Rewarding your clients for their loyalty will encourage repeat business. This will increase your FOV, revenue, and also create positive purchasing behaviors, which is vital to your long-term growth.
Follow these simple steps and watch how it will lead to growth. It’s also important to understand that for this program to be successful, your staff must believe in it as well. Explain to them that when done the right way, a loyalty program will bring increased retention, sales, FOV, and more referrals. It’s a win-win for everyone.
STEP 1: Identify areas of your business that need improvement, (e.g. FOV, client retention and average ticket, and retail sales. Other areas may include productivity, new clients per month, new client retention, and repeat retention).
STEP 2: Create a start and end time for a rewards program, then determine a points-to-value ratio, (i.e. 1,000 points = $1.00). You’ll want to do this right away. It’s also important to know what actions give your clients points and how many points. You might give different points when a client tries a new service than when a client pre-books their next appointment, depending where your business is lacking.
STEP 3: Decide how points are earned. Depending where your business is lacking, you can offer points for pre-booking, referring a client, buying retail, or trying a product for the first time. If your retail sales are down, reward clients for purchasing a new product or spending a certain amount. If your new clients per month numbers are low, then reward clients for referrals. That’s the beauty of this program. You can create buying behaviors that support areas of your business that are struggling.
Other rewardable actions include:
- – Points for package/series purchases
- – Points for gift certificate purchases
- – Points for scheduling appointments through online booking
- – And more
STEP 4: Promote the loyalty program with e-blasts, printed materials, and your website. This is very important. By promoting this rewards system, you start to build a culture around it for both clients and your staff. Your clients will know that their actions will be rewarded, which builds trust, and your staff will push those actions knowing it will ultimately benefit them. It’s also important to show your clients how many points they have earned. You can do this by displaying their points total in the paying client search field or on the bottom of their receipts.
Other ways to promote your program:
- – Displays/signage
STEP 5: Set security restrictions within Millennium to ensure that points aren’t added or taken away. You don’t want any discrepancies with your clients regarding points earned. This will result in loss of trust between your business and your clients.
STEP 6: Run Millennium reports like the MR230 (points and rewards earned) or MR235 (points and rewards redeemed), and see the success! There are multiple reports you can run from the register screen. Some include:
MR080 REGISTER SUMMARY
MR126 LIABILITIES ABOUT TO EXPIRE
MR100 PAYMENT DETAILS
STEP 7: Call your Millennium representative at 973.402.9500 for any questions! (Current clients call Support at 973.402.8801)
For more information, please visit harms-software.com