Six ways a loyalty program can boost business
A loyalty program can be a great way to boost repeat business.
Studies show that businesses with a loyalty program can see an increase in repeat business of 20-50% compared to those without one.
But it’s worth noting that a loyalty program isn’t a magic solution and a well-designed program tailored to your specific business and target market is key to see the results you want. And also it’s not just repeat business, a successful loyalty program will bring other benefits to your business as well.
Here are a few ways that a loyalty program can be beneficial for a salon, spa, or barbershop:
- Encourage repeat business: By offering rewards or incentives for customers who visit frequently, a loyalty program can help encourage customers to come back more often, which can lead to increased revenue over time.
- Build customer loyalty: A loyalty program can help create a sense of loyalty among customers, who may be more likely to choose your business over competitors if they feel they are being rewarded for their patronage.
- Gather customer data: By tracking customer purchases and visits, a loyalty program can help you gather valuable data about your customers, such as their purchase history and preferred services, which can help you make more informed business decisions.
- Boost customer engagement: A loyalty program can be a great way to keep customers engaged with your business, by sending them regular updates and offers.
- Create a VIP experience: You can offer a tiered system which give special rewards or treatment for the customer who reached a certain level of loyalty, it can create a VIP experience and make the customer feel special, in this way the customer will have a greater retention rate and will be more likely to recommend to their friends.
- Increase average ticket size: by offering loyalty members discounts on new services or bundle services, your business can increase the average ticket size of each customer, providing more revenue per visit.
What do clients prefer in a loyalty program?
Some customers may like discounts or freebies, while others may prefer points or badges. But in general, people like to see tangible rewards for their loyalty rather than just points or badges.
It’s good to keep in mind that the best way to know what your customers want is to ask them directly. Send out surveys or talk to them, this way you’ll know what they prefer. Also, it’s important to check out what other similar businesses are doing and what’s worked well for them, this will give you some ideas.
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