Salon services have been around for a long time now. A salon is known to take care of the beauty and grooming requirements of people, under one roof. The beauty industry alone makes up 28% of the retail market. Owning a salon is one of the most profitable businesses. However, knowing where to put your money is important. Most salons are struggling to break even because of the overheads and certain factors that drain profits.
In a saturated salon market, standing out of the crowd is not a daunting task if certain tricks and strategies are adopted. Did you know? Acquiring new customers is expensive and time-consuming. Therefore, a salon should make efforts to increase its revenue from existing customers. Attracting new customers is 5X more expensive than retaining your customers. Therefore, if you really want to increase your salon bottom line altogether, don’t let customer relationships fizzle out after the first sale.
Most Popular Strategies Salons Adopt To Boost Sales And Increase Salon Revenue:
1. Create A Loyalty Programme For Regular Clients:
Incorporating a loyalty program in your salon marketing strategy is a fool-proof way to increase the number of visits a customer makes. Just like any other industry, loyalty programs work in the beauty salon industry too. It can increase average salon revenue by 5%. A loyalty program is designed to keep customers coming back for more. However, when you are creating a loyalty program, be smart. In the quest of rewarding your clients, don’t give up major revenue-making opportunities. The idea of offering 50% on their next service may negatively affect your bottom line. You can either come up with a points system or offer a free service on their next visit which is of a much lesser value than what they are paying for. Every client’s loyalty program can be recorded on salon software. Each time a client avails a service, the bonus points will get added to their account. By doing this, clients can keep track of how many points they have for their next visit.
2. Referral Program To Boost Income:
When referral programs are done right, they are win-win opportunities. When an existing customer refers a friend, not just them but even their friend gets a discount. Whether it’s a free product, a free consultation, or any other service, existing customers love it when they get rewarded. Running a referral program also increases the loyalty of certain customers toward your salon. When you offer such incentives, they are more likely to be drawn to your salon and become retainers altogether. Every time a customer refers a friend or family member, you get a new customer. Research says that a referral program is the best way to transform your struggling salon business into a thriving business. When it comes to picking a reward in exchange for a referral, you need to be strategic. Don’t gift a service that is time-consuming or expensive. On the other hand, you have to make the program worth it or it won’t work.
3. Choose A Niche And Make the Most of It:
No matter how big your salon business is, it is almost impossible to be a jack of all trades. When you specialize in everything, clients will doubt your talent. Thus, it is important to find your niche early in the business and excel in it. Once you know your comfort zone, there is no looking back. Focussing your efforts on marketing to a specific group of people does not mean you are excluding those who do not fit your niche. It simply means you are working towards creating a message that fits the type of customers who visit your salon often and bring in the most business. With the help of salon software, you can easily decode your niche. Based on the most availed services, understand why clients visit your salon over your competition. For example: If the majority of the appointments you get are for hair services, brand yourself as a hair salon. This way, you’ll have clients coming in for haircuts, blow-dries, hair color, and so on. Identifying your niche will also help you understand what voice to use in your marketing content.
4. Turn One-time Service Into A Subscription Model:
The best way to retain existing customers and increase revenue is by converting a one-time service into a subscription model. By doing this, you know you have a steady flow of income for your salon. When a client pays a one-time subscription fee, they don’t have to worry about finding extra cash or making an appointment. A subscription model is like a pre-paid service wherein clients already pay for the services they wish to avail themselves in the future. Marketing subscription models via salon software is a significant way of increasing revenue in your salon. Existing customers also offer great opportunities for up-sells and cross-sells. An upsell happens when you convince a regular client to go in for a service of a higher value. For instance, when a client walks in for a regular pedicure, you can try and sell the premium pedicure to them thus resulting in a higher revenue generation opportunity. Cross-selling is similar to up-sell. In cross-selling, you convince a customer to avail of another service in addition to the service they have come for. For example, A customer walks in for a haircut but you tell them their roots need to be touched up, and hence they are in need of hair color. In such cases, a client is bound to listen to you because they find it easier to avail of two services in one session rather than taking the effort of visiting the salon at a different time.
5. Use Salon Software For Appointment Booking:
Most salons suffer because they do not have a full-fledged system to entertain pre-bookings. Most people are lazy to pick up the phone and book an appointment with a hair salon. In fact, 25% of millennials prefer booking appointments online. If you don’t have a 24-hour online booking system, you may be losing business. Therefore, using salon software for appointment booking must be a part of the game. When you offer flexibility in the booking process, you’ll have more clients walking into your salon. Since salon software sends out automated appointment reminders to clients, you can also reduce no-shows. Allowing your customers to do it within the comfort of their homes, and at a time that suits them will definitely reduce cancellations. It also saves time for the salon receptionist because they will not have to constantly call clients to remind them about their appointments.
MioSalon, the salon software, is the best way to increase your salon revenue. Bringing in a structured system will not only streamline things but will also give you the opportunity to focus on marketing and other aspects of your business. The primary reason a salon business suffers is due to the lack of a systematic procedure. A survey of around 20,000 salons showed that over 50% of companies have seen an increase in profit after implementing around-the-clock online booking feature/salon software. To start your schedule a free demo .