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Loyalty & retail sales: The best kept secret in the industry

Posted on 23rd October 2013 by Debbie Miller


If I were to ask you “are you loyal to any particular businesses?” your answer may be found in your wallet or on your key ring. I’m talking about the loyalty cards you have - grocery stores, drugstores, retail stores, airlines, restaurants, hotels and car rentals (I could go on and on). Frequenting certain businesses and tracking my purchases deeply impacts my decision of where I spend and how much I spend, and I don’t imagine you are much different.

Staying loyal to one airline provides me the opportunity to get free upgrades, get in the express lane for airport security and I must admit gives me a leg up on travel, but I feel I earned it!

As a business owner yourself, one of the best indicators that your salon is a successful business is based on your ability to sustain your existing clients and deliver the best possible customer service at every opportunity. Loyal returning clients directly impact your revenue and the good news is you have more control over their loyalty than you think.

The cost of finding new clients will always be much higher than the cost of retaining them. The cost of finding even more to replace the ones that left can devastate a salon. Don’t believe me? Consider this – the numbers show it takes at least five new clients to replace the value of a single loyal client who visits regularly and refers you new business. 

But here is the best-kept secret- a great loyalty program can be the best defense against product diversion. You know- the reason why clients won’t buy retail from you because they can find the same cheaper down the street at the drugstore. I know- it’s not supposed to be there- but it is.

Your best defense is offering your clients the ability to turn the dollars they spend with you in to valuable points that can be used towards purchasing professional retail products and hard tools. Remember- a strong combination of enticing promotions drives clients to your door and providing a solid automated loyalty program keeps them coming back and spending in your business.

Blog Author

about the author

Debbie Miller has been a driving force in education and building business strategies for more than 25 years with cosmetology schools, private salons, distributors and professional beauty manufacturers across the globe. Today, Debbie proudly works with the Shortcuts team and together, focuses on the development of Smarter Business Technologies that impact the professional beauty industry.

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