If you’re a salon owner, you know how nerve-wracking not having a constant flow of customers through the doors can be.
In this article, we want to give you two things:
- A set of proven strategies that will tell you how to get more salon clients.
- Access to a trustworthy source of something every successful salon needs…
But for now, let’s check those strategies, shall we?
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Why Client Acquisition Matters for Your Salon’s Success
First and foremost, client acquisition is the lifeblood of any salon. Or any other business for that matter. Without a steady stream of new clients, your business may become as stale as yesterday’s baguette. We don’t want that.
Acquiring new clients not only increases your revenue but also expands your customer base, improves brand awareness, and creates opportunities for upselling and cross-selling. In case you’re not familiar with those concepts, we’ll explain them in a moment.
The thing is, it’s essential to understand the importance of client acquisition and prioritize it. Yes, a great service is key. Yes, having awesome talent is essential, but client acquisition is just as important and exactly where a lot of salon owners fail to invest in time.
Here’s what you need to know about it:
Key Performance Indicators for Salon Client Growth
Tracking key performance indicators (KPIs) is crucial for measuring success. Relevant metrics allow us to judge if a particular strategy is returning the desired results or not. And thus, they allow us when it’s time to change or to double down on a possible winner.
Here are some basic indicators you want to track and why they matter:
Percentage of new clients: every business needs to count the revenue coming in. In those numbers, you’ll always see a percentage of it coming from existing, already loyal clients and a percentage that gave you their business for the first time. The latter represented the percentage of new customers the business has gotten.
When you invest in client acquisition, you want to see those efforts reflected in the number of new clients going through the doors, yes, but you also want to see the percentage of existing customers growing month over month.
Client retention rate (CRR): This is the percentage of customers that continue to spend money on us after their first purchase. Say you had 100 new customers in a given month and managed to get a 50% client retention rate (which is an amazing CRR).
That’s 50 customers that will continue to add to your revenue without you having to spend money on acquiring them. They are already customers.
As your retention rate gets better, your muscle for client acquisition investing gets stronger too.
Average ticket size: This is the average amount of money a customer spends on your business every time they purchase.
A salon business has many types of services and pricing for each. For example, let’s say you have a customer named Jesica.
Jessica goes each month to get her hair done ($40), and she also loves to get a pedicure ($30). Jessica’s average ticket value would be around $70.
Of course, the ideal scenario is that our ATV reaches numbers as high as possible. This will allow us bigger profits. The question is, how would you compel Jessica to spend more money with us?
Here’s where upsells and cross-sells come in handy.
Upsells: In short, this is selling to a client more of the thing they are buying. If Jessica loves to get a basic pedicure ($30), she could be interested in enjoying a premium pedicure which includes a 10-minute foot massage ($40). Same service, but a bigger ticket.
Cross-sell: this is selling a complimentary product to a customer. Since Jessica loves pedicures, next time she comes, you could offer her a bundle of nail paint valued at $15, so she can play around with new colors and styles. Sum that with the premium pedicure as the upsell, and you’re getting her ATV from $70 to $95. Now Jessica has become a customer worth almost 25% more.
Not bad at all.
Customer lifetime value (LTV): This is how much money a customer spends with us from the moment they become a new client until they stop choosing our services.
LTV is such a key metric because of this: let’s say Jessica’s LTV is around $600. With that number in mind, we could say we’re willing to pay up to $50 to acquire a new client similar to Jessica, as we’re going to get our money back and make a profit.
LTV is probably the most important metric we want to improve on. But to do that, we need to understand what customers want:
Understanding Your Target Audience and Their Needs
To attract more salon clients, you must have a deep understanding of your target audience and their specific needs. That way, you’ll know exactly how to approach them, which aspects of your business you should improve on, and the best way to fulfill your customers’ wishes.
So, to gain a deep understanding of your customers and connect with them effectively, follow these steps:
Conduct thorough market research to gather valuable insights about your target market, industry trends, and consumer behaviors. This includes knowing about what your competitors are offering to spot opportunities for improvement.
If your competitors are failing at something, that’s probably an easy way for you to alleviate customer frustration.
After you’ve implemented those changes, analyze the data to gain a competitive edge and make informed decisions for your salon’s growth.
Create detailed buyer personas, which are fictional representations of your ideal customers. Remember Jessica? We described her as an ideal client of yours. To build a buyer persona around her, you’d need to ask yourself all sorts of things.
Once you’ve built these personas, use them to tailor your marketing messages, services, and offers to resonate with them. That way, you’ll resonate with your potential customers.
Key Steps in Creating Buyer Personas:
Identify demographics: Age, gender, location, and lifestyle.
Dive deeper: Uncover specific characteristics and traits that define your target audience.
Conduct surveys, interviews, or focus groups: Gain valuable feedback and insights to understand their pain points and expectations.
Personalize experiences: Use the insights to create exceptional customer experiences that exceed expectations.
Is important to remember that consumer behaviors and trends evolve, so regularly update your findings to stay relevant in the industry.
Encouraging Word-of-Mouth Referrals and Positive Reviews
In a world filled with technology and where new ways of improving communication worldwide emerge almost every day, word-of-mouth is still King.
These referrals, as well as positive reviews, can be powerful tools for attracting new salon clients.
Encourage satisfied clients to refer their friends and family by offering incentives or loyalty rewards. Provide exceptional customer service and ensure every client has a memorable experience at your salon. Promptly address any concerns or issues clients raise and actively seek feedback to improve your services.
Listening is key. If you listen carefully, your most loyal clients can give you insights that will have a great impact on your business.
Encouraging Client Reviews and Testimonials
Online reviews and testimonials play a significant role in shaping consumers’ decisions. Ask your clients to leave reviews on popular platforms like Google, Yelp, and Facebook. Showcase positive testimonials on your website and social media channels.
Monitor and respond to reviews, both positive and negative, to demonstrate your commitment to client satisfaction and continuous improvement.
Creating Special Offers and Promotions to Drive Client Growth
We already talked about how important LTV is. And offers and promos are an awesome way to extend a customer’s LTV, but they can also help you win more business.
Offering a discount coupon or code for new costumes might feel bad because you’ll be eating your margins, but it’s probably a small price for a new customer.
If your LTV is healthy, you can confidently lower the entry barrier for someone to become a client. After all, you’ll recover that investment with that person’s repeat purchases and potential referrals.
Do introductory discounts, referral incentives, package deals, seasonal promotions, or value-added services. Promote these offers through various marketing channels to generate buzz and attract potential clients.
Providing Exceptional Customer Service to Retain Clients
Client retention is as crucial as client acquisition. Providing exceptional customer service is key to retaining your existing clients and turning them into loyal, long-term customers. Train your staff to deliver personalized and attentive service, listen to client needs, and exceed expectations. Adequate installations and equipment, along with keeping your staff on top of the latest beauty trends and styles, also contribute to an exceptional salon experience.
Salon Equipment as a key retention factor and Where to get it:
Salon Spa Wholesaler (SSW) is a direct importer and manufacturer. This means that anybody who gets their salon equipment, products, and furniture with them is saving money. SSW cuts the middleman so all their customers can find the best deals, and on top of that? They promise to match any competitors’ prices. In other words, if you find the same product in another place but cheaper, they’ll match that price.
From high-end styling chairs to haircare products, they have all a salon owner would wish to have in their business.
And if you are in Houston, love to learn new skills, or prioritize having a staff filled with the best talent, SSW also offers FREE classes every Monday at their office for stylists eager to evolve and sharpen their skillset.
If you want to check what they have in store, click the button below.
Or if you’re more interested in saving your spot in one of their incoming FREE classes, click the button below.
Go get those clients!
Customer acquisition lies at the heart of a thriving salon business. By understanding the needs and preferences of your ideal customers, you can unlock opportunities for growth and improvement. Take the time to conduct in-depth research, delve into market insights, and create detailed buyer personas.
While the thought of implementing changes may seem daunting, remember that every journey begins with a single step. Start by selecting a priority objective, whether enhancing your online presence, improving customer experiences, or exploring new promotional strategies.
Embrace the journey, embrace the opportunities, and let your passion for beauty shine through every interaction with your clients. They will love you for that.
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