Who do you trust more: A google review or your best friend? A paid pop-up advertisement or your mom? Odds are, you probably trust your best friend and your mom. This is exactly why referral marketing works. It is also why you should be using client referral programs for your salon.
When it comes to owning a business, no one knows better than you that running a salon is a lot of work. Between managing clients, employees, and retail, you’ve got your hands full. It can feel nearly impossible to squeeze in time to think about your marketing strategy. But, client referral programs don’t require a lot of energy and they can be incredibly powerful.
Seems like a win-win, right?
A client referral program relies on pre-established bonds between clients and potential clients to build a relationship between you and that same potential client. Individuals who receive a referral from someone they trust are three times more likely to take the recommendation. On top of that, referred clients have a lifetime value that is 4 times higher than non-referred customers.
Especially for salons, having a sustainable way to accrue new customers is critical to the success of your business. So let’s dive in and see how a referral program can revolutionize your business.
What is a referral program?
The first step in creating a client referral program for your salon is understanding what a referral program is. Simply put, referral marketing is a promotional strategy that incentivizes current customers to refer new customers. This strategy leverages word-of-mouth marketing to peak the interest of potential new clients.
When your ideal customer leaves your salon after having a wonderful experience, it’s likely that they’re likely going to tell their friends about that experience. A client referral program takes advantage of the natural tendency to share positive experiences and motivates your client to spread the word.
Generally, businesses will offer something such as a discount off future services or a small gift bag in exchange for referrals. This program is not only successful in bringing in new business, it also rewards loyal customers for their continued business. On top of this, clients who find your business through a referral are significantly more likely to stick around.
Why do you need a referral program?
Why do you need a client referral program for your salon? Because it’s effective.
On average, referral programs bring in higher intent-to-purchase customers. When it comes to your business as a salon, this means more serious customers and a stronger, more loyal client base. Essentially, referral programs are great for building trust between you and your clients.
Why?
Well you have a direct and trusted line to your target audience–your happy clients. It’s likely that your ideal client has friends who are also ideal clients. Furthermore, the client who is referring to a potential client is offering a real-life, visual testimony to your amazing work.
Beyond the customer, referral marketing solutions have relatively low acquisition costs and yield comparatively high lifetime value customers. This makes them ideal for businesses both small and large that are looking for low-cost growth strategies. The high return yielded by referral programs makes them a top-tier choice when it comes to marketing solutions.
So, in total, you’ve got: one low-cost marketing solution, one happy returning customer, and one happy new customer. Seems like a recipe for success.
How to create a salon referral program
Now that you’ve decided to take the leap and try out a client referral program, let’s talk about what that might look like. Setting up a successful referral program can take some work on the front end; but, once you push through that all you have to do is sit back and wait.
Step 1: Make them fall in love
Before you can ask your clients to shout your praise from the rooftops, you need to give them a reason to shout. The best client referral programs are built from the ground up which means providing a great customer experience. This means perfecting the basics and going the extra mile. You can ask yourself questions like:
- How do we know what’s important to our clients?
- How do we handle and respond to dissatisfied clients?
- What are a few professional expectations for employees that contribute to the clients experience?
- Who is our ideal customer and what is the ideal experience?
By answering these questions, you’ll have a better idea of how to curate the sophisticated and memorable experience that will leave your customers raving.
In addition, this phase is a great time to communicate your values. Customer loyalty stems from connection. So, you want to make sure that you’re developing that connection by sharing values that resonate with your ideal clientele. Living up to your values will build trust between you and clients. It will also help drive a positive experience for your customer.
Step 2: Decide what incentives you’re going to offer
Once you’ve dazzled your clients with an unforgettable salon experience, it’s time to offer them an incentive to keep them coming back with their friends. Some common incentives are:
- A free brow service
- A discount on future services (between 10-20% is common)
- A gift bag with product brow samples
When deciding on incentives, don’t be afraid to get creative. After all, no one knows what your clients would love more than you do. Being able to tailor your offering to your clientele will make them feel valued and considered well after they’ve received it.
You can even go a step further and offer discounts on both ends. One example of this might be offering 20% off a brow service for both the client and their referral.
With that being said, deciding on an incentive is a delicate balance of value. you want to make sure your incentive is memorable enough to motivate your clients, but not so grandiose that it puts your business at risk of providing less than quality service.
Step 3: Promote, promote, promote
You’ve curated the experience, established the incentive, and now it’s time to let your clients know. This is an exciting opportunity for your business and your clients. You want to make sure everyone knows what an awesome deal you’re offering.
The best way to spread the word is to simply ask. Explain the program, how long it’s going on, and what the incentives are. Beyond that, you can share the information through your other key marketing avenues. Emails, social media campaigns, or text messages are a great way to get the word out. Of course, you’ll also want to post this offer on your website to make sure all your organic traffic knows about the program as well.
Step 4: Keep track of your referrals
This step is essential to the continued success of your referral marketing program. You can keep track of your referrals manually or by using a customer relationship management software (CRM). A CRM is not essential, but it can be helpful for organizing data about current and future clients as your business grows.
Keeping track of who-referred-who ensures that current clients get rewarded for their referral. It also makes it easier to continue building relationships with the clients who were referred. Sending follow-ups or even a thank you email is a great way to let potential clients know that you value their business.
Beyond your client relations, keeping track of referrals can provide you with valuable insight on the success of your campaign. Metrics like number of referrals, customer loyalty, or simply email acquisition can be indicative of what was successful and where you could tweak things.
If this is your first time executing a referral marketing campaign, don’t be afraid to start small and see how it goes. Your referral marketing timeline, incentives, and even the way you promote your campaign can all be adapted as time goes on.
All in all, referral marketing is a fantastic way to boost your client numbers. Loyal customers don’t have to come at an exorbitant cost. The important thing to remember when carrying out your referral campaign is that your existing customer should feel valued so much that they’re more than excited to hand out referrals.
So what are you waiting for? If you’re ready to change the way you draw people to your business, get started organizing your referral campaign. Eyebrowz wholesale can even help you perfect a goody bag incentive that will keep the referrals coming. Check out our high-quality cosmetics here.