• sWorks.io

5 Reasons to Introduce Loyalty & Rewards Incentives

Updated: Dec 6, 2021

Did you know that 80% of your business revenue comes from 20% of your customers? The popular 80:20 rule has helped businesses understand the importance of building loyalty to ensure long-term relationships with customers for decades.

For spa and salon owners, the relationship with their customers is always more personal, since many come with specific issues, looking for certain treatments, and need a lot of custom guidance. Since the opportunity for personal care exists, it’s even more important to take that opportunity forward and build a rewarding relationship with your customers. By introducing a loyalty and rewards program, you can keep your customers coming back to you.


Here are our top 5 reasons to introduce loyalty & rewards incentives:


1. Access to Customer Data


10% of customers spend three times more on any given purchase, and the top 1% of customers spend as much as five times more per order.

Data is king when it comes to providing the best experience for your customers. By understanding past bookings, different levels of customer loyalty programs can be created, where certain spa or salon services can be provided at a discounted rate or as complementary add-ons. According to the data, 10% of customers spend three times more on any given purchase, and the top 1% of customers spend as much as five times more per order. So, if these customers were recognized early, and also introduced to a loyalty program catered to them, the feeling of exclusivity and the reward mechanism in a customer’s mind would build brand loyalty and better customer lifetime value.


How can you access your customer’s data easily? Easy. By building a custom app for your spa or salon business. Here’s a quick guide as to how sWorks can help.


2. Personalize Easily


The most recent statistics show that acquiring a new customer can be five to 25 times more expensive than retaining a client

The most recent statistics show that acquiring a new customer can be five to 25 times more expensive than retaining a client, which means that providing a better service to current customers would be more fruitful and provide a better ROI rather than going out and seeking business. For this reason, understanding what a customer likes and dislikes would be crucial in building a personalized relationship with the client. This also makes the brand stand out, by creating a custom experience rather than a templatized one.


3. Create Word-of-Mouth Sales


A referral incentive program could incite more than 50% of people to refer new customers to your business


Through easy referral programs, customers can easily recommend the brand to their friends or family and get discounts for every new customer they can get on board. A referral incentive program could incite more than 50% of people to refer new customers to your business. However, it’s important to have an easy way to be referred and to track it effectively as well. The best way for this is to have a custom code, that can be traced back to the original customer who has made the referrals. For this, having a custom salon or spa app in place would make tracking and creating the subsequent loyalty programs easier.


Want to implement a referral system for your salon or spa business? Here’s how you can get started.



4. Enhance Customer Loyalty


Studies show that 69% of customers allow the presence of rewards or loyalty programs to influence their shopping decisions


Studies show that 69% of customers allow the presence of rewards or loyalty programs to influence their shopping decisions. To ensure that customers choose your salon or spa instead of others, implement a loyalty program that will ensure that your customers keep coming back. Supplement this with great service, and you’ve got a lesser need to spend on marketing budgets, focusing all energies into your service.


5. Cross-sell or Upsell

58% of consumers go back to the same brands at least once a month if they’ve signed up for a loyalty program

Through a loyalty program, you can ensure that you increase your revenue by cross-selling or up-selling techniques. By introducing a discounted service in addition to a service already being offered, or selling a certain product that was used to provide a service as after-care or for maintenance are avenues that can be explored by your spa or salon to increase business revenue. Current data shows that 58% of consumers go back to the same brands at least once a month if they’ve signed up for a loyalty program. This means you’ll not only have increase revenue, but also a steady income.


Loyalty programs are a great way to continue relationships with your customers. They’re not just about accumulating points, but rather increasing the satisfaction that the customer derives from their entire experience with your brand. If the service that you provide is great, creating a loyalty program will ensure that their review goes from being just great to be amazing! The sense of getting something back from a service provider always ensures a winning experience and can act as the cherry on top, making your salon or spa stand out more than the others.


In the era of digital, customers will no longer wait to be physically informed about the loyalty points or rewards that they’ve accumulated. Taking a classic example of Starbucks, through their mobile app, they’ve created an easy way to ensure customers keep spending more to accumulate points, in addition to building their brand loyalty. A mobile phone is the most direct access to a customer, bridging the gap that other communication methods may not be able to accomplish, which is why creating a custom app for your brand becomes a must. Not only does it create unique branding for your salon or spa, but also helps take the existing customer relationship to greater heights, and assist the loyalty and rewards programs.


Don’t wait any longer! Get started with your personal app for your spa and salon, and increase your revenue. Get started with a personalized demo starting from $500 only!