Ask the Experts: With the launch of Groupon and other deal websites, how can I keep my customers loyal without discounting?

It seems that everywhere you turn now there is a deal site offering beauty services at ridiculously low prices.

A couple of years back this deal phenomenon occurred in the UK, but the good salons who had the sense to resist this deal mania actually strengthened their business through it all.

There are so many things you can do rather than discounting, and I’m going to let you in on some of these here that have worked really well:

• Exceptional client care needs to be the norm in your salon. You have to raise your level of customer service to a point where your services become “price irrelevant”. When your customer service is exceptional, you will be rewarded with client loyalty.

• You really do need to keep in touch with your clients between salon visits. Send them useful, informative beauty tips as well as relevant news on new treatments. Do this and you will really stand out as an expert in your client’s eyes. This interaction will also keep the client distracted from the deal site offers.

• Don’t pay too much attention to what other salons are doing – instead, focus on delivering quality treatments and service to the clients you already have to keep them loyal to you.

• Focus fully on the clients you have. Work out who your ideal client is, and focus on marketing to them. Not every client wants offers. They want to be made to feel special and part of your business, rather than just another number that comes through your door.

• Stay true to your pricing and don’t discount. Once you slash prices you devalue your business in your clients’ eyes. Drop your prices and it’s extremely difficult to get them back up again.

• Think about the message you’re sending to your client when you discount – you are telling them that you can afford to perform the treatment more cheaply…even though you really can’t.

• My experience has always been that clients would rather have a special treat to make them feel valued and special. This could be something as simple as offering an eyebrow shape as a complimentary gift with their facial treatment. It costs you little more than five minutes' extra time, but is of high value to a client. Look at the extra little touches you can add to treatments to turn them into signature treatments. When it’s your very own signature treatment, clients won’t be able to find what you are offering on any deal site.

• A good way to make sure you are offering the best service is to picture your clients as investors in your business. Enroll them into your imaginary VIP membership that has no contract, meaning they can leave at any time.

What things would you do differently to keep these members? This goes far beyond any usual loyalty scheme. You would keep in touch, host events and give them special treats. The two most important things that you must implement are:

1. You must rebook clients every time before they leave your salon. If possible, book further ahead than just their next appointment. If your clients’ appointments are already made, they tend not to look elsewhere. It amazes me how salons let clients leave and then keep their fingers crossed that they will remember when they are due to return. Again, you could incentivise the client. You could offer an extra complimentary treatment for every sixth booking when they book in advance. Have a rebooking script for the team to follow, informing clients that it is best to book ahead to get the time slot they want.

2. Always try to make sure your clients have more than one service with you. It has been proven that client loyalty will be around 50% if they receive one treatment from you. This percentage moves to 75% with two services, 85% with three, and 95% if they receive four different services. If your clients book a range of treatments with you, then you have a far greater chance of keeping them.

Susan Routledge has been involved in the UK beauty industry for over 30 years, and has won over 10 national business awards for her expertise. Routledge is a salon business consultant, speaker and awards judge, and still owns and runs her own salon Finishing Touch Clinic in the UK. She is the Author of The Little Book of Client Retention and is as passionate about great business as the day she started. Find out more at www.susanroutledge.com