Three years ago, we launched a Buy Six Get One Free Loyalty Card in the salons, which has proved very successful since. But, although the scheme worked well most of the time, when we calculated how much we gave away (especially on top of corporate discounts) we were sometimes discounting quite heavily for some clients – to the tune of around £20,000 ($31,268) per year across three salons. Our salons sales were increasing each year, but we don’t want to give away too much profit if we don’t need to.
So, we developed a new two-tiered scheme that is simpler for the client, more marketable for us and easy to manage.
10% Off For Everyone
The first thing did we did was get rid of the Buy Six Get One Free system and replace it with a 10% off for all. We already offer group discounts in the salon to large companies and organisations like local Slimming World and Weight Watchers groups, so this is just an extension of that. This is how it works…
New clients must spend £50 in the salon before we give them a loyalty card – they have to earn it. They then get a small key fob card that can be placed on a key ring for safe keeping. They must show the loyalty card each time to get their discount and if they lose it, they must pay 50p (less than a dollar) as a small replacement fee.
By creating a key fob style loyalty card we are almost encouraging the clients to ‘show off’ their card on their keyring – and most do.
We do have some limitations. The 10% off discount can not be used against any other discounts or offers in the salon or against any money-saving courses. We save money by giving away less than we used to with our old loyalty scheme, but the client gets 10% off all standard treatments and services in the salon.
The VIP Card
We also wanted to create a more exclusive club for some clients with some added extras. So, we created the VIP card. We also decided we were going to charge for it – £100 per year (approx. $150).
Clients who sign up for this scheme get much more for the added money:
- 20% off all full price salon treatments, tanning and beauty packages.
- 10% off retail purchases in the salon.
- 10% off treatment courses (these are already discounted so this is an added bonus).
- Also, if they are signed up to our salon late list, they benefit from last minute discounts of 50% instead of the usual 30%.
When the client signs up, with give them a small questionnaire, one of which is “Which treatment have you never had that you’d really like to?”. So, when it’s their birthday, we also send them a printed birthday card, signed by their therapists with a voucher for that treatment.
Both Salon Loyalty Cards came from Premier Plastics in the UK.
I was expecting some negativity towards the new loyalty scheme, but most clients much prefer it because it’s simpler. As for the VIP scheme, we expected to maybe sell ten. We ended up selling 24 in the first two months, generating some quick income to more than cover the costs of the whole campaign.