you are tracking your clients is to determine their profitability to your salon, which will determine how they should be handled in regard to reward programs.
Reward Loyalty
Once you figure out which of your clients rate as VIP customers, you can begin to develop reward strategies to thank them for their business. Your VIPs might receive special discounts, the ability to capitalize on promotional offers before other clients, frequent-buyer rewards and so on. If you are adding a new product or service, consider giving your VIP customers the chance to try it out at no charge. There are many ways to acknowledge your clients’ loyalty, and by rewarding them for it, you are letting them know that you appreciate their business. In addition, this treatment makes clients feel special and important, which inspires them to visit—and spend—more often.
Listen To Customer Feedback
Your clients (VIP or not) are an invaluable resource to your business in regard to feedback. They can offer insight as to how they view your salon and business processes—because, let’s face it, you aren’t always the most objective party when it comes to what is working. In addition, their feedback allows you to determine what products and services to provide, who to target and what the market is willing to pay. However, asking clients face-to-face for input isn’t always the best way to get an honest response—your clients may not want to hurt your feelings. Anonymous surveys, whether via forms you pass out in your salon or send through e-mail, are a better option for generating pertinent feedback. When implementing a survey process, think about what aspects of your business you would like to have customers comment on, then generate questions that will provide you with the information you desire.
The bottom lne. Tracking and rewarding loyal clients are key ways to ensure they continue to patronize your salon. Plus, their feedback can help you improve your business—which will only help you expand your clientele.
