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Salon Today Monthly Perspective
February 11th 2010 - SALON TODAY…ASKS, “How do you help you salon customers boost their client retention numbers?”

Kristi Valenzuela, Salon Success Coach
Crystal Focus Salon Coaching, owner
Summit Salon Business College, co-owner

Client retention is at a historical low for the salon industry. Studies show that “repeat client” retention is at 79%, and “new client” retention is only 29%, this has dramatically dropped over the past 5 years. Clients are customer service savvy, and they are conscious of what they are writing in their checkbook. In addition to the hardship of keeping clients, existing clients are spreading out their appointments to better accommodate their beauty budget!

It’s time to get focused on a 5 point strategy to build trust, and gain loyalty the clients that are coming through your salon doors.

1. GET BACK TO THE BASICS

• CUSTOMER SERVICE

• Treat them as a guest rather than a client.

• Give them an experience rather than an appointment.

• Be excited when they walk in, and tell them you appreciate their business when they leave.

• FUNDRAISERS / COMMUNITY EVENTS

• Show you care, and they will feel cared about

• Support local fashion shows, charity events
• Get involved in National Campaigns that make a difference

• Breast Cancer Awareness , Help for Haiti

2. ENROLL YOUR TEAM

• EDUCATION

• Every educator you invite into the salon whether it’s a haircutting class, color class, or a product knowledge class should also touch on how to keep your clients longer with these techniques.

• GOALS

• Without a map, you can’t know where you are going! Summit Salon Business College, and the Michael Cole JUMP JOURNAL offer specific recommendations for total monthly client count, repeat business, and referrals. These goals keep your business steady in hard times.

• REWARDS

• What gets rewarded, gets repeated! It’s important to celebrate goals that are achieved. Extrinsic motivators are prizes, cash, etc. While intrinsic motivators, which are proven more effective include recognition, and achievement. A high-five from a salon owner can go farther than a fifty dollar bill!

3. LOYALTY PROGRAM

• STAND OUT FROM COMPETITION

• Like an airline frequent flyer program, or hotel valued guest plan, salons can create preferred client behavior patterns such as retention by offering rewards.

Envision Software has a great program that automatically tracks preset rewards for clients each time they prebook an appointment, purchase retail, send in a new client referral, or buy a gift card. You decide the points, you reward your guests.

4. MARKETING/ ADVERTISING / BRANDING

• IN HOUSE – Make creative use of your marketing budget by using the money to keep the clients you have rather than market to new clients. Do a Pre-book and Win Contest, Retail Contests, Referral Contests, or Additional Service Contests. When clients have fun, YOU WIN!

5. STAY FOCUSED!

• KNOW SALON BUSINESS TRENDS

Stay close to monthly reading in Salon Today magazine as well as industry websites that support and grow salon owners. Look for business trends, reports, and other salon owner advice in the articles. Then compare your reports, and take advice from others that have done it right!

• KEEP TRACK

You can’t win the game unless someone is keeping score! Keep track, compare your yearly revenue and expense reports as well as looking at each month compared to the same time last month. When you are looking for clues in client retention, look at your numbers in monthly client count, new client count, and repeat client count.

• ASK FOR SUPPORT

You would be crazy if you think you could do this on your own…or want to! There are great resources out there to support you! Utilize your distributor sales consultant for local “what’s working advice”. Reach to the experts…there are many depending on your situation.
My favorites…summitsalon.com, michaelcoleseminars.com, redken.com, pureology.com, crystalfocus.com.