With the emergence of modernization and the fashion industry, grooming has become a vital part of one’s life. Nowadays, people are concerned about their looks, and they focus on enhancing their personality. There are weddings, parties, competitions and various functions for which people need to groom and look good. They achieve this by visiting Salons or beauty parlors. The average profit margin of a salon is 8.2%, and that is above the general business average of 7.7%. It is improving with each New Year. It ranges from 2% to 17%, depending on how well the salon performs. As people tend to spend more money on salon services and to get ahead of your competitions, Salon owners need to find ways to increase their Salon revenue. The formula is pretty simple:
- Make sure potential customers find you.
- Make sure they buy your services.
- Make sure they revisit your salon.
There are various strategies by which you can achieve the above-mentioned formula. We will discuss the most important techniques that should be practiced to increase your Salon revenue. They are as follows:-
The first step is to reach out to potential clients so that they get to know about you. People nowadays tend to search nearby salons on google to select a salon by checking the ratings. So, use the Google business facility and rank higher on the google listings. Maintain an excellent profile by adding salon pictures. This plays an important role in increasing Salon Revenue
SOCIAL MEDIA PROMOTIONS
More than 2.1 billion people use social media like Facebook, Whatsapp, Instagram every day on an average. Promotions are a great way to captivate new customers. Devise discount plans, offers like “Buy 2 Get1”, and free deals. You can use these platforms to attract potential customers. Post pictures, promote contests & giveaways, give exclusive deals to your fans who share your content. Showcase Salon info on your social media pages. Make sure you provide correct contact details and salon images. Because customers tend to post negative reviews if what they’ve seen online does not match the reality.
According to a study conducted by The Wharton School of Business, a referred customer is around 20% more likely to stay with the salon over time than someone who found you directly. Referral programs are one of the best ways to get new potential clients and at the same time promoting loyalty with the existing customers. It plays an important role in increasing Salon Revenue/ Sales. The referral program is that your customer refers a friend, and both of them receive a discount. It can be a proper money discount, a free product, or any service for free. But you have to devise the referral program wisely. It’s of no good if your existing customer has to wait for referring ten friends to get a discount. Also, you cannot offer a costly service for free. Calculate the time consumed and charges incurred on the services and according to that, select the free services or discounts to be given. You have to make the reward worth it, or the program won’t work.
GIFT CARDS & VOUCHERS
Using Gift cards to increase the revenue of your salon is a No-brainer. An Excellent strategy used by almost all big brands around the globe. The world market gained $300 billion just from selling gift cards in 2016. Start offering customers to buy gift cards that they can use on your services, or their friends can use them. People tend to present gift cards to their friends and family on various occasions. So, do watch out during the festive seasons. Gift cards don’t cost much as compared to what they bring in return. Do advertise gift cards on your website, social media, banners to encourage your clients to buy them.
CUSTOMER LOYALTY PROGRAMS
It is a rewards program offered by the salons to customers who frequently visit them. Studies reveal that a salon can increase its revenue by 5% using customer loyalty programs. Happy clients are more likely to recommend you to their friends, family, co-workers, and neighbors. You can create your loyalty program; for example, you can provide a 25% or 40% discount to customers on their 2nd and 3rd visits, respectively. Encourage your customers to take care of their bodies regularly with different bonuses. For example, they can get one service for free if they have paid for several in advance. Customer Loyalty programs play an important role in increasing Salon Revenue or Sales.
Introduce a subscription model for your salon. The subscription model is a perfect business model in which customers pay recurring prices at regular intervals to get various services. The critical factors of a subscription model are value for money and Ease of use. In this, Customers won’t have to worry about paying for services every time they visit. It’s paid only once for a regular interval. Plan your subscription model for one month, two months, etc. and make sure that your clients find it cheaper to buy. Various big brands in the market are generating revenue by using the subscription model, and it also ensures the cash flow.
In today’s competitive environment and fast-moving life, people don’t like to wait, wasting their essential time in queues and for bookings. They prefer taking appointments, and that too hassle-free. Promote digitalization by offering online bookings to your customers. Ninety-six percent of businesses prefer taking online bookings. Because they can accept payments immediately, reducing no-shows and thereby avoiding blocking out time that might otherwise have resulted in revenue. It will save a lot of time cutting down phone calls. So, buckle up and create your online booking system. You can use third-party apps too.
People do remember humble behavioral service providers. What matters the most is the communication between the customers and your professional staff. Showcasing a Humble behavior adds the cherry on the cake. It’s all done if you can win the customer’s heart. They will surely revisit your salon and will also refer you. So, train and promote your staff accordingly. Try to engage with the clients by using various creative ways. For example, after an excellent service when you know the client is pleased, ask them if you can take a picture with them and post it on your social media accounts. You can also tag them. They may share it on their social media accounts too. You can also provide a selfie station inside your salon. These engagements leave your good impressions on the customers.
Well, now you have the knowledge about all the marketing strategies to Increase your Salon Revenue. Beat your competitors by applying these strategies. For finding the dedicated staff- visit https://www.letsryl.com/hire – The one and only exclusive online platform for Job seekers and Salon owners in the Beauty and Salon industry. Register here and increase your online presence.