Did you know every new client is worth about $530 per year? And that most salons bring in around 1100 new customers each year? Imagine if you could increase the number of new clients you bring in by just 10. You could increase your profits by as much as $58,300 a year. Encouraging your clients to refer their family and friends is easy, just follow these four simple steps.
1. Provide great service
It really goes without saying, but the starting point for encouraging more referrals is to meet your clients’ expectations. This means providing the experience your customers expect, at a price they are happy to pay. This applies whether you’re a premium hair salon, a walk-in nail bar, or somewhere in between. Perfecting this balance can take some work, but once you achieve it your referrals will naturally increase.
2. Treat your clients
You don’t have to shower them with gifts, but if you offer your clients a special treat now and then, chances are they will be delighted enough to tell their friends. Try offering a hand massage while their colour is processing, or throw in some free samples with their facial. It doesn’t have to cost you much – but it will get them talking about how much they love your business.
3. Follow through
You’d be surprised how many salons tell clients they will reward them if they refer a friend… and then never get around to actually providing the promised discount or free gift. This can be pretty uncomfortable for clients who have been sending new clients your way, but who don’t want to brag about it. To make sure you always know who is referring who, always ask each new customer how they heard about you.
4. Say thanks
Saying thank you is easy – and you can even make it automatic. It’s as simple as recording referral details in your system when a client visits for the first time, and letting your automated marketing take care of the rest for you. Best of all, you have complete flexibility to choose what you’d like to offer your clients as a thank you – it could be a discount on a product, a free service, or a gift voucher. There really is no easier way to start increasing your profits.
How are your referrals performing? If you have any tips you’d like to share, please comment below.