As a salon professional, you’re constantly looking for ways to attract new clients and keep your regulars coming back. But discounts aren’t always the answer.
In fact, discounts might be doing more harm than good.
Let’s dive into why discounts can be dangerous for your salon and explore some smarter alternatives that’ll have clients lining up at your door.
Watch the short…
…or the full video of episode 13 of our Marketing 100 series.
Now, let’s dig into the article.
Why Salon Discounts Hurt Your Bottom Line
We get it. Discounts seem like a quick and easy way to fill up your appointment book. But let’s take a closer look at what’s really happening:
- You’re attracting the wrong crowd: Discount-seekers are often one-time visitors who won’t become loyal clients.
- Your brand value takes a hit: Regular discounts can make your services seem less valuable over time and reduce what clients are willing to pay.
- Existing clients feel cheated: Why should they pay full price when others are getting deals?
It’s often not the right client you’re attracting. It’s also undermining your price list.
Let me share a personal experience:
In my years working at salons and spas, I found that discount clients were often the most challenging. They tended to be more demanding and less loyal, only returning when there was another promotion. This experience reinforces why we need to rethink our approach to promotions.
So, what’s the solution? It’s time to shift our focus from discounts to value-added promotions.
Value-Added Salon Promotions: The Smart Way to Boost Business
Instead of slashing prices, let’s give clients more bang for their buck. Here’s how:
Strategic Add-Ons for Increased Value
Think about services that:
- Enhance the main service
- Don’t cost you much time or product
- Align with the service the client originally booked
For example, a quick deep conditioning treatment before a blowout adds value without eating into your profits.
Crafting Irresistible Salon Service Packages
Combine your core services with complementary add-ons. This approach:
- Increases the perceived value for clients
- Boosts your average ticket price
- Introduces clients to new services they might love
For instance, if you’re promoting a color service, you might include a complimentary scalp massage and a travel- or trial-size product. This package enhances the experience without significantly increasing your costs.
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Use Gift Card Promotions Wisely
Offer gift cards that can be given to friends or used by the purchaser later. This:
- Encourages future bookings
- Brings in new clients through referrals
- Creates a sense of exclusivity and value
How to Implement Value-Based Salon Promotions
Ready to put these ideas into action? Here’s your game plan:
1. Set up packages in your salon software: Use a platform like Mangomint to create and manage your new add-on services.
2. Launch targeted email campaigns: Don’t blast everyone with the same promotion. Tailor your offers based on client history and booking patterns.
3. Train your team: Make sure your staff understands the value of these new promotions and can explain them to clients effectively.
4. Monitor and adjust: Keep an eye on which combinations perform best and be ready to tweak your strategy as needed.
5. Consider evergreen promotions: Create ‘evergreen’ packages that are always available, such as a special offer for new clients. This approach provides consistent value without undermining your regular pricing structure.
Long-Term Benefits of Value-Based Salon Strategies
While discount promotions might bring in more immediate bookings, value-added promotions attract clients who are more likely to become regulars. As we found in our own campaigns:
The clients that booked with this value proposition actually stayed loyal.
Be prepared: value-added promotions might not show the same immediate spike in bookings as discount offers. However, the quality of clients and their long-term value to your business will likely be much higher.
When evaluating the success of your promotions, look beyond the initial numbers. While discount promotions might show lower cost-per-client acquisition, consider the lifetime value of these clients. As John points out:
It’s important to not only look at the numbers but also apply your intuition and common sense.
This approach aligns with research from Bain & Company, which found that increasing customer retention rates by just 5% can increase profits by 25% to 95%. Focusing on value rather than discounts can help you build this loyal customer base.
It’s not just about getting people through the door—it’s about building a clientele that values your expertise and keeps coming back for more.
Salon Promotions That Enhance Your Brand Image
If you’re positioning your salon as a premium brand, constant discounts can and will dilute that image. Your promotions should reflect and reinforce the unique value you offer. Value-added promotions allow you to maintain your premium positioning while still providing attractive offers to clients.
It’s not about being the cheapest. It’s about providing the best value and experience for your clients.
Rethink Your Promotion Strategy
Are you ready to ditch the discounts and embrace value-added promotions? It might take a bit more effort upfront, but the long-term benefits for your salon are better client retention and higher profit margin.
What unique package could you offer that aligns with your brand and excites your ideal clients?
And if you’re looking for a platform to help manage your new promotion strategy, we recommend try Mangomint for free.
Get ready to take your salon’s marketing to the next level. This is just the beginning of an amazing journey. Stay tuned for 88 more game-changing tips in our Marketing 100 series.
P.S. Don’t forget to subscribe to our YouTube channel to catch all 100 marketing tips. Your future self (and your booming business) will thank you.