The Cost of Cheating Clients
A solid base of loyal clients can mean the difference between salons that flourish vs those that fail. Even if you are always attracting new clients through your door, the ones that left you are costing you big time. Why, you ask? Consider these facts:
- It costs 5 times more to attract a new client than keep an existing one
- A 5% increase in customer retention can increase a company’s profits by between 25% and 95%
- 80% of your company’s future revenue is likely to come from 20% of your existing customers
- Studies show that in our industry when a stylist leaves, up to 30% of their clients follow them. It is your clients' loyalty to your business rather than just to your individual stylists that will help to protect you from these losses.
The important point about loyalty is that you should never take it for granted. Above and beyond offering a great quality service, you need a strategy for recognizing and rewarding those clients that stay with you, and refer you new business.
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