How to increase revenue by selling prepaid wallets to your salon and spa clients?

Did you know that implementing prepaid services can increase your revenue by up to 6.2 times?

Now-a-days people prioritize self care through hair care, skincare, makeup and other treatments, so the beauty and wellness industry is extremely expanding its boundaries. 

It’s important for businesses to explore ways to grow their client base and revenue streams as the market continues to grow. 

There are a lot of strategies to achieve these goals, but implementing prepaid wallets acts as a cornerstone to optimize cash flow, reduce revenue loss, streamline plans and improve client experiences. By encouraging clients to purchase prepaid wallets, you can effectively generate revenue, allocate resources, and invest in business growth without any hassles.

In this blog, we’ll delve deep into how prepaid services can revolutionize your business and increase long-term client loyalty. From understanding what prepaid is and its benefits to understanding marketing strategies and customized prepaids with MioSalon.

What is a prepaid wallet?

A prepaid wallet is an impactful feature in salon and spa software that allows clients to prepay for services and products. These prepaid balances will be stored in a virtual wallet, allowing clients to redeem them for upcoming bookings. It can be created, customized, sold, redeemed, and managed from a single software solution.

Challenges faced by businesses without prepaid

Without prepaid bookings, salons and spas are facing some common challenges, including: 

• The salon and spa may struggle with cash flow and revenue generation.
• There are no guarantees that the client will show up for appointments and purchases.
• There may be a higher rate of no-shows and cancellations.
• Results in overstaffing during slow times or understaffing during busy times.
• Clients may prefer other businesses over yours, which results in competitor growth.

Learn Mastering the Numbers: 15 Salon Reports for Business Growth and Profitability

How does a prepaid feature boost business and client loyalty?

Prepaid wallets offer a wide range of benefits for salons and spas, including an increase in cash flow, enhanced client loyalty, simplified operations and increased revenue potential. Here are the four major benefits of prepaid wallets for your business.

Builds trust

When a client purchases a prepaid wallet, they demonstrate a commitment to their self-care, which leads to a higher chance of returning to the spa and salon regularly. Once they feel assured about your services and experience, they easily trust your brand, and this leads to increased loyalty.

Predictable Revenue

With prepaid services, you can easily track the revenue stream, which provides greater financial stability and shows that the revenue is already secured. Also, it manages the risk of financial loss due to last-minute cancellations or no-shows.

Attract clients

Promoting offers on prepaid wallets can attract new clients and retain existing ones, expand the client base and build brand awareness and credibility.

Simplified operations

Prepaid wallets can help streamline admin tasks like payment processing by collecting tax while selling or redeeming. Also, it offers convenience for clients by allowing them to prepay for services and products in advance, eliminating the need to pay at the time of their appointment.

Read More: Salon Pricing: Tips to Set the Right Price & Increase Profitability

How does the MioSalon prepaid wallet feature increase sales?

The MioSalon prepaid wallet feature can significantly increase sales by offering several advantages to both the salon business and its customers. The prepaid wallet feature in MioSalon can significantly increase sales by offering advantages to both the business and its clients. Prepaid wallet transactions are more efficient compared to other payments. Clients can utilize the amount from the prepaid balance, which eliminates the need for cash or card payments during each visit. Also, salons and spas can easily promote their prepaid wallets by offering discounts, reward points or vouchers.

For an illustration:

The prepaid wallet program implemented by the salon targets 8% of its clientele, offering the opportunity to invest $10,000 in a prepaid wallet with a $5,000 additional bonus, totaling $15,000. If 80% of clients re-enroll five more times, the salon can generate $50,000 in total revenue from repeat purchases. This structure releases a total lifetime revenue of $60,000 per client and increases the lifetime value by approximately six times.

• Targeted Clientele: The program targets 8% of the salon’s clientele.
• Prepaid Wallet Value: Clients investing in the prepaid wallet allocate $10,000, with an additional $5,000 bonus, totaling $15,000.
• Repeat Enrollment: Approximately 80% of clients who join the prepaid wallet program are likely to re-enroll. Assuming a client purchases the prepaid wallet an additional 5 times, this generates $50,000 in total revenue from repeat purchases.
• Total Lifetime Revenue from a Client: Considering the initial revenue of $10,000 from the first prepaid purchase and the subsequent $50,000 from repeat purchases, the total lifetime revenue generated from a participating client amounts to $60,000.
• Increase in Lifetime Value: The prepaid wallet program enhances the lifetime value of a client by approximately six times, as the total lifetime revenue ($60,000) surpasses the initial prepaid wallet investment ($10,000) by sixfold.
  
  Also Read : Loyalty Program for Salons: Enhance Your Salon Marketing!

Conclusion

In conclusion, implementing prepaid wallet services in your salon and spa can increase revenue and enhance client loyalty. In today’s self-care-oriented market, where beauty and wellness services are in high demand, offering prepaid wallets not only optimizes cash flow and reduces revenue loss but also simplifies operations and improves client experiences. MioSalon witnessed offering prepaid wallets boost business revenue and increase the lifetime value of their clients. With prepaid wallets, businesses can build trust, predict revenue, attract clients and simplify operations, which leads to long-term success and growth.

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