Having a salon membership is becoming one of the biggest growth areas for our Salon Cadence clients. Now more than ever, we need to find new ways to survive and thrive in this ever-changing industry.
It’s no secret, living in the so-called “information age” has made it far easier for us to market our businesses to people across the globe. However, it has also made it easier for our competitors to tap into our markets and subsequently, reduce our own profits. Therefore, as a business owner, finding the best ways to boost profits is vital to the longevity of your business. This is especially the case for those who are doing business in the beauty sector.
Since the beauty industry is service-driven and is fueled by aesthetics and innovation, beauty salon owners must always be in tune with their customer base while also finding ways to expand it. One method of doing this is by offering a salon membership. With that in mind, here is an overview of the benefits of offering a salon membership and the steps you need to take to create one of your own.
What is a Salon Membership?
For those who are yet unfamiliar, a salon membership is a subscription service in which your clients pay a monthly fee rather than paying per appointment. This membership fee covers an unlimited amount of appointments, based on the tier you are subscribed to. This obviously means that those who pay more will have access to more premium services, while those who choose the lower tiers will have access to more basic services. Moreover, memberships often include contracts (either month-to-month or annual), which mandate that the client must pay their monthly fees (or in some cases, annual fees), or face a financial penalty.
So, to apply this to the salon industry, you may roll out a 3-tier membership; The lowest level could include a wash and shampoo, the second tier may offer a cut and color, and the highest tier may offer more intricate services such as extensions, fusions, etc.
Benefits of a Salon Membership?
Now that we know what a salon membership is, let’s take a look at some of the benefits of creating a membership service for your own salon:
Customer Loyalty:
One of the top benefits of offering a salon membership is that it can help create customer loyalty. By offering unlimited services for one monthly price, your customers are more likely to stick with you for the long-term. However, this is only providing that you are able to consistently fulfill your end of the bargain.
Brand Building:
Additionally, creating a salon membership is an excellent method of building a brand. By creating a membership service, you will be offering your clients the ability to be a part of something exclusive. Given that there will only be a limited number of slots available, adding a membership will give your clients the sense that they are a part of something exclusive. This will further build your reputation and help expand your brand.
Steadier Income:
Given that the beauty industry can be so fickle, creating a membership can be an excellent way to ensure that you keep money coming in no matter what. Rather than waiting for your clients to book appointments to get paid, you will be able to make your finances more secure by charging them one lump sum monthly.
Boost Profits:
Lastly, you can create a salon membership to boost profits. Given that you are able to set your price points and determine how many clients you are accepting for each tier, you can also use memberships to boost your profits.
How to Create a Salon Membership
If you want to create a salon membership, you simply need to complete the following steps:
Name your Prices:
The first step is to create your price points. No matter if you choose to have just one tier, a few tiers, or more, you need to take the time to decide how many tiers you will have and how much you charge. This should be based on your own financial needs, as well as the manpower you have available.
Select your Services:
Next, you need to select the types of services you plan to offer. As mentioned, you can offer basic services, such as a wash and style or you can offer more complex services, such as extensions. Moreover, if you have a full-service salon, you can also offer bundles that include manicures, pedicures, photoshoot services, etc.
Choose the Number of Available Slots:
After that, you need to figure out the number of slots you can accept for each tier. To do this, you simply need to calculate how many clients you can serve on a monthly basis and offer a portion of those slots to your subscribers. However, unless you want to offer subscription services exclusively, you need to be sure to leave a certain amount of appointments open for new and sporadic clients.
Market your Services:
Once you have figured out the first three steps, you need to take the time to market your services. To do so, you should promote it on your website as well as all of your social media pages. Additionally, you may also want to create incentives for subscribing to your service. For instance, one common method of attracting new subscribers is by making the services discounted when they purchase a subscription. Moreover, you could also provide them with deeper discounts or account credits for getting others to subscribe to your service. To take it a step further, you could even provide them with access to exclusive merchandise or events.
Overall, if you are looking for a great way to increase your salon profits, creating a subscription service is an excellent option. This is because they allow you to receive regular payments for services that you are already providing. Also, it allows you to create a more stable income for your salon. In an age in which the business sector is more certain than ever, this is vital to sustaining your business. Therefore, if you are looking for a relatively simple method of increasing your profits in the near future and for the long-term, creating a salon membership may be your best option.
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Click here to learn about our Salon Cadence Discovery Call and how we help our clients with membership programs and other profitable programs.
You can also check out our library of articles to get more great ideas for your salon and beauty business.