A Step-By-Step Guide to Salon Memberships Programs

Do you want to thrive in your existing salon business but need to know how? Then it's high time you introduce salon membership programs, as they are the sure-shot strategy to grow your business.

Engaging your customers with rewards, compelling offers, freebies, and other perks is an excellent way to outshine your competition in the market, leading them to visit your salon frequently. Additionally, by adopting this development strategy, you will likely gain new customers through word of marketing.

Hence, implementing salon loyalty programs can do wonders for your business. However, how do you build a membership scheme that actually works? This is why we have typewritten this step-by-step guide, exhibiting how to create the best salon management software that helps in boosting revenue and customer retention.

But before we jump to benefits, let us familiarize you with the salon membership program.

What is a Salon Membership Program?

A salon membership program involves a client having to pay a monthly or annual fee, which in turn gets them a "membership discount" either on the selected range of services or on all of the salon services. The membership benefits might include discounts, freebies, gift hampers, and other perks only accessible to members.

Since we have a vivid picture of the salon membership program, we shall move forward to its benefits.

4 Benefits of Salon Membership Programs

Customer Retention

It's fantastic to have new customers, but what's more incredible is having customer retention. According to the statistics, loyal customers spend 67% more with a business than new ones. In fact, a 5% increase in customer retention correlates with at least a 25% increase in profit. With the above numbers, you must have comprehended why customer retention is crucial for your business. You will not only gain customer loyalty but also have adequate Returns on Investment (ROI) and acquire new customers. Moreover, the average customer retention rate in professional service is 84%, so when you invest your time and resources and enforce creativity to improve retention, your existing customers will be satisfied, wanting them to continue returning to your business.

Stable Remuneration

Another significant benefit of implementing a members-only loyalty program is that it will help you combat inconsistent cash flow. Once the customer signs up for a membership program, they deposit the fee upfront, ensuring a fixed income source without any fluctuations. As long as your customers opt for a year-long membership plan, you can collect the fees altogether at once. In any event, their preference is a monthly program; you can activate a salon membership plan with recurring payments. The manual requesting payment option will remind them at each monthly billing cycle, reducing the chance of late or missed payments.

Profitability with Upselling

A salon is an establishment where most customers spend their hours and money, creating numerous opportunities for you and your staff to offer a particular recommendation based on the necessary treatment they require. There are various scopes of how you can utilize this strategy, like during the treatment, consultation, at the time of booking, after the billing, and through product placement. Of course, a friendly conversation opens every door; nevertheless, don't be intrusive while proposing your additional services and products to them.

More Bookings

Imagine your salon being booked every day with no gaps in the appointments. Wouldn't that be amazing? This magic ensues when you exert membership schemes for your business. Besides providing seasonal offers and occasional deals, consider expending perks during the off-season. Not only will it raise your number of bookings, but it will also help use your staff to their full potential, which in turn leads to increased productivity.

Now that you have a comprehensive erudition of advantages, we will take you to the next topic of interest - Membership Models.

3 Types of Salon Membership Models

Client Loyalty Membership System

Our initial membership program typically indicates the customers disburse a fee every twelve months or on a monthly basis. This program allows them to get additional discounts, perks, or freebies on all or a few services or products at the salon. For instance, when customers have a membership program under their name, they can enjoy a range of services from the menu to pamper their skin and body. At the time of final billing, they are issued an additional discount on the overall cost or gifted with goodies or products.

Packaged Services With Discount Over Membership

Under this service model, members have attributed a predetermined set of services, which can be combined in a bundle with different types of services available on the menu, allowing customers to choose in accordance with their preferences. Depending upon their membership period, you can set up a fixed array of services. Let's walk you through an example. You can give a haircut, two blowouts, and a complimentary bang trim for a year at a fixed amount. You can always replace the complimentary bang trim with some other service - a pedicure or maybe a hair wash, based on the choice that fits both you and your customers. When you enlighten your customers with alternatives, you earn their loyalty. What's more, your customer will visit you frequently to take advantage of the included services.

Unlimited Monthly or Yearly Membership Model

The last membership model is where the customers have to make an outright payment over their monthly or yearly membership fee, allowing them to avail of specific services at unlimited times. For example, you can give out unlimited access to your customers over manicures, pedicures, and facials for a year at a fixed rate. This model advances the chances of your customers to dwell in your salon at regular intervals. On top of that, your staff can foster their relations with your regular visitors and advise them on what will best suit their hair or skin type. The best part about unlimited memberships is that you don't have to administer or track a record of how many services have been exercised.

To Sum Up,

Having a salon is undeniably the most lucrative and flourishing business you can have, as the modern era is swayed by the beauty and wellness industry. Likewise, managing it can be mind-boggling, which is why we endorse you to leverage a salon POS (Point of Sale) system.

At Dotbooker, we offer you automated, cloud-based POS software that will empower your salon business and assist in easing your billing and CRM requirements by leaps and bounds. To learn more about POS systems, say hello to our experts in this field, who will guide you from head to toe regarding the entire product.