Why Salons Can No Longer Afford to Ignore the Power of Memberships – Career

Ask any salon owner or operator in the country what two things top their business priority list and virtually everyone will say the same thing: grow revenue and improve client retention. In the salon industry, these are the be-all and end-all metrics, the holy grails for which we can and have turned over every stone imaginable. 

Well, almost every stone. 

 

 

 

According to new data from Boulevard, despite their collective desire to open new revenue streams and improve client satisfaction, most salons have yet to meaningfully explore the world of memberships. That’s a shame too, because the data also shows that memberships represent a massive well of opportunity for the salon industry, capable of driving everything from stronger client retention and more frequent return visits to more robust retail sales and increased staff productivity. 

Before we dive deeper into the data, let’s address the question on everyone’s mind: Are membership programs even relevant to salons? That’s the pushback I often hear when speaking to folks in the industry about membership programs — sure, they’re probably great for spas and medspas, but they’re not for salons and barbershops. And in fact, the data doesn’t overtly dispute that notion. (I’ll save my rant about how salons and spas/medspa have far more in common than you might think for another day.) Roughly half of all spas and medspas have an active membership program, compared to roughly 15 percent of hair salons, nail salons, and barbershops. That’s indeed a big gap.

But what if you shifted your point of view? What if, instead of looking at it as only 15 percent of my competitors are doing this, you look at it as 15 percent of my competitors are already doing this? What if you look at it as 15 percent of the competition has a head start leveraging memberships as a means to differentiate their businesses and stay ahead of the game? 

That changes things quite a bit, doesn’t it? 

Any way you look at it, it’s time to start learning, experimenting, and figuring out how to best tap into memberships as an added resource for your business. 

Retention + Revenue 

According to Boulevard’s data, among businesses with active membership programs, member clients are 88 percent more likely than non-member clients to come back for another visit within 60 days. They also schedule three times as many appointments per year than non-member clients and spend nearly 75 percent more on retail. The data also showed that businesses with top-performing membership programs achieve 22 percent higher average monthly revenue per service provider. 

So, to recap: Improved loyalty? Check. More appointments? Check. More revenue? Check. More productive (and thus happier) staff? Check. 

Once you disabuse yourself of the notion that membership programs are only for spas and medspas, the case for building one at your salon becomes virtually unassailable. An effective membership program is a valuable tool for your salon. Period, full stop. 

Designing your membership program 

Ready to take the leap? Great, now the real work begins. Launching a membership program and transforming it into a high-performance asset for your business is challenging and getting off on the right foot is essential. First things first, make sure that your program is chock-full of benefits for your clients, and just as importantly, that you and your staff can clearly and confidently articulate those benefits to them. Remember, if this is new for you, it’s new for them, and you’re going to have to educate them on the benefits. 

Now, there’s no magic formula here. Your clients are unique and so are the things they value. Maybe your clients value the long-term savings that a membership program can help them achieve. Maybe they value getting a bevy of additional perks (i.e., trial access to a new retail product, invitations to exclusive events). Maybe they value the certainty and reliability that a membership program can bring to their hectic schedule. 

Your job is to understand what motivates your clients and design a program that not only accentuates those things but does so unambiguously. Ambiguity is the mortal enemy of an effective membership program. However you structure your program, make sure you prioritize clarity. When a client joins your membership program, they should have a clear understanding of what they’ll receive, how frequently, and at what cost, and that understanding should be shared by your staff. 

While you’re busy designing a program that thrills your clients, don’t forget to think about your own needs as a business owner. When possible, shape your membership program around your highest profit margin services, and look to bundle additional services together as much as possible to ensure both you and your clients are getting the maximum return on investment. 

Execution is everything 

Of course, designing the program is only the start; now you’ve got to implement it. Do so in a way that minimizes friction and creates the most seamless possible experience for both staff and member clients. That means creating a system in which staff and clients can manage all aspects of their memberships online, everything from booking their appointments to adjusting their preferred method of payment to receiving reminders and other important communications. And it means automating everything you possibly can, from program renewals to text and email communications. The more you and your clients can seamlessly manage their membership experience in an online space, the more staying power your program will have. 

Client experience above all else

As you start your membership journey, never forget that what matters most in our business remains unchanged. While membership programs represent an exciting and hopefully profitable new paradigm through which to view your business, at the end of the day, client experience still reigns above all else. So, whether you’re implementing a multi-faceted membership program or giving a simple cut to a walk-in client who you may never see again, remember that you can never go wrong delivering an amazing client experience.  

About the Author:  Shanalie Wijesinghe is the Content Strategy Director at Boulevard, where she lends her industry and platform expertise to both in-house staff and partner salons and spas. A salon industry veteran with more than 14 years of experience working for high-end luxury salons such as Sally Hershberger and BENJAMIN, Wijesinghe was previously a sales engineer for Boulevard and blends her knowledge of the beauty and technology industries to help put the company’s partners and employees on the path to success. A Bay Area native and first-generation immigrant, Wijesinghe is a graduate of the Paul Mitchell School specializing in cosmetology, styling, and nail instruction.