Loyalty Programs: Keep Clients Coming Back

[00:00:00] suzanne: It could be a point system. VIP membership. Where the client, you know, pays monthly or annually, and exclusive benefits to those members.  

[00:00:08] darine: Welcome to this week's episode of Beauty Babble. Today we're talking about loyalty programs. We're going to talk about what they are, pros and cons, and how to implement them if you choose to do so. Why don't you kick us off, Suzanne? Tell us, what, what are loyalty programs? Well, it's,  

[00:00:28] suzanne: it's a marketing strategy, basically to bring your clients back, to encourage them for that repeat business, and how to set yourself apart, I guess, from others. 

[00:00:38] suzanne: But it's really that ongoing business, and I don't mean that they have to come see you every week. It's just, how do you keep that same person choosing you for that service  

[00:00:47] suzanne: so we're trying to think of okay, things you should consider the pros and cons of it and how do you even set it up? 

[00:00:53] suzanne: So we thought if we bring this into something really simple, so it could be a point system. It could be a VIP [00:01:00] membership. Where the client, you know, pays monthly or annually, those are common and exclusive benefits to those members. So think of that upgraded membership idea of your, of your gym, like your rec center or, you know, things like that, that are relevant. 

[00:01:15] suzanne: Referral rewards could be one of the ideas out of it. Some will do punch cards, like physical punch card. Think of your old style coffee card. Yeah. But they're now on apps. Bubble  

[00:01:27] darine: tea always has punch cards too. Which one? Bubble tea. Yeah.  

[00:01:32] suzanne: And you can just make it really simple on Canva, these things too, right? 

[00:01:35] suzanne: They're free. Not all the, not all the images are free, but you can work around it and develop your own and then yeah. So basically it's giving them perks. Of why discounts exclusive perks or, or information first time inviting them to things. But  

[00:01:52] darine: yeah, so basically like the pros of having a loyalty program it's going to help you. 

[00:01:58] darine: ,maintain client retention, like [00:02:00] get people to keep coming back because they want to get points so that they can get stuff out of it. Increase that client  

[00:02:06] suzanne: retention, absolutely. Which in turn boosts your revenue.  

[00:02:09] darine: And give yourself that little bit of an edge, perhaps. Like, it's one thing that you can do that sets you apart. 

[00:02:16] darine: And that, I mean, other people could have it too, but then figuring out ways of how yours could be different. Exactly, yeah. And  

[00:02:23] suzanne: it does, like  

[00:02:24] darine: I  

[00:02:24] suzanne: said brand that, brand the loyalty side of, of you, like you're building you, you're the brand.  

[00:02:33] darine: Yeah, it is, it's big for loyalty.  

[00:02:35] suzanne: It is.  

[00:02:36] darine: And considering if that's something you want to do, you have to look at what are the cons of it. 

[00:02:41] darine: And you've touched on a couple of them, but if we go like. Putting it into place is going to take more work. That initial setup, you have to think things through, you have to clearly identify the term, and all of that. That in itself is going to be a pain in the butt, but once you do [00:03:00] it, it's done. 

[00:03:00] darine: But it is that investment of time at the beginning and then there's that continuous investment. You have to You have to find a way to track your points. Or whatever system you decide to go with, right?  

[00:03:13] suzanne: And are  

[00:03:14] darine: there any others that you can think of for like cons?  

[00:03:16] suzanne: Well, if you're not clear, you're going to have sometimes people that will exploit that. 

[00:03:23] suzanne: I hate to say it, but it's out there. We all know that. 100%. Yeah. So maybe have someone look it over. And be devil's advocate to find the Nate. Like, how can I really find the loopholes in your system? What else could be, what are the clients actually expecting out of it? So again, it could be. 

[00:03:42] suzanne: Dissatisfying and then maybe it's not as good as you think it is.  

[00:03:45] darine: Mm hmm.  

[00:03:46] darine: And  

[00:03:46] suzanne: the other side is if you are going to do this, you need to be committed for a long term with this. 

[00:03:51] suzanne: You can't just try it for a little bit and then take it away. Your clients are going to be upset. Oh, here's, here's what I'll say. Air Canada has [00:04:00] now added, you're going to have to pay for your carry on. People have gone ballistic over that. I'm taking on another avenue, but another way, but that's, like, when you do changes, taking something away or implementing something new, think about what you're doing. 

[00:04:14] suzanne: If you can't commit to this for a very long term, You know, maybe it's not for you, you know, so really think it through. Don't be impulsive that you're just trying to be competitive with other people or doing what they're doing. So you can even do if you wanted to trial it, say for the next six months, we're doing this system, but it ends on this date. 

[00:04:36] suzanne: Like it's okay to put an end date to it, but you got to tell them before it starts before they're involved. I think it's, it's a good way to look at it, but administratively find your systems. That's going to work. I always say spreadsheet. Like try to find a way to track it that helps you understand your clients understand what's going on and a point system like if you do have, there's [00:05:00] some software programs already that have it. 

[00:05:02] suzanne: I don't know what they are, but maybe look into currently if you're already using what Square is a big one like look into it. Maybe it's just a small upgrade that you need to do to have it already set up for you. And it's really clear for your clients. I think that's the big part.  

[00:05:16] darine: I'm sure there is. 

[00:05:17] suzanne: Yeah. I think like those key considerations,. Keeping it simple. Don't complicate it and confuse your staff if you've got staff. Make sure they know what's going on and how it works. Do not sway from those. Okay, just for you, I'll do it. Yeah,  

[00:05:30] darine: no exceptions. 

[00:05:31] darine: No  

[00:05:32] suzanne: exceptions. Just stick with your guns, people. Yeah. And measure the effectiveness. So again, you want to see, is it really working? Maybe you're just starting with a punch card idea, right? Nothing's wrong with that. Punch, punch for every facial or every 50 you spend, or I don't know, like, you can keep it very simple. .  

[00:05:49] darine: Mm-hmm .  

[00:05:50] suzanne: So I have an example in this kind of when on a facial technician side of things, like every avenue of the aesthetics world will have [00:06:00] that. But if you have everything in, like you offer manicure, pedicure, lash, facials, waxing, like then just have one I wouldn't do it by service point. Right. So if you're a technician or a lash tech or like then you serve it like it's only what you're doing, but this in this aspect, when you do everything in one place, I would just brought it to all of it. 

[00:06:25] suzanne: So on that aspect, I think point systems work really well and make it really simple for every dollar you spend, you earn a point. And people go, Oh, what does that mean? Well, okay. So then you got to dive into what does that look like? You could offer tiers. So say three levels name the tiers there. It's, I think it's fun. 

[00:06:46] suzanne: So like, for example, this is a facial one for facial technicians. So radiant members from zero to 250 points. This is what you will have. So for 5 off your next facial after you've earned a hundred points. [00:07:00] Very specific. There's no room for error. It's 100 points, 5 off, or whatever you want to do, right? 

[00:07:08] suzanne: Or access to exclusive promotions. So you're going to send it out to them first. I can tell you that worked very well for my VIP. When I had it they felt like they got the first word. So, because while supplies last, it's a big one, right? I did more exclusive promotions on products or gift, like packages that came out with my products or I don't know, there was an exclusive facial I created for the month of February is coming. 

[00:07:37] suzanne: It was chocolate. I had 24 treatments set aside and it's like, you get access first before I open this to the public. Do you want any bookings? I'm being very blunt like this, but to them, I, you know, sent out very nicely professionally, but gave him first dibs on doing it is basically what you're saying. 

[00:07:56] suzanne: You got to get creative. I'd say three points at least to having this [00:08:00] would be really important. So that exclusive to promotions, and then you've got to follow through with it. You better have a plan if you're implementing this. What does that look like for you? And then you can also add for every 250 points, add a complimentary. 

[00:08:16] suzanne: Add on service for free, like a hand massage if you don't do it right now. That LED service. What else could you, like, you know what I mean? Like, you know, adding a sweep of microneedling. Yeah, or doing like an  

[00:08:29] darine: eye mask during a facial. You get an eye mask or something like that. Right, exactly. I keep  

[00:08:33] suzanne: going to facials, sorry. 

[00:08:35] suzanne: No, it is facials and you're right, that's completely it. Prioritizing access to a new treatment has come out. Like, you're letting them know first with a discount. So it's not a point. It's just being exclusive in that tier that they fall in. And that's something to look at or someone just going to keep doing and earning. 

[00:08:51] suzanne: So, and then everything like say over 500. So it's like you go to superstore and they say, would you like to redeem your points today? No, I'm [00:09:00] waiting for over 500 because I'm going to have 25 off my next facial, you know, like, so they don't have to redeem anything. They can keep building their points, but how do you keep building? 

[00:09:10] suzanne: Right. And then I, on that, I would say some people say, well, do you renew that every year? It's like, no, let them build my opinion. Maybe they're saving, maybe they're only coming in for bio waxing, for example. They really want a facial, they can't afford it. This is how they're going to get one. But they're choosing you, and that's important, right? 

[00:09:29] suzanne: Exactly. Exactly. Another one, enrollment can be fun with this, is like you're going to give them free points for their first appointment. 50 points for your first appointment. Or referring  

[00:09:41] darine: somebody.  

[00:09:41] suzanne: Referring, yeah. So what I have on here is how clients can earn points. So every dollar spent on a service or a product, they get one point. 

[00:09:51] suzanne: Making it simple. Refer a friend, 50 points. Book an advanced facial, whatever that means to you, right, as a facial [00:10:00] technician, bonus of 25 points. So they're going to get points for the facial, plus an additional 25 points for booking it. If that makes sense. Mm hmm. Yeah, it does. Write a review on Google. Oh, I like that. 

[00:10:14] suzanne: Right? Follow you on social media, 10 points one time only. Booking a package. Maybe you do mani pedi facial thing bonus or, or you're doing a lash lift and tint and now you're adding brow lamination tint. That could be a package, whatever your packages are at a bonus of 20 points. They might spend more, right? 

[00:10:35] suzanne: So then that's how clients earn their points. Now, what about redemption? How are they going to use their points? So then you want to be specific. And I wouldn't change it and say, no, no, I don't want that. I wanted this instead. Would you do it? Stick with it. Is what I'm saying. So that's a facial technician. 

[00:10:53] suzanne: So a hundred points 10 off your next facial example 200 points, a free add on and you can give them [00:11:00] examples. Choose one, two, or three. That's it. A sweep of microdermabrasion a light glycolic sweep. I don't know, like things that are quick for you and not costly, that's important. 300 points, 15% off a facial package. 

[00:11:15] suzanne: So that could mean they're, they can use 300 points and get 15 off of their series of facial treatments. They're, you're doing three treatments once a week. And you're probably discounting it already. Hopefully you are. For example, you're charging for one, I don't know, microneedling session, one a month or every six weeks or 10 months, whatever it may be. 

[00:11:37] suzanne: One session is 250, but you're going to do weekly for three weeks in a row. You can drop that to 200 or I'm just throwing numbers out. Now they can actually get 15 percent off. That series and redeem their 300 points to get it, but they've spent money for it. Right? So you're not losing money in the end because they've already [00:12:00] spent that on you. 

[00:12:01] suzanne: You know what I mean? A 500 points, 25 gift card that you use it how they want, or they get a deluxe facial of whatever you're, whatever you want to call it.  

[00:12:13] darine: Yeah. And this is like, just think about money you would spend marketing. Like this is your time to do that. Facial is. Equivalent to whatever, you know, it's just dollars towards your marketing budget. 

[00:12:25] suzanne: Yeah, and I just do like a little, you know, like a, you do points, rewards, how many points on a list, right down the list, 100, 200, 300, 400, 500 or more. This is what you get for 100, 200, 300, 400, 500 or more, like make it simple. Done, whatever that resonates to you in the service you're offering. You can also add a fun times of marketing. 

[00:12:51] suzanne: That's why I say, we're always talking about being creative double points day. So you can have a slow period and you know, it's going to be slow. [00:13:00] Set it up. A good idea. Yeah. Right. So you can also do seasonal, like maybe even, maybe you do all of it. Who knows seasonal bonuses. Like it's the winter hydration boost. 

[00:13:10] suzanne: Earn extra points, whatever that book, your hydration, facial book, your chemical peel book, your whatever that may be. If you're highlighting some new service, maybe that's their points. Get an additional a hundred points. If you book this new treatment that you're offering. But a big one is a referral. 

[00:13:27] suzanne: Like you do the, I have so many people that don't do anything referrals. That's huge. Like you spend it there. Like here's 50 points for a referral. That's 50. That they're earning. That's big. That's huge. Meaning not, it is 50, but how they redeem the points. I'm just speaking on that aspect. You know they spent that coming into you, that referral, right? 

[00:13:51] suzanne: And then also the new client coming in for that first time, receive a discount for coming. So it's dual. And some people go, I can't afford that. But you're not [00:14:00] looking long term. You're just immediately looking at the moment of the booking. You got to think long term when it comes to that stuff. Right.  

[00:14:07] darine: And you got to track of it and see what's working. 

[00:14:10] darine: Right.  

[00:14:10] suzanne: Yeah. Like you, if you're doing birthdays, then you have to have some sort of system tracking birthdays. And what, what I used to do is it's the month of January is coming. We're in December right now. So I would look at, okay, who are my birthday people coming out in January? And the first of the month, everyone sent. 

[00:14:30] suzanne: Happy birthday. Here's your 25 bonus points. Wishing you a wonderful day. You need to do it by months. If you, if you have the time and you can exclusively do each person. Wow. That's really great customer care. However, if you're busy more than likely, I just do birthday month and everybody gets that bonus of whatever you want it to say. 

[00:14:50] suzanne: Right. I think that's key, you know? Yeah. I think all those benefits, it's like, it's really encouraging the loyalty With your [00:15:00] clients. The upsells add on like you don't have to do that anymore. They're free. That sounds better than you upselling them. You get it for free with this. It gives them a chance to try it. 

[00:15:11] suzanne: It might introduce them like a lot of people underestimate microneedling or nanoneedling and then like, Oh my God, that's amazing. The difference. So what's the one time that you've done it for them? They've earned it. They've spent money with you already and their loyalty. And they're more likely to come back for it too, right? 

[00:15:27] suzanne: Exactly. I want that on all my facials. Well, guess what? With your points you can now, or you can, you get extra points cause it's up. Like, it's still a win win for your clients if you point those out. Boost the referrals, that word of mouth, that is the best way, the key way to marketing, I still feel. And enhance the personal connection, because that's what you're doing with your clients is that birthday party. 

[00:15:50] suzanne: Happy birthday, happy anniversary.  

[00:15:51] darine: Building  

[00:15:52] suzanne: relationships  

[00:15:53] darine: with them,  

[00:15:53] suzanne: right? Yep. They're going to feel more valued by you. And I think that's a huge part. So, [00:16:00] yeah, that's kind of an idea. So I can recap that for people if they want to understand a bit more. So you want to have the action of, okay, what are they getting? 

[00:16:10] suzanne: How do they get the points? How are they going to build these points? How many points do they get for it? Like, refer a friend, you get 50 points. The other thing is redemption of their point options. So that I would make it really clear. Say go by hundreds, like 100 points. You receive 10 off your next facial or 10 off your next service over 50. 

[00:16:34] suzanne: Like you can be, especially if you're offering many things. Yeah. Maybe you're offering, I don't know, waxing, and you know a lip wax is 15, you're going to get 10 off that, maybe you're going to put a limit to it with your 50, so that, you know, some are going to say, it's okay, I'll just do it for that anyways, but you make those decisions yourself. 

[00:16:55] suzanne: 200 points. That free add on that you normally would [00:17:00] ask them to spend money on, right? The LED light, a special mask, a nano needle sweep once, whatever that may be. Paraffin on the hands. Whatever that think outside the box 400 points, a mini facial, or maybe it's that a gua sha lymphatic drainage in the massage portion, you know, of the face or you're adding it to the back facial, like however you see that. 

[00:17:28] suzanne: And then 500 points, you get a 25 gift card. Or, you get a free service, a deluxe facial, or be specific, what does that mean? Some are really like, lash techs for example, I know some that after your, because they're coming every three weeks roughly, to you, right? After your 500 points you get a free fill. 

[00:17:52] suzanne: But those are your regular clients, they're not coming in months later, they have to fall within that, so you gotta be, make sure you're really clear. Yeah. [00:18:00]  

[00:18:00] darine: Yeah. Fine print. Put it in the fine print. Fine  

[00:18:02] suzanne: print. Yeah. Be really clear. And you know what? I have I've encouraged some technicians out there, whatever they're doing, they have that one client that love coming to them. 

[00:18:12] suzanne: They always come. They're honest. They're the people you can ask them. They're not going to change and say, you know, I would love that idea. I would love that. Oh my God, I get 50 points for my birthday. That's fantastic. What would you use it on? Ask them. Dig, find out. So then you, what would you not want to use it on and why, you know, so Yeah, that's  

[00:18:34] darine: a really  

[00:18:34] suzanne: good  

[00:18:34] darine: suggestion. 

[00:18:35] darine: It's called market research. Ask your people and see if they, what they think, because that's who you're doing it for.  

[00:18:42] suzanne: Exactly.  

[00:18:43] darine: Yeah.  

[00:18:43] suzanne: So, I mean, there's a lot out there. I mean, we always say you can AI that. Lots of great ideas, be specific to your, your craft if you're doing nails or you're doing waxing only, or I do everything in the beauty service from these [00:19:00] services, how could I set up my loyalty program or my points system, what are your suggestions? 

[00:19:05] suzanne: Boom, keep asking, it'll dig it out for you, I mean. You know?  

[00:19:09] darine: Yeah, and check out, check out like the software you already use, maybe they have something. Suggestions, yeah. Yeah, I also like, look at some of the loyalty programs that you're a part of, and what do you like about them, and what don't you like, and how can you emulate it to suit your business, for example. 

[00:19:26] darine: Exactly. Yeah. Awesome. Well, hopefully this has been helpful to our listeners and if anyone does have a loyalty program already and would like to share some of their feedback, reach out to us. We have our, contact form in the show description that you can fill out and let us know your thoughts.