Ever wondered how to create a loyalty program the way your competitors do?
Anyone would tell you that a great relationship comes with a little bit of give and take.
And this also applies to business. A strong, lasting relationship with your customers is essential in this competitive beauty industry. You have to keep your customers loyal; the best way to do so is to keep engaging them.
One thing that always works is a loyalty program. But what is a loyalty program, and how can you use it to keep your business booming? 🤩
Let’s help you get started with a loyalty program that encourages long-term loyalty of your hair extension customers.
Why to Create a Loyalty Program?
Have you ever gotten a free drink after purchasing ten of them?
Or your local supermarket offers you a discount after your long-term purchases.
Those little perks must have made you feel great. Loyalty programs are things that a business does to make customers feel valued and more connected to the brand.
Consequently, it is not limited to stores. Your hair extension business can use this same concept. Loyalty programs show your customers that their continued support is appreciated and rewarded.
It builds a sense of connection and trust with your customers. Plus, they make them look forward to buying again and buying big.
Over time, this will only boost your profit margin.
Here are the steps for you to get started with it.
Define Your Program Goals
Before you launch a loyalty program, you need to be clear on what you want to achieve.
Are you looking to increase the number of people bookings, sell more products, or encourage referrals? If you are looking to do any of these, then you can get into a loyalty program.
These specific goals help you create a program that aligns with your business strategy. We recommend that you start with one primary goal, like getting repeat visits.
Then, you can now expand your program as it gains traction.
Choose the Right Type of Loyalty Program
Not all loyalty programs are the same.
Neither should you try to imitate just anyone you find. Your measure of success might not be equal to theirs. So, it is very important that you find one that works for you.
There are about four common systems that work well for hair extension businesses:
Points-Based System
With a points-based system, customers earn points for every dollar they spend shopping in your store.
These points can then be redeemed for products, discounts, or special services. Because this system is very straightforward, your customers will be more encouraged to spend more.
For example, you can tell them they will “Earn 1 point for every $10 spent. Collect 100 points and receive $20 off your next purchase!”
Tiered Rewards Program
Tiered programs are more complicated.
They reward customers based on their spending levels.
The more they spend, the higher their tier and the better their benefits are. For example, a three-tier system with Silver, Gold, and Platinum.
Silver members get 5% off after spending $200, Gold members receive 10% off after spending $500, and Platinum members enjoy 15% off after spending $1,000. Customers who want to earn more will spend more.
Punch Card System
If you want a classic approach that’s simple and effective, try this. It is also quite unique, as not a lot of people use it.
Customers receive a physical or digital “punch” for each visit or purchase. Once they’ve reached a set number of punches, they earn a reward.
You can tell them, “Get a punch for every purchase over $50. Collect 10 punches and receive a free hair care product.”
Social Rewards Program
This is a very engaging program.
It also helps if you are a new business that wants to get the word out there.
It encourages customers to engage with your brand on social media. You can reward them for shares, likes, and tagging friends.
The end goal of this is to boost your online presence while making customers feel more connected to your brand.
For one, you can tell them they stand a chance to win a giveaway every time they share a photo of their new clip-in extensions.
Select Meaningful Rewards
When customers get to the finish line, they want to earn something very exciting.
The key to a successful loyalty program is offering rewards that your customers truly value. Here are some ideas:
- Discounts on Future Purchases: A percentage off their next visit or purchase.
- Exclusive Access: Early access to new hair extension products.
- Free Products: Complimentary hair care items like shampoos or brushes.
- VIP Services: Priority booking is available during busy seasons.
Invest in the Right Technology
Managing a loyalty program manually can be cumbersome.
Invest in a digital system that tracks customer purchases and points automatically.
There are many affordable point-of-sale (POS) systems designed for salons that include built-in loyalty program capabilities.
Promote Your Loyalty Program
A loyalty program only works if your customers know about it.
Offer a small reward, such as 10 bonus points, for signing up to encourage initial participation.
Promote it across all your channels:
- In-Store: Use signage at your checkout counter and inform customers during their visit.
- Online: Add details to your website and share on social media.
- Email Newsletters: Announce your program to existing customers and send regular updates with their points balance or upcoming promotions with your email marketing.
Common Pitfalls to Avoid When You Create a Loyalty Program
Even well-intentioned programs can stumble.
Here are some mistakes to watch out for:
Overcomplicating the Program
Keep it simple.
If customers find the program confusing, they’re unlikely to participate. Use straightforward language and make earning points easy to understand.
Failing to Promote It
Don’t expect customers to know about your program without some effort on your part.
Consistently promote it both in-person and online.
Offering Unappealing Rewards
Rewards should be enticing enough to drive customer behavior.
If the perks don’t align with what your clients find valuable, they won’t be motivated to participate.
Ignoring Technology
Paper punch cards may seem nice, but in today’s digital age, they can make tracking difficult.
Invest in software that offers seamless management and allows customers to keep track of their points on their phones.
What to Expect from Loyalty Programs?
Creating a loyalty program for your hair extension business can deepen customer relationships, increase repeat visits, and boost sales, along with using Google Ads to skyrocket well.
By choosing the right type of program, offering valuable rewards, and promoting it effectively, you can create a system that keeps your clients coming back with a smile. 😸
Start simple, adapt as needed, and watch the loyalty (and business) grow!
