3 Reasons Why Retaining Customers Makes Salons and Spas More Money

The COVID-19 pandemic has forced salons and spas to drastically change the way they operate their business. Even though strict regulations have caused you to limit the number of clients you can have in your salon or spa at any given time, that doesn't mean your focus on bringing in new customers and keeping your existing ones should take a back seat. However, it does raise the question: who should I be targeting with my marketing efforts?  

As a salon or spa owner, what do you do when you find yourself at the crossroads of attracting new clients or appealing to the ones you already have? Though establishing a healthy balance between the two is important, believe it or not, client retention is less expensive than focusing on attracting first-timers. 

So, what does this mean for your salon or spa? 

Sure. We all want more clients and to fill every appointment, but your marketing efforts and service offerings should cater to your already existing client base. 

Here are the three biggest reasons why loyal clients can be worth more to a salon or spa business than first-timers.

1. A loyal client will cost less 

New clients can be an expensive commodity. In fact, it costs roughly five times more for small businesses to attract a new client versus simply trying to get an existing client to come back. It comes as no surprise that advertisements are not cheap. Small businesses specifically shell out about 7-8% of their annual revenue on advertising efforts. 
 
Put that money back in your pocket and stop spending money with the hopes of just attracting more customers through your doors. Instead, consider creating a membership program to encourage your loyal clients to continue to book their next appointment with you after each service. To learn more about how a membership program can increase client retention at your salon or spa, check out our interview with the owner of Emerson Joseph.

2. A repeat client will spend more money  

Simply put, a repeat client equals more money. There is no arguing that. It’s a methodology that governs many business owners’ thought logic. However, there’s also a huge opportunity for salon or spa owners to increase their sales through existing customers. 
 
The more you can get a client to come back to your business, the more loyal they will become—and a loyal customer is much easier to upsell or cross-sell to than a new one. 

Think about it. You’ve already gained a loyal customer’s trust. So, if after their service you pitch your new service add-on and explain how it’s perfect for them, repeat customers are much more likely to purchase it over a new customer you just met.

3. Let’s get those referrals 

As we’ve touched upon, a repeat client can be counted as a loyal client. Loyal customers aren’t wishy-washy when it comes to choosing a salon or spa. They know who they want, who they trust—yes, we’re talking about you! 
 
Essentially your salon or spa business has made a friend, but don’t forget your new friend has friends of their own. Unlike a new client, a repeat client is extremely likely to tell their friends about how your business is the best place for quality service. By focusing on promoting repeat customers, your business has the indirect benefit of reaching a new network of customers—for free!