You have worked on your marketing and promotions and you have new customers coming in daily. But it's a never ending exercise and it can get exhausting. It's very expensive and a constant battle having to come up with innovative ways to bring in more new customers. While you focus so much on bringing in new customers in the hope to bring in more profits, have you ever wondered what would happen if all your new customers re-booked and came back? Do you have a 100% re-booking rate? If you do, congratulations! You will soon be unable to accept new customers unless you expand.
If however you find your customers retention rate is poor, have you ever wondered why your customers don't come back? I'm not saying that getting new customers is not important, businesses need to grow, but the only way the business will grow is to retain customers and build loyalty. Beauty businesses who have a strong loyal client base are far more resilient that businesses that rely on walk-by traffic.
Do you have customers on your database you haven't seen for some time? Did you know that if you could get back just 5% of your lost customers, you can potentially increase your profits by 25% - 125%? We all know that it is far easier to sell to an existing customer than to a new one. Studies show that repeat customers spend 33% more that new customers. This is because they already have a relationship with you, they know you and they trust you.
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With so much competition in the beauty industry, customers are selective and choose to go back when they feel like they are important to you. Of those that don't come back, 68% leave because they felt you or the people in your business didn't care enough. This is really mind blowing, the reality is that it's not the product or the beauty services your business delivers, but HOW you deliver it. It's all about the delivery, the attitude of your staff, their ability to connect with your customers to make them feel truly special. It's about creating an amazing experience that will make your customers want more.
Truly exceptional service is a skill and a mindset. The mindset you and your staff have to be in is that of complete focus and attention on the client when they are with you, how to make them feel more comfortable, how to create an amazing and unique experience and how to find and deliver a solution to their problem. The skills that are required include superior interpersonal and communication skills, knowing how to really listen and ask great questions. Being in the service industry, demonstrating good etiquette, manners, grace and style are very important in delivering exceptional service. Do you feel your business can deliver this better than your competitors? If they are not completely satisfied, 9% of your customers will leave because they tried the competition and liked them better.
Businesses that focus on the customer experience generate 60% higher profits than their competitors.
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