Loyalty cards?

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Dolly.Dimple

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Those of you who offer loyalty cards, what do you offer? I was thinking of offering the 6th treatment half price. Does this sound ok or too generous?!
 
My clients get a stamp for each treatment they have. 10 stamps equals £10 off any treatment.

Half price seems very generous...maybe 10 stamps if you're going to do that?
 
Or what if i did every 6th treatment 25% off?? Or would £5 off be better?
 
Or what if i did every 6th treatment 25% off?? Or would £5 off be better?

I offer 20% off on their 5th treatment, however what I am wondering is on their 5th treatment/appointment Do I take 20% of the total bill or just the fifth treatment alone and the rest all the full price?
 
I have to add that I had a discussion with a very trusted client about loyalty cards and she mentioned about the 6th one being free ! Whilst I was shocked, it is certain that they feel that there should be a reward for loyalty. The longer gaps between appointments are telling me something, and crikey I am struggling to hold onto my clients. It's heartbreaking really.

I am going to do a "Reward a Friend" scheme after Easter and then consider the loyalty card at some point in the near future.
 
I have to add that I had a discussion with a very trusted client about loyalty cards and she mentioned about the 6th one being free ! Whilst I was shocked, it is certain that they feel that there should be a reward for loyalty. The longer gaps between appointments are telling me something, and crikey I am struggling to hold onto my clients. It's heartbreaking really.

I am going to do a "Reward a Friend" scheme after Easter and then consider the loyalty card at some point in the near future.

And that's why I ditched my loyalty program pretty early on. I fully understand people wanting bonuses for loyalty but not when we're referring to small businesses/sole traders/etc. We're not huge businesses turning over tens of thousands of pounds like supermarket's and insurance companies. Ultimately people pay for those types of benefits (nectar/tesco/whoever) by a penny added here and there to a high volume product, loss leaders Ultimately result in extra purchases which is the point. We don't have that kind of profit margin to cover those losses.

I offer a £5 discount for new referrals but only because I will make that back from the newbie
 
And that's why I ditched my loyalty program pretty early on. I fully understand people wanting bonuses for loyalty but not when we're referring to small businesses/sole traders/etc. We're not huge businesses turning over tens of thousands of pounds like supermarket's and insurance companies. Ultimately people pay for those types of benefits (nectar/tesco/whoever) by a penny added here and there to a high volume product, loss leaders Ultimately result in extra purchases which is the point. We don't have that kind of profit margin to cover those losses.

I offer a £5 discount for new referrals but only because I will make that back from the newbie

Oh Trinity you have made me even more determined to stay away from loyalty cards now that you have commented. This forum is great at just helping out when needed.
To be honest I nearly threw up when it was suggested that I chuck in a free one after 5. My heart sank after all of my hundreds of pounds worth of beauty products sitting there, opened waiting for them to be used, and then be giving a whole treatment away effectively turning my nails into a permanent price reduction of some 20% !
Honestly would they dare to ask their hairdresser for a free colour ,cut and finish as their 6th appointment ? I doubt that.
Thanks Trinity! x
 
Oh Trinity you have made me even more determined to stay away from loyalty cards now that you have commented. This forum is great at just helping out when needed.
To be honest I nearly threw up when it was suggested that I chuck in a free one after 5. My heart sank after all of my hundreds of pounds worth of beauty products sitting there, opened waiting for them to be used, and then be giving a whole treatment away effectively turning my nails into a permanent price reduction of some 20% !
Honestly would they dare to ask their hairdresser for a free colour ,cut and finish as their 6th appointment ? I doubt that.
Thanks Trinity! x

Good, steer clear. Maybe if you get a good deal on some stock from your suppliers you could offer discounts or maybe a freebie to a super loyal long term client but don't be cornered in to anything you don't want to do.
 
I tried various loyalty schemes over the years. My last one I offered a stamp for every x amount spent on retail and, with 10 stamps you got £10 off your treatment. Clients would only buy retail if it came to the x amount and if it came just under, were peeved. Then they would only book a treatment if they had enough stamps to get the £10 off. My scheme backfired and my earnings dropped that year.
 
I use More-ish for loyalty card. BUT the discount is only for ONE service (the cheapest) in that appointment and maximum £40 if they book something big. You can alter to suit you but keep in control of it.
 
Basically look at your business and see what you need - do you need more customers? Do you have a lot of clients but could fill the gaps by increasing spend per head? Or is it client retention- do you have high client turnaround or less long term clients. Go through your salon diary or with a salon system you can analyse your business easily so your marketing is cost effective.
Loyalty cards are predominantly client retention but use your offers to target what you need -Eg if my salon colour services compared to haircut clients is really low - increase spend per head by offering a colour treatment.
If your trying to increase clients offer +friend discount offer
Rule of thumb is if a client has visited you 3 times you have them as a client and it’s really your level of service vs their own affordability to pay that will keep them coming back. Giving a loyalty card to a new customer gives them incentive to keep coming back and use the offers wisely to increase the treatments they then try. Giving such a hefty discount when they’re a regular customer anyway seems pointlessly throwing money away (unless hey are spending a lot!) Maybe offer a blow dry treatment that an assistant can do so it’s not eating into your takings.
So yes loyalty cards are good if you think about your business not just aimlessly hand them out willy nilly
 

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