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Management Practices

Launch a Successful Loyalty Program

Allan Labos | August 9, 2013 | 8:24 PM

A few weeks ago we got a call from one of our regular clients. “You are my first call,” she frantically explained. “I lost my wallet in a cab and need to inform you that my loyalty card was in it. I will be having services next week and value your points program, am I going to lose them?” Calls like this one happen frequently – we have come to understand the value and importance of this card.

Reward points are an easy and economical way to demonstrate appreciation towards your customer base; it encourages loyalty and expands shopping across the brand. Points redeemed are usually used to try out new services. If you have not yet created a points program, here is one that is simple to initiate and has proven successful.

When a client reaches these benchmarks, the following applies; each dollar spent on services or retail equals one point.

Benchmarks:

  • $1=1Point
  • 500 points = $15 gift card
  • 1000 points = $50 gift card
  • 2000 points = $140 gift card
  • 4000 points = $400 gift card

In addition, any client who refers another client automatically receives 200 points for doing so. Points can also be issued to induce customers into participating in special events, new services, or promotions.

Redeemed points are issued via a gift card that can be used towards their next purchase or service. This is done at the end of the current sales transaction after the customer has already settled for that day’s transaction. When redeeming points between benchmarks, clients will lose any accumulated points in-between benchmarks. 

Example:
725 points = $15 gift card and 0 points

Points can only be redeemed for one of the following: services, products, retail or gift cards. They cannot be used towards tipping a service provider.

When first initiating a loyalty card, your customer needs to provide you with a current email so you can send them notifications several times a year on any special event, promotion, or new services.

When a customer reaches a benchmark, we celebrate their success and thank them for their loyalty. Frequently I have seen our cash-out desk staff encourage customers about the benefits in continuing accumulating points and the extra rewards a higher benchmark will provide.

A points program also provides a higher level of customer participation and loyalty toward your team and brand, customers will think twice about getting services or retail elsewhere.

Before you start; consult your software provider, check that your current software enables the tracking of points, issuing, and replacing cards.

Treat points like you would treat other forms of payments and financial transactions; make sure you have a secure system in place.

Allan Labos has more than 30 years of beauty and style experience across the country and in Europe. He began his career under the tutelage of Vidal Sassoon in London and opened and managed Sassoon salons and schools in Los Angeles, San Francisco, Chicago and New York. For the past 25 years he has owned and operated Akari, a 20,000-square-foot business in Portland, Maine. Akari offers hair, nail and spa services and also includes a boutique, fitness center and medical spa. - See more at: http://www.salontoday.com/blogs/guest/allan-labos/How-to-Conduct-an-Effective-One-on-One-215263821.html?page=2#sthash.mdCtwf7L.dpuf

 

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