Put On Your Event Planner’s Hat

I hope you have been enjoying our focus on loyalty programs and how to reward our clients. We have covered loyalty cards — a way to reward our clients for purchases, referrals, and pre-booking, etc. Last week we talked about a Top 100 program that honors our Top 100 clients with perks only for them. Today, we're going to talk about client events. This week we will start with a few of the ideas that had to come together to make this work. Over the next few weeks, we'll finish the article making it a series.
I never realized how important it was to have client events until my business partner and Summit Salon consultant MaLissa Young shared the benefits with me. Her idea was to have a client event at least two to three times a year. Her passion behind doing this event? To get our clients to bring their friends to see our spa/salon, meet our staff, and see what wonderful services we have to offer. Sounds simple right?
Well the concept is, but MaLissa did a lot of work to make this event a success. Her list was long: get the staff to buy in, send out invites, think of services to offer, make signs and entry blanks, gather gift bags, provide food and beverages, and a whole lot more.
First of all, we had to pick a date. We decided a Friday night would work best. Lots of our clients work and this way they could stop by on their way home. This open house would feel like happy hour. Our salon closes at six o'clock on Fridays, so 6:30 seemed like enough time to get the food out and get it all organized. Our event was from 6:30 to 9 p.m. We provided sub sandwiches and a sparkling non-alcoholic beverage. (Minnesota prohibits alcoholic beverages in a salon.) We talked with the sub shop in our mall. We said we would put a sign by the subs that read, "Enjoy a sub sandwich compliments of _____” and, just like that they agreed to provide the sandwiches for our event. That was awesome; the sub shop gets seen by tons of people at our event and that cut out costs too.
We decided this would be a Top 100 event, exclusively for our Top 100 clients. We sent out invitations to our Top 100 announcing the event. The invitations were sent out a few weeks in advance to give our clients time to mark their calendars. They could bring a friend, and we asked that they RSVP. We also called our clients a week before to remind them of the event. This also allowed us to get a more accurate head count for food, gift bags, etc. The front desk took care of addressing the invitations, mailing them, getting RSVPs, and making the confirmation phone calls. They were very helpful in this process and allowed us to take care of other things for the event.
We talked to our staff and had to get them to buy in. If you have a younger staff, it's hard for them to give up their Friday night for work. We talked about the importance of being there to greet your clients and about the referral rewards. If your client is coming in and she is bringing her friend, you get to meet that friend. Nail techs, you get to provide a complimentary Shellac application and tell them about our fabulous pedicure room and pedi parties. Stylists, you get to provide your clients and their guests with a complimentary consultation and brow wax service. There were other services available, I was just giving you examples.
Whenever you get the chance to touch a client and get her in your chair, the chances of getting her to come back to you more than double. We had a signup sheet in the back room asking for our staff to commit. The staff was excited at the chance to meet new clients and just come to have fun. They understood the importance of being there as an opportunity. We provided complimentary services all night and boy was the staff busy! They had fun, the night flew by, and all of them got to pre-book some new clients. In fact, the staff that wasn't there was jealous when they heard about how fun the event was.
Check back next week for more about client events. Rewarding your clients the fun way — with a party! One more way to help you stand out above the rest and become the BEST!
— Jill

Husbands Get the Hint With Client Wish Lists

I love the idea of the Top 100! That sounds like a great program to start in our salon as well, Jill. I love that this is a way to not only reward the guest for their loyalty, but to also get them to try different services that they may not know we do or that they simply have not tried. It will take a few days to implement but I cannot wait to see how our guests respond to the Top 100 rewards.
 
We have also just recently started a program in our salon to take a service wish list from our top guests. Since we can now track birthdays in our upgraded software, we have a form for them to fill out if they would like to tell us which services they would like to receive as a gift from their loved ones. We then ask that they give us e-mail or mailing addresses for the people they would like notified of their wish list when their birthday, anniversary, or a holiday approaches. We can then send out the list to the spouse/loved one as a gift idea. I think that it may be a great way to increase our gift card sales as well as serve our guests’ wishes better.
 
I got the idea from one of my guests who used to work with a jewelry store in the area. The employees would pay attention if one of their clients liked a particular item of jewelry and call the husband to let him know of the item. It resulted in many sales for them because no one likes to struggle to find the perfect gift. To be given an idea is very helpful to the gift-giver and practically guarantees the recipient will love it. I thought that this idea would work really well in our salon environment too because so many of our clients have mentioned to me offhandedly that they wish their spouse would just get them gift cards instead of the new tabletop grill. Or that they would dearly love for their family to get together and get them a spa day. We are still gathering information from our guests to implement the program but I am excited to see how it goes over the next several months.
 
— Sandy
 

A Program to Reward Your Top Customers

Thank you for your comments about the loyalty cards. Keep posting comments — Sandy and I love hearing from our readers. The past two posts were about loyalty cards and how we all have them floating around in our purses. Practically everywhere you go you can get a loyalty card from a business. Some are punch cards, some accrue points and some will give you discounts. This is the time of the loyalty card and it seems that most everyone is offering one or they have one in the works.
My salon decided to test another idea for a loyalty card last year. We decided to give our loyalty cards out to our "Top 100" clients only. We ran a report on our computer system that showed the clients who spent the most money in the salon. This is how we got our Top 100. The Top 100 clients that spent the most money received a special invitation in the mail. On the front of a large postcard it read, "Thank you for your loyalty in 2011. You have been chosen as one of our Top 100 clients for 2012. Enjoy benefits throughout the year. Please mention this card when booking your appointment. The Top 100 benefit is for the addressee only."
On the back of the postcard we had a complimentary service item for each month — including a complimentary hot stone massage upgrade, updo, lash tinting, mini foil, etc. The services that we chose to put on our postcard were services that we currently offer, however not everyone may know about these services or takes advantage of them. Because these Top 100 clients spend the most money in our salon, chances are that they do most of the big ticket services we offer. I have a full-service salon that offers hair, nail, skin, and massage. The majority of the Top 100 does receive services from all of these departments; that's how they became a Top 100 in the first place. So instead of offering them services they already got, we decided to offer services they didn't receive or know about.
Each month the Top 100 called to make an appointment to receive their free service. Typically, they did it with another service they had already booked. We heard rave reviews from our Top 100 clients. They were excited to be "chosen" as a Top 100 and many clients thanked us for picking them. Others jokingly said, "Don't let my husband know how much I spend here." We did not run around tell our clients how they were chosen. We told them that we were glad to call them one of our Top 100 clients. Keep in mind that the Top 100 clients may fluctuate from year to year depending on their spending.
We also noted in the computer system who the Top 100 clients were so the front desk staff was alerted to give them extra-special treatment. We also became very aware who our Top 10 clients were in our salon too, the people who spend the most. The following year we noticed that some of the Top 10 had changed. This gave us an opportunity to give those clients a survey. This survey was to see what we were doing wrong, because we saw them less over the last year. We also asked for suggestions as to what we could do to make their experience better and what services they wanted us to offer. This was a great tool and it really helped us to see what our top clients wanted.
Here is what we also learned: Our Top 100 didn't like carrying around the same post card for a year and getting it punched each month. A lot of them asked if we could send a post card every two months reminding them of the Top 100 specials that were exclusively for them. So, we did. Yes, it cost us more in postage, but we listened to our clients and the redemptions for the Top 100's went up. Here is another thing we learned: We were not redeeming a ton of the Top 100 free services as we thought we would. On average only a quarter of the cards were being redeemed each month. This is because it is only for the addressee, so they could not give the service to their friend, daughter, sister etc. It is exclusively for them. The services also do not appeal or apply to everyone on the Top 100 each month. What I mean by that is maybe they have short hair so the complimentary updo does not apply to them. They can have their hair styled if they wish instead, but still not all 100 cards were redeemed each month. So, it did not cost the salon a fortune to offer these complimentary services to our Top 100 clients. Instead they were given a choice each month to get the service if they wanted to. Nonetheless, they felt valued as a customer and that they got special treatment for their loyalty. Taking care of your Top 100 clients — one more way to help you stand out above the rest and become the BEST!
— Jill

Loyalty Program Pointers

If you are just tuning in, we are talking about loyalty card programs. Be sure to check out last week’s post on the same topic. This series is just options/suggestions that I’ve come across when out on the road consulting. You and your salon can figure out what you want to offer as a loyalty program. Some reward systems can be found in your salon software, and you just haven’t accessed or researched how to use them. Some are high-tech and others can be done simply by making your own loyalty cards. You do not have to offer all of these options; start small and just offer one. See how it goes. It’s something to talk to your clients about and it will only keep them coming back to you. When I talk about the rewards, I may say points or punch — it’s the same thing I am just giving you options. It may depend on what your salon offers.
 
> Referral Rewards: If a client sends in a family member or friend they will receive something in return. They may receive a gift certificate, voucher for service, or $10-$20 off their next service. Referral rewards are very important; we always need fresh faces. Some salons give clients rewards in segments. An example would be a complimentary paraffin treatment for your first referral, complimentary nail polish for your second referral, $10 off for your third, and so on.
 
> Add-on points or punch cards: Get a punch or points every time you get an add-on service. After a certain amount, you get an add-on free.
 
> Double Days: Many salons run double days. This can be a certain day of the week or a week- or month-long promotion. (I suggest offering it during your slower days or months.) You may decide to let clients receive double points for any one of your loyalty rewards. Offer double points when they prebook their next appointment, purchase a promo, or send in referrals. You can focus on different reward every month by offering double points.
 
Here a few tidbits to remember when starting a loyalty card point system:
 
> Offer points just for signing up. This becomes your call to action. It gives your clients a reason to enroll today.
 
> Offer bonus points for liking your Facebook page, signing up for your e-mail club, joining your text club, or for posting a comment on Yelp, Yahoo, or any other review-based websites. We all need good reviews on the websites out there, so encourage your clients to help you out. You never know, it may be those reviews that get a client to walk through your doors.
 
> Offer a point for every dollar spent on retail or product purchases — just like the airline repeat flyer mile clubs do. Most airlines give you a mile for each mile traveled and that seems to work well and make the math easy. When your client reaches a certain amount, give them a gift certificate as their bonus. They can spend it however they want and they love getting the gift certificate as a bonus. They can gift it to a friend to and then get points for a referral. That’s a win-win situation.
 
> Offer bonus points if they purchase the retail or service promotion. We all have promotions and monthly specials going on in our salons. Why not create a buzz around those promos by offering a bonus if they make the purchase? This helps to support the promo and get the promotional product moving. Some clients will do anything you offer just to get their points.
 
> Offer bonus points when they purchase gift certificates. This is great one because it rewards everyone. The client gets her points and we as a salon get a client out of it. It also keeps the money in the salon. This is a great way to promote gift certificate sales too. Ask your clients what they have planned for the weekend. If they have a wedding or baby shower, for instance, suggest a gift certificate as their gift. Tell them they will receive bonus points as well.
 
There are many plans out there to choose from. You can purchase hard cards or make then yourself. Start rewarding your clients and jump on the loyalty card reward wagon. Be sure to post your ideas for loyalty cards. We love hearing from you.  Loyalty cards keeping clients loyal — one more way to help you stand out above the rest and become the BEST!
 
— Jill

A Rewarding Practice

This is true Jill. I counted my loyalty cards and had dozens. They require an organizer all their own so they don’t clutter up my wallet.  I use several of them every week around town. For the loyalty reward cards for department stores and membership cards,  I have an app on my phone that I scan the cards’ barcodes into. Then I can pull them up and have the cashier at the store scan them to credit me with my reward points or to get my membership information. It has been a great organizational tool for me.
 
Loyalty programs are a great way to show your clients that you value their business. We use a few different types of programs. First of all in our salon we have a stamp card for product purchases that the client keeps and when full is good for a percentage off of their next purchase. These have been really good for our guests; they love being able to get a reward for their purchases.
 
 We just recently upgraded our computer software and are now trying to implement birthday tracking. I have always tracked my clients’ birthdays but it was not a salon-wide practice. I think it will be a great way to really show our appreciation for the whole salon to get into the act. I know when I receive a birthday card from anyone it makes me feel special, especially since I was born on a major holiday that usually overshadows it. That is why it has always been my practice to observe clients’ special days.
 
We have started to offer rewards drawings to clients that pre-book as well. That is something I learned here on this very blog a few months ago and it was a smashing success. We really had a good increase on the clients who pre-booked appointments, especially with our newer service providers. It gave them a low pressure way to ask for the pre-book and once the contest was over they were so accustomed to asking for it they no longer felt uncomfortable doing it. So this technique had dual rewards for our staff. We now run a pre book contest every few months to just give the service providers a goal to work towards and to give the guests something to look forward to.
 
As for the pedicure/manicure clubs, this is probably our second most successful client loyalty program. Our guests love this and habitually take advantage of the buy three, get one free. Many will pre-purchase the package just to be sure that they don’t run out unexpectedly.
 
All of these programs and techniques have been proven successful for us. I think if you try one or two you will see just how much they can help your business to stand out from the rest and become the best.
 
— Sandy

A Look at Loyalty Card Options

Do me favor and go get your purse before you read this article. Look inside. Try to see past the miscellaneous receipts, loose change, and multiple tubes of lip gloss or lipstick. How many loyalty/punch cards do you have in your wallet? Let’s be honest — how many are floating around in your purse? Everywhere you go now days, there is a loyalty card. Currently, I have dozens in my purse. I have one for gallons of milk, one for gas, one for shoes, several restaurant cards, etc. It has gotten to the point that I had to buy a loyalty card organizer, just to keep up and keep them organized.
 
Does your salon have a loyalty program? What are you doing to reward clients for coming back? There are many elaborate programs out there. Some have cards that have to be scanned, some are punch cards, and some are just tabulated by a computer system. Loyalty cards can range in price, options, and function.
 
You have to decide what you want to track and reward. Here are a few things I have seen through my travels consulting in salons:
 
> Birthdays: Clients can receive some kind of discount or reward on or around their birthday. I have seen gift bags, products, and gift certificates given to clients for their birthdays. Some loyalty systems even alert you with a list of clients that have birthdays during the month. Some salons send cards to their clients or alert them to come in to receive a special perk during the month of their birthday. When implementing this program be sure to only ask for your client’s birth date and not the year as some may be offended by that.
 
> Pre-booking: Some salons will give you points for booking your next appointment prior to leaving the salon. I have seen a slew of offers to get you to book your next appointment. Some salons offer $5 off your service when you pre-book. Others offer a punch card — book a certain number of appointments and receive 20% off your service.
 
My salon has been very successful letting the client choose to put their name into the drawing of their choice when they pre-book. We have four choices: Enter to win a complimentary massage, pedicure, facial, or haircut. When they pre-book they get an entry blank. They have to fill out the entire entry blank. Name, address, phone numbers, e-mail address. We read every entry blank and use the information to update our information in our computer. They then put their name into the drawing of their choice. You may choose to draw a winner weekly or once a month. This is a low-cost way to entice our clients to prebook and see what services they would like to try. We take their entry blank and update their information in our computer system. We also send them a postcard with a special offer for the service they put their name into. For example: $39 facial, pedicure, or massage. We do this because we know they are interested in the service because they put their name into the drawing.
 
> Pedicure/Manicure Clubs: Buy three, get one free. Your client would pay for the three pedicures upfront. For paying upfront they will receive a 25% discount, plus a complimentary pedicure. Some salons offer punch cards. After a certain number of pedicures have been purchased, they may receive half off of their next pedicure or they may receive a complimentary polish or purse-size lotion of their choice.
 
> Product Purchased Cards: Some salons offer a punch card that works like this: Every time you make a purchase, spending $10 or $20 on products, you get a punch or stamp. When you fill the card, you receive $20 towards products or a percentage off of your product purchase.
 
These are some of the most common benefits I see in salons on a regular basis. There are many more elaborate systems and reward programs. You don’t have to do all of them, your salon may only offer one or two of these items mentioned. You can start a punch card easily by making up one yourself.
 
Tune in next week for more loyalty card ideas. Loyalty cards to keep your clients loyal — one more way to help you stand out above the rest and become the BEST!
 
— Jill

Simple Touches Keep Clients Coming Back

I remember when we had all of those problems, Jill. It was a struggle to get some of the staff to retail and get them to ask for referrals. That did not make them comfortable at all and so it didn’t happen. I had trouble retailing; I struggled with making the offerings to the fill clients I was seeing twice a month, because I was so gridlocked. It took us all a while to really put the business strategies into practice, but we have all worked really hard on improving those skills here and I think it shows. 
 
Yes Jill, the hair team really worked on their referrals. They asked all of their clients if they knew of anyone who would like to have their hair done and gave them referral card specifically geared towards that person. They also really promoted the two new-to-our-salon members on the team. Those two would work at the front desk during down times and introduce themselves to the clients coming in. They would also hand out referral cards whenever they were out and about town. They really did an amazing job. Now they just need to work on making sure those people come back.
 
Keeping the clients you have and making the most of them is crucial to a thriving business. We use several methods to help keep our guests happy and coming back. One of those ways is through contests. Clients look forward to winning and it is something different. We run contests for the guests to enter via Facebook and also in salon all the time. It is a really fun way to catch their eye.
 
Another way we work to keep our clients is by the good old-fashioned practice of hand-written thank you cards. New guests get one, anyone who gives us a referral gets one, and I send them randomly to my guests throughout the year just to give them a little surprise. I try to do this around their birthdays, but some of our guests don’t give us that information so I have a list that I work through. It is really amazing to see how the guests respond to this. They love it and they remember it.
 
Sometimes the simplest of things can be the most effective. Like, selling the benefit of a product rather that the product itself, asking for your clients to recommend their friends, and having a way to bring them back are all simple tasks but can really make your business grow on a much larger level.
 
— Sandy
 

Work Those Business Skills

The referral contest winner at Sandy’s salon sure did a lot to increase her referral base! The beauty of all of those referrals is that the new referrals will tell their friends and they will tell their friends and so on. There will be so many new faces in her chair. You have to keep working on referrals; it's a never ending business practice. We all need new faces, since you never know when someone will leave you, move, or stop coming to see you.
When I consult in salons, referrals are something we always talk about. It is an important part of our business. Yes, as a salon owner I can pay to advertise with a billboard, newspaper ad, or commercial, etc. That is a good way to BUY clients. But, a referral by word-of-mouth is golden. The reason for that is people trust the opinions of their friends, family, and coworkers. If they say they received exceptional customer service and a fabulous pedicure or manicure, people want to know who provided such a service.
Another way to get referrals is to ask your clients for them. Ask your clients to send their friends, family, coworkers, and neighbors to you. This is something else that is covered during my visit — creative ways to market yourself and your salon. There are many ways to ask for referrals, but not all of them work. Sometimes we feel uncomfortable asking our clients to send people to us. We aren't sure how to word it and most of the time we talk too much and we lose our client’s attention. I can help with those feeling of anxiety and give your salon creative ways to get the referrals rolling in.
Retail-phobia? Are we afraid to offer a retail item to our client for fear of rejection or that uncomfortable "no." Don't sweat it. There are ways to ask without making it feel like selling. I will help you and your nail department to feel confident when making that retail suggestion. We usually have the wrong delivery that makes us feel like we are pushing the product onto our clients. There are ways to get the product to go home with your client without a pressure sale. During my consulting visit with your salon, I will help you over the fear of retail and give you ways to sell the benefit and not the product. It's all in the verbiage and the words you choose.
Client Recovery Program — do you have one? Does your salon? How do we recover clients who have fallen off the map? How do we bring them back? Do we have a system to get those first-time clients or clients we haven't seen in a while back? We think about it, but do we ever take the time to set up a system and keep it in place. We may follow it for a month and then forget about it. We all want those clients to come back, but how do we recapture them? I have a system that works to get those clients back in you salon. I will share this with the staff. Together we will get those clients to walk through your doors again.
We can see that there is a lot more to running a successful business than just polishing nails and making them pretty. We have to work at our business skills DAILY! We can be an average nail tech with an average life, making average money with our average skill set and service or we can take it to the next level. We can become an exception nail tech with service standards and high client retention who makes money while using her business and technical skills. Which one do you want to be?
E-mail me at jwilson@summitsalon.com if you or your salon is interested in having me consult on location. Conquer your fears and turn despair into profit. I would love to meet you, come to your salon, and help to rebuild your nail department. Let's get your salon on the fast track to growing and showing profit. Professional business and technical consulting exclusively for the nail department — one more way to stand out above the rest and become the BEST!
—Jill

Referral Contest Results Revealed

Thank you, Jill. Without your coaching we would not be where we are today. It has been tough but it has been worth it to work towards making our nail department a success. In the beginning it required a lot of changes to our thought processes and we each had to learn a new service procedure in order to have the same standard. It was at least a good month or so before everyone had the new procedures down and were familiar with the new add-on menu. It was another couple of months before everyone routinely remembered to make the add on offerings and retail offerings. With having some turnover in the nail department it took even more time to really be able to work as a team towards our goal of raising our percentage of the salons income to closer to 15%. I feel as though we are finally accomplishing what I set out to do back when you first came to Misbehaven to help us to build our nail department.
 
On another note we finally have the results of the referral contest. A member of the hair team ultimately won the night at the bed-and-breakfast. They were amazing and really deserve the reward for a job well done. The way we kept track of the referral percentage was to take the two months before and look at our own percentage of our goals. These are preset and individual based on what level you are and what department you work in. Then we compared them to the last two months’ percentages, counted the amount of increase, and added it up by team. The winning hair team of four had over 300% of their goals. Outstanding!
 
Rachael and I did fairly well. Rachael kept even at 117% and I raised mine from 181% to 225% a 44% increase. Though we didn’t win the contest we worked really hard to maintain our referral goals and to increase them. This means we won too; we won new clients and the opportunity to make sure they have the best service we can possibly give them. Referrals — one more way to stand out from the rest and become the best!
 
— Sandy

Which Are Your Problem Spots?

Yay Sandy for getting your nail department to 12% — that’s huge! I know that it was not an easy task to get the department to that level. One thing for sure is that it really takes willingness. It takes willingness to want to change and then to make a change. You have to be willing to have an open mind, take constructive criticism, and work towards commitment. It takes the whole department to make it work, not just one person — it takes a team.
 
Sandy’s salon owner Jeanese brought me into her salon a few years back. They were struggling with service standards, no add-on menu, and a lack of product knowledge of professional and retail products. They also had trouble getting the stylists to buy into our system. Like Sandy said, they had stylists who were doing the services to keep busy. Now, they get why there is structure and service standards.
 
In addition to being a salon owner and nail technician, I also consult for Summit Salon Consulting Group. When we are in salons helping them to build their business and a nail department needs help, they call me in.
 
I go to the salon and consult on site. There are many things that come out of a visit, and every salon is different and has different issues that need to be resolved. In most salons, I work with the staff to develop an additional service menu. Some salons already have a menu, but it has not been updated or they aren’t sure how to use it with a client. I help them to introduce the menu as a tool. The staff feels like they are making an offering so their clients know about all of their options instead of feeling like they are selling. I help staff to overcome those feelings and help them to close the sale without pressure.
 
Another issue is service standards; this is something you have heard me mention several times. There are usually too many service providers doing different services using different products. The client should have a similar service each time she visits your salon, no matter who provides the service. The only thing that should change should be the personality of the service provider. The client should have a similar service with their first, 18th, or 40th service. This is always interesting to me. I sit down with the staff and discuss the services they provide and I am never surprised how different each service is explained to me. In the end, we as a department with the owner agree on standards that will be beneficial to the entire department.
 
Products are another area of concern. I find that many salons aren’t selling the products they use during the service. All of the techs are using many different kinds of foot files and then if the client wants it, the salon doesn’t retail it. Secondly their retail shelves have a coating of dust on the products. Have you ever had to wipe off the dust on a bottle of polish before showing it to your client? The shelves are dusty with so many products. The products I usually see on the shelves are outdated, old, or have been sitting there forever. You can tell that by the condition of the box. I help to streamline the products so we only sell what we believe in. Some retail shelves I see are so cluttered with an abundance of products that I tell the owner if you want to see where your money is, go visit your retail shelves.
 
Professional products are also an area of contention. The owner is often frustrated by all of the products she has stashed in cupboards, cabinets, and drawers. The owner has spent a small fortune on products that the staff has said they would use and then the products just sit there. This is why most salon owners are reluctant to purchase yet another product for the department. The techs say, “If I we get peach paraffin, the clients will come.” Yes, some will come because of the peach scent, but the truth is we should be able to sell the paraffin even if it is unscented. I help with that and make product recommendations.
 
If you want me to consult in your salon or talk to your owner contact me at jwilson@summitsalom.com. Consulting your salon — helping you to stand out above the rest and become the BEST!
 
— Jill

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