Why Your Spa Needs a Loyalty Program
Did you know that repeat customers will spend on average 67% more than new ones? That’s why these days more and more spas are doing everything they can to keep their best customers happy.
A loyalty program is one of the simplest and most effective ways to give back to your clients. But more than that, loyalty programs allow businesses to influence customer buying behaviour using targeted rewards.
Health spa and beauty salons have some of the highest potential returns from loyalty programs for a number of reasons. In this article we’ll explore just a few of them.
Who Doesn’t Need a Good Excuse To Go To the Spa?
Spa treatments are generally considered a luxury. Someone may decide to get pampered once or twice a year, or they could show up for a massage only when they foul up their golf swing.
But everyone loves the spa experience. Nothing refreshes the mind, body and spirit quite like a spa treatment. The problem is that sometimes people need a bit more of an incentive to become repeat customers.
Becoming a member could mean special discounts, or it could offer accumulated rewards for repeat visits. No matter how you choose to structure the loyalty program, it gives patrons an excuse to return and enjoy themselves all over again.
A Loyalty Program Helps Customers Justify the Cost
Even for people with deep pockets, the price of some treatments may be a deterrent. The sad truth is that some of the more expensive spa services offer the best results.
Ever had someone opt for a paltry 25 minute massage rather than opt for a full hour, just to save a few bucks? You know in your heart that they would get more out of the longer massage if only there was a way to convince them.
With loyalty programs, you can. Customers may be enticed by the bigger “loyalty points” rewards the pricier option offers. Alternatively, they could be offered a limited time promotional price or a one-time “upgrade” discount to persuade them to try the more involved options. After one hour-long massage session, they will realize that the shorter options are barely enough to warm the muscles up.
People Who Enjoy Spa Treatments Want to Spread the Love
There’s nothing quite like a good pampering. Oftentimes you’ll see your customers glowing after a treatment. And so will their friends. This creates the opportunity for some powerful word-of-mouth marketing.
A loyalty program gives your customers the opportunity to not just talk about how great the treatment was, but actually give all their friends a treatment with a gift card.
But that’s just one application. With a loyalty program you can offer a discounted group treatment as a reward package for repeated patronage. Another option would be to grant people a discount or free service if they bring a friend. For example, Dermatique Medical Spa saw a 15% increase in new clients simply by offering loyalty program members a free brow wax for every referral.
While you may think that offering an eye brow wax for free is silly, when you consider the lifetime value of a new customer, and your ability to entice them to try more and more of your services, it’s nothing.
Further still, you could offer more points for both parties if a first-time visitor mentions a member by name. A simple promise of later rewards can be enough to generate networked business.
Spas Have Loads of Cross-Promotion Potential
Many spas sell beauty products or offer other health-related services. A loyalty program can help you increase the visibility of these peripheral revenue generators.
Coupons can help promote new products, or accumulated rewards points can get customers discounts if they spend over a certain amount. These prospects help drive customers to take more of an interest in any side enterprises your spa might be attempting.
This strategy can work both ways, too. You can ask a local health club that is on a loyalty program to offer a free or discounted spa treatment as one of their rewards. The health club essentially pays the cost, and you reap the benefits of wider brand awareness.
Every Business Has “Down Time”
Every business has “down time”. Yours might be the weekdays or periods in between holidays.
With a loyalty program, you can offer deals for months like March where there are no major gifting holidays. More than that, you can have specials that are targeted at specific subsets of customers.
For example, you can send out an SMS or email promotion to all customers who’ve visited your store more than 8 times in the past year with a special.
Customer Buying Data is GOLD
Loyalty program memberships provide a convenient way to record every session that your best customers ever have with you. That buying behavior is stored forever online, and you get to learn which scenarios increase their likelihood to spend.
More data means more insight on how to improve your business, creating more revenue-generating opportunities. It gives you a whole new perspective on how your clients spend with you.
Your Competition Will Wonder Where Their Clients Went
Very few spas are running effective loyalty programs that focus on the specific needs of their clientele. Your program can help set you apart from the competition. Your regulars will feel a deeper connection with your business, and the promise of recurring discounts or accumulated rewards can drive them to spend more than the normally would.
In the end, more people get the wonderful spa experience, your business gets more revenue and everyone goes home happy.
For more information on loyalty programs, the benefits they offer or how they can be structured, visit The Loyalty Box now.