“It’s not because I’m particularly generous,” Keith says. “I just want to give my stylists a chance to build a relationship with the client and build my case for why they should become a loyal client.” Clever!
Spread the Love
This craze for sweetening the deal to attract new clients is what many claim has created the deal-chaser phenomenon, but Dani says that her clients are comfortable with their price points within the salon and continue coming for the service they offer. Focusing on all areas of the client lifecycle – from new client to returning client to loyal client - can help to avoid deal jealousy amongst existing clients. Have something that appeals to everyone and perhaps balance out new client promotions with Group-Off with promotions that reward loyal clients who haven’t been drawn away by the tempting offers arriving in their in-box.
Ultimately, taking advantage of collective buying is an opportunity to drive new client traffic through the door rather than a revenue generator in itself. Expecting to make boatloads of cash is setting yourself up for disappointment, but remember that selling your services for 50% and filling all your chairs with new clients is better than running your salon half empty. The likes of Groupon, Livingsocial.com and others can be great for new openings, staff additions, new services, salon expansion – wherever you have a lot of time slots to fill and need a quick boost of exposure to new clients. As long as this matches your salon brand, appeals to your clientele and isn’t misused it can help you build a thriving business.
What lessons have you learned when ‘dealing’ with deal sites?
BOX OFFICE HAIR
Owner: Keith Chandler
Details of Groupon Offer: $45 for $120 worth of services
Groupon Retention: 30%
18|8 FINE MEN'S SALONS
Based in: California
Marketing Director:Dani Armstrong
Details of Groupon Offer: $35 for two executive cuts; $35 for an executive cut and grooming service of own choice (50% off)
Groupon retention: 25-30%