Gaining new customers may seem like the best way to help your business grow, but keeping those customers with a salon loyalty program is more effective in expanding your bottom line. With returning customers spending an average of two-thirds more in your establishment than first-timers, you need an effective way to keep them coming back. You can afford to reward your loyal clients with the perks of a great salon loyalty program. In fact, with the Bureau of Labor Statistics predicting faster than average growth in the spa and salon industry over the next decade, you can’t afford not to.

Hair Salon Loyalty Programs Nurture Repeat Business

The current popularity of customer loyalty programs shows how well they work for businesses of all kinds. Three-fourths of American consumers take part in at least one of these programs. Businesses spend around $50 billion every year on customer loyalty. Salon and spa loyalty programs give your business a powerful edge over those competitors who don’t have them.

The most popular formats for hair salon loyalty programs include:

• Punch card salon loyalty program
• Points-based spa loyalty program
• Tiered points-based reward system
• Subscription membership program

The punch card is easily the simplest way to run hair salon promotions. You hand out a card to your customers, and then for each appointment and/or purchase, you punch their cards. When all the punches are filled, they exchange the card for a reward.

Points-based programs are a bit more sophisticated. Different services or purchase amounts earn a set number of points. Once the customer reaches the total you have set, you give them the reward. Then they start over at zero.

VIP tiered salon reward programs are still more complex. You set at least three levels, such as Pearl, Ruby and Diamond. At the first tier or Pearl level for example, customers need to spend $75 per month in the salon to qualify. They might reach their reward when their total reaches $750. The reward could be a free cut with a coloring purchase. The Ruby tier starts at $150 per month and the Diamond starts at $300 per month, and so on.

Monthly subscription memberships are a fairly recent take on the customer rewards prototype. Instead of tracking purchases for points, you charge a monthly rate for discounted products and services. You are still rewarding your loyal clients, but you are also getting a predictable influx of cash.

However you decide to format your salon loyalty program, you should take some tips from the top 10 spa reward programs in the nation. Each one presents a unique take on customer retention. Each management team has established a system that provides proven results.

Top 10 Hair Salon Loyalty Programs

Blo Blow Dry Bar

Based on the wash it, blow it and go format, Blo Blow Dry Bar first opened in 2007. It now has 130-plus locations in the U.S., the Philippines and Canada. Some locations offer spa services too.

The Mane Squeeze Rewards Program is Blo Blow’s customer retention plan. It works like a monthly subscription. You pay your membership fee every 30 days, and you get discounted products and services.

Blo Blow Dry Bar charges from $70 to $85 per month for Mane Squeeze membership, depending on the location. You get two blowouts that you can use at any location. Unused blowouts roll over for 90 days. If you need more blowouts in a month, they will cost you $5 as a member. You get a free visit on your birthday plus a 10-percent anytime discount on salon products.

Aveda Salon Pure Privilege

Horst Rechelbacher founded Aveda in 1978. Aveda salons owners operate independently, but they benefit from the corporate brand in attracting and retaining customers.

Pure Privilege is the Aveda customer retention program. You can enroll for a $10, one-time registration fee. As a Pure Privilege member, you get free shipping on all your Aveda orders.

For every dollar you spend, you receive 10 loyalty points. You also receive a birthday gift. On special occasions like your first order and your birthday, you earn double points per dollar.

You can redeem your Pure Privilege points in seven gift tiers. Tier 1 gifts, which include essential oils and travel-sized cosmetics, each cost 1500 points. In contrast, Tier 7 gifts, which are luxurious spa getaways, each cost 50,000 points. Pure Privilege earns top honors for its top tier reward selection.

Massage Green Spa Loyalty Program

Massage Green International offers massage, facial and other spa services in several states throughout the U.S. Its Member Rewards program is a point system that allows you to earn a point per dollar spent toward free aromatherapy, infrared sauna sessions, facials and massages.

If you purchase products, you earn double points. When you book your appointment online, you get 25 points. When you refer a friend who becomes a member, you get 500 points. You can earn rewards faster with this program than many others. Also, referring just two friends to membership earns you a free one-hour full-body massage.

Fantastic Sam’s Rewards Program

First opened in 1974, Fantastic Sam’s is among the largest national hair salon chains with 1,000 franchisees. Its rewards program is all online.

After stopping into an FS location to sign up for rewards, you earn a Fantastic Point for each dollar you spend. When you have earned 200 points, you receive a $10 certificate to use at any FS location.

As an added incentive to use the loyalty program, Fantastic Sam’s offers bonus points from time to time. In addition, this program is for the whole family. You all earn points together, so you can reach that 200-point benchmark sooner.

Fantastic Sam’s has a referral program as well that helps them attract new customers while rewarding current ones. If you refer someone to the company, that person receives a 20-percent off certificate to use at an FS salon. Once the individual redeems the coupon, you get your own reward.

SEVA Beauty Spa Loyalty Program

SEVA Beauty Salons offer hair styling and spa services like waxing, eyelash extensions and facials. Currently, there are just under 150 locations in 29 states and Puerto Rico. The first salon opened in 2008.

SEVA’s Beauty Bucks customer retention program is based on a point system. You earn points on each visit. When you have enough, you can redeem them for product and service discounts at the salon.

Each dollar spent equals a point, and each point is worth a nickel. Once you reach $1 in points/cash, you are free to spend your rewards on whatever you like at SEVA Beauty. This is different than most loyalty programs and offers you a lot more freedom in rewards.

It’s also easy for you to track your earnings. Each time you make a SEVA purchase, your receipt will show your Beauty Bank total. That’s important, because customers in other programs say their earnings are difficult to track.

Massage Envy Spa Loyalty Program

This nationally franchised wellness company opened its first location in 2002 and now boasts more than one million members. It offers massage and skin care services.

Massage envy has wrapped its rewards program together with its membership to create a strong customer retention tool. For a monthly fee, you get a one-hour massage, a total body stretch session or a full-service facial every 30 days plus discounts on added services. As a member, you also qualify for product discounts.

You can use your member credentials at any of the 1,150 Massage Envy locations. Any membership benefits you don’t use remain available to you from month to month. You can also earn free services with member referrals.

A Massage Envy membership is a good deal, since the monthly cost of $60 to $70 is roughly the same as a one-hour massage session, depending on the location you visit. If you plan on a regular massage/stretch/skin care routine, membership is your most cost-effective option.

Square Color Salon and Spa

This independent salon is located in Las Vegas. It has been named on Elle magazine’s annual best 100 salons list multiple times. Among its hair salon promotions are First Friday and a retail rewards program.

Each month on First Friday, Square rewards customers with a 20-percent discount on salon products and complimentary spa services. It also provides free cocktails and live music.

Additionally, Square Color Salon and Spa rewards you with a loyalty program. For every hundred dollars you spend in the salon, you get a 10-percent discount on a purchase. The one-point-per-dollar system never expires. This is great if you are a winter-only resident or just a periodic visitor to town.

Waxing the City Membership Rewards

Waxing the City is a spa/waxing franchise company where you can have your unwanted hair removed in a clean, professional environment. You can also get eyelash and brow cosmetic services. With locations in 36 states from coast to coast, Waxing the City typically has a salon near you.

Club Orange is the chain’s membership/rewards program. It offers 20-percent savings on waxing and 50-percent off new services you haven’t tried yet. Also, as a Club Orange member, you save 10 percent on product purchases. If you miss a month of waxing, it rolls over to the next month.

Vanity Hair and Makeup Studio

Vanity Hair and Makeup Studio is an independent business in historic Portsmouth, N.H. It opened in 2008. Like many salons and spas, it offers subscription membership tiers that double as a customer rewards program.

Ranging in price from a $40/month haircut membership to a $99 color and blowout subscription, Vanity’s memberships come with free extras like split end treatments and scalp massages.

The salon also has a $50/month products membership and a $75 blowout option. Each program offers discounted add-on services.

Cinta Salon

Cinta Salon in San Francisco likewise follows the emergent trend of membership discounts as rewards for loyal customers. A monthly membership fee of $85 gets you a pair of shampoos and blow dries every 30 days plus a complimentary keratase treatment and 10 percent off salon products. If you need another blow dry per month, it’s just $5.

You have another option if you’ll only be in town temporarily. Cinta offers an $85 membership for a single month only. This accommodates visitors as well as new customers who want to try it before committing to the longer term.

The Bottom Line on Loyalty Programs in Salons and Spas

Customer loyalty programs, whether offering perks, points or products, are a good investment for salon and spa owners. According to a Loyalty One study, loyalty members can contribute significantly to your beauty company’s annual sales. They spend two to three times as much as non-members. Given that most businesses spend less than five percent of their annual budgets on their customer rewards/membership programs, you stand to collect a healthy ROI on punch cards, points or monthly memberships.