HELP! Loyalty Schemes!

[Essential1]

Please help!!! I have just bought an existing salon which I think has loads of potential and is in a fabulous location - however the loyalty scheme is 1 point for every £10 spent on treatments - each point is worth £1 so basically ALL my clients are getting an instant 10% discount the minute they walk in the door!!!

There are other discount schemes in place for local businesses etc but they still get loyalty points on top of this therefore some clients are receiving as much as 35% discount every time they come in!!!!!

The salon is currently just breaking even so I need to change this dreadful discounting scheme but my staff are screaming that we will lose loads of clients if I stop it! I am worried about this but need the salon to start bringing in a profit.

Can anyone suggest how to clean up this mess and lose as few customers as possible?

Thanks!!

 

[wonderwoman]

well if your new management, simply say that a new loyalty scheme will be introduced at set point and any remaining loyality cards will be honoured or they can be redeemed against so so product etc.

Personally id stop the loyality points but insist that they're visits will be honoured by a non timeconsuming freebie treatment before the new scheme is introduced. Hths xoxo

 

[jacqueline]

"under new management" says it all really.

It is your salon and you just need to explain nicely when clients come in that there is a new scheme in place and do something that isn't going to cripple you, something like book x treatments = 10% discount on next treatment or even better some sort of gift/samples but make sure it is something like 6 or above treatments.

Staff screaming you will lose customers is easy for them, they don't foot the bills.

 

[totalbeauty]

Maybe the staff would like to contribute to the 'loyalty scheme' and donate some of their wages to the clients! This always angers me when my staff object to the changes I want to make to the salon, they still want a pay rise, but want to cut the prices of the treatments, or other similar silly ideas!

Its your business and I would change the loyalty scheme to suit you and your clients and not your staff, you could have a staff meeting and let them put in some suggestions how you go about these changes so you dont alienate the staff, but the bottom line, its your business and your money, you do what is best for you. I wish you the best of luck in your new venture.:hug:

 

[EMMA AT ELITE]

No wonder the other owners were making no profit!
Staff shouldnt comment on how you want to run your salon surely they can see this system could be a massive reason why the previous owners didnt do well!
How about offering a special monthly offer to soften the blow.
Or even a loyalty scheme.(pay for 5 eyebrow waxes get your 6th FREE)
I bet not all the other salons in your area (if any) offered this 1 point = £1 system - & I bet they are doing fine without it!

How exciting for you - your own salon, how lovely
Good luck with your new venture, hope all goes well. x:hug:x

 

[persianista]

Discounting destroys profit, and you are on the right track by cutting it back. I have always used the "extra free" route rather than money off.

 

[Essential1]

Thanks so much for all your support - I am nervous about losing clients but am going to go for it and end the existing scheme from the end of next week!

I think I will need to allow people five or six weeks to cash in any accrued points then I will then launch a new scheme from January.

Wish me luck - I reckon I will get a lot of complaints!

 

[xxhaylzxx]

Good luck its your business and do as you wish i wouldnt have this scheme at all. Dont listen to them you can always find new clients and im sure if the clients like the service they wont go anywhere. You need to start like you mean to go on this is your salon. Yes a monthly offer is a good idea i do these but dont knock lots of money off though i usually do packages or say have this treatment and get a free eyebrow wax or file and polish. Something quick and not costly. Xx

 

[femmefan]

Rather than making clients 'cash in' their existing reward points why not carry on the points scheme but simply change the rewards? Try to think of rewards as added extras that don't cost the salon a lot but give the client a feeling of being special. My clients love to get a free hand or foot massage for 'x' points, or a mini pedicure for 'xx' points etc These extra services can be booked in on traditionally quiet days rather than tacked onto their regular appointments (can be part of the terms and conditions for certain days). Make sure that you state that the points cannot be used for their regular service. This way they get to experience a treatment that they may not necessarily think of taking and could enjoy it so much they tell all their friends about it. No-one tells anyone about the fact they got a discounted treatment, it does nothing to spread the word about your salon, but everyone loves a freebie :lol:

 

[wonderwoman]

U'll be fine! Good Luck! Just keep selling your brand new scheme, and how wonderful it will be in jan 2011, try not to take any negativity! (gives you a good time to prepare!) xoxo

 

[EMMA AT ELITE]

Good luck, you will be fine.
If you get any complaints, tell them as a gesture of good will you are honouring this system for a while, which you dont have to & is costing you to do so. That should put them back in your good books
New year, new start! Start as you mean to go on! x:hug:x

 

[bombini]

I think whatever you do is going to ruffle a few feathers. You can't please everyone and those that complain will surely understand your reasons for doing it and those that don't well, do you really need them ?

Think of the big companies that change there loyalty schemes. Boots reduced the points on purchases a year or to ago and I doubt that stopped customers shopping there.

 

[SalonSwift]

I answered a topic recently on reward points and was inspired to write the following article on reward points:

Client loyalty and reward points | Salon Software News

I hope people find this useful. I'll place this in a few threads related to reward points and welcome any feedback.

Hope it helps,

Rob